UAE to finalise ‘Eurasian Economic Union’ trade agreements by year-end

Dr Thani Bin Ahmed Al Zeyoudi, Minister of Foreign Trade, confirmed that the UAE, under the vision and directives of its wise leadership, continues to take firm steps toward strengthening its international partnerships and solidifying its role as a global hub for trade and investment.

He noted that today’s signing of a new Services and Investment Trade Agreement with the Russian Federation, complements the previously signed Comprehensive Economic Partnership Agreement (CEPA) with the Eurasian Economic Union (EAEU), a bloc that includes Russia, Armenia, Kazakhstan, Kyrgyzstan, and Belarus.

Commenting on the broader negotiation landscape with the remaining EAEU member states, the UAE Minister of Foreign Trade noted, “This marks the second services and investment agreement following the earlier one with Belarus. The third agreement, with Armenia, has also been finalised. We expect to conclude negotiations with both Kazakhstan and Kyrgyzstan in the near future.”

Dr Al Zeyoudi said that he looks forward to finalising all five bilateral services and investment agreements with EAEU members before the end of this year, thereby reinforcing the UAE’s comprehensive economic engagement with the Eurasian bloc.

In statements to the Emirates News Agency (WAM), Dr Al Zeyoudi noted that the second-of-its-kind agreement with Russia reflects the UAE’s expanding economic footprint in the EAEU region and focuses on liberalising and supporting strategic sectors, including financial and fintech services, business consulting, hospitality, logistics, renewable energy, and infrastructure development.

These agreements aim to enhance investment flows and support the economic diversification strategies of both the UAE and its partner nations.

He noted that UAE-Russia relations are witnessing significant growth, with non-oil trade between the two countries reaching about $11.5 billion in 2024, marking an increase of nearly 5% compared to the previous year. Data for the first half of the current year showed exceptional growth of up to 75% compared to the same period last year, driven by the overall expansion of economic relations.

He noted that the agreement with Russia builds on last month’s signing of the EAEU-wide CEPA, which provides for the liberalisation of 95% of total trade volume and 85% of tariff lines between the UAE and the Eurasian bloc.

Dr Al Zeyoudi highlighted the strategic importance of Eurasia as a priority trade expansion zone, noting its population of over 200 million people.

He added that bilateral trade with the Eurasian bloc grew by 27% in 2024, reaching nearly $30 billion, a testament to the UAE’s forward-looking policy of economic openness and global integration.

In July, Andrey Slepnev, Minister in charge of Trade at the Eurasian Economic Commission, affirmed that the Comprehensive Economic Partnership Agreement (CEPA) between the UAE and the Eurasian Economic Union (EAEU) represents a strategic milestone in deepening economic cooperation between the two sides.

He noted that the agreement will support trade diversification efforts and enhance mutual investment flows.

In statements to the Emirates News Agency (WAM), Slepnev said, “The UAE is one of the most prominent trading partners for EAEU countries, with its share in the Union’s total foreign trade rising to two percent, placing it among the top ten global trading partners for the Eurasian Union.”

He pointed out that the Union’s exports to the UAE have quadrupled over the past two years, while Emirati exports to Union markets have increased by more than 50 per cent. He underlined that this rapid growth reflects the strength of economic ties between the two sides.

He stated that the UAE, supported by this momentum, has become a key trade hub for all EAEU countries, surpassing major international partners such as Japan, Brazil, Egypt and Vietnam.

He added, “The CEPA aims to reinforce this growth by removing customs restrictions and expanding the scope of exchanged goods. It was agreed to reduce customs duties on more than 85 percent of goods, which will lower customs protection rates on Union products in the Emirati market from 5 percent to 0.6 percent, and on Emirati products in Union markets from 5.9 per cent to 1.5 per cent.”

Slepnev clarified that the list of goods benefiting from the agreement includes, on the Union’s side, metal products such as steel and aluminium, petrochemicals, consumer goods, means of transport and wooden products, in addition to processed agricultural goods including dairy products, confectionery and canned foods.

He continued, “In contrast, the UAE will benefit from wider access to the Union market in strategic categories, most notably polymers, especially polyethylene and polypropylene, alongside other consumer products such as cosmetics and home appliances.”

WAM