Expanding economic cooperation between Russia and the UAE beyond the energy sector

Abstract

This article examines how the United Arab Emirates (UAE) and Russia’s economic ties have changed over time, with a particular emphasis on how those ties evolved from being mostly energy-based to becoming more diverse. The goal is to examine the forces behind this change, the major industries affected, and the larger implications for both economies. The article is divided into sections that provide background information on trade history and then analyse trade dynamics, including import and export patterns, and finally reexport activity. The article finds that non-oil trade between the UAE and Russia grew by 33.2% in the recent years, with Russia becoming a significant supplier of precious metals and machinery to the UAE. At the same time, the UAE has expanded its exports to Russia of non-oil goods, especially high-tech items. Based on their distinct economic advantages, both nations have successfully managed to address competitive challenges, leading to a strong and growing bilateral trade relationship.