President Volodymyr Zelensky of Ukraine and UAE President Sheikh Mohamed bin Zayed Al Nahyan have signed a Comprehensive Economic Partnership Agreement (Cepa), marking the first such agreement between Ukraine and a Gulf nation. This groundbreaking deal is projected to boost the GDP of both countries by a combined $1 billion over the next six years.
The Cepa, effective immediately, exempts 99% of Ukrainian imports of UAE goods and 97% of Ukrainian exports to the UAE from customs duties. It also covers services, investment, and digital trade, creating new opportunities for business communities in both nations. The agreement emphasizes investment partnerships in critical sectors such as infrastructure, heavy industries, aviation, space sciences, and IT.
Sheikh Mohamed expressed optimism about the agreement, noting it “signals a new era of trade and investment collaboration.” President Zelensky highlighted that trade between the two countries had reached $1.15 billion before the Russian invasion, and while it had decreased during the conflict, it has been on the rise again. In 2024 alone, bilateral trade amounted to $372.4 million.
The UAE aims to increase its non-oil trade to $1.1 trillion by 2031, doubling its economy’s size to over $800 billion by 2030, a goal supported by this Cepa. The UAE has already signed 24 such agreements, covering countries with a combined population of around 2.5 billion.
UAE-Ukraine relations have been on a positive trajectory. In 2020, UAE’s DP World acquired a 51% stake in Odessa’s TIS Pivdennyi container terminal, enhancing trade infrastructure. Furthermore, a 2021 agreement between Masdar, Mubadala Investment Company, and Ukraine’s DTEK aims to explore clean energy investments. The number of Ukrainian businesses in Dubai surged by 25% following the war’s outbreak, with the Ukrainian Business Council estimating 1,500 operations in Dubai pre-invasion. Additionally, the UAE has provided over $100 million in humanitarian aid to Ukraine, supporting various initiatives.
