New United Arab Emirates–Azerbaijan trade pact lowers barriers as bilateral trade surpasses $2.2 billion in 2025
The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates and Azerbaijan has officially come into force, marking a new phase in bilateral trade.
According to the UAE Ministry of Foreign Trade, the agreement opens the door to lower tariffs, improved market access, and new investment opportunities for businesses in the emirates.
For UAE exporters, investors, and entrepreneurs, the deal is expected to ease access to Azerbaijan, a strategically located market connecting the Middle East, Central Asia, and Europe.
The CEPA aims to boost trade flows by reducing tariffs on a broad range of goods and services and strengthening private-sector cooperation in sectors such as logistics, renewable energy, and advanced manufacturing.
The CEPA comes at a time of rapidly expanding trade between the United Arab Emirates and Azerbaijan, with non-oil trade between the two countries rising by 31.4% over the past two years and surpassing $2.2 billion in 2025, highlighting strengthening commercial relations.
Thani bin Ahmed Al Zeyoudi described the agreement as a landmark development in bilateral relations between the United Arab Emirates and Azerbaijan.
He said the UAE–Azerbaijan CEPA represents a transformative milestone that will enhance trade flows, unlock new investment opportunities, and deepen private-sector collaboration across key sectors, including logistics, renewable energy, and advanced manufacturing.
Al Zeyoudi also noted that Azerbaijan’s strategic location strengthens its importance to the UAE’s long-term trade strategy, adding that its position along the North–South trade corridor, combined with aligned economic visions, can support greater resilience and sustainable growth in an evolving global economy.
Azerbaijan is already the largest Arab trading partner in the Caucasus nation, accounting for 40% of its trade with the wider MENA region. The United Arab Emirates is also the biggest Arab investor in Azerbaijan, with investments exceeding $1 billion.
The agreement is Azerbaijan’s first trade pact to include a dedicated services chapter, opening new opportunities in sectors such as finance, consulting, construction, and professional services—areas where many UAE firms are expanding internationally.
The CEPA forms part of the UAE’s broader trade strategy under its global partnership programme, which aims to diversify the economy, increase total trade to Dh3.67 trillion ($1 trillion) by 2031, and double national economic output over the same period.
