UAE widens trade reach through expanding CEPA network

The UAE is accelerating its push into global markets through a rapidly expanding network of trade agreements designed to strengthen non-oil exports, attract investment and give domestic businesses easier access to major economies.

The Comprehensive Economic Partnership Agreement programme has grown to 38 agreements since its launch in September 2021, extending the country’s commercial reach across Asia, Africa, Europe and the Americas. Eighteen agreements are now in force, while others are moving through signing, ratification and implementation procedures.

The programme has become a central pillar of the UAE’s economic diversification strategy as policymakers seek to raise non-oil foreign trade to about $1.1 trillion by 2031. The agreements are intended to reduce or remove customs duties, simplify rules of origin, improve customs procedures and open services and investment opportunities for companies operating from the Emirates.

Canada has emerged as one of the newest additions to the expanding network. Negotiations on a CEPA were concluded in July after talks lasting 47 days, taking the number of agreements concluded by the UAE to 38. The proposed deal is expected to lower tariffs and administrative barriers while improving access for companies in engineering, aerospace, agriculture, clean technology and other sectors once it completes the required legal and ratification process.

Two-way UAE-Canada trade reached about C$3.5 billion in 2025 and had been expanding at around 10 per cent annually. The relationship is also increasingly linked to investment, with UAE institutions exploring opportunities in sectors ranging from energy to infrastructure and technology.

The growing number of agreements coming into force is giving the programme greater economic weight. The UAE-South Korea CEPA became effective on May 1, 2026, while the agreement with Viet Nam entered into force on February 3. The Azerbaijan agreement also took effect during 2026, widening preferential access to markets with different industrial, agricultural and investment profiles.

The approach reflects a deliberate effort to avoid excessive dependence on a small number of trading partners. Agreements with economies including India, Indonesia, Turkey, Serbia, Chile, Kenya, Malaysia and Ukraine have created a network linking the UAE with major consumer markets, manufacturing centres, agricultural exporters and emerging economies.

India remains one of the clearest examples of the strategy’s commercial impact. The bilateral CEPA was signed in February 2022 and took effect that May. Two-way trade subsequently passed $100 billion in the 2024-25 financial year, years ahead of an earlier target, as lower tariffs and streamlined customs procedures supported higher flows of goods between the two markets. The two countries are now targeting bilateral trade of $200 billion by 2032.

The programme is also increasingly extending towards Africa and Latin America. Agreements and negotiations involving Kenya, Nigeria, Rwanda, Ecuador, Chile, Colombia and Costa Rica reflect Abu Dhabi’s effort to secure commercial footholds in fast-growing markets while linking UAE logistics, ports, finance and investment capacity with expanding regional supply chains.

For private-sector companies, the advantages extend beyond tariff reductions. Modern trade agreements increasingly cover services, investment protections, digital trade, regulatory cooperation and mechanisms intended to make cross-border business easier for small and medium-sized enterprises. The UAE has positioned these provisions as tools for exporters seeking to enter markets where regulatory complexity can otherwise limit expansion.

The trade drive is unfolding as companies worldwide reassess supply chains amid tariff disputes, geopolitical tensions and pressure to diversify sourcing. The UAE’s location between Asian, African and European markets, combined with its ports, airports and free-zone infrastructure, allows policymakers to use trade agreements alongside logistics and investment policy to reinforce the country’s role as an international commercial hub.

Further expansion remains on the agenda. Talks with several economies have advanced during 2026, while the government has signalled that additional agreements could be concluded before the end of the year. Negotiations with Canada moved from launch to completion particularly quickly, illustrating the faster pace at which Abu Dhabi is pursuing new trade relationships.

The strategy increasingly links trade policy with the UAE’s ambitions in advanced manufacturing, artificial intelligence, clean energy, food security, logistics and technology. Preferential market access can give exporters a wider customer base while making the Emirates more attractive as a production and distribution centre for companies seeking to serve multiple regions from a single location.