A lot of nations are forming partnerships to aid in increasing trade, investment and cooperation through bilateral trade agreements. The CEPA is a recent example of this. The CEPA is between the United Arab Emirates (UAE) and Republic of Serbia and it represents a major milestone in terms of diplomatic relations between the two countries. In addition to establishing the bilateral relationship between these two nations, CEPA illustrates how the UAE is expanding its global trade network and solidifying its economic ties with emerging countries.
The CEPA between UAE and Serbia was signed in October 5, 2024 in Belgrade and it was effective on June 1, 2025. The CEPA is part of an effort by the UAE to promote their global non-oil exports and create new business partnerships by establishing an open market through tariff reductions and opportunities to invest in the UAE.
The agreement consists of the reduction or elimination of tariffs on 96% of product categories in future trade. The removal or reduction of these tariff barriers between the parties will provide significant improvements to both markets and create increased competitiveness and cross-border trade. This new trade agreement will provide an easier way for businesses in both the United Arab Emirates (UAE) and the Republic of Serbia to import or export goods to and from each other by creating a reduction in customs duties and creating a more streamlined process for conducting international trade.
It is anticipated that all major industries (agriculture, manufacturing, and technology) will benefit from the expansion of market opportunities through the implementation of the Comprehensive Economic Partnership Agreement (CEPA). The overall trade volume between these two countries is expected to continue to receive substantial growth. UAE-Serbia trade has increased continuously over the past few years. By 2024, the total non-oil trade volume between the two countries will reach approximately $121.4 million, which represents nearly a 100% increase from total trade volume in 2021. Once CEPA is implemented, it is expected that there will be bountiful prospects for increased trade between the two nations, thereby further strengthening their economic partnership.
The CEPA is aiming to increase trade, by making it easier for businesses to do business together. Furthermore, it will increase private-sector cooperation through investment into each other’s markets. In addition to trading goods, CEPA will provide certainty in terms of laws affecting business investment. For example, it encourages renewable energy, agriculture, logistics, infrastructure, and technology through foreign direct investment. Furthermore, CEPA will establish a clear, predictable, and consistent business environment in each country, which will attract investment and support long-term development opportunities from both countries.
With Serbia being located in the heart of the Balkans, a rapidly growing economy in itself, the EU has become a more important partner for the UAE. Serbia’s geographic position gives it access to Eastern Europe and, through Serbia, access to the entire European marketplace. Therefore, it offers an excellent opportunity for UAE firms wishing to do business in Europe. Similarly, the UAE is seen as an important global trading hub linking Asia, Africa, and the Middle East. Hence, by establishing CEPA, the two regions’ (the Balkans and the Gulf region) economic linkages will be enhanced through CEPA acting as a bridge between them.
It is anticipated that CEPA will achieve significant measurable economic impacts as a result of this agreement. Official estimates indicate that the UAE-Serbia CEPA is expected to contribute approximately $351 million to the UAE Gross Domestic Product (GDP) by 2031. A key component of the CEPA is its support for Small- and Medium-Sized Enterprises (SMEs). SMEs are important to drive innovation, create new employment opportunities, and increase the rate of economic growth in both Serbia and the UAE by facilitating cross-border trade through the removal of barriers to trade and greater access to international platforms.
The CEPA is an integral part of the UAE’s economic diversification strategy aimed at reducing the reliance on oil revenues and expanding the non-oil sectors of the UAE’s economy. The UAE has been actively working to develop large-scale economic partnerships across Asia, Africa, and Europe to strengthen trade connectivity and further position itself as a global hub of commerce. The agreement with Serbia represents another building block in the UAE’s broader goal to achieve a diversified and sustainable economy.
Sanjay Mishra is a seasoned legal professional and content contributor at LEGALLANDS LLP, bringing deep expertise in corporate law, taxation, and regulatory compliance. With years of experience advising businesses on legal structuring and operational governance, he provides pragmatic insights that blend statutory knowledge with business strategy.
At Legallands.com, Sanjay writes analytical articles on company formation, financial regulation, dispute resolution, and policy reforms, helping readers understand complex legal frameworks in a simplified, practical manner.
His work reflects a strong commitment to clarity, precision, and integrity in legal communication, empowering enterprises to make informed, compliant, and growth-oriented decisions.
Co-author: Prerna
