UAE, Ukraine sign CEPA: Deal expected to contribute $369 million to the UAE’s GDP by 2031

Ukraine holds significant strategic importance for the UAE, with bilateral trade between the two countries reaching $372.4 million in 2024. To further strengthen economic and trade relations, the UAE and Ukraine have signed a Comprehensive Economic Partnership Agreement (CEPA).

The signing ceremony of the agreement was attended by His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, and His Excellency Volodymyr Zelenskyy, President of Ukraine. The agreement aims to unlock new avenues for trade, investment, and economic cooperation between the two countries. Under the terms of the CEPA, 99% of Ukrainian imports from the UAE and 97% of Ukrainian exports to the UAE will be immediately exempt from tariffs.

The agreement was signed during an official ceremony held at Qasr Al Shati, with His Excellency Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Her Excellency Yulia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine, signing on behalf of their respective countries. Sheikh Mohamed emphasized the importance of the agreement in strengthening the strategic ties between the UAE and Ukraine, promoting bilateral trade, and enhancing economic cooperation, which aligns with the shared vision of both nations.

The UAE President also expressed his belief that the agreement will play a pivotal role in deepening economic and investment relations between the two countries, thereby fostering mutual growth and prosperity. He reaffirmed the UAE's commitment to strengthening partnerships to promote sustainable development. President Zelenskyy highlighted the role of the CEPA agreement in expanding economic cooperation between Ukraine and the UAE, which will benefit both countries and their people. The agreement is projected to contribute $369 million to the UAE's GDP and $874 million to Ukraine's GDP by 2031. It will also accelerate Ukraine's economic recovery and create new opportunities for collaboration in sectors such as infrastructure, heavy industry, aerospace, and information technology.

The CEPA is part of the UAE's broader efforts to expand its global trade partnerships and enhance investment opportunities across multiple sectors. International trade remains a cornerstone of the UAE's economic strategy, with the goal of increasing non-oil trade to AED 4 trillion by 2031. Since launching its global trade agenda, the UAE has signed 24 CEPAs with key regional and global trading partners, covering markets of approximately 2.5 billion people, representing a quarter of the world's population. These agreements are driving growth in key sectors such as logistics, clean and renewable energy, advanced technology, and sustainable food systems.

During President Zelenskyy's official visit to the UAE, Sheikh Mohamed and President Zelenskyy discussed various aspects of cooperation in today's meeting, particularly in the economic, investment, development, renewable energy, and food security sectors, as well as other areas that align with the development priorities of both nations. Sheikh Mohamed emphasized the UAE's consistent approach to supporting peaceful resolutions to crises, highlighting that development can only be achieved in a stable environment. He reiterated the UAE's commitment to supporting all efforts aimed at peacefully resolving the conflict in Ukraine and continuing to take measures to mitigate its humanitarian impact.

Concurrently, President Zelenskyy reaffirmed his commitment to strengthening cooperation between Ukraine and the UAE, emphasizing the numerous opportunities that exist across various sectors. He also expressed his gratitude for His Highness's ongoing diplomatic efforts in facilitating prisoner exchanges and his humanitarian concern for the crisis.