In April 2025, the EU and the UAE agreed to launch negotiations on an ambitious and commercially beneficial free trade agreement (FTA).

The negotiations for an FTA are part of a wider effort by the EU to deepen its trade and investment ties with the Gulf region in line with the EU’s Joint Communication on a Strategic Partnership with the Gulf of 2022 and the Joint Statement of the first EU-Gulf Coopeation Council (GCC) summit in October 2024. The envisaged bilateral FTA may serve as a building block for a future regional FTA with the GCC.

The negotiations – which were formally launched on 28 May 2025 – will focus on reducing tariffs on goods, and facilitating services, digital trade and investment flows. 

The EU and the UAE will also explore ways to boost trade in strategic sectors, such as renewable energy, green hydrogen and critical raw materials. This is important for the EU and UAE’s common objectives of the green and digital transitions, as well as for strengthening economic security more broadly. 

An FTA with the UAE would add to the EU’s network of 44 trade deals with 76 countries – the world’s largest network of trade agreements.

The first round of negotiations on the EU-UAE FTA began on 24 June 2025.

On 19 November 2025, the European Services Forum published its Position Paper setting up the priorities of the European service industries for the negotiations of the FTA between the EU and the United Arab Emirates (UAE). You can find the Position Paper here.