Abu Dhabi Monitoring Desk
The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates (UAE) and Australia has officially come into force, marking the beginning of a new chapter in bilateral economic relations.
According to the UAE state news agency WAM, the agreement is set to enhance trade in goods and services, boost private sector collaboration, and unlock vast investment opportunities across key sectors including energy, infrastructure, food security, and technology.
Bilateral non-oil foreign trade between the two countries reached $3.03 billion in the first half of 2025, reflecting a 33.4% year-on-year increase.
The CEPA is expected to increase annual bilateral trade from $4.2 billion in 2024 to over $10 billion by 2032.
The agreement reduces non-tariff barriers, enhances market access, and provides a robust framework for cross-border investments.
UAE Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi, described the agreement as a milestone in deepening economic ties. He noted that CEPA strengthens trade relations and opens new doors for investment, growth, and innovation between the two nations.
“The implementation of the UAE-Australia CEPA marks a critical advancement in our economic partnership, creating new opportunities for cooperation and development,” said Dr. Al Zeyoudi.
The UAE is Australia’s largest trade partner in the Middle East and its 20th largest globally.
This is Australia’s first trade agreement with any country in the Middle East and North Africa (MENA) region.
To date, the two nations have invested over $14 billion in each other’s economies.
More than 300 Australian companies are already operating in the UAE across various sectors, highlighting the strength and potential of bilateral ties.
The UAE’s CEPA initiative is a cornerstone of its economic diversification strategy, aiming to:
- Expand total trade volume to $1 trillion by 2031
- Grow the UAE economy beyond $800 billion
The UAE-Australia CEPA is part of 31 trade agreements signed under the UAE’s broader CEPA program, which aims to secure greater access to global markets for Emirati businesses and attract strategic investments.
As the agreement goes into effect, both countries are expected to capitalize on shared opportunities, furthering their roles as key players in global trade and sustainable economic development.
