The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates and the Republic of Azerbaijan has officially entered into force, marking a pivotal step forward in the economic relations between the two nations.
This agreement is expected to stimulate bilateral trade, create fresh investment opportunities, and foster new joint ventures, opening up numerous prospects for the UAE’s business community in Azerbaijan’s promising economy, which sits in a strategically significant region.
By reducing or eliminating tariffs on most goods and services, the CEPA will facilitate broader market access and greater global reach for exporters in both countries. It is also set to strengthen collaboration between the private sectors and empower entrepreneurs and SMEs.
Notably, this marks Azerbaijan’s first trade agreement to include a dedicated services chapter. This provision is anticipated to unlock substantial opportunities in sectors such as finance, consulting, construction, and professional services.
Dr. Thani bin Ahmed Al Zeyoudi UAE Minister of Foreign Trade
“The CEPA marks a transformative moment in bilateral ties, and promises to enhance trade flows, unlock new investment opportunities, and foster increased private sector collaboration across key sectors, particularly in logistics, renewable energy, and advanced manufacturing. Azerbaijan is located at a crucial juncture in North-South trade, and by integrating our economic visions, we can ensure increased resilience and sustainable growth in a rapidly changing global market.”
The UAE is Azerbaijan’s largest Arab trading partner, accounting for 40 percent of its trade with the MENA region. With investments exceeding $1 billion, the UAE is also the leading Arab investor in Azerbaijan, highlighting significant potential for deeper economic cooperation.
The UAE’s non-oil trade with Azerbaijan has already shown impressive growth, increasing by 31.4 percent over the past two years to surpass $2.2 billion by 2025. This CEPA is a key addition to the UAE’s global trade agenda, further strengthening ties with Azerbaijan and supporting the UAE’s broader strategy to diversify its economy.
