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Over the past six years, the trade turnover between Russia and the United Arab Emirates (UAE) has grown 2.7 times, from US$3.5 billion in 2019 to US$9.5 billion by the end of 2024, according to Abdullah Ahmed Al Saleh, the Deputy Economic Minister of the UAE. Meanwhile, shipments of goods from the UAE to Russia increased in value from US$300 million to US$800 million over the same period.
Marina Terentyeva, the chief financial officer of Rocket Cargo, a logistics company in the Russia-UAE space, says that “the main reason is people. In recent years, a huge number of Russians have opened company offices in the United Arab Emirates. In particular, in order to make it easier to run their Russian businesses. Branches in the UAE help them transport Western brand products to Russia, which cannot be delivered directly.”
In addition, offices in the Emirates make it easier to make payments for imported goods, she adds.
The increase in trade is also due to the fact that large volumes of products began to be moved through the UAE as part of parallel imports. In general, the United Arab Emirates has become a major transport hub. The country is doing everything possible to maintain this status. For example, it is improving large airports, including increasing the volume of cargo transportation through them.
Construction machinery, spare parts for it, cars and spare parts for them, electronics, jewelry, coffee, tea, and many others are supplied to Russia from the UAE, including as part of parallel imports.
The United Arab Emirates is one of Russia’s leading trade and economic partners in the Arab world. According to the UAE Economic Ministry, trade between the two countries increased by 3.5% in 2023 to US$11.2 billion. The UAE quadrupled its purchases of Russian oil products to a record US$971.4 million last year. However, 2024 did see a decline in bilateral trade, mainly due to the threats of secondary sanctions in the financial sector. Both presidents are looking to resolve this issue. The main products Russia exports to the UAE are gold, diamonds, and refined petroleum. Dubai is a major international jewelry trading hub.
According to 2024 data, Russian capital invested in the UAE has exceeded US$30 billion, while the volume of Emirati investments in Russia is now US$16.8 billion. About 4,000 Russian companies are registered in the UAE. In November 2023, the assembly of Aurus Senat luxury cars began at the production site in Abu Dhabi, and in the future, Aurus Komendant SUVs will also be produced there.
In late 2024, the UAE sovereign wealth fund purchased 6.86% of the Moscow Stock Exchange.
There is also a pending Free Trade Agreement between Russia and the UAE as part of the UAE – Eurasian Economic Union (EAEU) FTA, with this expected to be signed off at the end of this month.
One of the important aspects of bilateral relations in this is tourism exchange. According to the World Travel and Tourism Council, Russia became the second country in terms of the number of visitors to the UAE in 2024 (7% of the total), second only to India (14%) and level with Saudi Arabia (7%).
As a member of the Gulf Cooperation Council (GCC), the UAE benefits from regional free trade agreements, including the GCC’s customs union and the GCC-Singapore Free Trade Agreement. It is also a member of the World Trade Organization (WTO) and the Greater Arab Free Trade Area (GAFTA). The UAE has recently signed significant agreements, including the UAE-India Comprehensive Economic Partnership Agreement (CEPA) and the UAE-Israel CEPA in 2022. These agreements enhance trade across a range of goods and services. Negotiations are ongoing with countries such as the UK, Turkiye, and South Korea to establish additional agreements.
With a population of approximately 11.15 million and a GDP (PPP) of US$849.8 billion, the UAE is projected to achieve a GDP growth rate of 4% in 2025. Its GDP (PPP) per capita of US$77,251 reflects its economic standing.
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