UAE and Serbia Strengthen Ties with $351m CEPA Trade Agreement

The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates (UAE) and Serbia has officially taken effect, signifying a pivotal development in the economic relations between the two countries.

This accord is expected to bolster trade and investment avenues, creating opportunities for collaboration across diverse sectors in both nations.

UAE and Serbia CEPA Trade Deal

Dr. Thani bin Ahmed Al Zeyoudi, the UAE's Minister of State for Foreign Trade, noted, "The activation of the UAE-Serbia CEPA marks a new era in our economic relations, paving the way for collaborative ventures, investments, and trade, benefiting both our countries."

"This agreement is focused on unlocking significant opportunities that will generate employment, fortify supply chains, and cultivate a thriving ecosystem for businesses in both nations," he added.

The UAE-Serbia CEPA aims to significantly enhance bilateral non-oil trade, which was approximately $121.4 million in 2024, a doubling from 2021. Projections suggest this could grow to contribute $351 million to the UAE's GDP by 2031.

This growth is anticipated chiefly through the reduction of customs duties on over 96 percent of tariff lines, thereby promoting market access and encouraging private sector collaboration.

With its strategic location and diverse economy, Serbia remains a key partner for the UAE, acting as a vital entry point into Eastern Europe and the Balkans.

The CEPA not only aims to boost trade but also seeks to increase private sector partnerships and promote investments in key sectors such as renewable energy, agriculture, logistics, and technology.

The UAE ranks as Serbia’s leading trading partner within the Gulf Cooperation Council (GCC), accounting for around 55 percent of Serbia’s total trade with the region in 2023. This bilateral trade relationship is further reinforced by a steady flow of Foreign Direct Investment towards high-growth sectors, consolidating shared economic interests.

With the CEPA now ratified and operational, both nations are set to capitalize on the agreement's potential to drive economic progress and create beneficial opportunities for their populations.

The CEPA program is integral to the UAE’s strategic growth plans, aiming to escalate total non-oil trade to $1.1 trillion by 2031 and doubling the economy’s size to $800 billion by 2031.

The UAE-Serbia CEPA is the tenth agreement to be enacted among the 27 concluded globally, involving nations across the Middle East, Africa, Southeast Asia , South America, and Europe.