The free trade agreement Türkiye and the United Arab Emirates (UAE) signed Friday marks a milestone that will herald in a new era of cooperation between the two countries, according to a senior official.
According to UAE projections, the Comprehensive Economic Partnership Agreement (CEPA) aims to take economic relations between the two countries to a new phase and increase bilateral trade to around $40 billion (TL756.8 billion) in the next five years.
The negotiations on the deal were kicked off last year following UAE President Sheikh Mohamed bin Zayed Al Nahyan's (MBZ) visit to the country in 2021, during which the UAE set up a $10 billion investment fund.
"The agreement constitutes a milestone in the two countries' qualitative relations and a new era in cooperation toward broader horizons for the benefit of the two countries," UAE ambassador to Türkiye, Saeed Thani Hareb Al Dhaheri, told Anadolu Agency (AA).
He said relations between Abu Dhabi and Ankara date back to decades of constructive cooperation.
"This month marks the 50th anniversary of diplomatic relations between the two nations," Al Dhaheri said. "The process of cooperation relations culminated with the signing of the Comprehensive Economic Partnership Agreement."
The Emirati diplomat said the partnership agreement reflects the keenness of the UAE and Türkiye to expand their cooperation. "The agreement will stimulate trade and investment exchange and joint economic growth and enhance the quality of life for the two friendly peoples," he said.
"It will also establish a real development partnership, build common interests, and consolidate stronger strategic relations between the two countries," he added.
The UAE envoy noted that the partnership agreement "will contribute to launching a new path of joint growth and mutual opportunities."
The official WAM news agency reported the pact aims to eliminate or reduce customs duties on 82% of goods and products, accounting for over 93% of non-oil trade.
Non-oil exchanges between the two countries reached nearly $19 billion last year, up 40% on the previous year and 112% from 2020, WAM said.
Türkiye is now the UAE's sixth-largest trading partner for non-oil trade.
"The agreement will further enhance trade and investment between the UAE and Türkiye. Positive results are expected to be felt shortly following implementation."
Solid base
The ambassador said the partnership agreement would build a solid and clear economic base between the two countries.
"It will also provide new qualitative advantages for the business communities and the private sector in the two countries, as it builds on the growth and prosperity achieved in trade and investment exchange between the two countries."
According to the envoy, the agreement will provide over 100,000 jobs in Türkiye and about 25,000 in the UAE.
"It will facilitate and accelerate the process of trade exchange between the two countries," he said.
"This agreement will also open new markets for exporters from both countries. It will benefit the owners of large and small projects simultaneously."
The UAE diplomat added that the agreement effectively strengthens the trade and investment partnership between the UAE and Türkiye.
"It is a new important step in efforts to expand the network of commercial partners for both the UAE and Türkiye, which was the fastest growing trade partner to the UAE in 2022," the ambassador said.
Ratification of the deal is expected in the second quarter of 2023, with implementation to follow soon after.
The CEPA is expected to focus on strategic sectors such as agritech, food security, clean energy, and continued cooperation on construction and real estate projects.
President Recep Tayyip Erdoğan said the agreement would take economic and trade relations between the two countries to a new phase.
MBZ said the agreement "builds on our longstanding ties to deliver further growth, opportunity & stability for our countries & people."
Ankara and Abu Dhabi have moved to put years of tense relations behind them, opening the doors to a new phase in bilateral relations marked by deeper economic cooperation after a years-long dispute.
President Recep Tayyip Erdoğan paid a return visit to the UAE in mid-February, after a trip by MBZ to Ankara in late November 2021 that marked a significant move toward overcoming disputes.