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The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates (UAE) and Turkey is a landmark free trade arrangement that places economic relations between the two countries within a durable, rules-based framework. CEPA covers far more than trade in goods; it also governs services, investment facilitation, intellectual property, e-commerce and customs cooperation under a single umbrella.
The core aim of the agreement is to increase bilateral trade volume and mutual investment by lowering or eliminating customs duties, simplifying procedures and modernising trade rules. In doing so, CEPA gives both large exporters and small and medium-sized enterprises (SMEs) easier, more predictable and lower-cost access to the Turkish and Gulf markets.
CEPA came into effect after a rapid negotiation process. According to official sources, the key milestones are as follows:
According to the Republic of Türkiye Ministry of Trade, the agreement entered into force on 1 September 2023, and preferential trade provisions have applied from that date onwards.
CEPA goes beyond a classic free trade agreement to establish a genuinely "comprehensive" partnership. The main areas regulated in the text include:
Customs tariffs are reduced or removed across a wide range of goods, from industrial to agricultural products. On the services side, mutual market access is facilitated in sectors such as finance, distribution, telecommunications, education, health and tourism.
The agreement contains provisions that respond to the needs of a modern economy: protecting and facilitating investment, safeguarding intellectual property rights and setting clear rules for e-commerce. It also addresses technical barriers to trade, rules of origin, trade defence instruments and a dispute settlement mechanism.
The most tangible benefit of CEPA is the reduction and elimination of customs duties. According to the Turkish Ministry of Trade, around 80% of all tariff lines are included in the market-access concessions for trade in goods. The UAE Ministry of Economy notes that, upon entry into force, customs duties on a significant share of product lines were immediately eliminated or reduced.
These provisions cover more than 93% of the value of bilateral non-oil trade. Aluminium, machinery and equipment, ceramics, polyethylene and various petrochemical products are among the leading product groups that can benefit from preferential tariffs.
To benefit from a preferential tariff under CEPA, a product must satisfy the rules of origin — the criteria that determine whether goods genuinely originate in the UAE or Turkey.
To claim the preferential tariff, exporters must issue a proof of origin (CEPA certificate of origin) accepted by the relevant customs authority.
CEPA's impact is strongly reflected in bilateral trade figures. The two countries initially set a target of USD 40 billion in non-oil trade within five years. According to the UAE Ministry of Foreign Affairs, bilateral non-oil trade reached approximately USD 45.2 billion in 2025, surpassing that target ahead of schedule.
Interim data confirm the momentum: non-oil trade reached roughly USD 40.5 billion in 2024, and in the first 12 months of the deal it grew by around 40% compared with the pre-CEPA period. This shows that CEPA is not a statement of intent left on paper, but a functional instrument that is actively expanding trade volume.
CEPA offers concrete advantages to businesses of different sizes:
Lower customs costs and simplified procedures make it easier for SMEs with limited resources to expand into the Turkish and UAE markets. New customer networks and cooperation opportunities help SMEs compete more effectively internationally.
Technology, tourism, health, renewable energy, logistics and food security are among the strategic areas where the two countries aim to deepen cooperation. Investors active in these sectors can benefit from both preferential tariffs and investment facilitation provisions.
One of the most effective ways to make the most of the preferential access CEPA provides is to establish a company structure in the UAE. With its competitive corporate tax regime, advanced logistics infrastructure and free zone options, the UAE is a regional trade and investment hub. The standard corporate tax rate is 9% on taxable income above AED 375,000 (approximately USD 100,000), while income below this threshold may benefit from a 0% rate.
To structure your setup correctly, you can review the process and costs of setting up a company in Dubai and, for your tax obligations, examine in detail how corporate tax is applied in Dubai. Contact our expert team for a free quote.
| Criterion | Detail |
|---|---|
| Signing Date | 3 March 2023 (Abu Dhabi) |
| Entry Into Force | 1 September 2023 |
| Tariff Lines Covered | ~80% of tariff lines |
| Trade Value Coverage | Over 93% of non-oil trade |
| 2025 Bilateral Trade | ~USD 45.2 billion (non-oil) |
| UAE Corporate Tax | 9% above AED 375,000; 0% below |
Note: The rates and amounts above were prepared as of July 2026 and may change over time. For the most up-to-date customs rates, tax rates and legislation, please check the websites of the relevant official institutions (Turkish Ministry of Trade, UAE Ministry of Economy, Federal Tax Authority).
The UAE–Turkey CEPA is a powerful framework that both deepens and institutionalises economic relations between the two countries. Reduced customs duties, simplified procedures and rising trade volumes open a new window of opportunity for large companies and SMEs alike. With a well-structured UAE company, these advantages can be leveraged to their fullest. Expert consultancy is recommended to plan your process in line with current legislation.
Let us help you build the right company structure to benefit from the preferential access and tax advantages the UAE–Turkey CEPA provides.
The agreement was signed on 3 March 2023 in Abu Dhabi and officially entered into force on 1 September 2023.
The agreement covers around 80% of tariff lines and eliminates or reduces customs duties on more than 93% of the value of non-oil trade. Aluminium, machinery, ceramics and petrochemicals are among the leading products.
The product must satisfy the rules of origin, and a proof of origin (CEPA certificate of origin) accepted by the relevant customs authority must be issued.
According to the UAE Ministry of Foreign Affairs, bilateral non-oil trade reached approximately USD 45.2 billion in 2025, surpassing the initial five-year target of USD 40 billion ahead of schedule.
A company established in the UAE makes it easier to access preferential tariffs and a competitive tax regime. Corporate tax of 9% applies to income above AED 375,000. Expert consultancy is recommended for the right structure.
+90 542 381 3868
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