Ukraine and the UAE have signed an economic partnership agreement — what does the economic agreement between Ukraine and the UAE provide for?

Ukraine and the United Arab Emirates (UAE) have concluded a Comprehensive Economic Partnership Agreement. It was signed on February 17 in Abu Dhabi.

This was reported by the Ministry of Economy.

The corresponding document was signed on the Ukrainian side by the Minister of Economy of Ukraine Yulia Svyrydenko, and on the UAE side by the Minister of International Trade Thani bin Ahmed al-Zeyoudi. 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 — 96.6% of Ukrainian product lines will be able to be sold in the UAE.

According to the Ministry of Economy, the agreement may contribute to maintaining the positive balance of trade in goods, which amounted to $51.5 million in 2023. In the medium and long term, it may affect the shift in the trajectory of real GDP development by 0.1%.

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;
• expected terms of trade;
• removing barriers to exports and investment.

Ukrainian exports are expected to grow in key sectors: metallurgy, food industry, in particular flour milling and oil production. Exports of metals and vegetable oil are also forecast to grow.

The parties agreed to establish a Ukraine-UAE Investment Council, which will help increase investment and remove 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 in certain sectors, gradually up to 100% (in particular, in the field of 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.

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 made on digital payments, the protection of personal data, and the creation of transparent rules for businesses developing the digital economy and cross-border trade.

• For 11 months of 2024, trade turnover between Ukraine and the UAE amounted to $415 million. Ukraineʼs exports to the UAE amounted to $266.8 million, and imports — $148.2 million.

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