UAE Finalises Historic Trade Deal with Eurasian Economic Union (EAEU)

 The UAE has successfully concluded a significant economic agreement with the Eurasian Economic Union (EAEU), marking a new chapter in the nation's global trade relations. The deal, which includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia, is poised to enhance economic cooperation by reducing or removing tariffs, eliminating technical barriers to trade, and aligning customs procedures between the two regions.

Strengthening Trade Ties with the EAEU

This economic partnership agreement is a milestone in the UAE's strategy to expand its global trade network and strengthen ties with key regions. The agreement is designed to harmonize digital trade and e-commerce procedures, facilitating smoother transactions and enhancing market access for both UAE businesses and EAEU member countries.

The EAEU, with a population of approximately 200 million people and a combined GDP nearing $5 trillion, presents immense opportunities for the UAE's private sector. Non-oil trade between the UAE and the five-nation bloc reached $13.7 billion in the first half of 2024, reflecting a 29.6 percent increase compared to the same period in 2023.

UAE’s Vision for Economic Growth

Dr. Thani bin Ahmed Al Zeyoudi, the UAE's Minister of State for Foreign Trade, emphasized that the agreement embodies the UAE’s commitment to open, rules-based trade as a pathway to economic growth and stability. He highlighted the EAEU as a key strategic partner, with immense opportunities for cooperation in trade, investment, and services.

The conclusion of these talks aligns with the UAE's broader economic vision, which includes the Comprehensive Economic Partnership Agreement (CEPA) program. Launched in September 2021, this program aims to increase the UAE’s non-oil trade to $1 trillion by 2031 and double the size of its economy to over $800 billion by 2030.

Expanding the UAE’s Global Trade Network

The UAE has now entered into six deals under the CEPA program, with nine additional agreements signed and awaiting implementation. This growing network of trade deals has contributed to the UAE’s record non-oil trade, which reached AED 1.4 trillion ($381 billion) in the first half of 2024. This marks an 11.2 percent increase compared to the same period in 2023.

The UAE’s diplomatic and trade initiatives demonstrate its role as a global trading hub, fostering international partnerships and diversifying its economy beyond oil.

Conclusion

With the finalisation of this comprehensive trade agreement with the EAEU, the UAE has taken a significant step toward strengthening its economic position in the global marketplace. The deal not only enhances bilateral trade but also sets the stage for greater economic integration and prosperity for both the UAE and the EAEU member countries in the years to come.