The Comprehensive Economic Partnership Agreement between the United Arab Emirates and Azerbaijan has officially come into force, marking a new phase in bilateral economic cooperation and opening wider market access for goods, services, and investment flows between the two countries.
The agreement is expected to reduce or eliminate tariffs on a broad range of products and services, strengthening export competitiveness and enabling businesses in both nations to expand into new markets. It also aims to deepen private-sector collaboration, with a particular focus on supporting entrepreneurs and small and medium-sized enterprises.
A key milestone of the deal is Azerbaijan’s first inclusion of a dedicated services chapter. This is set to unlock opportunities in sectors such as finance, consulting, construction, and professional services, while also encouraging joint ventures and cross-border investments.
The UAE’s Minister of Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi, described the agreement as a transformative step in bilateral relations, highlighting its potential to boost trade, investment, and cooperation in logistics, renewable energy, and advanced manufacturing. He noted that closer economic integration will help both countries strengthen resilience in a shifting global economy.
Trade ties between the two nations have already shown strong momentum. The UAE is Azerbaijan’s largest Arab trading partner, accounting for around 40 percent of Azerbaijan’s trade with the MENA region. It is also the leading Arab investor in the country, with investments exceeding US$1 billion.
Non-oil trade between the two countries rose 31.4 percent over the past two years, surpassing $2.2 billion in 2025, underscoring steady growth in economic relations. The CEPA is positioned as a strategic step in the UAE’s broader push to diversify its economy and expand global trade partnerships.
News Source: Emirates News Agency
