Abu Dhabi:Dr. Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade, announced that the Comprehensive Economic Partnership Agreement (CEPA) signed today between the United Arab Emirates and the Republic of Benin is projected to increase UAE exports to Benin by more than USD 1 billion by 2033. Additionally, Benin's exports to the UAE are expected to grow by over USD 100 million within the same timeframe, creating new avenues for trade and investment collaboration between the two nations.
According to Wam, Dr. Al Zeyoudi stated that the agreement ensures high levels of trade liberalisation, impacting approximately 97% of current trade between the UAE and Benin. It includes significant reductions or eliminations of customs tariffs. This agreement is a pivotal addition to the cooperative efforts between the UAE and Benin and strengthens the UAE's broader engagement with the African continent. The negotiations for the agreement have reportedly progressed swiftly in recent months.
Dr. Al Zeyoudi congratulated the leadership and business communities of both the UAE and Benin on the agreement's signing, pointing out the vast opportunities it presents across multiple sectors. He highlighted Benin's robust economic growth, which surpassed 7.5% last year, as an indicator of substantial opportunities for UAE private-sector companies in the Beninese market.
Benin's primary exports to the UAE include cotton, various nuts, soybeans, and a variety of food products, which can find a market in the UAE and be re-exported globally. The Beninese market, in turn, imports a diverse array of equipment, electronics, devices, and spare parts that bolster its industrial and infrastructure sectors.
The agreement also paves the way for opportunities in services and investment, including a recently signed agreement in the renewable energy sector. UAE companies are already actively investing in Benin, particularly in garment factories leveraging the country's cotton resources. Precious metals, especially gold, are expected to enhance bilateral trade, alongside prospects in electronics and technology sectors.
Logistics play a crucial role, with Benin serving as a strategic gateway to neighboring countries and facilitating the export of African goods to global markets. Efforts are underway to enhance logistical connectivity to support the seamless movement of goods and services.
Dr. Al Zeyoudi emphasized that the agreement fortifies the UAE's presence in Africa and extends its investment expertise to Benin. It is part of the UAE's Comprehensive Economic Partnership Agreements programme, which aims to diversify international markets and expand the global reach of UAE companies and residents.