Ukraine and UAE sign economic agreement
Pravda Ukraine
Ukraine and the United Arab Emirates signed an economic agreement on 17 February, liberalising access to the UAE market.
Source: President Volodymyr Zelenskyy on X (Twitter)
Quote from Zelenskyy: “An important economic agreement between our countries was signed today, which 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.”
Details: Yuliia Svyrydenko, Ukraine’s First Deputy Prime Minister and Minister of Economy, described the deal as a “truly historic event”, marking the first such agreement with a Gulf country.
Svyrydenko stated that the agreement is unique because firstly, it effectively grants access to global markets, given the UAE’s role as a key economic, trade, and financial hub in the Middle East. Secondly, unlike traditional free trade agreements, it is comprehensive, covering goods, services, investments, digital trade and more.
Svyrydenko noted that a short-term analysis suggests the deal will help maintain a positive trade balance. In the medium and long term, it is expected to increase GDP growth by 0.1%.
The highest growth is anticipated in transport, metallurgy, and the food industry, particularly in flour milling and oil production. One of the expected outcomes is an increase in exports of metals and vegetable oils.
What does the agreement include?
- Maximum market liberalisation for both countries, covering nearly all sectors of bilateral trade. Ukrainian goods will gain full access to the UAE market for 96.6% of product lines. Import tariff quotas will apply to specific goods such as poultry, eggs, sunflower oil, and metal products, allowing duty-free trade within those limits.
- Establishment of the Ukraine-UAE Investment Council to attract investment and eliminate potential barriers for investors.
- Eased access for Ukrainian companies to UAE markets and the wider region, with predictable trade conditions and reduced export and investment barriers. The UAE has lifted the 49% cap on foreign capital for Ukraine. Ukrainian entrepreneurs can now register companies with up to 70% foreign ownership, with some sectors gradually allowing up to 100%. This applies to commercial services, construction, education, healthcare and accounting.
- 100% foreign capital ownership for companies registered in the UAE’s free economic zones.
- A key focus on digital trade.
Background: Saudi Arabia is also expanding cooperation with Ukraine in agriculture, veterinary services, feed production, and organic farming, as well as the joint development of livestock farming.
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