Gulf Business | 15 April 2026

UAE-Azerbaijan CEPA officially enters into force

A comprehensive trade agreement between the UAE and Azerbaijan has officially come into force, aiming to deepen economic ties, expand investment flows and widen market access between the two countries.

The comprehensive economic partnership agreement (CEPA) is expected to reduce or eliminate tariffs on a broad range of goods and services, creating new opportunities for exporters, investors and small businesses on both sides.

It also seeks to strengthen private-sector cooperation across sectors including logistics, renewable energy, construction and advanced manufacturing.

The deal marks Azerbaijan’s first trade agreement to include a dedicated services chapter, opening the door for expanded collaboration in finance, consulting and professional services.

UAE Minister of Foreign Trade Dr Thani bin Ahmed Al Zeyoudi said the agreement represents a turning point in bilateral relations, according to the state news agency, WAM.

UAE-Azerbaijan CEPA a key step to boost trade

“The UAE-Azerbaijan CEPA marks a transformative moment in bilateral ties, and promises to enhance trade flows, unlock new investment opportunities, and foster increased private sector collaboration across key sectors, particularly in logistics, renewable energy, and advanced manufacturing,” he said.

“Azerbaijan is located at a crucial juncture in North-South trade, and by integrating our economic visions, we can ensure increased resilience and sustainable growth in a rapidly changing global market,” he added.

The UAE is Azerbaijan’s largest Arab trading partner, accounting for 40 per cent of its trade with the MENA region. As the leading Arab investor in Azerbaijan, with investments exceeding $1bn, the potential for further economic collaboration is substantial.

The UAE is also the leading Arab investor in Azerbaijan, with cumulative investments exceeding $1bn, according to official figures.

Non-oil trade between the two countries rose 31.4 per cent over the past two years, surpassing $2.2bn in 2025, reflecting growing commercial ties ahead of the agreement’s implementation.

CEPAs forms part of the UAE’s wider strategy to expand its global trade network and diversify its economy away from hydrocarbons, while strengthening links with high-growth emerging markets.