UAE and Morocco Finalize Comprehensive Economic Partnership Agreement
Abu Dhabi, The Gulf Observer: The United Arab Emirates (UAE) and the Kingdom of Morocco have successfully concluded the terms of a Comprehensive Economic Partnership Agreement (CEPA), heralding a new era of mutually beneficial trade and investment relations between the two nations.
The conclusion of negotiations was marked by the signing of a joint statement by Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Ryad Mezzour, Moroccan Minister of Industry and Trade.
Upon implementation, the UAE-Morocco CEPA will enhance the free flow of goods and services by reducing or removing tariffs, eliminating unnecessary trade barriers, improving market access for services, enhancing customs harmonization, and establishing flexible rules of origin for goods. It will also create platforms for investment and private-sector collaboration in key sectors such as renewable energy, tourism, infrastructure, mining, food security, transport, logistics, and information and communications technology (ICT).
In 2023, the UAE and Morocco shared a non-oil trade volume of US$1.3 billion, reflecting a 30 percent increase from 2022 and an 83 percent rise compared to 2019. The UAE is the largest Arab investor in Morocco, with over US$15 billion invested in various strategic projects.
Dr. Thani bin Ahmed Al Zeyoudi welcomed this significant advancement in the UAE’s foreign economic agenda. He stated, “The UAE-Morocco Comprehensive Economic Partnership Agreement is a valuable addition to our CEPA program. Our two brotherly nations already enjoy strong bilateral economic relations, and this agreement will enable us to further develop areas of mutual benefit, particularly in sectors such as tourism, energy, manufacturing, and agriculture, and generate long-term prosperity for both peoples. Morocco is one of the largest and most competitive economies in Africa, and we look forward to working in unison to create new opportunities for our private sectors.”
Ryad Mezzour, Minister of Industry and Trade of the Kingdom of Morocco, added, “I signed today with my brother, Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, a joint declaration announcing the conclusion of negotiations between our two countries on a Comprehensive Economic Partnership Agreement. 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 on 4th December, 2023, in Abu Dhabi, which aims to establish an innovative, renewed, and solid partnership between the two brotherly countries.
“The agreement, which strengthens the legal framework between the two countries, aims to support the development of trade and investment by opening new opportunities to upgrade the level of joint cooperation in economic and commercial fields,” he added.
Morocco, the sixth-largest economy on the African continent, had a GDP of US$152.4 billion in 2023, expected to grow by a further 3.5 percent in 2024. While agriculture remains the largest employer, the services sector is the largest contributor to GDP, accounting for 54 percent, with the industrial sector contributing 23 percent.
The UAE’s CEPA program aims to increase the country’s non-oil foreign trade to AED4 trillion by expanding relations with strategically important markets worldwide. In 2023, the UAE’s non-oil trade in goods reached an all-time high of US$710 billion, a 12.6 percent increase from 2022 and 34.7 percent more than 2021. Morocco is the latest African nation to conclude CEPA terms with the UAE, following Mauritius, Kenya, and Congo-Brazzaville.
