UAE Secures Trade Pact Expansion as Non-Oil Exports Surge Past $123 Billion

Trade Agreements Propel UAE Non-Oil Exports to New Heights

The UAE’s non-oil export sector reached approximately AED452.8 billion in the first half of 2026, the latest measure of a diversification strategy built on an expanding network of bilateral trade agreements. The government’s systematic effort to reduce dependence on hydrocarbon revenues, and to position the country as a central node in global commerce, is now producing figures that are difficult to dismiss.

The policy instrument driving this growth is the Comprehensive Economic Partnership Agreements programme, which the UAE launched in September 2021. Thirty-eight CEPAs have now been signed, with a growing number in force and delivering tangible benefits to exporters. The agreements reduce customs duties, lower trade barriers and improve market access for UAE companies operating across multiple continents.

The scale of trade flowing through CEPA partner nations underscores the programme’s economic weight. During the first half of 2026, trade with countries where these agreements have taken effect reached approximately AED304.3 billion, while UAE exports to those markets stood at around AED66.1 billion. The partnership network is not merely aspirational. It is generating measurable commercial activity.

Geographic scope reflects a deliberate policy to avoid concentration in any single region. In Asia, the UAE has secured agreements with major economies including India, Indonesia and Türkiye. The India partnership illustrates the potential these arrangements unlock: non-oil bilateral trade between the two countries reached AED107.5 billion in the first half of 2026, making it one of the programme’s most consequential relationships.

European partnerships have also matured. The UAE-Ukraine CEPA entered into force on 1 July 2026, opening new channels for trade and investment cooperation. The UAE-Serbia CEPA similarly entered into force, providing for tariff liberalisation across a significant portion of tariff lines. Together, these agreements position the UAE as a bridge between Middle Eastern and European markets.

Africa represents an emerging frontier. Recent agreements with Gabon, the Republic of the Congo and Kenya signal the UAE’s intent to deepen economic ties across the continent. The UAE-Gabon CEPA specifically targets cooperation in agriculture, logistics and renewable energy, while the Kenya agreement aims to strengthen trade and investment links between the Middle East and East Africa. The UAE-Republic of the Congo CEPA emphasises long-term partnership and investment opportunities.

The pace of agreement-making has accelerated. In July 2026, the UAE and Canada concluded CEPA negotiations in the shortest timeframe recorded under the programme. Bilateral trade between the two countries reached approximately US$4.2 billion in 2025, representing 21 percent growth compared to 2024.

Broader economic data reinforces the momentum. Non-oil foreign trade reached AED3.8 trillion in 2025, registering growth exceeding 26 percent, while non-oil exports increased by more than 45 percent. In the first half of 2026, non-oil foreign trade reached AED1.937 trillion, sustaining that upward trajectory.

The government has explicitly linked these trade agreements to industrial capacity expansion. Participants at Make it in the Emirates 2026 highlighted the CEPA programme’s role in enabling UAE products, services and advanced industrial exports to access both mature and emerging markets. That connection between trade policy and domestic manufacturing capacity suggests the agreements are functioning as intended: creating demand for UAE-produced goods and services rather than simply facilitating the import and re-export of third-country products.

The underlying infrastructure supporting these trade flows remains a competitive advantage. The UAE’s ports, free zones and logistics networks provide the operational backbone for the CEPA framework, while the country’s geographic position connects Asian, African and European supply chains. These structural assets, combined with the expanding agreement framework, create conditions for the private sector to diversify export destinations, reduce tariff exposure and establish production partnerships in partner countries.

Whether the programme can sustain its current pace of agreement-making, while ensuring that agreements already in force deliver compliance and enforcement mechanisms with real teeth, will be the governance question that shapes the next phase of this expansion.