Ukraine is set to ratify a free trade agreement with the UAE: What opportunities will exporters gain?

The Cabinet of Ministers has approved a draft law for the ratification of the Comprehensive Economic Partnership Agreement between the governments of Ukraine and the UAE. This document establishes a free trade regime between the two nations. The agreement enhances opportunities for Ukrainian businesses in the global market, as the UAE serves as a significant economic, trade, and financial hub in the Middle East.

The agreement, which encompasses nearly the entire scope of bilateral trade, will promote growth in the production and export of Ukrainian goods by lowering tariff barriers. Ukrainian exports are projected to increase in key industries, particularly metallurgy, food production, flour production, and vegetable oil production.

Moreover, the UAE has lifted restrictions on the share of foreign capital for Ukraine, enabling Ukrainian entrepreneurs to register companies with foreign investment of up to 70%, and in certain sectors, gradually up to 100%.

In the digital sector, the agreement removes tariffs on the transmission of digital and electronic data, including electronic content.

This marks the first agreement in Ukraine’s history with the Gulf nations.