The United Arab Emirates and Russia have taken significant steps to enhance their financial and economic collaboration. On 17 February 2025, both nations convened the inaugural UAE-Russia Strategic Financial Dialogue in Abu Dhabi, culminating in the signing of an agreement aimed at eliminating double taxation on income and capital. This pact is designed to prevent tax evasion and foster a more transparent and competitive tax environment, thereby stimulating bilateral trade and investment.
The UAE delegation was led by Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, while the Russian side was headed by Anton Siluanov, Minister of Finance. The discussions focused on sharing best practices in budget preparation, integrating modern technologies into financial planning, promoting public-private partnerships, and enhancing international tax policies.
In his opening remarks, Al Hussaini emphasized the strength of the UAE-Russia partnership, describing it as a model for sustainable economic cooperation. He highlighted the UAE’s commitment to bolstering mutual investments and financial collaboration through the continuous development of modern budgeting mechanisms and the stimulation of public-private partnerships. Al Hussaini also noted that the UAE is solidifying its position as a global financial hub by building strategic partnerships with major economies, which enhances the resilience of the national economy and creates new avenues for future growth.
Siluanov echoed these sentiments, underscoring the importance of the Strategic Financial Dialogue in strengthening bilateral relations and expanding avenues for cooperation. He pointed out that both countries share aligned perspectives on key financial development matters, including the enhancement and digitalization of budgeting mechanisms and the exchange of best practices in public-private partnerships.
The newly signed double taxation agreement is expected to come into effect on 1 January 2026, following ratification by both countries. This accord aims to stimulate trade, increase mutual investment, and create a favorable environment for businesses and citizens of both nations. Siluanov noted that the finance ministry teams from both sides conducted extensive work to consider the interests of both parties, establishing conditions conducive to mutual investment attraction and the avoidance of double taxation for legal entities and individuals.
Beyond the tax agreement, the dialogue also delved into the implementation of artificial intelligence technologies in budget processes and discussed modern trends in the development of international tax cooperation. Both ministers expressed readiness to continue coordination within the BRICS framework, aiming to further enhance financial and investment cooperation.
This development comes at a time when the UAE is actively engaging in diplomatic efforts to promote peace and stability in the region. The UAE has welcomed talks between Russian and US delegations in Riyadh, Saudi Arabia, regarding the Ukrainian crisis. The UAE’s Ministry of Foreign Affairs commended Saudi Arabia’s efforts in hosting these talks, reflecting the Kingdom’s commitment to supporting international peace efforts and achieving global stability and prosperity. The Ministry reaffirmed the UAE’s unwavering commitment to supporting peaceful resolutions to conflicts and promoting international cooperation in addressing global challenges.
In parallel, Ukrainian President Volodymyr Zelenskyy visited the UAE, meeting with its leaders to discuss economic partnerships and humanitarian programs. During his visit, Zelenskyy and UAE President Sheikh Mohammed bin Zayed Al Nahyan signed a significant trade deal and agreed to establish a Ukraine-UAE Investment Council. This move underscores the UAE’s role as a neutral ground for dialogue and its commitment to fostering international cooperation.
The UAE’s strategic location and its position as a global financial hub make it a pivotal player in facilitating international dialogues and agreements. The recent engagements with Russia and Ukraine highlight the UAE’s proactive approach in addressing global challenges through diplomacy and economic collaboration.
As the global economic landscape continues to evolve, the UAE and Russia’s strengthened financial ties signify a mutual commitment to sustainable economic development. The double taxation agreement and the ongoing strategic dialogues are poised to pave the way for increased trade, investment, and a more robust partnership between the two nations.
