Morocco and the United Arab Emirates launch a new era of economic partnership

Morocco and the United Arab Emirates (UAE) have successfully concluded negotiations to reach a Comprehensive Economic Partnership Agreement (CEPA), marking a significant milestone in the bilateral relations of the two countries. The landmark agreement, the final details of which were recently agreed, is expected to usher in a new era of shared economic growth, officials said on Monday.

Ryad Mezzour, Morocco's Minister of Industry and Trade, and Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, signed a joint statement to announce the successful conclusion of negotiations and the finalisation of the agreement's provisions. ’This agreement goes beyond simple trade liberalisation, including in multiple areas related to investment and economic cooperation. It is a model framework to establish a solid foundation for raising the level of joint cooperation in the economic and investment fields,’ Mezzour said. 

For his part, Al Zeyoudi stressed the importance of the conclusion of the CEPA negotiations with Morocco. ’The CEPA between the UAE and Morocco is an important addition to the programme of comprehensive economic agreements that the UAE continues to implement. The aim is to expand our network of trade and investment partners globally, establishing promising partnerships with markets of strategic importance both regionally and internationally,’ the Emirati minister said.

The agreement, which is expected to be officially signed at a later date and then ratified for entry into force, aims to promote the free flow of goods and services between the two countries. According to Morocco World News, this will be achieved by eliminating unnecessary trade barriers, establishing flexible rules of origin for products, improving access to services markets and optimising customs coordination. 

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

Moreover, non-oil foreign trade between the UAE and Morocco has flourished in recent months, reaching 1.3 billion dollars in 2023, an increase of 30% compared to 2022 and a growth of more than 83% over pre-pandemic levels in 2019. 

The Emirates is also the largest Arab investor in Morocco, with total investments of 15 billion dollars in a variety of strategic projects. 

As for Morocco, it is the sixth largest economy in Africa and reached a GDP of 152.4 billion dollars in 2023, with a growth forecast of 3.5 per cent by the end of 2024. The services sector is the largest contributor to GDP, accounting for 54%, followed by the industrial sector with 23%.

The CEPA programme seeks to expand the UAE's network of trade and investment partners in order to achieve the strategic goal of increasing the country's non-oil foreign trade to 4 trillion AED by 2031. This ambitious goal reflects the UAE's commitment to economic diversification and strengthening its presence in the global market. Thus, the agreement will not only enhance bilateral relations with Morocco, but also contribute to positioning the UAE as a key player in the global economy.