UAE-Ukraine CEPA marks key step toward new economic era, says Ukrainian economy minister

Ukraine's First Deputy Prime Minister and Minister of Economy, Yulia Svyrydenko, stated that the Comprehensive Economic Partnership Agreement (CEPA) signed between Ukraine and the UAE is an important step towards establishing a solid economic foundation, aimed at jointly moving towards a new economic era.

In an interview with the Emirates News Agency (WAM), Svyrydenko emphasized that the private sectors and business communities of both countries will play a crucial role in promoting trade and investment. She also noted that Ukraine held meetings with the private sector in Abu Dhabi to explore industries with the greatest potential for future growth, particularly energy projects, logistics and transportation, healthcare, and manufacturing.

Minister Svyrydenko pointed out that companies in both the UAE and Ukraine face many promising opportunities, and the Comprehensive Economic Partnership Agreement will serve as a catalyst for economic growth. The Ukrainian economy grew by 5% in 2023 and 3.6% in 2024, with positive growth exceeding 2-3% expected in 2025. However, Svyrydenko emphasized that this requires higher investment inflows into Ukraine than currently observed.

She also noted that the total investment inflow into Ukraine over the past two years has been approximately $8 billion. Svyrydenko further emphasized that Ukraine needs greater investment in its assets and capital, with the goal of modernizing its infrastructure, not only to restore previously existing facilities but also to build a modern nation based on new principles and methods, capable of enhancing its competitiveness and achieving sustainable development. She also explained that the private sector will play a key role in Ukraine's reconstruction and recovery efforts.

UAE Minister of State Dr. Thani bin Ahmed Al Zeyoudi stated that the UAE-Ukraine Comprehensive Economic Partnership Agreement is expected to come into effect this year. Al Zeyoudi emphasized that this important agreement aligns with the forward-looking vision of the UAE leadership, which underscores the importance of strengthening international trade and investment cooperation as the best guarantee for establishing peace, stimulating growth, and promoting global prosperity.

The agreement aims to double the trade volume between the two countries. Despite the ongoing war in Ukraine, non-oil bilateral trade reached $372.4 million in 2024, compared to $904.4 million in 2021, representing a 28.4% increase compared to 2020. Al Zeyoudi explained that the agreement benefits both countries by expanding the UAE's trade partnerships, making it the third trade agreement signed by the UAE with a European country. Simultaneously, Ukraine is one of the world's leading producers and exporters of grains, such as wheat and barley, commodities that are crucial to achieving the UAE's national food security goals.

He also pointed out that the agreement aims to support Ukraine's economic recovery efforts after achieving regional peace and to open up new markets for Ukrainian products. The agreement will also create a new platform for investment partnerships between the UAE and Ukrainian business communities, focusing on promising industries such as infrastructure, heavy industry, aviation, aerospace science, and information technology. Under the terms of the Comprehensive Economic Partnership Agreement, 99% of Ukrainian imports to the UAE and 97% of UAE exports to Ukraine will be immediately exempt from tariffs.

It is projected that the agreement will 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 cooperation in areas such as infrastructure, heavy industry, aviation, aerospace, and information technology. The Comprehensive Economic Partnership Agreement is part of the UAE's broader efforts to expand its global trade partnerships and strengthen investment opportunities in multiple industries. International trade remains a cornerstone of the UAE's economic strategy, with the goal of increasing non-oil trade to 4 trillion dirhams by 2031.

Since launching its global trade agenda, the UAE has signed 24 Comprehensive Economic Partnership Agreements with important regional and global trade partners, covering markets with a population of approximately 2.5 billion people, representing a quarter of the world's population. These agreements are driving growth in key industries such as logistics, clean and renewable energy, advanced technology, and sustainable food systems.