UAE strengthens trade relations with New Zealand and Australia

Dr Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, has concluded a successful visit to New Zealand and Australia, where he led a high-level UAE business delegation to strengthen economic ties. The visit culminated in the conclusion of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) between the UAE and New Zealand, which will open important new avenues for trade and investment between the two countries.

While in New Zealand, Dr Al Zeyoudi held a number of meetings with senior officials, including Hon. Todd McClay, Minister for Trade, and Hon. Nicola Willis, Minister of Finance. The discussions focused on the economic ambitions of each country and how greater collaboration can help achieve them.

Dr Al Zeyoudi and Minister McClay also participated in a question-and-answer session with the National Party in New Zealand’s parliament in Wellington, highlighting both nations’ commitment to deepening political and economic ties and exploring new private-sector opportunities in both countries. This was followed by a business roundtable organised to facilitate direct engagement between the UAE delegation and leading New Zealand businesses, particularly in the agri-tech, renewable energy, technology and logistics sectors.

The UAE remains New Zealand’s largest trading partner in the Middle East, with non-oil trade reaching US$768 million in 2023, a 16% increase over pre-COVID levels in 2019. The first half of 2024 continued this positive trend, with trade volume reaching $460.3 million, 11.5% more than the same period last year. The expanding bilateral trade relationship is expected to create new opportunities across a range of sectors.

Dr Al Zeyoudi stated: “The UAE and New Zealand share a strong commitment to building an innovative and resilient trade relationship. Our growing ties create new avenues for businesses to collaborate, particularly in sectors such as the green economy, supply chain management, food security and advanced technology. We are greatly encouraged by the positive response to our visit, not least the conclusion of terms on our proposed Comprehensive Economic Partnership Agreement, which will elevate our relationship on all fronts.” Hon. Todd McClay, New Zealand’s Trade Minister, commented: “We welcome this new phase in our relationship with the UAE. The deepening trade ties between our nations provide a robust framework for fostering growth and prosperity for both countries.”

Dr Thani also visited Australia, where he held talks with His Excellency Hon. Don Farrell, Australia’s Minister for Trade and Tourism. The minister’s discussed the timelines for signing and implementing the CEPA between their two nations, the negotiations for which concluded in earlier in September, and to begin the process of aligning their respective customs departments.

Dr Thani also addressed a business roundtable in Melbourne, where private-sector representatives reviewed sectors of maximum opportunity, including food security, renewable energy, mining, logistics and tourism.

Strengthening relations with the broader Oceania region will support regional supply chain resilience and promote sustainable development. The CEPAs with Australia and New Zealand will help the UAE achieve its target of Dhs4 trillion ($1.1 trillion) in non-oil trade by 2031.

Dr Al Zeyoudi was accompanied by a UAE delegation that included Rashed Abdulkarim Al Blooshi, Undersecretary of the Abu Dhabi Department of Economic Development; Ahmed Khalifa Al Qubaisi, CEO of the Abu Dhabi Chamber of Commerce & Industry; as well as senior officers from Dubai Chambers, Sharjah Chamber of Commerce & Industry, Etihad Airways and DP World alongside other representatives from UAE business entities and investors.

A few days earlier, The United Arab Emirates and New Zealand have successfully concluded negotiations towards a Comprehensive Economic Partnership Agreement (CEPA) that will, once signed and implemented, enhance trade and investment flows between the two nations.  The latest deal in the UAE’s ongoing CEPA programme was confirmed by the signing of a joint statement by Dr Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, and Todd McClay, New Zealand’s Minister of Trade.

Once implemented, the UAE-New Zealand CEPA will reduce or remove tariffs, eliminate unnecessary barriers to trade, improve market access, and create new platforms for investment and private sector collaboration with one of the world’s most globalised economies.

It will further strengthen economic ties that have witnessed consistent growth in recent years with bilateral non-oil trade totaling $460.3 million in the first half of 2024 – 11.5 per cent more than the same period in 2023.

Today, the UAE is New Zealand’s largest trading partner in the Middle East, accounting for 50 per cent of its trade with the Mena region, and tenth largest globally.

In addition to increased bilateral trade flows, the CEPA is also projected to increase investment between the two countries, creating opportunities for collaboration across a number of priority sectors.

The UAE’s investments in New Zealand totaled more than $170.2 million in 2021, while FDI from New Zealand to the UAE rose to $74.2 million, with the UAE’s economic stability, low taxes and robust legal framework making it an attractive destination for New Zealand’s investment community.