UAE and EAEU representatives exchange the Economic Partnership Agreement in Minsk. | Emirates News Agency (WAM)

Tariff Reductions Activated as UAE Forges Closer Ties with Eurasian Economic Bloc

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According to the Emirates News Agency, the UAE-EAEU Economic Partnership Agreement enters into force on October 6, 2026, launching a new phase of commercial cooperation with the five member states of Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. The pact grants preferential access to nearly 86 percent of tariff lines, accounting for around 96 percent of trade value between the parties while introducing updated rules for customs cooperation, digital trade and economic collaboration. It further aims to boost participation by small and medium-sized enterprises in international markets.

Non-oil trade between the UAE and EAEU countries reached $33.6 billion in 2025, a 16 percent increase from $29 billion in 2024 and more than four times the 2021 level, the agency reported. Imports from the bloc stood at $17.8 billion that year, with re-exports totaling $13.7 billion. The momentum carried into the first half of 2026, as bilateral non-oil trade grew 6.2 percent year on year to $14.3 billion.

The agreement is expected to push annual trade volumes toward nearly $50 billion by 2032, according to the Emirates News Agency. The Eurasian Economic Commission has projected an additional $5 billion to $6 billion in yearly trade once duties decline, with EAEU exporters set to save at least $266 million annually in customs duties. Preferential terms will apply to key agricultural and industrial goods ranging from grains and dairy to metals and machinery.

Foreign Trade Minister Thani bin Ahmed Al Zeyoudi described the launch as a milestone that converts rising trade volumes into tangible prospects for businesses. “The entry into force of the UAE-EAEU Economic Partnership Agreement represents a key station that turns the growing commercial momentum into practical opportunities before exporters, manufacturers and supply chain partners on both sides,” he said. Al Zeyoudi noted that the framework would reinforce the UAE’s role as a global trade and investment centre.

The pact was signed in Minsk on June 27, 2025, and completed ratification across all EAEU members and the UAE before notifications were exchanged in early August, the Eurasian Economic Commission said. Its entry into force follows the stipulated 60-day period after that exchange. The deal constitutes the first comprehensive economic partnership of its kind between the UAE and the Eurasian bloc.

The development aligns with the UAE’s broader CEPA programme, launched in 2021, under which the Ministry of Foreign Trade has concluded 38 agreements with 18 now in force. These pacts have helped drive non-oil foreign trade to record levels in recent years. The ministry has set a target of expanding such trade to $1 trillion by 2031.

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Financial Arabia NewsDesk is the desk responsible for Financial Arabia's daily news coverage, monitoring and reporting developments across the Gulf from official sources, including national news agencies and government communications. Its focus is accurate, timely and factual coverage of the region.