H.H. Sheikh Mohammed bin Rashid, Georgian Prime Minister witness signing of UAE-Georgia CEPA…reports Asian Lite News
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, announced that the UAE is close to finalising several new comprehensive economic partnership agreements (CEPA), with South Korea, Thailand, Chile, Costa Rica, Colombia, and Ukraine. He expected to complete the signing of the six new CEPAs by the end of the year.
Speaking on the sidelines of a press conference to announce the UAE-Georgia CEPA, Al Zeyoudi said that the comprehensive partnership agreement with Georgia is the sixth for the UAE. He noted that Georgia has a strategic location and has achieved strong growth rates in the past three years that reached 10% in 2022.
He pointed to the significant growth in trade between the two countries and said that the agreement will help to accelerate and boost bilateral trade. He called on the private sector to take advantage of the opportunities available and use the agreement to establish a presence in the Caucasus region.
Al Zeyoudi said that trade between the two countries reached nearly $481 million last year, with growth of 115%. In the first half of this year, trade grew by 28% to reach $225 million. He expects trade to reach $1.5 billion in the next five years.
He also noted the strong growth of UAE investments in Georgia, which make the Emirates the sixth largest investor in Georgia globally, with a share of 5% of total foreign investment. He said that UAE investments are focused on infrastructure and hospitality.
Al Zeyoudi also noted that there is strong interest in the renewable energy sector, and that there are discussions underway for several projects.
The CEPA signing was witnessed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and Irakli Garibashvili, Prime Minister of Georgia.
His Highness Sheikh Mohammed stressed that the UAE, under the leadership of President His Highness Sheikh Mohamed bin Zayed Al Nahyan, always seeks to build bridges of friendship and cooperation with all countries that share the same vision with us to build a bright future for current and future generations.
He said: “The Partnership Agreement with Georgia reflects our consistent approach to stimulating economic growth and trade and investment exchange with friendly countries, in a way that contributes to reviving international trade and helping the global economy face current challenges.”
He added: “In the UAE, we have a firm belief that constructive international cooperation and sustainable economic growth are capable of achieving stability and peace and enhancing the quality of people’s lives”.
PM Garibashvili expressed his gratitude to President His Highness Sheikh Mohamed bin Zayed Al Nahyan, for the invaluable contribution made to the advancement of cooperation between the two countries.
The PM also expressed his gratitude to His Highness Sheikh Mohammed bin Rashid Al Maktoum for the contribution made to the advancement the bilateral relations.
Garibashvili added: “I am delighted that a Comprehensive Economic Partnership Agreement (CEPA) is signed today between Georgia and the UAE, as it will pave a sound foundation to the development of a more solid and consolidated trade and economic relations between our two nations”.
Garibashvili said: “It is our key priority for us to strengthen relations with one of the leading states of the world – the United Arab Emirates. The UAE has always been at the avant-garde of innovations and progress, which is a significant precondition of future hope and optimism. We are confident that this new stage in the relationship of our two countries made for the benefit of our people will facilitate the intensification and simplification of trade and economic relations”.
Through the removal or reduction of tariffs on 95% of product lines, the deal is expected to boost the value of non-oil trade beyond US$1.5bn in the next five years. The new deal builds on growing UAE-Georgia economic relations that resulted in non-oil trade beyond US$225 million in the first half of 2023, with 28 percent growth on H1 2022. Total non-oil bilateral trade reached US$481 million for the full year of 2022, up 115 percent on 2021. The UAE now accounts for over 63 percent of Georgia’s trade with Arab countries.
The UAE is also Georgia’s sixth-largest global investor, representing five percent of its total FDI, while investment between the two countries exceeded US$1 billion by the end of 2021. Through the implementation of targeted working groups, the CEPA is expected to accelerate capital flow into high-priority sectors such as tourism, retail, logistics and manufacturing.