Russia, UAE Lock in Major Economic Agreement
(MENAFN) Russia and the United Arab Emirates (UAE) have finalized a significant economic pact aimed at boosting bilateral trade and investment by cutting export costs and improving market accessibility, according to Kommersant.
The agreement is set to streamline operations for service providers and lower expenses tied to transportation and cross-border activities, reported on Sunday with reference to Russia’s Economic Development Ministry. Key sectors identified for collaboration include finance, transport, wholesale and retail trade, manufacturing, and mining.
Under the new treaty, Russian businesses will gain entry into 64 Emirati sectors, covering areas from research and development to ship and aircraft repair, rail transport, computer services, and legal services. However, in fields such as engineering and passenger maritime transport, Russian ownership stakes will be limited to 70%. Additionally, companies will have the opportunity to establish banks, healthcare facilities, and news agencies within UAE special economic zones.
On the other hand, Emirati enterprises will obtain access to 12 Russian service industries, including healthcare, education, and hospitality, with permission to launch retail outlets across Russia.
The agreement further abolishes restrictions on service and trade-related payments and transfers. Officials believe this will substantially increase exports and mutual investment flows.
The pact also covers logistics cooperation, which both countries believe will enhance the International North-South Transport Corridor. This strategic route connects Russia with the Middle East, East Africa, and South Asia and is regarded as vital for diversifying transport channels and expanding regional trade.
Trade in services between Russia and the UAE reached $14 billion in 2024, based on ministry data. Moscow anticipates that its service exports to the UAE will double by 2030, with imports growing at a comparable rate. The ministry also predicts that Russian investments in the UAE will quadruple to $25 billion, while Emirati investment in Russia is expected to double to $17 billion compared to 2024 levels.
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