UAE-Jordan Cepa set to boost bilateral trade to $8bn within a decade

Agreement is set to support investment in tourism, real estate and renewable energy

President Sheikh Mohamed and Jordan's King Abdullah II oversee the signing of a UAE-Jordan Cepa in Amman. It was signed by Dr Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, and Yarub Al QuShow more

The comprehensive economic partnership agreement between the UAE and Jordan that is set to take effect this year will deepen ties between the nations and push bilateral trade to more than $8 billion by 2032.

The Cepa, signed by the countries on Sunday, will offer growth opportunities for businesses, young entrepreneurs and start-ups, and will help both countries to expand and diversify their economies, said Dr Thani Al Zeyoudi, Minister of State for Foreign Trade.

“The agreement will come into effect later this year after its ratification, and will mark the culmination of a long-standing, deep-rooted relationship between the two brotherly countries and their peoples,” state news agency Wam quoted Dr Al Zeyoudi as saying.

The economic treaty was signed during President Sheikh Mohamed's working visit to Jordan, where he met King Abdullah II and Crown Prince Hussein bin Abdullah in Amman.

The Cepa follows the signing of for agreements by the UAE and Jordan last month for a $2.3 billion railway investment project that will link the port of Aqaba with the mining regions of Al Shidiya and Ghor es-Safi. The deals are part of an investment package worth about $5.5 billion that Jordan signed with the Emirates in November during the state visit of King Abdullah II to Abu Dhabi.

The deal with Jordan was the second economic partnership concluded by the UAE last week. On Saturday, President Sheikh Mohamed held talks with Serbian President Aleksandar Vucic in Belgrade and oversaw the exchange of a Cepa. The agreement paves the way for increased trade and investment flows and bilateral private sector collaboration, Wam reported.

The Cepa with Jordan is aimed at boosting growth in priority sectors, creating jobs and enhancing supply chains. “It will allow both countries to leverage their global trade networks to expand into new markets, delivering mutual benefits,” Dr Al Zeyoudi said.

Both the UAE and Jordan share expertise in sectors including energy, infrastructure, transport and finance, he added. The Emirates also aims to benefit from Jordan’s robust industrial base, particularly in the phosphate, textiles and pharmaceuticals sectors.

“Promising areas for investment flows between the UAE and Jordan span tourism, hospitality, real estate, renewable energy, transport, logistics, manufacturing, pharmaceuticals and food security,” Dr Al Zeyoudi said.

Last year, non-oil trade between the UAE and Jordan reached $4.2 billion, an increase of almost 38 per cent from the 2021 and a 47.7 per cent jump before the Covid-19 pandemic began in 2019. Non-oil bilateral trade grew by 138 per cent over the past decade, positioning the UAE as the fifth-largest global trading partner of Jordan.

Mutual investments between the UAE and Jordan are estimated at around $22.5 billion, with the Emirates being the largest international investor in Jordan. By the end of last year, UAE investments in Jordan exceeded $4 billion, which accounts for 14 per cent of the kingdom's total foreign direct investment, Wam said.

The UAE has been strengthening its trade ties with countries around the globe to boost non-oil foreign trade. Last month, the Emirates has concluded Cepa talks with New Zealand and Australia and has also revealed plans to hold negotiations with Japan to finalise a pact.

The UAE aims to sign 26 Cepas, with deals reached already with India, Turkey, Indonesia, Cambodia, Georgia, South Korea, Chile and Mauritius. Talks are under way with other countries, including the Philippines. Cepas are expected to add about 2.6 per cent to the UAE's economy by 2030, Dr Al Zeyoudi said previously.

In the first half of this year, the country’s non-oil foreign trade hit a record Dh1.4 trillion ($381.21 billion), up 11.2 per cent on an annual basis amid a 25 per cent surge in non-oil exports on new Cepas, the UAE Government Media Office said in August. The country, as part of its national economic goals, is pursuing the target of Dh4 trillion in foreign trade by 2031.

The new Cepas are also supporting the UAE's economy, which is expected to grow 4 per cent this year, up from the previous estimate of 3.9 per cent in June, the latest report by the UAE Central Bank showed.