The UAE and the Hashemite Kingdom of Jordan have signed a Comprehensive Economic Partnership Agreement (CEPA) valued at AED 2.7 billion in immediate trade and investment commitments, making Jordan the UAE’s seventh CEPA partner and the first Arab League country outside the GCC to sign a modern bilateral free trade agreement with the Emirates.
Key Provisions
The agreement eliminates tariffs on 90 percent of goods traded between the UAE and Jordan within two years, with full liberalisation by 2030. Services chapters cover tourism, professional services, and financial services mutual recognition. A dedicated investment facilitation protocol streamlines UAE investor establishment in Jordan’s Aqaba Special Economic Zone and Zarqa Industrial City.
Renewable Energy and Water Cooperation
A significant component of the agreement covers renewable energy and water infrastructure: Masdar has committed to develop a 500 MW solar-powered desalination plant in Jordan’s Aqaba Governorate, addressing the Kingdom’s chronic water scarcity. The project, financed by ADFD and the Abu Dhabi Fund for Development, will produce 300 million litres of potable water daily, covering 25 percent of Jordan’s projected water needs by 2030.
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