The comprehensive economic partnership agreements between the UAE and the Republic of Turkey and the Republic of Indonesia enter into force today, opening new markets and providing promising opportunities for UAE exports and investments in two of the most important economic growth regions in the world.
The start of the implementation of the two agreements, with the incentives they give for the flow of non-oil intra-trade with Turkey and Indonesia, separately, is an important station within the plans to expand the country’s network of trading partners around the world, especially since the two countries have an increasing strategic importance on the map of international trade, and are considered a major gateway to markets. surrounding regions.
And with the entry into force of the partnership with Turkey and Indonesia today, the number of comprehensive economic partnership agreements that are already being implemented rises to four, as the partnership with India was implemented in early May 2022, while the agreement with Israel entered into force in early April. At the same time, the necessary arrangements are being finalized for more comprehensive economic partnership agreements concluded by the state to enter into force, successively.
An important milestone His Excellency Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said that the start of implementation of the comprehensive economic partnership agreements between the UAE and Turkey and Indonesia, separately, is an important milestone within the goals of the state’s plans to expand the network of trade partners with markets of strategic importance regionally and globally. The two agreements will open up promising horizons and new markets for UAE exports and investments in two of the most important economic growth regions in the world.
He added that the two agreements with Turkey and Indonesia will consolidate partnership and joint growth with two of the fastest growing trade partners of the UAE, as both agreements were designed with the aim of stimulating and facilitating the flow of non-oil intra-trade, securing supply chains and providing opportunities to build partnerships with the business communities in the two partner countries. In order to achieve joint economic expansion, growth and prosperity, in addition to stimulating the flow of capital to promising sectors such as energy, logistics, tourism, Islamic economy, agriculture and others.
He stressed that the successive entry into force of the comprehensive economic partnership agreements concluded by the state contributes to achieving the national goals aimed at doubling the UAE’s non-oil foreign trade to 4 trillion dirhams, as well as doubling national exports to 800 billion dirhams, according to the vision of “We Are the Emirates 2031”, indicating He pointed out that the agreements currently in force with India, Israel, Turkey and Indonesia provide promising opportunities for UAE exports in densely populated and high-consumption markets.
Positive impact Dr. Thani Al-Zeyoudi expected that the positive impact of the comprehensive economic partnership agreements that entered into force at the unprecedented historical levels recorded by the country’s non-oil foreign trade will continue to emerge during the coming period, to enhance its upward path on a quarterly and semi-annual basis since 2020.
The Comprehensive Economic Partnership Agreement between the UAE and Indonesia was concluded in early July 2022, with the aim of doubling intra-trade several times, reaching more than $10 billion within five years, by reducing or removing customs duties on a wide range of goods and services, and according to this agreement. More than 80% of UAE exports to Indonesia will enjoy immediate exemption from customs duties, and the agreement will contribute to increasing the total value of trade in services between the two countries to $630 million by 2030.
This agreement also facilitates digital trade and opens up promising prospects for the UAE business community to do business with the largest economy in Southeast Asia. The UAE-Indonesian economic partnership also aims to create more opportunities in the rapidly growing sectors of the Islamic economy, which is estimated to reach $3.2 trillion by next year, noting that Indonesia has the largest share in the global Islamic economy.
At the same time, the agreement will accelerate the pace of investment projects worth more than $10 billion in sectors of common priority such as agriculture, energy, infrastructure, and logistics, in parallel with encouraging future cooperation in the fields of tourism, entrepreneurship, health care, and others.
The comprehensive economic partnership agreement between the UAE and Turkey aims to achieve mutual benefit for both parties and works to stimulate long-term, sustainable and comprehensive economic growth in both countries, as the agreement cancels or reduces customs duties on 82% of goods and products, which represent more than 93% of the components of intra-trade It also improved access to the Turkish market for Emirati exports, including key sectors such as contracting, metals and their products, polymers and other industrial products.
This historic agreement contributes effectively to increasing non-oil intra-trade to $40 billion within five years, creating 25,000 new job opportunities by 2031, and increasing UAE exports to Turkey by 21.7%.
The Emirati-Turkish economic partnership to achieve its common goals stems from a solid base of prosperous trade and investment relations between the two countries, especially after the escalating growth in non-oil intra-trade, which reached $18.9 billion in 2022, and grew by 40% compared to 2021, making Turkey the fastest growing partner. Among the top 10 trading partners of the UAE. UAE non-oil exports to Turkey amounted to $5.6 billion in 2022, an increase of 109% compared to 2021.
It is noteworthy that the UAE has concluded 5 comprehensive economic partnership agreements with India, Israel, Indonesia, Turkey and Cambodia, and the agreement with Georgia has already been completed in preparation for its official signing soon, and the implementation of the first four agreements has already begun, while the agreement with Cambodia will enter into force later. At the same time, talks aimed at concluding similar agreements with another group of countries with strategic markets are continuing with success.