Trade

UAE finalises trade deal with five-nation EAEU bloc

December 12, 2024, 4:31 PM

UAE non-oil trade with Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia increased by 29% in the first half of this year

$13bn H1 non-oil trade
Cepas have increased trade by 11%
Deal aligns customs procedures

The UAE has finalised an economic agreement with the Eurasian Economic Union (EAEU) that will reduce or remove tariffs and eliminate technical barriers to trade with five countries.

The economic partnership agreement with the EAEU, made up of Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia, will align customs procedures and harmonise digital trade and ecommerce, UAE state news agency Wam reported.

Non-oil trade between the UAE and the five-nation bloc reached $13.7 billion in the first half of this year, a 29.6 percent increase on the same period in 2023.

Dr Thani bin Ahmed Al Zeyoudi, the UAE’s minister of state for foreign trade, said the conclusion of talks with the EAEU represent the UAEs belief that open, rules-based trade can help economic growth and stability.

“With a combined population of some 200 million people and a GDP approaching $5 trillion, the EAEU offers a rich seam of opportunity for our private sector,” he said.

Dr Thani bin Ahmed Al Zeyoudi, the UAE’s minister of state for foreign trade, said the conclusion of talks with the EAEU represents the UAE’s belief that open, rules-based trade can help economic growth and stability.

The talks involved several rounds of discussions and the concluded negotiations are aimed at reaching a comprehensive economic partnership agreement (Cepa), which covers a wider range of economic cooperation areas.

Cepas also include provisions on trade in goods, services, investment and economic cooperation.

The UAE’s Cepa programme, launched in September 2021, aims to increase its non-oil trade to $1 trillion in value by 2031 and double the size of its economy to over $800 billion by 2030.

Wam said the UAE has six deals in force with a further nine signed and awaiting implementation.

The growing number of trade deals around the world has resulted in record non-oil trade of AED1.4 trillion ($381 billion) in the first six months of 2024, an 11.2 percent increase compared to the same period in 2023.

UAE-Eurasian Economic Union ties

Moscow said in February that it aims to double the number of annual visitors from the UAE this year.
Following the war in Ukraine, the UAE saw a surge in the number of Russian individuals and companies looking to set up businesses in the Emirates.
Masdar in November of this year signed a $1.4 billion agreement to develop a 1GW windfarm in Kazakhstan, and in 2021 a deal for a 200MW solar power project in Armenia.
Trade between the UAE and Belarus reached $114.6 million in 2022, according to the Observatory of Economic Complexity (OEC).
Trading Economics said trade between Kyrgyzstan and the UAE was $1.26 billion in 2023.