UAE and EU Start Official Talks for First Full Free Trade Deal in the Gulf Region
The European Union (EU) and the United Arab Emirates (UAE) have officially started talks to create a free trade agreement (FTA). This could become the first full trade deal between the EU and a country in the Gulf region.
FTA Talks Begin
The EU and UAE have agreed on a clear plan to start working on a Free Trade Agreement (FTA), beginning in June. This was shared by the EU’s Trade and Economic Security Commissioner, Marosi Shepchowicz, on X. Shepchowicz met with the UAE’s Foreign Trade Minister, Thani Bin Ahmed Al Zeyoudi, in Abu Dhabi on Wednesday to officially start the talks.
During the visit, there was also a meeting with top private companies to look for ways to improve business and investment between the EU and UAE.
Shepchowicz said the deal will focus on trade and investment, helping both economies grow and offering new opportunities for businesses in Europe and the UAE. It aims to remove trade barriers, make it easier to sell goods and services, and increase investment in important sectors.
The FTA could help make possible a $50 billion AI data center deal with France and a $40 billion investment in Italy’s energy and defense sectors.
Al Zeyoudi said, “By working together, we can make our supply chains stronger, support new ideas, and create jobs that help both our people and economies for the long term.”
Both the UAE and EU have big goals for becoming greener and more digital. They share common interests in areas like clean energy, green hydrogen, important minerals, artificial intelligence (AI), financial technology, and sustainable food systems.
The FTA supports their shared goal of building new trade and investment partnerships.
Background
Talks for this agreement began last month during a phone call between European Commission President Ursula von der Leyen and UAE President Sheikh Mohammed bin Zayed Al Nahyan.
Extra Info
On Monday, Mohamed Al Sahlawi, the UAE’s ambassador to the EU, met with Adrien Dolimont, Minister-President of Wallonia, to talk about strengthening ties in trade, investment, and innovation — with a focus on sustainability and economic growth.
EU-UAE Trade
The UAE is the EU’s second-biggest trading partner in the Gulf. Trade in goods is close to $63.2 billion, and trade in services is over $44 billion each year. Their total investments add up to $370.5 billion. In 2024, non-oil trade between the two reached $67.6 billion — a 3.6% increase from 2023.
Published: 29th May 2025
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