In just a year since signing a trade deal, UAE–Türkiye non-oil trade surged to $40.5 billion in 2024, making Türkiye the UAE’s fourth-largest trading partner. Beyond gold and machinery, the two are rapidly shaping a fruitful economic alliance.
The UAE–Türkiye trade relationship has entered a new chapter with both countries powering ahead as economic partners.
Showing optimism about their growing partnership, the two countries announced an 11.5% jump in non-oil trade in 2024. This milestone, a stated goal of CEPA, was reached three years earlier than expected, pushing Türkiye up to become the UAE’s fourth-largest non-oil trade partner, up from seventh place back in 2021.
The Comprehensive Economic Partnership Agreement (CEPA), signed in March 2023 and implemented by September the same year, has catalysed a remarkable surge in non-oil trade, reaching a staggering $40.5 billion in 2024.
This rapid growth not only positions Türkiye as the UAE’s fourth-largest trading partner but also signals the dawn of a broad, innovation-led economic alliance.
CEPA is far more than a traditional trade deal. It strategically slashes tariffs on 83% of tariff lines and encompasses 93% of non-oil bilateral trade, fostering an expansive and diversified trade relationship.
During the opening session, discussions touched on a wide range of sectors including agro-food, automotive, fintech, healthcare, water tech, infrastructure, and logistics, along with opportunities for joint projects in third countries.
Historically, UAE–Türkiye trade revolved around a few core commodities like gold, precious metals, and machinery.
With COP28 set to take place in Dubai later that year, both sides also reaffirmed their commitment to working together on energy transition initiatives, moving toward a low-carbon future, and advancing a circular economy.
This modern trade pact’s aim was to build a resilient, innovation-led corridor that both nations can count on for long-term growth.
While traditional trade in gold, silver, petrochemicals, and machinery remains strong, it’s now complemented by a future-facing mix of sectors. Türkiye exports defence tech, including drones, and industrial goods, while the UAE supplies high-tech equipment among non-oil goods.
The agreement also boosts market access to Türkiye for UAE exporters, especially in key sectors like construction, metals and related products, polymers, and other manufactured goods.
The partnership is also deepening in financial services, with UAE banks like Emirates NBD investing in Türkiye, driving smoother financial integration and fintech collaboration. CEPA’s digital trade provisions ensure secure data flows, boost e-commerce, and support tech startups, making services trade a key pillar of this evolving economic alliance.
The agreement promotes cooperation beyond goods, focusing heavily on sectors such as the digital economy, fintech, healthcare, clean energy, logistics, and the empowerment of small and medium enterprises (SMEs).
Beyond trade in goods and services, CEPA is bolstered by bold investment initiatives. The UAE has committed a $10 billion fund targeting renewable energy, digital infrastructure, and logistics projects in Türkiye.
This fund highlights a shared ambition to lead the region in sustainable development, with joint ventures in solar, wind, hydrogen energy, and AgriTech innovations addressing food security and climate resilience.
Strategic infrastructure projects like the co-development of Izmir Port and smart trade corridors are enhancing regional connectivity, linking Türkiye’s industrial base to the UAE’s expansive global trade network.
For SMEs, the trade partnership translated to easier market access, lower costs, and more opportunities to grow through streamlined trade and strong government support.
SMEs form the backbone of both economies, contributing over 50% of the UAE’s GDP and driving Türkiye’s industrial output. CEPA reduces tariffs, simplifies customs procedures, and cuts compliance costs, effectively opening new markets for these businesses.
UAE SMEs can now leverage Türkiye’s diverse industrial and technology-driven markets, while Turkish SMEs gain access to the UAE’s gateway to the GCC, Africa, and South Asia. This integration boosts the scalability and sustainability of small businesses, fostering entrepreneurship and job creation on both sides.
CEPA exemplifies South–South cooperation at its best, linking Türkiye’s robust manufacturing capabilities with the UAE’s financial muscle and world-class logistics infrastructure.
Together, the two nations are creating a model for regional integration that could inspire other emerging economies. By aligning their strengths, they are enhancing supply chain resilience and competitiveness across Asia, the Middle East, and Africa.
Looking forward, the UAE and Türkiye aim to sustain and grow their trade relationship. The agreement envisions maintaining $40 billion-plus in annual trade by 2030 and projects the creation of 25,000 new jobs by 2031. A dedicated joint CEPA committee actively monitors progress, ensuring the agreement adapts to evolving global trade dynamics.
Future potential expansions include cooperation on halal certification, e-commerce, digital governance, and sustainable agriculture, all aligned with global standards.
