UAE and Russia Sign Landmark Trade in Services and Investment Agreement

The UAE and Russia make a significant step to boost bilateral economic ties and significantly expand foreign direct investment (FDI) inflows between the two countries by signing a Trade in Services and Investment Agreement (TISIA). The agreement was signed by UAE Minister of Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi, and Russian Minister of Economic Development, Maxim Reshetnikov.

The hallmark signing of the UAE Russia trade agreement even occurred in Moscow amidst the President of the UAE, Sheikh Mohamed bin Zayed Al Nahyan’s visit to Russia, where he met with Russian President Vladimir Putin to engage in discussion over ways of deepening UAE Russia economic cooperation across areas of mutual interest, such as investment and trade between the nations.

UAE-Russian Trade Expected to Surge Significantly

The new TISIA provides a detailed bilateral blueprint with Russia, aimed at boosting high-growth service sectors that include fintech, healthcare, logistics, professional services, and transport. This marks a much more weighted agreement as compared to the UAE’s existing Economic Partnership Agreement (EPA) with the Eurasian Economic Union (EAEU) that focuses on trade in goods alone.

To highlight, the UAE Minister of Foreign Trade, Al Zeyoudi, says this new UAE Russia trade deal, paired with the recently signed EPA mentioned above, marks a substantial strengthening of the UAE's foreign trade network. Certainly, the UAE continues to be a leader in the region, with its strategic location being leveraged to build beneficial relationships for all associated parties.

For instance, this latest agreement with Russia is set to boost related industries for both countries, as with its previous endeavors. To highlight, UAE Russia non-oil trade reached $11.5 billion in 2024, up 4.9% from 2023. Adding on, the same surged 75.3% year-on-year in H1 2025, underscoring the rapid growth in bilateral commerce.

The TISIA also aligns with the UAE’s Comprehensive Economic Partnership Agreement (CEPA) programme, a cornerstone of its foreign trade strategy. Going forth, the CEPA programme aims to grow the UAE’s non-oil foreign trade to $1.1 trillion by 2031, building on a record $816 billion in 2024, a 14.6% increase year-on-year.

UAE Ranks 10th for FDI Inflows in 2024

The UAE has undeniably turned into a hotspot for foreign direct investment (FDI) inflows. So much so that the country recently ranked at number 10 globally for FDI inflows, according to the UNCTAD World Investment Report 2025. It also ranked second for newly announced greenfield projects in 2024, based on the data from the UAE FDI Report 2025.

In detail, UAE FDI inflows reached a record $45.6 billion in 2024, up 48% year-on-year and accounting for 37% of all FDI into the MENA region. Moreover, from 2015 to 2024, annual inflows grew at a 10.5% CAGR, while cumulative FDI stock hit $270.6 billion. The Minister of Investment, Mohamed Hassan Alsuwaidi, attributed the achievement to the UAE’s strategic vision, competitive business environment, and strong legislative framework.

Meanwhile, Greenfield FDI projects grew 2.8% to 1,369 in 2024, with capital investment of $14.5 billion, securing the UAE second place globally behind the U.S. Key sectors which accounted for software and IT (11.5%), business services (9.7%), renewable energy (9.3%), oil and gas (9%), and real estate (7.8%).

To highlight, renewable energy alone drew $1.3 billion, supporting the UAE’s goal to triple capacity by 2030. Going ahead, the UAE aims to double annual inflows to AED 2.2 trillion by 2031, under the National Investment Strategy 2031, further solidifying its status as a global investment hub.

Conclusion

In conclusion, the TISIA agreement represents a pivotal milestone in strengthening UAE Russia bilateral relations, reinforcing both nations’ positions in the global economy, and unlocking vast opportunities across high-growth sectors.

By creating new opportunities for entrepreneurs, easing market access, fostering investment, and aligning with the UAE’s CEPA programme and National Investment Strategy 2031, the UAE–Russia TISIA reinforces both nations’ commitment to long-term economic collaboration and strengthens the United Arab Emirates’ role as a global trade hub.

Lastly, the pact not only accelerates non-oil trade and investment flows but also supports the UAE’s long-term vision of becoming the world’s leading hub for commerce, innovation, and sustainable growth.

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