UAE-Azerbaijan Cepa comes into effect in boost to economic ties

AzeMediaNews15 April 202617 Views

A zoomed in view of the waterfront promenade running along the shores of the Caspian Sea, Baku, Azerbaijan. [Photo via Getty Images]

The UAE and Azerbaijan’s Comprehensive Economic Partnership Agreement (Cepa) has come into effect in boost to economic ties between the countries.

Trade flows as well as new investment and joint venture opportunities are expected to increase with the new deal, in sectors such as logistics, renewable energy and advanced manufacturing. It will also enable greater market access and global reach for exporters in both nations, as well as enhance private-sector collaboration.

It is Azerbaijan’s first trade agreement that includes a services chapter, which will create significant opportunities in sectors such as finance, consulting, construction and professional services, the UAE’s Ministry of Foreign Trade said on Wednesday.

“Azerbaijan is located at a crucial juncture in North-South trade and by integrating our economic visions, we can ensure increased resilience and sustainable growth in a rapidly changing global market,” said Dr Thani Al Zeyoudi, Minister of Foreign Trade.

The UAE launched the Cepa programme in 2021 to reduce tariffs and remove trade bottlenecks with select countries through simpler customs procedures and rules.

It has concluded such agreements with 35 countries, with deals in place with India, Turkey, Jordan, Serbia and Vietnam, among others. It is also in talks with countries such as Nigeria and Rwanda over deals.

The new deals are also helping the UAE to increase trade with partners across the globe, with the country’s non-oil foreign trade in 2025 surging 26 per cent annually to exceed $1 trillion for the first time.

The UAE is Azerbaijan’s largest Arab trading partner, accounting for 40 per cent of its trade with the Mena region. The UAE is also the leading Arab investor in Azerbaijan, with investments exceeding $1 billion. Its non-oil trade has increased by 31.4 per cent in the past two years, exceeding $2.2 billion in 2025.

The new Cepa comes as the UAE aims to reach $1 trillion in total trade value by 2031 and to double the economy’s size to exceed $800 billion by the same time.

The UAE climbed to ninth in global goods exports in 2025, up from 17th five years ago, according to figures from the World Trade Organisation (WTO) released this month. The country’s total goods and services trade reached $1.637 trillion last year.