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DUBAI / WAM
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, on Tuesday witnessed the signing of a Comprehensive Economic Partnership Agreement (Cepa) between the UAE and Georgia. The CEPA aims to double non-oil trade from $481 million to $1.5 billion in five years.
His Highness Sheikh Mohammed bin Rashid Al Maktoum 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.
His Highness Sheikh Mohammed bin Rashid 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.”
His Highness 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”.
Irakli Garibashvili, Prime Minister of Georgia expressed his gratitude to President His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, for the invaluable contribution made to the advancement of cooperation between the two countries.
The Prime Minister of Georgia 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”.
Irakli 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”.
The agreement was signed during a virtual ceremony by Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Levan Davitashvili, Georgia’s Vice Prime Minister and Minister of Economy and Sustainable Development.
The latest CEPA signed to date under the UAE’s global economic agreement programme, the agreement is set to deepen trade and investment ties, accelerate growth in priority industries, create jobs, strengthen supply chains, and streamline market access across the Middle East, Asia and Europe for UAE and Georgian businesses.
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.
On the signing, Dr Thani bin Ahmed Al Zeyoudi said: “The UAE-Georgia CEPA unites two countries that have complementary strengths – both nations are strategic crossroads for trade, both possess dynamic, rapidly-expanding service economies and both share a similar vision for attracting FDI – with policies that welcome business and promote robust growth. This agreement lays the path for a new era of cooperation and will fast-track opportunities between private sectors on both sides, delivering a range of benefits to both country’s exporters and manufacturers.”
Levan Davitashvili, Vice Prime-Minister, Minister of Economy and Sustainable Development of Georgia said: “I strongly believe that the establishment of a free trade regime between Georgia and UAE will be of benefit for both countries. Namely, Georgia can serve as a best gateway for the UAE companies to the region, with the geographic location and business environment it offers. On the other hand, the FTA will provide extended opportunities to promote and develop different industries in Georgia and increase the scope of export products”.
The UAE-Georgia CEPA is the latest agreement signed under the UAE’s new foreign trade agenda, which seeks deeper ties with strategic allies around the world to accelerate economic recovery and secure vital supply chains. Previous deals have been signed with India, Indonesia, Israel, Türkiye and Cambodia. Following the ratification process on both sides, the UAE-Georgia CEPA is expected to enter into force early next year.