UAE-Serbia CEPA Comes into Force, Strengthening Strategic Trade and Investment Ties

The UAE–Serbia CEPA came into force in May 2025, eliminating tariffs on 96 percent of goods and boosting bilateral trade, investment, and private sector collaboration. 

In May, 2025, the Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates (UAE) and the Republic of Serbia officially entered into force. As the tenth CEPA signed by the UAE, this agreement builds on already expanding trade volumes between the two countries. According to the UAE Ministry of Economy, non-oil trade between the two countries reached US$121.4 million in 2024, marking a near twofold increase compared to 2021. Imports from Serbia alone amounted to US$75.65 million in 2023. 

In 2023 alone, Serbia exported phosphatic fertilizers (US$12.1 million), surveying equipment (US$11 million), and apples and pears (US$9.58 million) to the UAE, while the UAE’s exports to Serbia included rolled tobacco (US$27.2 million), raw aluminum (US$20.3 million), and cars (US$12.8 million). The CEPA aims to elevate this momentum by eliminating tariffs on 96 percent of goods and introducing a transparent, rules-based trade framework. 

CEPA’s trade impact and tariff liberalization 

One of the defining features of the CEPA is the elimination and reduction of customs duties on over 96 percent of tariff lines, substantially increasing market access for both Emirati and Serbian exporters. Serbia has become the UAE’s first CEPA partner in Eastern Europe.  

According to Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, the CEPA is expected to contribute approximately US$351 million to the UAE’s Gross Domestic Product (GDP) by 2031. These gains are likely to be driven by market access, diversified trade flows, and increased foreign direct investment (FDI). 

Serbia’s agricultural sector, known for its fertile lands and established food processing capabilities, aligns well with the UAE’s food security strategy. The CEPA is expected to bolster UAE investments in Serbian agribusiness, from fertilizer production to organic farming and aggrotech applications. 

In industry and manufacturing, opportunities exist for partnerships in materials such as aluminum, which the UAE already exports to Serbia, and in expanding the supply chain for sectors like automotive components and light engineering. 

Tech collaboration is another area of promise. With Serbia developing its digital infrastructure and the UAE pushing innovation through its Artificial Intelligence (AI) and fintech policies, there is room for cross-border ventures and tech incubation programs. Emirati capital combined with Serbian technical expertise could be leveraged to build joint ventures in cybersecurity, automation, and data services. 

Serbia’s strategic value in the UAE’s foreign trade policy 

The selection of Serbia as a CEPA partner is consistent with the UAE’s strategy to tap into emerging European economies that offer a gateway into larger regional markets. This CEPA forms part of the UAE’s broader trade liberalization program aimed at achieving US$1.1 trillion in non-oil foreign trade by 2031, alongside an ambitious goal to double the national economy to US$800 billion. 

Serbia’s position as a logistics and agricultural hub in the Balkans, coupled with its trade access to the EU and CEFTA (Central European Free Trade Agreement) bloc, makes it a valuable link in the UAE’s global supply chain ambitions. 

In 2023, the UAE imported US$75.65 million worth of goods from Serbia, placing the Emirates as Serbia’s top trading partner in the Gulf Cooperation Council (GCC) and accounting for 55 percent of Serbia’s total trade with the Gulf region. It also ranked as Serbia’s third-largest export market in the Middle East and fourth among Arab and African nations, showing a potential for bilateral commercial momentum. 

Expanding the CEPA strategy: UAE–EU agreement on the horizon 

While the UAE–Serbia CEPA marks a milestone in the Gulf country’s outreach to Eastern Europe, the UAE is simultaneously advancing negotiations with the European Union (EU) for a broader CEPA. On May 28, 2025, Dr. Thani bin Ahmed Al Zeyoudi, UAE’s Minister of State for Foreign Trade, hosted Maroš Šefčovič, EU Commissioner for Trade and Economic Security, in the UAE to continue formal discussions on this deal. 

This potential UAE–EU CEPA is expected to unlock a high-value trade corridor, potentially creating UAE as a gateway to the Middle East for European exporters. In 2024, non-oil trade between the UAE and EU reached US$67.6 billion, representing a 3.6 percent increase from 2023. The agreement is being framed to include market access for goods and services, investment protections, and rules on digital trade, intellectual property, and sustainability. 

FDI trends already highlight the depth of economic ties, with joint ventures in AI data centers (France), solar power (Spain), and infrastructure redevelopment (Hungary and Italy). A finalized UAE–EU CEPA is projected to bolster these flows further, with potential deals worth US$50 billion in AI infrastructure and US$40 billion in green energy and defense on the horizon. 

The EU, as the second-largest global economic bloc, is seen by UAE policymakers as a natural next step in the CEPA program’s evolution. If concluded, the agreement would cement the UAE’s position as a central node in transcontinental supply chains, enhancing predictability, rule-based competition, and diversification across both regions. 

In brief 

The agreement’s strong focus on private sector collaboration, logistics integration, and sectoral investment promotion will likely yield long-term dividends for both countries. As part of the UAE’s larger CEPA framework, this deal contributes to its transformation into a globally competitive, diversified economy while providing Serbian exporters and businesses with direct access to the UAE’s vibrant commercial ecosystem and onward to the broader Middle East. 

Read more: EU and UAE Agree to Launch Free Trade Talks: Outlook and Opportunities 

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