UAE, Eurasian Economic Union Sign Landmark Trade Agreement
The United Arab Emirates (UAE) and the Eurasian Economic Union (EAEU) have finalized a landmark economic partnership agreement aimed at significantly boosting non-oil bilateral trade, Bloomberg reports.
The agreement, encompassing Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia, will reduce tariffs and eliminate trade barriers between the two economic blocs.
The deal comes amidst a period of strong growth in trade between the UAE and the EAEU. Bilateral non-oil trade reached a staggering $13.7 billion in the first half of 2024, representing a nearly 30% year-on-year increase.
Andrey Slepnev, a member of the Eurasian Economic Commission Board, hailed the agreement as a “significant milestone,” emphasizing the UAE’s crucial role as a regional hub and predicting further growth in mutual trade. He highlighted the agreement’s creation of a “systemic basis for cooperative ties.”
Thani Al Zeyoudi, the UAE’s minister of state for foreign trade, underscored the significant opportunities presented by the EAEU’s substantial market of approximately 200 million people and a combined GDP nearing $5 trillion. He stated that the agreement will offer the UAE’s private sector access to this rich market.
This agreement builds upon the UAE’s broader strategy of expanding its global trade network. The nation aims to leverage its strategic location to connect businesses with high-growth markets across the Middle East, Africa, Asia, and South America. This strategy is consistent with the UAE’s 2021 announcement of a plan to attract $150 billion in foreign investment to deepen trade ties with rapidly developing economies. Recent trade agreements with India, Israel, and Turkey are further evidence of this proactive approach.
The UAE’s commitment to expanding trade is reflected in its record-breaking non-oil trade figures. In the first six months of 2024, non-oil trade reached 1.4 trillion dirhams ($381.2 billion), an increase of over 11% compared to the same period in 2023.
