ABU DHABI / ISTANBUL

The United Arab Emirates and the European Union agreed Thursday to begin negotiations toward a Comprehensive Economic Partnership Agreement (CEPA) aimed at strengthening bilateral trade and investment ties, according to a joint announcement.

During a phone call, UAE President Sheikh Mohamed bin Zayed Al Nahyan and European Commission President Ursula von der Leyen affirmed their commitment to enhancing economic cooperation, as reported by the Emirates News Agency (WAM).

Sheikh Mohamed emphasized “the depth of relations between the UAE and EU” and said the decision to initiate CEPA talks reflects a “shared determination to unlock the full potential of cooperation and advance their economic, trade, and investment ties in support of development aims.”

The UAE leader added that the agreement would pave the way for greater trade and investment flows and create new opportunities for collaboration between business communities on both sides.

Von der Leyen described the move as “a step towards a more dynamic and robust phase in their economic cooperation,” reaffirming the strength of UAE-EU ties.

The European Union is currently the UAE’s second-largest trading partner, accounting for 8.3% of its total non-oil foreign trade, WAM reported. In 2024, bilateral non-oil trade reached $67.6 billion, marking a 3.6% year-on-year increase.

The UAE is also the EU’s largest investment partner and export destination in the Middle East and North Africa region.