UAE-Ukraine CEPA to bolster economic growth

The UAE has signed a comprehensive economic partnership agreement (CEPA) with Ukraine, that is expected to increase GDP in both countries by $1 billion over the next six years. 

The pact is projected to contribute $369 million and $874 million to the UAE’s and Ukraine’s economic growth, respectively. 

Upon its expected implementation this year, the agreement will eliminate custom duties on 99% of Ukrainian imports of UAE goods and 97% of Ukrainian exports to the UAE. 

The agreement was signed in the presence of UAE President Sheikh Mohamed bin Zayed Al Nahyan and Ukrainian President Volodymyr Zelenskyy, state-run news agency WAM reported. 

The CEPA is the UAE’s third trade agreement with a European nation. 

Yulia Svyrydenko, Ukrainian minister of economy said the country needed greater investments in its assets and capital, as it aims to modernise its infrastructure. Investment inflows in Ukraine reached approximately $8 billion over the past two years.

Dr. Thani bin Ahmed Al Zeyoudi, the UAE’s minister of state for foreign trade said that securing food supplies is a key pillar of the UAE’s free trade agreements. 

“With its pro-growth reforms and potential accession to the EU, we foresee enhanced appeal in Ukraine as an investment destination, with vast scope to build on our existing joint FDI stock of $360 million," he added. 

Ukraine is one of the world’s leading producers and exporters of grains such as wheat and barley. 

The agreement aims to double non-oil bilateral trade, which reduced to $372.4 million in 2024 from $904.4 million in 2021. 

The CEPA programme launched in September 2021, aims to increase the UAE’s non-oil trade to $1.1 trillion (4 trillion dirhams) by the year 2031. 

Since launching its programme, the UAE has signed 24 CEPAs with trade partners, covering markets home to approximately one-quarter of the world’s population.