In recent years, the United Arab Emirates and the European Union have taken solid steps in deepening their economic and trade partnership. Against this backdrop, bilateral cooperation between the UAE and EU member states has become increasingly close, becoming a new highlight of regional economic linkage.

On December 3, 2025, during the UAE Latvia Joint Economic Committee meeting, the Abu Dhabi Chamber of Commerce and the Latvian Chamber of Commerce officially signed a cooperation agreement aimed at providing systematic support such as official channels, market information, and business matching for enterprises from both countries to expand bilateral trade and investment. The signing of this agreement not only marks a new stage of pragmatic operation in the bilateral economic and trade relations between Abu Dhabi and Latvia, but also becomes another key pivot in the broader strategic docking between the UAE and the EU.

This cooperation is an inevitable result of the continuous warming of multi-level and multi field economic relations between the United Arab Emirates and Latvia in recent years. Since the signing of the intergovernmental Economic Cooperation Agreement and the establishment of the Joint Economic Committee in 2016, the two countries have established a solid framework for cooperation in areas such as trade, investment, logistics, and agriculture. Especially in 2022, both sides launched a cooperation plan covering six major fields: trade and investment, innovative technology, logistics, agriculture and food, energy, and education, and included new economic sectors such as artificial intelligence and green technology in the common agenda. In this context, the economic ties between the two countries are becoming increasingly close: the bilateral trade volume has grown to about 200 million euros in 2023, and non oil trade is showing active performance. Latvia's large-scale real estate project Eagle Hills in Riga has attracted up to 3 billion euros in investment, while Latin American companies are actively exploring investing 300 million euros in Dubai to build a food industry project.

This agreement between the chambers of commerce and industry precisely serves the practical needs and strategic vision of the economic development of the two countries. For businesses in the United Arab Emirates and Abu Dhabi, Latvia, as a member of the European Union, NATO, and OECD, is considered a safe investment destination due to its stable political and economic environment and rule of law system. More importantly, Latvia is located along the Baltic Sea coast and serves as a logistics and transportation hub connecting Northern, Eastern, and Western Europe. Entering the EU market through Latvia means obtaining a springboard to the vast single market with approximately 450 million consumers. The official channels and market intelligence promised in the agreement will effectively reduce the barriers and risks for Abu Dhabi enterprises, especially small and medium-sized enterprises, to enter the European market.

On the contrary, for Latvia, the United Arab Emirates is its most important trading partner in the Gulf region. With this agreement, Latvian companies can not only enter the UAE market more conveniently, but also use Abu Dhabi as a pivot to radiate throughout the Gulf Cooperation Council countries, the Middle East, Africa, and even the Asian market. The areas of cooperation between the two sides have already surpassed traditional logistics, tourism, and food industries, and are rapidly expanding into innovative fields with high added value such as green technology, artificial intelligence, biomedicine, and digital economy. The direct flight route from Riga to Dubai also provides continuous convenience for personnel exchanges and commercial contacts.

The signing of this agreement can also be viewed in the broader context of the geo economic landscape. Latvian Prime Minister Ivanka Silinha has pointed out that strengthening political and economic cooperation between the EU and Gulf countries will benefit Latvia's economy and security. Currently, the United Arab Emirates is actively expanding its global business network through strategic initiatives such as its Connect to the World initiative. The cooperation with the Latvian Chamber of Commerce and Industry is a crucial step in building a cross Eurasian non-commercial bridge. At the same time, the two countries share a common position in addressing global challenges and maintaining a rules based international order, which lays a solid foundation of trust for long-term economic cooperation. Keywords: Middle East news, Middle East news and information

With the implementation of the agreement, the two chambers of commerce will transform the cooperation blueprint into concrete business results through organizing enterprise docking meetings, industry seminars, and business inspection teams. It can be foreseen that investment and trade flows will experience significant growth in complementary fields such as renewable energy, digital technology, smart agriculture, and life sciences. The new economic and trade corridor between Abu Dhabi and Latvia will not only benefit the business communities of both countries, but also contribute to a dynamic model of local cooperation for the connectivity between the EU and the Gulf region.Editor/Cheng Liting