The UAE and Serbia are set to enhance their economic relations with a target of a $350 million trade partnership following the launch of the Comprehensive Economic Partnership Agreement (CEPA). This agreement marks a significant milestone in establishing stronger economic ties between the two nations.

The CEPA has officially come into effect, aiming to foster increased trade and investment flows while promoting collaboration across various priority sectors. Dr. Thani bin Ahmed Al Zeyoudi, the UAE Minister of State for Foreign Trade, emphasized that this agreement signifies a new chapter in economic relations, creating opportunities for collaboration, investment, and trade that will benefit both countries.

In 2024, the bilateral non-oil trade is expected to reach approximately $121.4 million, which is double the trade volume from 2021. Projections indicate that this partnership could contribute an impressive $351 million to the UAE’s GDP by 2031. This growth is anticipated through significant reductions in custom duties for over 96% of tariff lines, which will enhance market access and encourage private sector collaboration.

Serbia serves as a crucial partner for the UAE, with its diverse economy and strategic location acting as a gateway into Eastern Europe and the Balkans. The CEPA is expected to increase trade while also promoting investments in key sectors such as renewable energy, agriculture, logistics, and technology.

Currently, the UAE is Serbia’s leading trading partner in the Gulf Cooperation Council (GCC), accounting for about 55% of Serbia’s total trade with the region in 2023. The relationship between the two nations has been further solidified by rising foreign direct investment (FDI) directed towards high-growth sectors, enhancing shared economic interests.

With the CEPA now ratified and operational, both the UAE and Serbia can leverage this agreement to boost economic growth and create opportunities that will benefit their citizens. The CEPA program is vital to the UAE’s strategic growth goals, aiming to raise total non-oil trade to $1.1 trillion and double the economy’s size to $800 billion by 2031.

The UAE-Serbia CEPA is the 10th agreement to come into force, part of a total of 27 agreements concluded with countries across the Middle East, Africa, Southeast Asia, South America, and Europe.