Ukraine and the United Arab Emirates have signed a comprehensive economic partnership agreement. This is Ukraine’s first free trade agreement with the Gulf states, the press service of the Ministry of Economy reports.
Under the agreement, Ukrainian goods will have access to the UAE market for 96.6% of product 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 entire Gulf region. This is not just an agreement between the 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,” said Yulia Svyrydenko, Minister of Economy of Ukraine.
According to the Ministry of Economy, the agreement can help maintain a positive balance of trade in goods, which in 2023 amounted to USD 51.5 million. The ministry of economy estimates that the trade in goods will remain positive. In the medium and long term, it may shift the trajectory of real GDP development by 0.1%.
The agreement is expected to boost exports of Ukrainian goods, particularly in the metallurgy, food, flour milling, and oil sectors.
At the same time, the UAE has lifted restrictions on the share of foreign capital in Ukrainian companies, which will increase investment in the region.
The agreement opens up new opportunities for digital trade: duties on digital and electronic data transmission, including electronic content, have been canceled. It also sets out commitments on digital payments, personal data protection, and the creation of transparent rules for businesses developing the digital economy and cross-border trade.
“Deepening cooperation in trade, investment, technological innovation and infrastructure will be a powerful stimulus for Ukraine’s economy and strengthen political ties,” Svyrydenko concluded.