28 CEPAs underway, expanding global trade and unlocking new market opportunities.
The launch of the Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates and Jordan on 15 May 2025 represents a significant milestone in regional economic integration and a broader trend reshaping trade diplomacy across the Middle East. A Ministry of Economy announcement and multiple regional news sources trace this agreement's formation as part of a strategic UAE agenda to build resilient, diversified economic alliances beyond oil.
Initial discussions began in early 2023, with technical negotiations gaining momentum following the UAE’s earlier CEPAs with India and Indonesia. The intent: to establish a modernized, future-ready trade framework that aligned with both countries’ long-term development visions “We the UAE 2031” and “Vision 2025” for Jordan. The final agreement was signed in late 2024, but the real shift began in early 2025 when both nations accelerated implementation efforts following a sharp rise in regional inflation and supply chain disruptions.
By 1 March, both governments had ratified the CEPA domestically. Early provisions included a tariff elimination on over 98% of goods, mutual recognition of industrial standards, and streamlined customs protocols to boost speed and transparency. On 15 May, the agreement officially entered into force providing UAE and Jordanian exporters immediate access to reduced or zero-tariff trade, particularly in priority sectors like pharmaceuticals, renewable energy, infrastructure, agriculture, and digital services.
From June onward, implementation accelerated. Joint task forces were established to:
- Launch SME collaboration platforms
- Integrate digital trade infrastructure
- Facilitate cross-border investment in logistics and manufacturing hubs
- Enhance academic and R&D partnerships
As of 1 August, Jordan was granted full customs fast-track privileges in UAE ports under the CEPA framework, with reciprocal benefits extended to UAE-based industrial exporters entering Jordanian markets. The agreement also provides a platform for joint participation in third-country projects, especially across Africa and Asia.
While the UAE–Jordan CEPA stands out as the first such deal between two Arab nations, it is part of a wider regional movement. Multiple Arab countries including Egypt, Morocco, and Bahrain are reportedly in CEPA consultations with the UAE and Saudi Arabia, seeking similar economic modernization through strategic trade diplomacy. With over US $22.5 billion in mutual investment already in place and bilateral non-oil trade reaching US $5.62 billion in 2024, this agreement sets the stage for new investment pathways and sustainable regional prosperity.
The CEPA’s full implementation is expected to generate long-term momentum beyond immediate trade gains fostering political alignment, economic diversification, and a shared innovation agenda across the region.
