Ukraine and UAE agree on comprehensive economic partnership
Ukraine and the United Arab Emirates (UAE) have concluded an Agreement on Comprehensive Economic Partnership.
The Ministry of Economy has announced this, the Ukrainian News agency reports.
The signing took place on February 17 in Abu Dhabi with the participation of President Volodymyr Zelenskyy. The corresponding document was signed on the part of Ukraine by First Deputy Prime Minister - Minister of Economy Yuliia Svyrydenko, and on the part of the UAE - by Minister of International Trade Thani bin Ahmed Al Zeyoudi.
The Ministry of Economy emphasizes that this is the first agreement in the history of Ukraine with the countries of the Persian Gulf.
The agreement provides for free trade between Ukraine and the UAE and liberalization of access to commodity markets for both countries.
It is noted that Ukrainian goods will receive full access to the UAE market for 96.6% of commodity lines.
"This is a historic event, as it is the first agreement in the most economically advanced region of the Middle East. It covers not only the UAE, but the Gulf regions in general. This is not just an agreement between two countries, it is an entry into the global market, as the UAE is an important economic, trade and financial hub in the Middle East. The implementation of the Agreement, which covers virtually the entire product range of bilateral trade, will allow increasing the production and export of Ukrainian products due to the removal of tariff barriers in trade between the two countries," Svyrydenko emphasized.
According to the Ministry of Economy, the agreement can contribute to maintaining the positive balance of trade in goods, which in 2023 amounted to USD 51.5 million, and in the medium and long term it can affect the shift in the trajectory of real GDP development by 0.1%.
The Ministry of Economy notes that the agreement covers not only trade in goods, but also services, investments and the digital economy.
Ukrainian companies will receive: simplified access to the markets of the UAE and other countries in the region; predictable trade conditions; removal of barriers to exports and investment.
Ukrainian exports are expected to grow in key sectors: metallurgy, food industry, in particular flour milling and oil production. An increase in exports of metals and vegetable oil is also forecast.
The parties also agreed to establish the Ukraine-UAE Investment Council, which will contribute to increasing capital investments and eliminating barriers to business.
A Committee on Small and Medium-Sized Businesses will also be established, which will provide support to entrepreneurs through training and consulting.
The UAE has lifted the 49% foreign capital limit for Ukraine, allowing entrepreneurs to register companies with up to 70% foreign capital, and gradually up to 100% in certain sectors (including commercial services, construction, education, healthcare and accounting).
At the same time, Ukrainian companies will be able to own 100% of the business in free economic zones, which is an important step for the development of Ukrainian business in this region.
The agreement opens up new opportunities for digital trade: tariffs on digital and electronic data transmission, including electronic content, have been abolished. Commitments have been established on digital payments, personal data protection and the creation of transparent rules for businesses developing the digital economy and cross-border trade.
According to the Ministry of Economy, for 11 months of 2024, trade turnover between Ukraine and the UAE amounted to USD 415 million, Ukraine's exports to the UAE amounted to USD 266.8 million, imports – USD 148.2 million.
The main categories of Ukraine's exports to the UAE are oil and fats – USD 48.6 million, meat and edible by-products – USD 45 million, cereals – USD 15.3 million, metal products – USD 13.6 million.
The main categories of imports from the UAE are mineral fuels – USD 69.9 million, data storage devices – USD 16.8 million, chemical compounds – USD 11.5 million, polymeric materials – USD 9 million.
As the Ukrainian News agency earlier reported, Zelenskyy is on an official visit to the UAE on February 17. He has already held talks with UAE President Mohammed bin Zayed Al Nahyan, in particular, regarding mediation in the return of Ukrainians from russian captivity.