Ukrainian President Volodymyr Zelensky made a major bilateral trade pact with the United Arab Emirates on Tuesday on his working visit in Abu Dhabi, the nation’s very first economic treaty with a member of the Persian Gulf. The pact, hailed as landmark by Kiev’s Economic and Trade Policy and Foreign Trade Department, aims to facilitate trade flows, reduce barriers, and unveil new sources of commerce for businesses in both the two nations.
Speaking at a joint news briefing with representatives of Emirat, Zelensky spoke of the treaty’s potential for revolutionizing the country’s economic relationship with the Gulf. “This treaty liberalizes access for virtually every single commodity of Ukraine into the UAE’s market,” Zelensky said. “The industry and agriculture enterprises of Ukraine, they will be working in a much more comfortable environment from today on.” 96.6% of exports of Ukraine, including grains, machinery, and value-added goods, will be allowed access into the UAE without prohibitions and tariffs, under terms of the treaty. The UAE, for its part, gains access into the commodity markets of Ukraine, with individual industries not being announced immediately.
The agreement has been concluded against the background of lookout for more international alliances on the part of Ukraine, following its standoff with Russia. The two countries’ bilateral trade for 2023 had been $51.5 million, and the officials had expected this amount to increase gradually under the terms of the treaty. The treaty could also be anticipated, the ministry said, to increase real GDP growth for Ukraine in the medium and long terms by 0.1%, a marginal but strategically valuable gain for still-convalescent wartime-disrupted economy.
Through this pact Ukrainian exporters can take essential steps to develop multiple export routes as well as reduce their reliance on standard markets. When asked about his views Oleksandr from Kyiv indicated his cautious optimism regarding the Middle Eastern market that had long been a target for him. He expressed that logistic complications combined with high tariffs prevented his company from expanding but he believed this new agreement would help his business to break through. Such simplified procedures from this agreement could result in market access that has eluded Ukrainian companies until now. Many in Ukraine’s business landscape share the same optimism about conducting commercial ventures with UAE customers primarily concerning the country’s prosperous consumer market according to him.
The UAE operates as an international trading center while building stronger relationships with Black Sea grain export institutions to ensure world food security. The UAE’s economic partnership expansion strategy finds alignment through this undisclosed deal according to analysis reports.
Critics express doubts about the success prospects of the agreement due to its dependence on proper distributed execution. According to trade policy expert Mariya Vasiuk from the Kyiv School of Economics the true effectiveness of this agreement depends on resolving non-tariff barriers that include customs delays together with regulatory mismatches,” Vasiuk stated. In order for them to be successful, the countries should invest in developing logistical infrastructure and cooperation initiatives across borders.
The deal strikes powerful symbolism for Ukraine which has tried to capitalize cornices in areas not so caught up in geopolitical fissures with Russia. Wrapping up his US visit, Zelensky teased future joint projects, including some in Ukrainian energy and technology.“This is not merely trade; rather, it connects otherwise broken parts of the world,” he said.
For now, however, the emphasis remains on turning the promises of the pact into real benefits. Global markets have their eyes closely watching whether such promises will pay off in tangible gains for business both in Kyiv and Dubai, which are waiting with bated breath for the nitty-gritty—and, hopefully, some opportunities it may hold.
