Emirati-European “free trade” association to boost the economy and cooperation
European Commission President Ursula von der Leyen said in a statement posted on the “X” platform on Tuesday, December 16, that the Commission “has agreed with the Emirates to accelerate negotiations on the free trade agreement and to emphasize that this agreement is a fundamental model for the entire Gulf region.”
Emirati-European partnership
The Commission President welcomed the start of negotiations with Abu Dhabi on a strategic partnership agreement between the two parties in the areas of investment, energy, and digital transformation. These negotiations began recently in the Emirati capital to establish the strategic partnership between the European Union and the Emirates.
A Commission spokesperson said in an official statement dated December 11 that “the European executive body has high expectations for the negotiations with the Emirates to achieve a qualitative leap in relations between the two parties, as part of its plan to strengthen cooperation with the Gulf countries.”
The spokesperson confirmed that the European Commission is working to “achieve real progress on the path to the new strategic partnership, is confident in this process, and wishes to support and strengthen it within the political framework defined by the strategy adopted by the European executive body in 2022,” noting that the Commission's cooperation with the Emirates means “strengthening stability and supporting prosperity in the region.”
For her part, Dubravka Šuica, European Union Commissioner for the Mediterranean and responsible for relations with the Gulf countries, officially announced the start of “strategic partnership negotiations” with the UAE Minister of State, Lana Nusseibeh, to begin work on strengthening relations in key areas, in parallel with the ongoing negotiations on the free trade agreement between the two parties.
Both officials agreed to “deepen the strategic partnership in areas including trade, investment, and humanitarian aid, as well as to build bridges of communication between Europe, the Middle East, Asia, and Africa,” according to the Asharq Al-Awsat newspaper. They also agreed to explore opportunities in the fields of telecommunications, research, innovation, energy, green and digital transformation, and artificial intelligence, within an “ambitious, forward-looking partnership based on mutual benefit for the peoples of Europe, the Emirates, and the region.”
In addition, a telephone conversation was held between the President of the Emirates, Sheikh Mohammed bin Zayed Al Nahyan, and the President of the European Commission, Ursula von der Leyen, to discuss ways of strengthening cooperation for the mutual benefit of both parties. The call addressed the launch of the negotiation process on the strategic partnership and free trade agreement.
During the conversation, Sheikh Mohammed bin Zayed and Ursula von der Leyen underscored the “common interest in strengthening Emirati-European relations, especially in the areas of development, and stressed that the free trade agreement between the Emirates and the European Union represents a qualitative step that will open new horizons for cooperation.”
Economic cooperation
Non-oil trade between the Emirates and the European Union reached approximately $67.6 billion in 2024, with annual growth of 3.6%, according to an official statement from the Emirati news agency WAM.
The European Union is the Emirates' second-largest trading partner, accounting for 8.3% of total non-oil foreign trade last year, following Abu Dhabi's launch of the Comprehensive Economic Partnership Program in 2021 as part of its efforts to diversify the economy.
Through cooperation with trading partners around the world, including the European Union, the UAE aims to strengthen collaboration in various economic sectors with the goal of increasing non-oil trade volume to $1.1 trillion by 2031.
Through multiple agreements with international trading partners—most recently with the European Union—the Emirates are consolidating their position as a reliable and active partner in the international community, determined to contribute to building a more sustainable, secure, and fair global economy. The Emirates seek to “strengthen and deepen the strategic partnership with the European Union to reinforce the levels of security and shared prosperity between both parties,” according to WAM.
The cooperation initiative between the Emirates and the European Commission reaffirms the importance of the strategic partnership for the region. Following the call with the Emirati president, the Commission president highlighted “the importance of the central role played by the Emirates in supporting efforts to ease tensions in Sudan and in calling on the international community to achieve peace in Ukraine.”