The United Arab Emirates (UAE) and the European Union (EU) are entering a new phase of economic cooperation, marked by renewed diplomatic engagement and a strategic focus on boosting trade and investment. A high-level UAE delegation, led by Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and Ahmed Al Sayegh, Minister of State, recently visited Brussels, Belgium, for a series of meetings with senior EU officials and Belgian government representatives. This visit underscores the mutual commitment to expanding economic ties, promoting investment opportunities, and identifying new areas for collaboration in sectors such as advanced manufacturing, healthcare, e-commerce, logistics, and renewable energy.

A Robust Economic Backdrop

The UAE’s dynamic economic landscape has been bolstered by strong non-oil trade relationships, with the EU emerging as its second-largest global trading partner. In 2024, non-oil trade between the UAE and the EU reached an impressive $67.6 billion—a 3.6% increase compared to 2023 and an 18.1% increase from 2022. Today, the EU accounts for 8.3% of the UAE’s total non-oil foreign trade, highlighting the growing importance of the European market to the Emirati economy.

Adding to this robust economic narrative, DP World recently announced its strong financial results for the first half of 2021. The global logistics powerhouse reported a nearly 52% jump in profit—up to $475 million—and a 21% increase in revenues to $4.9 billion for the six months ending 30 June 2021. These outstanding figures, widely publicized by the Dubai Media Office, not only underscore DP World’s resilience and leadership in global trade but also reflect the overall dynamism of the UAE’s trade and logistics sectors.

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Diplomatic Engagement in Brussels

During their visit to Brussels, the UAE delegation engaged in a series of bilateral and multilateral discussions with key EU and Belgian officials. Meetings were held with Maros Sefcovic, the EU Commissioner for Trade and Economic Security, and Maria Luis Albuquerque, EU Commissioner for Financial Services and Financial Stability. These talks were aimed at reinforcing the strategic foundations of UAE-EU trade relations and exploring avenues for deeper cooperation.

Key Highlights of the Diplomatic Efforts

• Strategic Discussions on Trade Drivers:
  Dr. Thani bin Ahmed Al Zeyoudi reviewed the main drivers behind the UAE’s strong trade relations with the EU. Particular emphasis was placed on the significance of advanced manufacturing, healthcare, and e-commerce as sectors that have witnessed robust growth and hold vast potential for further expansion. The discussions also highlighted strategic collaboration in areas such as food security and energy transition, where both regions can mutually benefit from shared expertise.
  
• Investment in High-Growth Sectors:
  The delegation and EU officials identified several high-growth sectors where increased investment flows could yield substantial economic benefits. Among these, logistics and renewable energy emerged as priority areas, given their role in modernizing infrastructure and ensuring sustainable development. The integration of advanced digital technologies—ranging from artificial intelligence to blockchain-based financial solutions—was discussed as a means to enhance operational efficiencies and reduce trade barriers.
  
• Bilateral Meetings with Belgian Officials:
  Recognizing Belgium’s strategic importance within the EU framework, the UAE delegation also met with top Belgian officials, including Deputy Prime Minister Maxime Prévot, Minister of Foreign Affairs Theo Francken, Minister of Justice Annelies Verlinden, and Deputy Prime Minister David Clarinval, Minister of Employment, Economy, and Agriculture. Bilateral non-oil trade between the UAE and Belgium reached $4.7 billion in 2024, and both sides expressed strong interest in expanding cooperation in energy, logistics, and manufacturing.
  
• Roundtable on Trade Policy at the European Policy Centre (EPC):
  At a roundtable discussion hosted by the EPC, Dr. Thani Al Zeyoudi and Fabian Zuleeg, Chief Executive and Chief Economist of the EPC, deliberated on the importance of preserving open, rules-based trade. This session emphasized the extensive benefits of the UAE’s Comprehensive Economic Partnership Agreement (CEPA) program, which has facilitated 27 deals to date. The CEPA initiative is seen as a crucial framework for fostering long-term economic partnerships and streamlining regulatory processes.
  

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Boosting Trade and Investment Across Key Sectors

Advanced Manufacturing and Technological Innovation

The UAE has positioned itself as a global hub for advanced manufacturing by leveraging state-of-the-art technologies and innovation-driven processes. During the Brussels meetings, discussions centered on expanding collaboration in this sector to further elevate the UAE’s industrial capabilities. The EU, known for its high-quality engineering and technological expertise, offers a complementary advantage that can accelerate innovation in Emirati manufacturing. By integrating advanced robotics, automation, and digital manufacturing techniques, both regions can work together to reduce production costs, improve quality, and enhance competitiveness on the global stage.

Healthcare and E-Commerce

Healthcare is another critical area identified for enhanced cooperation. The ongoing digital transformation in healthcare—accelerated by the COVID-19 pandemic—has underscored the importance of robust digital health infrastructure. By collaborating on healthcare technologies and data analytics, the UAE and the EU can improve patient outcomes, optimize resource allocation, and bolster public health systems. In parallel, the rapid growth of e-commerce has transformed consumer behavior and retail dynamics. The EU’s sophisticated digital market infrastructure, combined with the UAE’s strategic geographic location as a gateway between East and West, provides a fertile ground for expanding e-commerce platforms and cross-border trade.

Logistics, Renewable Energy, and Sustainability

Logistics remains a cornerstone of the UAE’s economic strategy, with DP World’s impressive financial results serving as a testament to the sector’s strength. The discussions in Brussels highlighted opportunities to further integrate advanced logistics technologies, such as Internet of Things (IoT)-enabled tracking systems and automated port operations, to streamline supply chains and reduce costs. Renewable energy, particularly solar and wind, is another priority. The UAE’s ambitious energy transition plans are bolstered by significant investments in renewable infrastructure, while the EU’s expertise in sustainable energy solutions can provide technical support and innovation. Collaborations in this area are expected to contribute to global efforts in reducing carbon emissions and promoting sustainable development.

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Strengthening Financial Ties and Trade Facilitation

Enhancing Cross-Border Payments and Fintech Solutions

A major focus of the discussions was the pivotal role of the financial sector in facilitating global trade. In a bilateral meeting with Maria Luis Albuquerque, the UAE’s financial leaders and EU representatives examined strategies to improve small businesses’ access to global supply chains and streamline cross-border payments. Innovations in financial technology (fintech), including blockchain and decentralized finance (DeFi), are seen as transformative tools that can simplify transactions, reduce trade barriers, and enhance transparency. By adopting these technologies, both the UAE and the EU aim to create more efficient financial ecosystems that can support robust trade activities and promote economic resilience.

Policy Reforms and Institutional Frameworks

Ensuring a predictable and investor-friendly business environment is critical for sustaining long-term economic growth. Cabinet Secretary Al Zeyoudi and Minister Al Sayegh underscored the importance of policy reforms aimed at ensuring tax policy predictability, streamlining business regulations, and reinforcing institutional frameworks. These measures are designed to build investor confidence and attract further foreign direct investment (FDI). The UAE’s proactive approach in implementing these reforms is expected to yield significant dividends by creating a more stable and conducive environment for international business and trade.

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The Role of the Comprehensive Economic Partnership Agreement (CEPA)

The UAE’s CEPA program has played a crucial role in enhancing bilateral trade relations and attracting foreign investment. To date, the UAE has concluded 27 deals under this initiative, which serves as a cornerstone for its trade policy. The CEPA framework facilitates smoother trade processes, reduces bureaucratic red tape, and promotes cooperation in key sectors. During the Brussels meetings, discussions on CEPA highlighted its success in driving economic diversification and creating new opportunities for collaboration. By fostering a more integrated economic environment, CEPA is poised to help both the UAE and its global partners achieve sustained growth and development.

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Bilateral and Multilateral Collaboration: Belgium and Beyond

Belgium’s role within the EU makes it a strategic partner for the UAE. The UAE’s bilateral non-oil trade with Belgium reached $4.7 billion in 2024, and the recent meetings with Belgian officials have paved the way for even greater cooperation. Both parties discussed the potential for expanding trade in sectors such as energy, logistics, and manufacturing, which are vital to both economies. The UAE’s engagement with Belgium serves as a microcosm of its broader strategy to enhance trade ties with all 27 EU member states. By building strong bilateral relationships with individual countries, the UAE aims to create a robust network of economic partnerships that will underpin its long-term growth strategy.

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DP World’s Financial Milestone: Reflecting the UAE’s Economic Dynamism

DP World’s outstanding financial performance is a vivid illustration of the strength and resilience of the UAE’s trade and logistics sectors. With a 52% increase in profit and a 21% rise in revenues for H1 2021, DP World has reaffirmed its position as a global leader in logistics and supply chain management. These results are not only a reflection of the company’s operational excellence but also an indicator of the broader economic recovery and growth in global trade. DP World’s success is closely tied to the UAE’s strategic investments in infrastructure, technology, and human capital—all of which contribute to the country’s reputation as a dynamic and forward-looking economy.

The impressive financial results also highlight the critical role that efficient logistics and supply chain management play in global commerce. As trade volumes continue to expand, companies like DP World are at the forefront of enabling smooth, efficient, and cost-effective movement of goods across international borders. Their performance reinforces investor confidence and underscores the potential for further growth in the UAE’s non-oil economy.

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The Future of UAE-EU Economic Ties

Looking ahead, the strengthened economic ties between the UAE and the EU are expected to unlock new opportunities for trade, investment, and technological collaboration. Both sides have demonstrated a shared commitment to maintaining open trade, fostering innovation, and building resilient supply chains that can withstand global economic uncertainties. The focus on high-growth sectors such as advanced manufacturing, renewable energy, healthcare, and digital technologies is particularly promising, as these areas are poised to drive future economic growth and job creation.

The UAE’s strategic vision is to cement its position as a global leader in trade and investment, leveraging its geographic advantage, robust infrastructure, and forward-thinking policies. At the same time, the EU’s deep expertise in technology, sustainable energy, and regulatory frameworks provides a strong foundation for collaboration. Together, these strengths create a synergy that can help both economies navigate a rapidly changing global landscape.

In an era marked by economic uncertainty and supply chain disruptions, the importance of maintaining strong international partnerships cannot be overstated. The recent meetings in Brussels serve as a reminder that dialogue, cooperation, and mutual understanding are key to overcoming global challenges. By working together, the UAE and the EU can not only secure their own economic futures but also contribute to a more stable and prosperous global trading system.

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Conclusion

The UAE and the EU are taking bold steps to strengthen their trade relations and promote investment opportunities, setting the stage for a new era of economic partnership. Through high-level diplomatic engagements, strategic discussions on key sectors, and a shared commitment to policy reforms, both regions are poised to benefit from increased trade, innovation, and sustainable development.

From the impressive financial performance of DP World to the comprehensive discussions on advanced manufacturing, renewable energy, and fintech innovations, the events in Brussels highlight the multifaceted nature of UAE-EU cooperation. By addressing challenges such as regulatory unpredictability and supply chain inefficiencies, and by capitalizing on the strengths of each partner, the UAE and the EU are building a robust framework for future growth.

As bilateral non-oil trade between the UAE and the EU continues to grow—reflected in the substantial figures for overall trade and the specific success with Belgium—the partnership serves as a model for international economic collaboration. With initiatives like the Comprehensive Economic Partnership Agreement (CEPA) driving streamlined trade processes and attracting foreign investment, both regions are well-positioned to achieve long-term economic prosperity.

In summary, the strategic engagement between the UAE and the EU, marked by renewed diplomatic efforts and targeted investments in high-growth sectors, is set to deliver lasting benefits for both regions. As global economic dynamics evolve, this strengthened partnership will not only boost trade and investment but also contribute to a more stable, innovative, and sustainable global economy.

With the UAE’s visionary approach to economic diversification and the EU’s commitment to open, rules-based trade, the future of their economic relationship looks brighter than ever. By harnessing the power of international collaboration, both regions are paving the way for shared prosperity and a resilient global trading system that can adapt to the challenges of the 21st century.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

19th March, 2025