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It was a busy weekend for the Trade Ministry: The UAE inked two separate trade and economic agreements with Serbia and Jordan aimed at boosting investment and trade flows.
JORDAN-
#1- UAE inks first trade pact with an Arab country: The UAE signed an economic partnership with Jordan, marking the inaugural agreement of its kind to be signed between the UAE and an Arab country, Wam reports. The agreement is set to reduce restrictions and non-tariff measures on goods and services, and is poised to “accelerate growth in priority sectors and strengthen supply chains,” according to Wam. The agreement was finalized during president Sheikh Mohamed bin Zayed Al Nahyan’s official visit to Jordan.
The targets: The agreement aims to double trade between the countries to USD 8 bn over the next five years, up from USD 4.2 bn in 2023. “Promising” areas of cooperation include tourism, hospitality, real estate, renewables, transport, logistics, manufacturing, pharma, and food security, Trade Minister Thani Al Zeyoudi told Wam (watch, runtime: 2:02) on the sidelines of the visit. The agreement is expected to be ratified later this year, Al Zeyoudi added.
Background: The UAE is currently the biggest foreign investor in Jordan, with more than USD 4 bn invested in the country and mutual investments totaling USD 22.5 bn, spanning sectors like energy, infrastructure, transport, and finance. The UAE signed agreements to build a USD 2.3 bn railway in Jordan earlier in September, with plans to complete studies for the project by the end of next year.
During the visit, Al Nahyan and Jordan’s King Abdullah II bin Al Hussein emphasized the importance of the trade agreement as a “natural progression” of the two countries’ economic ties, noting that it will pave the way for further opportunities, Wam reports. The two heads of state also discussed ongoing collaboration in the economy, investment, sustainable development, food security, renewable energy, and other key sectors. They also discussed the ongoing war in the region, stressing the need for a ceasefire.
SERBIA-
The UAE and Serbia signed a trade and economic partnership agreement to remove tariffs on up to 96% of customs tariff lines and facilitate investment in “high-growth sectors,” including renewable energy, agriculture, infrastructure, and logistics, state news agency Wam reports here and here. The trade agreement is the UAE’s first with a non-WTO member country.
Private sector cooperation is another priority: The agreement will also see the countries work to protect intellectual property and support small and medium-sized enterprises, in a bid to ramp up private-sector collaboration between the UAE and Serbia.
By the numbers: The agreement is expected to add USD 351 mn to the local economy by 2032, with non-oil bilateral trade forecast to rise to USD 500 mn over the next five years, up from USD 122.9 mn in 2023. The UAE accounts for 55% of Serbia’s trade with Gulf nations — marking it the country’s largest GCC trading partner — and is the third-largest market for Serbian exports in the Middle East.
More UAE-Serbia collaboration to come? President Sheikh Mohamed bin Zayed Al Nahyan explored further cooperation with his Serbian counterpart Aleksandar Vučić on Saturday, focusing on investment, economy, trade, technology, food security, and renewable energy, Wam reported separately. The leaders also addressed “several regional and international issues of mutual interest,” the statement reads.
REMEMBER- The agreements come as part of the country’s broader plan to double foreign trade to AED 4 tn by 2031. The UAE finalized similar agreements with New Zealand and Australia last month.
OTHER DIPLO NEWS-
- Emirati trade mission to Malta next year? The Federation of UAE Chambers of Commerce and the Malta Chamber of Commerce are considering forming a joint business council and sending a UAE trade mission to Malta in 2025. (Wam)
- The UAE has sent six aircraft carrying 205 tons of aid to Lebanon as part of a wider aid campaign running from tomorrow to 21 October. The relief supplies will be delivered over two days via an air bridge. (Statement)
