UAE & Jordan Launch CEPA to Fuel Trade & Investment 🚀
- OUS Academy in Switzerland
- Jul 14
- 2 min read
On May 15, 2025, the United Arab Emirates and Jordan officially activated their Comprehensive Economic Partnership Agreement (CEPA)—a landmark move to deepen economic collaboration. Signed in 2023, this strategic initiative commits both nations to reduce tariffs, streamline investment, and enhance cooperation in vital sectors including industry, renewable energy, and tourism .
Key Highlights:
Tariff Reduction and Trade Facilitation The agreement aims to lower or eliminate tariffs on key products, fostering smoother trade and opening new export channels.
Joint Investment Council A shared investment body has been established to identify joint ventures, bolster SMEs, and match investment opportunities across priority sectors.
Non-Oil Trade Target CEPA sets an ambitious target of over $8 billion in non-oil trade by 2032, signaling a strong commitment to diversify economic ties .
Strategic Benefits:
Diversified Economies By expanding trade beyond hydrocarbons, both nations are moving toward sustainable economic resilience.
SME Growth & Job Creation Simplified investment processes and cross-border ventures empower smaller businesses and spark employment in dynamic sectors.
Innovation and Technology Transfer Partnerships in renewable energy, tourism, and industry facilitate technology exchange and bolster sustainable development.
Enhanced Regional Integration As the UAE’s first CEPA with another Arab nation, this sets a powerful precedent for Arab unity and deeper regional economic synergies.
Regional & Industry Impact:
For UAE firms, the CEPA unlocks new access to advanced Jordanian industries like pharmaceuticals, ICT, and renewable energy.
For Jordanian enterprises, it creates broader market opportunities in the UAE’s financial hub and investment-friendly environment.
Tourism sectors in both countries gain from relaxed travel restrictions and collaborative marketing efforts.
Conclusion
The activation of the UAE–Jordan CEPA on May 15, 2025, marks a positive turning point in Euro-Arab commerce. By fostering trade, investment, SMEs, and diversification, both nations are strengthening economic resilience and regional interdependence. This agreement sets a promising model for future Arab–European partnerships aimed at sustainable growth.
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