Cabinet approves draft law on ratification of Comprehensive Economic Partnership Agreement between governments of Ukraine and UAE
On 29 April, the Government approved a draft law on the ratification of the Comprehensive Economic Partnership Agreement between the Government of Ukraine and the Government of the United Arab Emirates (UAE). Today’s decision marks another step in Ukraine’s domestic procedures for the Agreement to enter into force. The next step is to submit the draft law to the Verkhovna Rada of Ukraine for ratification.
The Agreement establishes a free trade regime between Ukraine and the UAE by liberalising access to markets for goods and services for both countries. For Ukrainian goods, full liberalisation of access to the UAE market has been secured.
“The Comprehensive Economic Partnership Agreement between the Governments of Ukraine and the UAE enhances opportunities for Ukrainian businesses in the global market, as the UAE is a key economic, trade, and financial hub in the Middle East. The implementation of the Agreement, which covers virtually the entire range of bilateral trade, will boost the production and export of Ukrainian products by reducing tariff barriers in trade between the two countries. We hope for the support of MPs in approving this draft law,” said First Deputy Prime Minister and Minister of Economy Yuliia Svyrydenko.
An increase in Ukrainian exports is expected in key sectors: metallurgy, food industry (notably flour milling and oil production), as well as metals and vegetable oils.
Additionally, the UAE has lifted its 49% cap on foreign capital for Ukraine, allowing entrepreneurs to register companies with up to 70% foreign capital, and in certain sectors — gradually up to 100% (including commercial services, construction, education, healthcare, and accounting). Furthermore, Ukrainian companies will be able to own 100% of businesses in the UAE’s free economic zones, a significant step for the development of Ukrainian businesses in the region.
The Agreement opens new opportunities for digital trade: duties on digital and electronic data transmission, including electronic content, have been eliminated. It also establishes commitments on digital payments, personal data protection, and transparent rules for businesses, fostering the development of the digital economy and cross-border trade.
This Agreement does not apply to territories that are an integral part of Ukraine but remain under foreign occupation until Ukraine restores full and effective control over them.
The draft law will now be submitted to the Verkhovna Rada of Ukraine for ratification.
The Agreement will enter into force 60 days after the date of the last written diplomatic note, through which the parties notify each other of the completion of domestic procedures required for the Agreement to take effect.
Background
Ukraine and the UAE signed the Comprehensive Economic Partnership Agreement between their governments on 17 February 2025 in Abu Dhabi. The signing took place in the presence of Ukrainian President Volodymyr Zelenskyy. The document was signed by First Deputy Prime Minister and Minister of Economy Yuliia Svyrydenko on behalf of Ukraine, and by Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi on behalf of the UAE. This is the first agreement of its kind between Ukraine and a Persian Gulf country.