The UAE and the EU have agreed to begin negotiations on a potential trade deal, announced UAE President Sheikh Mohamed bin Zayed Al Nahyan.
In a separate statement, the EU confirmed that European Commission President Ursula von der Leyen held a productive phone call with Sheikh Mohamed, during which both parties agreed to launch discussions on a free trade agreement.
This marks a significant step forward in EU-UAE relations and, along with broader Strategic Partnership Agreements, is expected to strengthen ties between the EU and the Gulf Cooperation Council (GCC), the EU added.
The negotiations will cover trade in goods, services, investment, and strategic sectors such as renewable energy, green hydrogen, and critical raw materials.
The EU is the UAE’s second-largest global trade partner, with non-oil trade between the two reaching USD 67.6 bln in 2024, up 3.6pct from the previous year, according to the UAE Ministry of Foreign Affairs. The EU now represents 8.3pct of the UAE’s total non-oil foreign trade.
The UAE has signed Comprehensive Economic Partnership Agreements (CEPAs) with 21 countries, including six operational deals with India, Indonesia, Israel, Turkey, Cambodia, and Georgia. Agreements with 14 other countries, including Australia, South Korea, and Vietnam, are pending ratification.