UAE and Russia… A Strong Partnership Towards a More Prosperous Future

UAE and Russia.. A Trade Success Story Exceeding AED 42 Billion

Trade and economic relations between the Emirates and the Russian Federation are gaining renewed momentum with the official visit of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, to Moscow today. This visit reflects the depth of the strategic partnership between the two countries and the commitment of their leaderships to expanding economic and investment cooperation.

A Deeply Rooted Strategic Partnership

The UAE and Russia have enjoyed diplomatic relations since the 1970s, specifically since 1971. In recent years, these relations have witnessed significant development, culminating in the establishment of a comprehensive strategic partnership. Economic cooperation has become one of its main pillars, alongside cooperation in the energy, space, transportation, and technology sectors.

Official statements from both sides confirm that bilateral relations are based on the principles of shared interests and mutual respect, with an increasing focus on supporting economic growth and diversifying trade and investment partnerships.

Significant Growth in Trade Exchange

According to data from the UAE Ministry of Economy, non-oil trade between the UAE and Russia reached approximately AED 42.2 billion (USD 11.5 billion) in 2024, marking substantial growth compared to 2019. This reflects the accelerating pace of trade exchange in recent years.

Data for the first half of this year showed exceptional growth of up to 75 percent compared to the same period last year, driven by the overall strengthening of economic relations, according to statements carried by the Emirates News Agency (WAM) from Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade.

Furthermore, the first quarter of 2025 recorded strong growth in non-oil trade volume of 76.3 percent compared to the same period of the previous year, and 55.6 percent compared to the last quarter of 2024, reflecting the depth and dynamism of the economic partnership.

Trade figures illustrate the rapid development of trade relations between the two countries, given that bilateral trade reached approximately $2.5 billion in 2013.

Russia is a prominent trading partner of the UAE in Eastern Europe and Eurasia, while the UAE serves as a vital trade and logistics hub for Russian goods in the Middle East and North Africa region, according to UAE government data. The UAE is Russia's largest Gulf trading partner, accounting for 55 percent of Russia's total trade with the GCC countries.

The UAE also ranks second among Arab countries in terms of trade with Russia.

According to data from the Ministry of Foreign Affairs, Russian exports to the UAE are dominated by metals, precious stones, non-ferrous metals, ferrous metals, copper products, machinery and equipment, vehicles, chemical products, timber, paper and cardboard, and agricultural products. Meanwhile, the UAE supplies Russia with boats, furniture, lighting equipment, coffee, tea, and spices.

Around 100 Russian companies operate in the UAE's free economic zones, and more than 400 joint ventures are currently in operation, particularly in the trade, hospitality, real estate, and tourism sectors, according to the UAE Ministry of Foreign Affairs website.

Agreements that Enhance the Business Environment

Economic relations between the two countries have witnessed the signing of several government agreements aimed at improving the business environment. These include the Trade in Services and Investment Agreement, which provides an advanced legal framework to facilitate market access for companies, enhance the protection of mutual investments, and expand cooperation in the services and technology sectors.

The two sides also reached a draft agreement to avoid double taxation, a step aimed at removing tax barriers, encouraging investment flows, and enhancing the attractiveness of the UAE and Russian markets to investors.

Mutual Investments and Promising Sectors

Official data indicates that the UAE is among the largest Arab investors in Russia, especially in the energy, infrastructure, and financial markets sectors. Meanwhile, the UAE has attracted increasing Russian investments thanks to its flexible business environment and its position as a global financial and commercial hub.

Cooperation in the fields of energy, logistics, food security, transportation, and the new economy occupies a pivotal position on the bilateral cooperation agenda, through the UAE-Russia Joint Governmental Committee.

Today’s Visit… Focus on Continuing and Building on Achievements

According to official statements issued by the Emirates News Agency (WAM) and the Kremlin, UAE President Sheikh Mohamed bin Zayed Al Nahyan is discussing with Russian President Vladimir Putin during his current visit to Moscow ways to enhance economic, trade, and investment cooperation and build upon the achievements of recent years, in addition to discussing a number of regional and international issues of common interest.

According to Interfax, the Kremlin confirmed that the talks will cover various aspects of multi-faceted bilateral cooperation, with a particular focus on economic and investment matters, reflecting the growing importance of UAE-Russia relations on the economic front.