Ukraine and UAE sign economic partnership agreement, including free trade zone

This was announced by the Ministry of Economy’s press service. 

The document was signed by Ukraine's First Deputy Prime Minister and Minister of Economy, Yulia Svyrydenko, and UAE's Minister of State for International Trade, Thani bin Ahmed Al Zeyoudi.

The agreement includes free trade between Ukraine and the UAE and liberalizes market access for goods between the two countries. 

The ministry added that Ukrainian products will gain full access to 96.6% of the UAE's market.

"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 also the Gulf region. This is not just an agreement between two countries; it is a gateway to the global market, as the UAE is an important economic, trade, and financial hub in the Middle East. The implementation of this agreement, which covers nearly all of the bilateral trade nomenclature, will boost the production and export of Ukrainian goods by removing tariff barriers between the two countries," Svyrydenko emphasized.

The Ministry noted that the agreement covers not only trade in goods but also services, investments, and the digital economy.

Ukrainian companies will benefit from:

- Simplified access to the UAE and other regional markets;

- Predictable trading conditions;

- Removal of barriers to export and investment.

"The Ukrainian export growth is expected in key sectors: metallurgy, food industry, including flour milling and oil production. There is also a forecast for increased exports of metals and vegetable oils," the statement says.

The parties agreed to establish the Ukraine-UAE Investment Council. A Committee on Small and Medium-Sized Businesses will also be created to support entrepreneurs.

The UAE has lifted the 49% foreign capital share limit for Ukraine, allowing entrepreneurs to register companies with foreign capital up to 70%, and in certain sectors, gradually up to 100%. Meanwhile, in free economic zones, Ukrainian companies will be able to fully own businesses.

Additionally, duties on digital and electronic data transmission, including electronic content, have been abolished. Commitments on digital payments, personal data protection, and the creation of transparent rules for businesses in the digital economy and cross-border trade have been established.