On April 10, 2025, UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan and European Commission President Ursula von der Leyen held a phone call during which they agreed to initiate negotiations for a Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates and the European Union.
During their discussion, Sheikh Mohamed emphasized the strong and growing relationship between the UAE and the EU, particularly in the economic domain. He described the decision to pursue a CEPA as a strategic move that reflects both sides’ commitment to enhancing trade, investment, and development cooperation.
His Highness expressed confidence that once finalized, the agreement would open up new paths for collaboration, increase the volume of trade and investment, and build stronger connections between the business communities of the two regions. He also noted that this step aligns with the shared values of stability, sustainable growth, and prosperity that underpin UAE-EU relations. 
President von der Leyen echoed these sentiments, stating that this new phase of economic engagement would strengthen the already robust partnership between the EU and the UAE.
This agreement comes on the heels of a formal Joint Statement of Intent signed by UAE Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi, and EU Trade Commissioner Valdis Dombrovskis, paving the way for official negotiations on the CEPA.
The European Union stands as the UAE’s second-largest trading partner, accounting for 8.3% of the Emirates’ total non-oil trade. In 2024, trade between the two reached $67.6 billion, marking a 3.6% increase from the previous year. The UAE is also the EU’s top export market and primary investment partner in the Middle East and North Africa region.
The proposed CEPA aims to reduce tariffs, eliminate unnecessary trade barriers, and enhance market access for goods and services. It is expected to unlock growth opportunities in high-potential sectors such as advanced manufacturing, healthcare, logistics, and artificial intelligence.
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