The Republic of Benin and the United Arab Emirates have reached a landmark economic milestone with the signing of a Comprehensive Economic Partnership Agreement (CEPA) during an official visit to Abu Dhabi. This strategic pact is set to transform bilateral trade dynamics, eliminate key trade hurdles, and unlock new economic opportunities for businesses on both sides.
What the CEPA agreement includes
The newly signed CEPA outlines a series of concrete measures designed to foster stronger economic ties between Benin and the UAE. The agreement focuses on three major areas:
- Tariff elimination: The accord introduces progressive or immediate removal of customs duties across a wide range of goods, including agricultural products, industrial materials, and manufactured items. This move will streamline market access for Beninese goods in the Gulf region and vice versa.
- Service market expansion: Service providers, investors, and tech firms from both nations will benefit from relaxed market regulations and enhanced legal protections, creating a more predictable business environment.
- Sector-specific cooperation: Supplementary protocols have been established in high-priority areas such as renewable energy, agro-industry, data hosting, digital transformation, food security, and government expertise exchange.
Trade surge leads to formal agreement
The CEPA wasn’t created in a vacuum—it formalizes a rapidly expanding non-oil trade relationship that has seen remarkable growth over recent years. Official data reveals a 65% surge in non-oil trade volume, jumping from $1.01 billion in 2021 to $2.15 billion in 2025. The upward trend continued into the first half of 2026, with trade hitting $1.29 billion, marking a 37.4% increase from the same period in 2025. This explosive growth underscores the need for a structured legal framework to safeguard and streamline these burgeoning trade flows.
Strategic advantages for Benin and the UAE
For the government of Benin, the CEPA aligns with ongoing economic and logistical reforms, including upgrades to the Port of Cotonou and the development of the Glo-Djigbé Special Economic Zone. Key benefits include:
- Diversification of trade partners beyond traditional European and regional markets.
- Attraction of high-capacity Emirati foreign direct investment (FDI) into critical infrastructure projects.
- Solidification of Benin’s role as a prime logistics gateway for UAE businesses expanding into West Africa.
For the UAE, this agreement strengthens their broader strategy of economic engagement across Africa. It secures reliable supply chains for agricultural products and opens doors for Emirati capital to participate in sustainable infrastructure development across the continent.
Next steps: ratification and implementation
The signed agreement represents the culmination of diplomatic negotiations, but its full implementation depends on ratification by the legislative bodies of both Benin and the UAE. Once approved, the tariff exemptions and investment incentives outlined in the CEPA will take full effect, offering businesses immediate operational advantages.
