UAE Free Trade Agreements and CEPA for Free Zone Companies 2026
UAE has aggressively pursued Comprehensive Economic Partnership Agreements (CEPAs) since 2021, creating preferential trade conditions with major global economies. UAE free zone companies trading goods and services internationally can potentially benefit from these agreements. This guide covers UAE’s key trade agreements and their impact on free zone businesses in 2026.
UAE CEPA Programme Overview
UAE launched its CEPA programme in 2021, targeting 26 new CEPAs by 2031. As of 2026, UAE has active CEPAs or deep trade agreements with:
- India (UAE-India CEPA): operational since May 2022; 97% of Indian goods at 0–5% UAE tariff; UAE goods to India at preferential rates
- Israel: Abraham Accords Economic Agreement; preferential trade terms
- Indonesia: UAE-Indonesia CEPA signed 2023
- Turkey: UAE-Turkey CEPA signed 2023
- Kenya, Georgia, Chile, Cambodia, New Zealand: CEPAs signed 2023–2024
- UK: UAE-UK CEPA in advanced negotiations as of 2026
UAE-India CEPA — Key Benefits for Free Zone Companies
The UAE-India CEPA is the most significant for UAE free zone companies given the scale of UAE-India trade (USD 85+ billion annually). Benefits for UAE companies:
- Most UAE goods exported to India: 0–5% import duty (reduced from 5–15%)
- Indian goods imported to UAE: 90%+ at 0% duty (for qualifying UAE customs territory imports)
- Services: enhanced market access in professional services, IT, healthcare
- Rules of origin: goods must meet UAE origin requirements (typically 40% UAE value added for manufactured goods)
GCC-Wide Trade Agreements
UAE is a GCC member, benefiting from GCC-wide trade agreements:
- GCC-EU FTA: under negotiation as of 2026
- GCC-UK FTA: under negotiation
- GCC-EFTA: active agreement
- GCC Customs Union: 5% common external tariff for most goods (0% within GCC)
Rules of Origin for UAE Free Zone Companies
UAE free zone companies can benefit from CEPA preferential tariffs only if their goods meet the rules of origin (RoO) requirements. Key point: goods simply passing through UAE free zones (re-export without UAE value addition) do NOT qualify as UAE-origin goods. To claim UAE origin:
- Manufactured goods: typically 40% UAE value-added content or specific transformation requirement
- Certificate of Origin: issued by UAE Ministry of Economy or relevant chamber of commerce
CEPA Impact on UAE Free Zone Trading Companies
CEPA agreements most benefit UAE free zone companies that: manufacture in UAE (can qualify for UAE origin), provide services to CEPA partner countries (preferential service market access), or trade in goods where reduced tariffs create genuine competitive advantages. Pure re-exporters (goods imported to UAE then re-exported without processing) do NOT benefit from CEPA preferential tariffs as the goods do not meet UAE origin requirements.