UAE-Türkiye CEPA Boosts Non-Oil Trade to $45.2 Billion by 2025
The Comprehensive Economic Partnership Agreement (CEPA) between the UAE and Türkiye has begun to yield significant economic results. Official figures from the UAE Ministry of Economy indicate that non-oil trade between the two nations is projected to reach $45.2 billion by 2025. This development underscores the transformative impact of UAE’s trade agreements, which are steering the economy towards diversification beyond oil.
The CEPA was formalized in September 2023, with the primary objectives of reducing tariffs and enhancing market access. It also seeks to streamline customs procedures and boost investment flows between the UAE and Türkiye. Since its implementation, bilateral trade has accelerated at a pace that has exceeded initial expectations.
According to reports from the Ministry of Economy and WAM, non-oil trade between the UAE and Türkiye has surged by 60% compared to pre-CEPA levels, marking an 11.5% increase from the previous year. Türkiye has emerged as one of the UAE’s fastest-growing strategic trade partners, particularly outside the Gulf and Asian markets.
Understanding the UAE-Türkiye CEPA
The UAE-Türkiye CEPA is part of a broader economic strategy aimed at reducing reliance on hydrocarbons. The agreement focuses on expanding the UAE’s influence in non-oil sectors, including logistics, advanced manufacturing, food trade, digital services, renewable energy, and financial services.
Unlike traditional trade agreements that primarily focus on tariff reductions, the CEPA emphasizes investment cooperation, supply chain integration, intellectual property protection, and collaboration between private sectors. Since 2021, the UAE has actively pursued this strategy, signing CEPA agreements with countries such as India, Indonesia, Cambodia, Costa Rica, and South Korea.
With over ten CEPAs in place globally, these agreements are expected to increase non-oil exports by more than 33% and contribute approximately AED 153 billion to the UAE economy by 2031. The UAE government aims to elevate the country’s total non-oil foreign trade to AED 4 trillion in the long term.
Türkiye plays a crucial role in this framework due to its geographical position and industrial capabilities. In 2025, Türkiye’s exports surpassed $255 billion, according to the Turkish Statistical Institute. Its industrial base encompasses logistics, textiles, machinery, and other sectors that the UAE seeks to integrate into its logistics and re-export ecosystem.
Factors Driving Trade Growth
The growth of trade under the UAE-Türkiye CEPA is fueled by various sectors, including gold, machinery, electronics, food products, petrochemicals, construction materials, and logistics services. The reduction of tariff barriers has led to enhanced trade activity across these sectors. An analysis by The National highlights that the agreement has significantly improved customs efficiency and reduced operational costs for businesses in both countries. This is particularly beneficial for exporters and logistics firms that rely on quick turnaround times and reliable trade routes.
The geopolitical landscape has also underscored the need for diversified trade corridors. Disruptions in shipping and supply chains, particularly due to the US-Israel conflict involving Iran, have prompted Gulf economies to deepen trade relationships beyond traditional partners. Türkiye’s manufacturing base and strategic location have become increasingly valuable in this context.
Data from the World Trade Organization indicates that the UAE became one of the top ten merchandise exporters in 2025. The Ministry of Economy reports that non-oil sectors now contribute over 7% to the UAE’s GDP. The UAE-Türkiye CEPA is pivotal in facilitating a broader transition of the UAE economy, where trade, logistics, manufacturing, technology, and services are set to replace oil as the primary drivers of economic growth.
The UAE’s Expanding Trade Network
The CEPA with Türkiye reflects the UAE’s ambition to position itself as a central hub connecting Asia, Europe, and the Middle East. This strategy is evident in other agreements, such as the India-UAE CEPA, which has significantly boosted non-oil trade. Agreements with Indonesia and South Korea further illustrate the UAE’s expansion into major Asian manufacturing economies, while partnerships with Costa Rica and Georgia diversify agricultural and logistics chains.
These trade agreements are interconnected, forming a broader economic network. Each new agreement enhances the UAE’s role as a regional re-export, logistics, and investment hub. Key infrastructures like Jebel Ali Port, Abu Dhabi’s industrial zones, and Dubai’s aviation facilities benefit from increased trade flow.
This strategy also provides the UAE with political leverage. In an increasingly fragmented global economy, countries that maintain diverse trade relationships across multiple regions are better equipped to withstand geopolitical shocks. For the UAE, CEPAs serve not only as economic instruments but also as long-term strategic tools.
Future Economic Landscape
While the immediate focus is on the projected $45.2 billion trade figures, the underlying narrative is the rapid evolution of the UAE’s economic identity. Although oil remains a significant factor in the Middle East, agreements like the UAE-Türkiye CEPA illustrate a future growth model centered on trade corridors, logistics infrastructure, and diverse global partnerships.
The International Monetary Fund’s regional outlook for the Middle East and Central Asia indicates that Gulf economies are increasingly pivoting towards non-oil diversification. This trend highlights the strategic necessity of diversification for future growth and stability. The UAE’s CEPA strategy aligns seamlessly with this transition model.
Source: timesofdubai.ae
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Published on 2026-05-10 13:48:00 • By the Editorial Desk
