UAE and Costa Rica Sign Landmark Trade Deal

 The United Arab Emirates and Costa Rica have signed a comprehensive economic partnership agreement aimed at significantly boosting bilateral trade and investment relations between the two countries.

The CEPA was signed on Thursday in Abu Dhabi by UAE President Sheikh Mohammed bin Zayed Al Nahyan and Costa Rica's Minister of Foreign Trade, Dyalá Jiménez. It follows several months of negotiations between officials from both nations.

Speaking after the signing ceremony, President Sheikh Mohammed said the agreement “opens new opportunities for economic development and prosperity for businesses in the UAE and Costa Rica.” He expressed confidence that the CEPA would take bilateral economic ties to “new heights.”

Comprehensive in scope, the deal is expected to liberalize over 95% of trade between the UAE and Costa Rica through preferential market access and reduction or elimination of tariffs. Key sectors targeted for investment growth include petrochemicals, renewable energy, infrastructure, tourism and agriculture.

According to the UAE's Ministry of Economy, non-oil bilateral trade has already seen positive momentum, growing by 7% in 2023 to reach $65 million. Officials believe the CEPA provides a framework to multiply this figure substantially in the coming years.

As a major re-export and logistics hub in the Middle East, North Africa and South Asia region, the CEPA also aims to allow Costa Rican companies to capitalize on the UAE's strategic position and use it as a springboard to access larger markets.

The agreement forms part of the UAE's continued efforts to strengthen economic partnerships and global trade connectivity under its ‘Projects of the 50’ initiative. For Costa Rica, it marks an important step in diversifying export destinations and attracting new foreign investment.

Both leaders stressed their commitment to facilitating closer business links and cooperation between companies in areas ripe for joint projects and partnerships. The CEPA takes effect immediately following ratification by legislators in both countries.