UAE and Ukraine sign landmark trade deal

LATEST: Gulf diplomacy could help end the Ukraine war The UAE and Ukraine formally signed a Comprehensive Economic Partnership Agreement on Monday as they seek to boost trade and investment ties. The deal was signed by Dr Thani Al Zeyoudi , Minister of State for Foreign Trade, and Yulia Svyrydenko, Ukraine's First Deputy Prime Minister and Minister of Economy, in the presence of President Sheikh Mohamed and Ukrainian President Volodymyr Zelenskyy . Sheikh Mohamed also held talks with Mr Zelenskyy in Abu Dhabi as part of his visit to the Emirates on Tuesday. The two leaders explored ways to strengthen partnerships in key areas such as the economy, investment, development, renewable energy and food security. The trade deal is estimated to contribute about $369 million to the UAE’s GDP and $874 million to the Ukrainian economy by 2031. Under the terms, 99 per cent of Ukrainian imports of UAE goods and 97 per cent of Ukrainian exports to the Emirates will be exempt from customs duties, with immediate effect. Ukraine's economy has suffered a “devastating” social and economic toll from its war with Russia, the International Monetary Fund said in December . However, Kyiv has managed to stabilise the country with improved policies and external support. The country's real GDP growth plunged 28.8 per cent in 2022, when Russia began its invasion in February, but it was able to recover to post a 5.8 per cent expansion in 2023, data from the IMF shows. The IMF predicts real GDP growth will dip to 4 per cent in 2024 and further down within the range of between 2.5 per cent to 3.5 per cent this year, before growing to 5.3 per cent in 2026. The UAE is Ukraine's second-largest trading partner in the Gulf region as of 2021, with non-oil trade between the two countries exceeding Dh1.4 billion ($388 million) in 2022, data from the Ministry of Economy shows. The Cepa is also expected to help accelerate the economic recovery of Ukraine, which has been engaged in a war with Russia that will enter its fourth year on February 25. "An important economic agreement between our countries was signed today," Mr Zelenskyy said in a post on X. The deal "liberalises access to the UAE market for nearly all Ukrainian goods. This will make it easier for our companies to sell their products in the UAE", he added. The UAE, which has set the target of achieving Dh4 trillion in foreign trade by 2031 as part of its national economic goals, is developing non-oil sectors and deepening ties with trading partners to bolster long-term growth prospects. The Arab world's second-largest economy has invested heavily in trade and logistics infrastructure including modern marine ports and airport infrastructure to attract foreign investors. The UAE's non-oil foreign trade hit a record Dh3 trillion in 2024 − up 14.6 per cent year-on-year − as the country continues to diversify its economy and forges closer trade ties with countries around the world, Sheikh Mohammed bin Rashid , Vice President and Ruler of Dubai, said this month . Cepas the UAE has signed with various nations have contributed Dh135 billion to its non-oil trade with partner nations, an increase of 42 per cent compared to the previous year, Sheikh Mohammed said. The UAE launched its Cepa programme in 2021, with the aim of signing 26 agreements . It has so far signed 24 deals with countries including India , Turkey , Israel , Indonesia , Cambodia , Georgia , South Korea, Chile, Mauritius , New Zealand and Malaysia . Talks are under way with several others, including the Philippines . Ukraine's Cepa deal with the UAE will enable it to accelerate its economic recovery and create new opportunities for co-operation in key sectors such as infrastructure, heavy industry, aviation, aerospace and information technology, the Wam report said. The UAE's foreign direct investment in Ukraine hit about $100 million in September 2020, spanning sectors including manufacturing, transport, storage, gas, retail trade, real estate and agriculture, making the Emirates the largest Arab investor in the country, latest data from the Ministry of Economy indicated. Ukraine's FDI to the UAE, meanwhile, reached $84 million at the start of 2021, mostly in real estate, retail trade, manufacturing, transport, warehousing and technology.

UAE and Ukraine sign landmark trade deal

Agreement is expected to contribute about $369m to the UAE’s GDP and $874m to the Ukrainian economy by 2031