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The UAE Ministry of Foreign Trade announced that the Comprehensive Economic Partnership Agreement with Ukraine takes effect on July 1 after being signed in February 2025, with the aim of revitalising bilateral trade flows and opening new investment channels between the two countries. Under its terms, 99 per cent of Ukrainian imports of UAE goods and 97 per cent of Ukrainian exports to the UAE become exempt from customs duties immediately, the ministry stated. The agreement seeks to support private-sector collaboration that allows businesses in both nations to expand into global markets more effectively. It also positions the UAE as a stronger hub for European trade ties at a time when Ukraine continues to stabilise its economy.
The ministry’s assessment found the pact will contribute $369 million to UAE gross domestic product and $874 million to Ukraine’s economy by 2031. Non-oil foreign trade between the countries reached $346.8 million in 2025 after peaking at $904.4 million in 2021, according to the ministry’s figures. The deal forms part of a wider effort to rebuild trade volumes that were disrupted by regional conflicts and global supply shifts. Federal Competitiveness and Statistics Centre data cited by The National showed the UAE’s overall non-oil foreign trade exceeded $1 trillion for the first time in 2025.
Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, described the pact as a landmark moment in bilateral economic relations. “The UAE-Ukraine Cepa represents a landmark moment in our economic partnership,” he said. “This agreement is designed to revitalise trade flows, unlock new avenues for investment and foster collaboration across essential sectors, thereby benefiting both nations.” The minister’s statement emphasised the deal’s role in strengthening private-sector links that extend beyond tariff reductions to broader market access.
The UAE has now activated 18 of the 37 Comprehensive Economic Partnership Agreements it has signed globally, according to ministry tallies. A government target reported by Economy Middle East calls for raising non-oil foreign trade to Dh4 trillion by 2031 as part of national economic diversification goals. Arabian Business reported that non-oil exports climbed 45 per cent to $221 billion in 2025 while overall non-oil trade grew 26 per cent that year. These gains reflect infrastructure investments in ports and airports that support expanded partnerships of the kind now formalised with Ukraine.
Ukraine’s real gross national product contracted 28.8 per cent in 2022 following the full-scale Russian invasion, the ministry noted in its briefing. The International Monetary Fund projects 2 per cent real GDP growth for Ukraine in 2026, according to its latest World Economic Outlook. The trade agreement is expected to aid reconstruction by improving export opportunities and attracting investment into sectors that have faced wartime constraints. The timing aligns with international recovery efforts discussed at the Ukraine Recovery Conference held in Gdansk, Poland.
Similar CEPAs have produced measurable trade uplifts with partners across Asia, Europe and Latin America, a pattern the Fiker Institute assessment linked to potential 30 to 40 per cent bilateral growth within three years of implementation. The UAE, ranked as the Arab world’s second-largest economy, continues to use such instruments to broaden its non-oil export base and deepen investment ties. The Ukraine pact adds a European dimension to this network while providing Ukrainian businesses with preferential access to Gulf markets and logistics networks.
