Ukraine and the UAE sign a comprehensive economic partnership agreement

Ukraine and the United Arab Emirates have signed a Comprehensive Economic Partnership Agreement. President Volodymyr Zelenskyy, who is on an official visit to the UAE, announced this on Facebook.

“Today we have signed an important economic agreement between our countries. The document will liberalize access to the UAE market for almost all Ukrainian goods. It will be easier for our companies to sell their products in the UAE,” the head of state wrote.

For her part, First Vice Prime Minister and Minister of Economy Yulia Svyrydenko clarified that this is not a traditional free trade agreement, but the first ever signed with a Gulf country.

“It is comprehensive and covers goods, services, investments, digital trade and much more. A short-term analysis shows that this agreement will help maintain a positive trade balance in goods. In the medium and long term, the GDP growth trajectory is expected to change by 0.1%,” Svyrydenko wrote on her Facebook page.

She added that the highest growth rates are expected in such sectors as transportation, metallurgy, and the food industry, including flour milling and oil production. In particular, one of the projected results of the agreement is an increase in exports of metals and vegetable oils.

What exactly does the economic partnership agreement with the UAE provide for?

• Maximum liberalization of market access for both countries, in particular, Ukrainian goods will have full access to the UAE market for 96.6% of product lines. For certain goods (chicken meat, eggs, sunflower oil, metal products), import tariff quotas will be in place with the possibility of duty-free trade within them;
• Establishment of the Ukrainian-Emirati Investment Council, which will help increase investment inflows and eliminate potential barriers faced by investors;
• Establishment of the Committee on Small and Medium Enterprises, which will provide comprehensive business support, including training and counseling;
  simplified access for Ukrainian companies to the markets of the UAE and other countries of the region, predictable terms of trade and removal of barriers to exports and investment. In particular, the UAE has lifted the 49% foreign ownership limit for Ukraine. Now, Ukrainian entrepreneurs can register companies with a share of foreign capital of up to 70%, and in some sectors – gradually even up to 100%. This applies, in particular, to commercial services, construction, education, healthcare and accounting;
• When registering in the UAE free economic zones, the share of foreign capital may be 100%.
• No customs duties for electronic data transfer.

As reported, Ukraine and the United Arab Emirates finalized negotiations on the Comprehensive Economic Partnership Agreement between the governments of the two countries in April 2024.

Tags: Ukraine, UAE, bilateral trade deal