Economic partnership accords between the United Arab Emirates and Costa Rica, as well as Mauritius, have officially taken effect.
UAE Strengthens Economic Ties with Costa Rica and Mauritius through Comprehensive Economic Partnership Agreements (CEPAs)
The United Arab Emirates (UAE) has recently signed Comprehensive Economic Partnership Agreements (CEPAs) with Costa Rica and Mauritius, further bolstering its strategic capital exchange and adding to the approximately US$673 million already invested in Central America.
These agreements, which have already come into force, are part of the UAE's broader strategy to diversify its economy beyond oil and expand market access to emerging markets. The UAE-Mauritius CEPA, in particular, opens access to one of Africa's most promising economies.
The UAE-Mauritius CEPA is the latest in a series of successful CEPA roll-outs, following those with India, Israel, Türkiye, Indonesia, Cambodia, and Georgia since the programme's launch in 2021. Together, these agreements have helped fuel impressive trade growth, with the UAE’s non-oil foreign trade with top CEPA partners increasing by approximately 25% year-on-year.
Both CEPAs are already operational and contributing to the UAE’s growing non-oil foreign trade. The UAE has signed 28 CEPAs overall, with 10 agreements (including those with Costa Rica and Mauritius) implemented and yielding benefits such as unhindered customs access to markets with nearly three billion consumers.
The agreements support the UAE’s strategic goal of diversifying its economy by fostering growth in sectors such as technology, finance, healthcare, logistics, and renewable energy. By facilitating tariff reductions, easing customs procedures, and promoting investment flows, the CEPAs enhance market access for UAE businesses as well as their partners, supporting job creation and economic growth in all involved countries.
The UAE’s liberal business climate, including 100% foreign ownership in many sectors and a low corporate tax rate, synergizes with these agreements, making it an attractive partner for trade and investment from these countries.
The new CEPAs aim to increase trade and investment with Costa Rica and Mauritius. Under the UAE-Costa Rica CEPA, 99.8% of UAE exports to Costa Rica will benefit from zero or reduced customs duties. Similarly, over 97% of UAE exports to Mauritius will benefit from immediate tariff elimination or gradual tariff reduction over a maximum of 5 years under the UAE-Mauritius CEPA.
These agreements are projected to boost the value of non-oil bilateral trade from its current levels. For instance, the UAE-Mauritius CEPA is expected to increase UAE exports to Mauritius by a fourfold amount, while the UAE-Costa Rica CEPA is projected to increase the value of non-oil bilateral trade from its current US$82.6 million to US$500 million within five years.
The UAE seeks to increase its foreign trade to AED4 trillion (US$1.1 trillion) and the CEPA programme has been instrumental in achieving this goal. The programme has contributed to record non-oil trade in 2024, which reached an all-time high of US$817 billion.
The UAE currently has twelve further CEPA deals signed and awaiting ratification with markets around the world. With the addition of the UAE-Costa Rica and UAE-Mauritius agreements, the CEPA programme now has 30 concluded deals, expanding access for UAE businesses to over a quarter of the world's population.
Dr. Thani bin Ahmed Al-Zeyoudi, the Minister of State for Foreign Trade in the UAE, emphasized the importance of these agreements, stating, "The UAE-Costa Rica and UAE-Mauritius CEPAs enable expanded bilateral trade, economic diversification, and stronger global value chains, contributing to the UAE’s broader non-oil economic growth and international trade integration efforts."
[1] Ministry of Economy, UAE (2023). UAE-Mauritius CEPA: Boosting Bilateral Trade and Investment. [Online]. Available: https://economy.gov.ae/en/news-and-media/press-releases/uae-mauritius-cepa-boosting-bilateral-trade-and-investment
[2] Ministry of Economy, UAE (2023). UAE-Costa Rica CEPA: Strengthening Economic Ties. [Online]. Available: https://economy.gov.ae/en/news-and-media/press-releases/uae-costa-rica-cepa-strengthening-economic-ties
[3] Ministry of Economy, UAE (2023). UAE CEPA Programme: Achieving Economic Diversification and Global Integration. [Online]. Available: https://economy.gov.ae/en/cepa-programme
[4] Ministry of Economy, UAE (2023). UAE CEPA Programme: Contributing to Record Non-Oil Trade. [Online]. Available: https://economy.gov.ae/en/news-and-media/press-releases/uae-cepa-programme-contributing-to-record-non-oil-trade
[5] Ministry of Economy, UAE (2023). UAE Business Environment: Attracting Foreign Investment. [Online]. Available: https://economy.gov.ae/en/business-environment/foreign-investment
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