Russia and the United Arab Emirates (UAE) have signed a significant economic agreement aimed at boosting bilateral trade and investment. The pact seeks to reduce export-related costs and facilitate market access, according to a report by Kommersant.
The agreement is expected to simplify conditions for service providers and decrease expenses associated with transport and other cross-border activities. Russian Economic Development Ministry officials identified finance, transport, wholesale and retail trade, manufacturing, and mining as key areas for cooperation. The treaty opens up 64 Emirati sectors to Russian businesses, including research and development, ship and aircraft repair, rail transport, computer services, and legal services. In certain areas, such as engineering and passenger maritime transport, Russian stakes will be capped at 70%. Companies will also be able to establish banks, healthcare institutions, and news agencies in UAE special economic zones.
In return, Emirati firms will gain access to 12 Russian service sectors, including healthcare, education, and hospitality. They will also be permitted to open retail outlets in Russia. The agreement removes restrictions on transfers and payments related to services and trade, which is expected to significantly increase exports and mutual investment flows.
The pact includes cooperation in logistics, which is anticipated to boost the International North-South Transport Corridor. This corridor links Russia with the Middle East, East Africa, and South Asia, and is viewed as a key route for diversifying transport flows and expanding regional trade. Mutual trade in services between Russia and the UAE was valued at $14 billion in 2024, according to ministry data. Moscow expects exports of services to the UAE to double by 2030, with imports rising at a similar pace. The ministry also forecasts that accumulated Russian investment in the UAE will grow fourfold to $25 billion, and Emirati investment in Russia will double from 2024 levels to $17 billion.
This economic agreement is expected to have a significant impact on the trade and investment landscape between Russia and the UAE. By reducing costs and increasing access to markets, the pact is anticipated to drive growth and expansion in key sectors. As the two countries continue to strengthen their economic ties, the agreement is likely to play a crucial role in shaping their bilateral trade and investment relationship in the years to come.