UAE and Latvia Forge Robust Economic Partnership, Eyeing Enhanced Trade and Investment

Historic Visit Solidifies Bilateral Ties

A high-level Latvian delegation, led by Viktors Valainis, Minister of Economics of the Republic of Latvia, concluded a productive working visit to the United Arab Emirates from November 23-26, 2025. This visit marked a significant step forward in bilateral economic relations, building on three decades of diplomatic ties between the two nations. During the visit, substantial progress was made in fostering deeper trade and investment cooperation.

A key achievement was the signing of a Memorandum of Understanding (MoU) between the Latvian Chamber of Commerce and Industry and the Abu Dhabi Chamber of Commerce and Industry. This agreement represents the first of its kind between these two organizations, establishing a formal framework to facilitate commerce and exchange of economic, commercial, and investment information.

Joint Business Council to Drive Commercial Dialogue

Further cementing their commitment to economic collaboration, both sides agreed to establish a UAE–Latvia Business Council. This council is targeted for establishment by the end of 2025 and is envisioned as the primary platform for ongoing commercial dialogue and fostering direct relations between Emirati and Latvian entrepreneurs and investors.

The initiative is expected to promote consistent, focused business travel and regular meetings, ensuring continuous commercial momentum. Officials from both countries have highlighted the strategic importance of this new body in expanding cooperation across various sectors, including information technology, small and medium-sized enterprises, food, tourism, and innovation.

Expanding Horizons: Key Sectors and Investment Opportunities

The partnership extends beyond trade, with a strong focus on mutual investments and industrial cooperation. Latvia and the UAE have identified several priority areas for collaboration, including:

• Innovation and Advanced Technology: Covering artificial intelligence, cybersecurity, and digital infrastructure.
• Energy Sector: Particularly renewable energy.
• Food Security and Agriculture: Including aquaculture and organic agriculture, with Latvian companies expressing interest in investing up to €300 million in Dubai's food industry.
• Health Technologies and Defense Innovations.
• Transportation and Logistics.

Discussions also advanced regarding potential investments from major UAE funds. Latvia and Mubadala, a UAE sovereign wealth fund, agreed to develop an MoU by early 2026 to outline potential investments. Similarly, talks with ADQ focused on establishing a structured mechanism for information exchange.

The UAE is already a significant investor in Latvia, with investments surging to EUR 113 million in the first quarter of 2025, up from EUR 47 million at the end of 2024. Non-oil trade between the two nations reached $103 million in 2024, with $66.7 million recorded in the first nine months of 2025, making the UAE Latvia's most important trading partner in the Middle East.

Latvian Minister of Economics Viktors Valainis emphasized the 'huge untapped potential' in economic relations, positioning Latvia as a strategic entry point into the European Union market of 450 million customers.