The United Arab Emirates and the Republic of Azerbaijan have formally signed a Comprehensive Economic Partnership Agreement (CEPA), signalling a transformative step in strengthening bilateral ties between the two nations.
The agreement, signed in Abu Dhabi, was witnessed by UAE President His Highness Sheikh Mohammed bin Zayed Al Nahyan and Azerbaijani President Ilham Aliyev, who is currently on a working visit to the UAE. The leaders met at the Beach Palace, where they held discussions on broadening strategic cooperation across multiple sectors.
The CEPA outlines a broad framework for economic collaboration, focusing on trade, foreign investment, renewable energy, food security, environmental initiatives, and sustainable development. Officials described the agreement as a “qualitative leap” in UAE-Azerbaijan relations, positioning both countries as key partners in regional economic progress.
President Sheikh Mohammed bin Zayed stated that relations with Azerbaijan are founded on mutual respect and shared aspirations. “The Comprehensive Economic Partnership Agreement will support the sustainable development goals of both countries and create new opportunities for future generations,” he said in a statement released after the signing ceremony.
He also reaffirmed the UAE’s commitment to promoting inclusive growth and fostering dialogue among cultures, particularly across the Caucasus region. “Our shared values will continue to guide joint efforts that prioritise peace, prosperity, and regional cooperation,” the President added.
The two leaders discussed expanding cooperation in areas such as infrastructure, energy transition, and environmental protection. Both nations have made significant strides in diversifying their economies, and the CEPA is expected to open new avenues for joint investment and innovation.
In his remarks, Azerbaijani President Ilham Aliyev expressed appreciation for the UAE’s long-standing partnership and welcomed the deepening of ties. “This agreement marks a new era in Azerbaijani-Emirati relations. We are committed to working together to strengthen economic cooperation and support regional stability and growth,” he said.
The signing ceremony reflects the growing strategic alignment between Baku and Abu Dhabi. In recent years, the UAE has become a notable investor in Azerbaijan’s renewable energy and infrastructure sectors. Meanwhile, Azerbaijan has sought to position itself as a bridge between East and West, leveraging its location and resources to attract foreign collaboration.
The CEPA will also facilitate improved market access, enhance regulatory cooperation, and reduce trade barriers between the two countries, paving the way for increased commercial activity. It is seen as a model for how the UAE seeks to build comprehensive partnerships globally, particularly in regions undergoing rapid development and economic transition.
As part of the agreement, both countries will set up joint committees to monitor implementation and explore further areas of collaboration. The UAE continues to use its CEPA programme as a key pillar of its foreign economic policy, with similar agreements recently signed with several Asian, African, and Latin American countries.
The CEPA with Azerbaijan is expected to come into effect in early 2026, pending ratification by both governments.
