Morocco and UAE Forge Historic Economic Partnership Agreement

Tuesday 30 July 2024 - 17:10

In a landmark development, Morocco and the United Arab Emirates (UAE) have concluded negotiations for a comprehensive economic partnership agreement (CEPA), setting the stage for a new era of bilateral economic cooperation. Officials announced the finalization of the agreement's provisions on Monday, heralding a significant milestone in the economic relations between the two nations.

Ryad Mezzour, Morocco’s Minister of Industry and Trade, and Thani bin Ahmed Al Zeyoudi, UAE’s Minister of State for Foreign Trade, signed a joint statement confirming the successful completion of the talks. The agreement, which is expected to be officially signed at a later date and subsequently ratified, aims to stimulate the free flow of goods and services by removing unnecessary trade barriers, establishing flexible rules of origin for goods, improving market access for services, and enhancing customs coordination.

"This agreement transcends the scope of merely liberalizing trade exchanges," Mezzour stated. "It encompasses numerous areas related to investments and economic cooperation, serving as a model framework for establishing a robust foundation to elevate the level of joint cooperation in the economic and investment fields."

Al Zeyoudi echoed Mezzour's sentiments, welcoming the successful conclusion of the CEPA negotiations. "The CEPA between the UAE and Morocco is a significant addition to the UAE’s program of global economic agreements," he said. "Our aim is to expand our network of trade and investment partners worldwide by forging promising partnerships with markets of strategic importance, both regionally and internationally."

The CEPA establishes new platforms to stimulate mutual investments and build partnerships between the private sector and business communities on both sides. It focuses on priority sectors such as renewable energy, tourism, infrastructure, mining, food security, transportation, logistics, information technology, and communications.

Non-oil foreign trade between the UAE and Morocco has seen a remarkable surge in recent months, reaching $1.3 billion in 2023. This represents a 30% increase compared to 2022 and an impressive growth of over 83% from pre-pandemic levels in 2019. The UAE stands as the largest Arab investor in Morocco, with total investments amounting to $15 billion across various strategic projects.

Morocco, the sixth-largest economy in Africa, boasts a GDP of $152.4 billion in 2023, with projections indicating a 3.5% growth by the end of 2024. The Moroccan economy shows promising prospects for growth and development, particularly in the services sector, which contributes 54% to the GDP, and the industrial sector, which accounts for 23%.

The CEPA program is a strategic initiative aimed at expanding the UAE’s network of trade and investment partners. The ultimate goal is to achieve a non-oil foreign trade volume of AED 4 trillion by 2031, further solidifying the UAE’s position as a global economic powerhouse.

This historic agreement not only signifies a deepening of economic ties between Morocco and the UAE but also sets a precedent for future bilateral partnerships, fostering mutual prosperity and economic growth.