The UAE and Morocco have finalized a Comprehensive Economic Partnership Agreement (CEPA), marking a new phase in their trade and investment relations.
This development was confirmed with a joint statement signed by Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Ryad Mezzour, Moroccan Minister of Industry and Trade.
The CEPA will facilitate the free flow of goods and services by reducing tariffs, removing trade barriers, enhancing market access for services, improving customs procedures, and establishing flexible rules of origin for goods. It will also create platforms for investment and private-sector collaboration in key sectors, including renewable energy, tourism, infrastructure, mining, food security, transport, logistics, and ICT.
In 2023, non-oil trade between the UAE and Morocco reached $1.3 billion, a 30% increase from 2022 and an 83% rise compared to 2019. The UAE is the largest Arab investor in Morocco, with over $15 billion invested in various strategic projects.
Dr. Al Zeyoudi emphasized the importance of the agreement, stating, “The UAE-Morocco CEPA is a valuable addition to our CEPA program. This agreement will enhance our economic relations, particularly in sectors such as tourism, energy, manufacturing, and agriculture, generating long-term prosperity for both countries.”
Image Via WAM | Cropped by GBN
Ryad Mezzour highlighted the agreement’s significance, noting, “This Agreement is part of the implementation of the Declaration signed by His Majesty King Mohammed VI and President His Highness Sheikh Mohamed bin Zayed Al Nahyan, aiming to establish a renewed and solid partnership between our countries. It supports the development of trade and investment by opening new opportunities for joint economic and commercial cooperation.”
Morocco is the sixth-largest economy in Africa, with a GDP of $152.4 billion in 2023, expected to grow by 3.5% in 2024. While agriculture is the largest employer, the services sector contributes 54% to the GDP, followed by the industrial sector at 23%.
The UAE’s CEPA program aims to boost the country’s non-oil foreign trade to AED 4 trillion by expanding relations with strategic markets worldwide. In 2023, the UAE’s non-oil trade reached a record $710 billion, a 12.6% increase from 2022. Morocco joins other African nations like Mauritius, Kenya, and Congo-Brazzaville in concluding CEPA terms with the UAE.
