Economic stakeholders have affirmed that the Comprehensive Economic Partnership Agreement (CEPA) between Jordan and the United Arab Emirates represents a pivotal milestone in strengthening bilateral economic ties. It marks a qualitative leap towards a long-term strategic partnership that will stimulate investment, boost trade volume, and support key sectors, particularly small and medium-sized enterprises (SMEs), which form the backbone of the national economy.
اضافة اعلان
They told the Jordan News Agency (Petra) that the provisions of the agreement related to knowledge transfer, digital transformation, and infrastructure development will directly enhance the competitiveness of the national economy and create sustainable job opportunities.
The CEPA officially came into force last Thursday.
The agreement aims to enhance bilateral cooperation in various economic fields, maximizing the use of available opportunities and fostering integration across several sectors.
His Majesty King Abdullah II and His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, witnessed the signing of the CEPA between the two governments in October last year.
Through this partnership, both Jordan and the UAE aim to increase non-oil bilateral trade to more than $8 billion by 2032, up from $5.6 billion in 2023.
Under the agreement, tariffs will be eliminated or reduced, and trade barriers will be removed, thereby improving market access and strengthening regional and global supply chains.
Dr. Ahmad Al-Hindawi, Chairman of the Jordan Business Council in Dubai, told Petra that the agreement is significant as it is the first of its kind between the UAE and an Arab country. It is also the first comprehensive economic partnership agreement the UAE has signed that has entered into force, giving it strategic importance.
He noted that non-oil trade between the two countries grew by over 34% in 2023 to reach $5.6 billion—an increase of more than 120% compared to the base year 2019, prior to the COVID-19 pandemic. This growth reflects the strength of the economic relationship and the public and private sectors' commitment to enhancing it.
The agreement will eliminate or reduce tariffs on most goods and services and remove technical and non-technical trade barriers, making market access easier and enhancing bilateral and regional supply chains.
Al-Hindawi emphasized that the partnership demonstrates a high level of economic integration between the two countries and their shared commitment to elevating trade and investment relations. The UAE is Jordan’s fifth-largest global trading partner and the largest foreign investor in the Kingdom.
He added that UAE investments in Jordan are valued at around $17 billion, out of a total of $22.5 billion in mutual investments. These span key sectors such as real estate, industry, healthcare, education, and services.
More than 300,000 Jordanians reside in the UAE, including approximately 15,000 entrepreneurs, reflecting the strong human and economic ties between the two nations.
Al-Hindawi expressed hope that the agreement would serve as a new platform for economic integration and cooperation, further solidifying both countries' positions as strategic partners pursuing mutual growth and sustainable development.
Meanwhile, Hamdi Tabbaa, President of the Jordanian Businessmen Association, stressed that the UAE is one of Jordan’s key economic partners and one of the largest investors in many vital sectors that contribute to national economic growth, including pharmaceuticals, agriculture, logistics, and energy.
He stated that UAE investments in Jordan are estimated at around $22.5 billion, and non-oil bilateral trade grew by 118% between 2019 and 2023. Jordan’s share of the UAE's total non-oil trade with Arab countries reached 8%, making the UAE Jordan's fifth-largest trading partner.
Tabbaa described the CEPA as a strategic step to enhance mutual investments and bilateral trade, including the implementation of a $5.5 billion package of investment projects. These projects support Jordan’s Economic Modernization Vision and include service, development, and infrastructure initiatives that aim to capitalize on available opportunities and foster sectoral integration—especially in areas impacted by regional geopolitical challenges.
He added that the agreement will open new avenues for long-term partnerships between business communities and the private sectors of both countries, fostering joint economic growth and job creation, particularly for Jordanian youth and SMEs. It will also reduce trade restrictions and create effective collaboration platforms that empower the next generation of entrepreneurs and innovators, ensuring inclusive benefits from economic gains. Tabbaa stressed the importance of active public-private sector cooperation to effectively implement the agreement, particularly in energy, mining, potash and phosphate production, and pharmaceuticals.
He underscored the importance of offering customs and tax exemptions to the UAE side to facilitate smooth implementation, in addition to enhancing information exchange to ease the import and entry of goods.
Fahd Al-Tawileh, President of the Al-Rakhwaa Businessmen Association, described the agreement as a qualitative step to strengthen public-private sector cooperation and streamline trade exchange. He noted that such agreements directly support market access and help remove export-import obstacles.
He praised the UAE’s pivotal role as a regional trade hub and expressed Jordan's aspiration to achieve a similar status.
Al-Tawileh emphasized that both countries need to expand their commercial relations to access new markets that were previously hard to reach, and the agreement paves the way for this. It also reflects the depth of the political and economic ties between Jordan and the UAE.
He commended the establishment of a joint ministerial committee between the two countries’ Ministries of Industry and Trade, which will play a central role in addressing any future obstacles and facilitate harmony between the public and private sectors in achieving the agreement’s goals.
He also noted that Jordanian products are well-received in the UAE market due to their quality and good reputation, expressing hope for increased trade in the near future.
Reem Al-Baghdadi, President of the Jordan Forum for Business and Professional Women, said the CEPA is a practical embodiment of Jordan’s Economic Modernization Vision, particularly in empowering SMEs, which constitute about 89% of the country’s total economic institutions.
She explained that the agreement aims to eliminate tariff and non-tariff barriers that have long hindered the flow of Jordanian exports. It will also ease trade restrictions and improve market access, which will enhance the ability of SMEs to market their products, especially in promising sectors such as food industries, manufacturing, and pharmaceuticals.
Al-Baghdadi highlighted that the agreement includes cooperation in capacity-building, knowledge transfer, digital transformation, innovation, and compliance with export standards, which will raise the competitiveness of Jordanian companies internationally and help prepare Jordanian youth for the global job market.
She affirmed that the CEPA is a strategic step to support national efforts to strengthen the economy and improve the competitiveness of Jordanian products in regional and global markets.
Reem Badran, President of Partners–Jordan, stated that amid rapidly changing economic and geopolitical conditions, the Jordan–UAE CEPA stands as a mature model of what Arab cooperation can achieve when built on shared vision and mutual interests rather than circumstantial support or formalities.
She noted that the agreement is grounded in a long history of strong political and economic relations and elevates the relationship to a new stage based on long-term strategic planning.
Badran pointed out that UAE investments in Jordan surpassed $4.6 billion as of 2024, distributed across key sectors such as real estate, energy, tourism, and transport. She projected a 20% increase in these investments over the next three years following the agreement’s implementation—providing a strong boost to Jordan’s economy, which aims to spur growth and create sustainable employment.
She emphasized that what distinguishes the agreement is not just the volume of investment but also its quality. The agreement clearly focuses on future-oriented sectors like the digital economy, food security, renewable energy, and technology, which are top priorities in Jordan’s modernization plans.
These sectors not only improve macroeconomic indicators but also help build a more resilient and crisis-resistant economic environment.
She concluded that the partnership represents a model of how Arab economic relations should be—founded on added value, knowledge transfer, and local capacity building. When investments are directed toward building factories, training youth, and developing infrastructure, they become true developmental tools—not merely capital flows.
She also highlighted that the agreement reflects a shared understanding by Jordanian and Emirati leaderships that political stability is inseparable from economic growth. “While the region experiences conflicts and instability, Jordan and the UAE are choosing a model based on development, integration, and mutual benefit—making this a strategic stance with both regional and global significance.”
— (Petra)
