DP World believes CEPA between the UAE and Türkiye could unlock vast potential
The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates (UAE) and Türkiye will unlock the massive economic potential of Türkiye as a global trade hub, according to DP World.
The world’s leading provider of smart logistics has welcomed the recent announcement and is confident the agreement can deliver on its aim to increase trade between Turkey and the UAE to the level of $40 billion in the next five years.
Over the past two decades, DP World has been a key driver of UAE – Turkey trade. The firm’s Jebel Ali Port accounted for 93.25% of the total $8.9 billion in 2020 trade between Turkey and the UAE, with the business working tirelessly to bridge the trade gap between the two countries through significant investments at DP World’s intermodal facility in Yarimca.
Türkiye’s strategic location at the crossroads of Asia and Europe makes it a critical component of DP World’s ongoing global objective, to make trade flow better.
Kris Adams, CEO DP World Yarimca, said: “When the negotiations which underpinned the signing of the CEPA began, following an agreement to establish a joint economic committee to enhance bilateral trade and investment in 2019, Türkiye was the UAE’s 10th largest trading partner, with bilateral trade valued at close to $9 billion.
‘‘Bilateral trade between Türkiye and the UAE reached $18.9 billion in 2022, and Türkiye is now the UAE’s sixth largest trading partner for non-oil trade. Our container terminal in Yar?mca is one of the most technologically advanced facilities in Europe and is an integral part of the trade corridor linking Asia, Europe, and Africa.
“DP World remains committed to supporting economic growth in Türkiye and building stronger partnerships. We therefore welcome any agreement, such as this CEPA, which enables trade to flow more seamlessly around the world.”
As the world’s leading provider of smart logistics, DP World has been investing in digital solutions and technologies to help transform the way goods move across the globe. This transformation is needed now more than ever, particularly as DP World research has highlighted the lasting impact of COVID-19 on supply chains, as well as the increasingly uncertain geopolitical environment for companies.
The state-of-the-art DP World Yarimca container terminal in the ?zmit Gulf is one of the largest in the country with a capacity of 1.15 million TEU and is one of the few facilities capable of berthing the world’s largest container ships. The port, located at the heart of Türkiye largest industrial zone, aims to provide the best service available in the end-to-end supply chain to Türkiye’s exporters and importers. The investment the firm has made in the terminal demonstrates its commitment to, and ambition for, the region. The business also offers end-to-end logistics and supply chain solutions to customers through a new entity, DP World Logistics, which was established in Türkiye in 2022.
Rashid Abdulla, CEO of DP World Europe, said: “The CEPA between the UAE and Türkiye provides the framework for businesses to explore new opportunities and build stronger partnerships, to expand operations, reduce costs, and tap into new markets.
‘‘By leveraging technology and innovation, we can create more efficient and streamlined supply chains that reduce costs and drive growth. This will not only benefit businesses in the UAE and Türkiye, but also create a ripple effect across Europe. I look forward to continuing our collaboration with our partners in Türkiye to help unlock its vast potential.’’
Ratification of the CEPA is expected in the second quarter of 2023 with a full programme of implementation to follow, with the aim of the agreement being to increase trade between Türkiye and the UAE to the level of $40 billion in the next five years, according to projections from UAE officials.
It is anticipated that the CEPA will cover industries such as aggrotech, food security, and clean energy, as well as facilitating ongoing collaboration on construction and real estate projects.
Source: DP World