UAE and Benin agree to trade deal in Abu Dhabi

UAE President Sheikh Mohamed bin Zayed Al Nahyan and Benin President Romuald Wadagni witnessed the signing of a Comprehensive Economic Partnership Agreement in Abu Dhabi on Sunday. The accord, which aims to lower tariffs and dismantle trade obstacles, was executed by UAE Minister of Foreign Trade Dr. Thani Al Zeyoudi and Benin Minister of Tourism and Foreign Trade Olushegun Adjadi Bakari. Once ratified, the treaty will reduce or eliminate customs duties on numerous goods while enhancing market access for services providers and investors. The signing ceremony took place amidst a period of rapid expansion in commercial exchanges between the two nations. Non-oil trade volumes reached 2.15 billion dollars in 2025, representing a 65 percent surge over the previous year. This figure is more than double the 1.01 billion dollar total recorded in 2021. Momentum persisted into the current year, with bilateral non-oil trade hitting 1.29 billion dollars in the first half of 2026. That amount reflects a 37.4 percent year-on-year increase. Dr. Al Zeyoudi, who serves as the UAE Minister of Foreign Trade, signed the document alongside Mr. Bakari. The Beninese minister holds additional responsibilities for industry and private investment promotion. Both leaders observed the formal exchange of the agreement during an official ceremony in the capital city. The deal is designed to strengthen supply chains and facilitate greater movement of goods and capital between the economies. In a statement accompanying the event, Sheikh Mohamed described the pact as a major step forward in the bilateral relationship. He noted that the tie between the UAE and Benin rests on a mutual faith in dialogue and international cooperation for sustainable progress. The UAE President stated that the arrangement reflects a joint desire to meet long-term developmental goals. He added that the move creates fresh avenues for business communities and bolsters economic resilience. Furthermore, he said it contributes to stability and prosperity within their respective regions. Wadagni expressed welcome for the exchange, highlighting its role in pushing forward shared sustainable development targets. He emphasized the significance of the instrument in deepening economic collaboration between the two states. The agreement adds to the UAE’s broader network of trade partnerships, reinforcing its standing as a center for global commerce, investment, and logistics. Beyond the main trade agreement, the two heads of state oversaw the announcement of several other diplomatic instruments. These included a memorandum of understanding regarding political consultations between the governments. Another memorandum focused on establishing a joint committee dedicated to consular affairs. A third agreement linked the Anwar Gargash Diplomatic Academy with the Beninese Ministry of Foreign Affairs. Additionally, a letter of intent addressed data hosting and information systems. The Comprehensive Economic Partnership Agreement program has been a central element of the UAE’s foreign trade strategy since its inception in September 2021. The initiative seeks to broaden the nation’s web of commercial alliances globally. Officials describe this approach as a commitment to open, rule-based trading as a catalyst for economic diversification. The goal is to generate opportunities for enterprises operating in fast-growing markets worldwide. The specific terms of the new Benin-UAE pact require completion of domestic ratification processes before becoming active. Upon entry into force, the provisions will take effect to modify tariff schedules and regulatory frameworks. The immediate impact will be felt in sectors where duty reductions apply directly to imported and exported merchandise. Service providers will gain improved access to each other’s domestic markets under the new rules. Trade statistics indicate that the relationship has grown significantly in recent years. The jump from 1.01 billion dollars in 2021 to 2.15 billion dollars in 2025 illustrates the scale of this growth. The first-half figures for 2026 suggest that this trajectory continues unabated. The 37.4 percent rise in the initial six months of the current year underscores the strength of current commercial activity. Both governments view the agreement as a foundation for future engagement. They intend to build upon these structures to widen cooperation in fields of mutual interest. The presence of both presidents at the signing underscored the high level of priority placed on this bilateral link. The array of supplementary memoranda signals a broadening scope of interaction beyond pure trade metrics. The UAE’s trade portfolio now includes this new partnership with West Africa. The move aligns with the country’s objective to diversify its economic base away from hydrocarbons. By integrating with emerging markets, the UAE seeks to secure stable channels for investment and goods. The Benin side benefits from enhanced connectivity to a major regional hub. No further dates were specified for the final ratification vote in either parliament. However, the ceremonial exchange marked the conclusion of negotiations. The officials present confirmed that all necessary legal texts had been finalized. The focus now shifts to implementation planning and the administrative steps required to activate the duty-free zones. Business representatives from both sides are expected to engage in technical committees soon to detail the operational aspects of the new framework.