EU and UAE Strengthen Trade and Investment Ties to Drive Economic Growth

Image Source – WAM

EU-UAE Trade Discussions

To strengthen ties between the UAE and the European Union (EU), a delegation visited Brussels, Belgium, for discussions with senior EU officials and Belgian government representatives. According to WAM, the delegation included Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and Ahmed Al Sayegh, Minister of State, and focused on enhancing economic ties and fostering investment opportunities between the EU and the UAE. The EU-UAE trade ties have the potential to unlock opportunities for European SMEs in the Gulf region.

EU-UAE Trade Relations

The EU remains the second-largest global trade partner of the UAE, with non-oil trade reaching $67.6 billion in 2024. It marks a 3.6% increase from 2023 and a rise of 18.1% from 2022. The contribution of the EU to the UAE’s total non-oil foreign trade now accounts for 8.3%.

Within the EU, Germany is the UAE’s second-largest trading partner with non-oil trade between the two nations reaching €12.8 billion in 2024, an increase of 5.4% from the previous year and nearly double the global trade growth average. Both countries are now seeking to explore new opportunities for collaboration in renewable energy, Industry 4.0, industrial technology, logistics, and advanced manufacturing. Moreover, the UAE is seventh among the top 10 destinations where German millionaires plan to relocate in the next 12 months. Meanwhile, the non-oil trade between the UAE and Belgium reached €4.3 billion in 2024, and during the meeting with Belgian officials, both sides agreed to explore new pathways for cooperation in energy, logistics, and manufacturing.

Economic Cooperation between Europe and the UAE

During discussions with the EU Commissioner for Trade and Economic Security, Dr. Al Zeyoudi highlighted the key factors driving the UAE’s strong trade relationship with the EU. Discussions on key sectors such as advanced manufacturing, e-commerce, and healthcare also took place, wherein both sides explored opportunities to enhance investment in logistics and renewable energy, as they are considered to be high-growth sectors. In addition to the above, Al Zeyoudi stated that the European Union is a valued trade and investment partner for the UAE. He added that the collaboration between the UAE and the European Union is evident not only in increasing trade volumes but also in strategic cooperation on food security, energy transition, and advanced technology. He believes that there is a significant potential to sustain this positive momentum, both at the EU level and with individual member countries, to expand the strategic partnership in areas such as food security, advanced manufacturing, healthcare, logistics, and artificial intelligence. Stronger EU-UAE trade ties have the potential to create growth opportunities for European SMEs.

Read: The UAE Aims to Become Global Leader in Artificial Intelligence

Dr. Al Zeyoudi also stressed the importance of open, rules-based trade and highlighted the UAE’s Comprehensive Economic Partnership Agreement (CEPA) program, which has enabled the country to conclude 27 trade agreements. The UAE’s CEPA agreement has helped the UAE’s foreign trade reach an all-time high in 2024, surpassing Dhs 3 trillion and growing by 14.6% from 2023.

In addition, Al Sayegh and Al Zeyoudi met with Maria Luis Albuquerque, EU Commissioner for Financial Services and Financial Stability. They discussed the role of the financial sector in global trade and explored ways to reduce trade barriers, enhance cross-border payments through financial technology solutions, and improve SMEs’ access to supply chains.

Investment Opportunities in the UAE

Recently, the UAE leaders approved the National Investment Strategy 2031, focusing on logistics, financial services, information technology, and renewable energy sectors. The strategy aims to increase FDI share and its contribution by 8% towards UAE GDP, with the IMF predicting the UAE economy to grow by 4% in 2025, while ICAEW at 4.8%, the UAE continues to remain an attractive destination for investment. Furthermore, the UAE’s strategic location, business-friendly policies, strong infrastructure, zero income tax, free trade zones, and a stable economy create a competitive business environment. 

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