(MENAFN) The UAE and Morocco have finalized the terms of a Comprehensive Economic Partnership Agreement, which is set to enhance bilateral trade and investment between the two countries. This agreement aims to help the UAE reach its ambitious non-oil foreign trade goal of Dh4 trillion (USD1 trillion). According to a report from a state news agency, the deal will facilitate the free movement of goods and services by reducing or eliminating tariffs, removing unnecessary trade barriers, and improving market access for various services.

In addition to easing trade restrictions, the agreement will foster investment and collaboration between the private sectors of both nations in key areas such as renewable energy, tourism, infrastructure, mining, food security, transport, logistics, and information and communications technology. Dr. Thani Al Zeyoudi, UAE's Minister of State for Foreign Trade, emphasized that the partnership will strengthen existing economic ties and promote growth in sectors of mutual interest, including tourism, energy, manufacturing, and agriculture.

The two countries reported USD1.3 billion in non-oil trade last year, marking a 30 percent increase from 2022. The UAE stands as the largest Arab investor in Morocco, having invested over USD15 billion in a diverse range of strategic projects. This growing investment underscores the strong economic relationship and the potential for further expansion of trade and collaborative ventures.

Morocco, the sixth-largest economy in Africa, is projected to see a 3.5 percent growth in its GDP this year, following a 3.1 percent increase last year. The services sector is the largest contributor to GDP, accounting for 54 percent, while agriculture remains the largest employer and the industrial sector contributes 23 percent. Following a devastating 6.8-magnitude earthquake in September 2023, which claimed around 3,000 lives, the International Monetary Fund approved a USD1.3 billion financing package to support Morocco’s recovery and development efforts.

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