Trade

UAE-Australia trade expected to triple after Cepa deal

November 7, 2024, 2:04 PM

UAE foreign minister and deputy prime minister Abdullah bin Zayed Al Nahyan is greeted by Australian prime minister Anthony Albanese at Parliament House in Canberra

UAE eliminates 99% of tariffs
Non-oil trade target of $15bn
UAE’s 14th Cepa since 2021

Trade between the UAE and Australia is expected to grow threefold in the next eight years following the signing of a comprehensive economic partnership agreement (Cepa) on Wednesday.

The trade agreement will eliminate tariffs on more than 99 percent of Australia’s exports to the UAE.

The deal, which was announced in September, is expected to help increase non-oil trade between the two nations to more than $15 billion by the year 2032, up from the $4.2 billion recorded in 2023, the UAE state news agency Wam said.

Bilateral non-oil trade reached $2.3 billion in the first half of 2024, an increase of 10 percent from the same period last year.

The deal is expected to benefit Australia’s export of meat and dairy products, as well as those in aluminium, gold, vehicle parts and pharmaceuticals industries.

The UAE is Australia’s fourth most important market for fresh fruit, importing more than 1,300 tonnes of apricots, nectarines, peaches and plums annually.

More than 300 Australian businesses are operating in the UAE, in sectors including construction, financial services, agriculture and education,

The Cepa aims to improve government cooperation between the UAE and Australia on environment, female empowerment, sustainable agriculture and food systems and animal welfare, Wam added.

Australia’s trade minister, Don Farrell, said the UAE is the country’s largest trade and investment partner in the Middle East with over $6.4 billion (A$9.9 billion) in two-way trade and $13.5 billion (A$20.7 billion) in two-way investment in 2023.

He said independent modelling estimates a potential annual increase in Australian good exports to the UAE of around $445 million (A$678 million).

“Our deal delivers for Australian farmers, producers, manufacturers, services providers, exporters and Australian workers, giving them unprecedented access and preferential treatment when they do business with the UAE,” Farrell said.

Farrell said the agreement strengthens cooperation between Australia and the UAE to address shared environmental challenges, including working on transitioning to net zero, addressing climate change, promoting the circular economy, reducing pollution, improving air quality and preventing overfishing and illegal wildlife trade.

He said there are also commitments on anti-corruption and transparency, digital trade and skilled labour mobility.

The Australia agreement is part of the UAE’s Cepa programme which aims to grow its non-oil trade to $1 trillion in value by 2031 and double the size of its economy to surpass $800 billion by 2030.

UAE President Sheikh Mohamed bin Zayed Al Nahyan announced plans in September to start negotiations with Japan on a Cepa.

Australia is the UAE’s 14th Cepa deal signed with countries across the world since launching the programme in September 2021.

UAE-Australia trade

UAE’s investment fund ADQ in April acquired a 49 percent stake in Australian infrastructure investor Plenary Group as part of its expansion drive.
The Abu Dhabi Investment Authority has invested in ports, the TransGrid electricity network and the Queensland Motorway project.
In May Mubadala Investment Company announced an investment in Perdaman’s $4.2 billion Western Australia Urea project, one of the largest urea fertiliser facilities in the world.
Emirates Airline and Qantas have a longstanding codeshare agreement that allows passengers access to more than 60 Australian destinations not served by Emirates flights.
Arada, a UAE-based property developer, announced in August a $2.5 billion investment in Australia’s housing market. Starting with projects in Sydney’s Castle Hill, Arada plans to build 2,500 homes and incorporate green and retail spaces.
Several Australian educational institutions are active in the UAE market, including the University of Wollongong, Murdoch University and Curtin University, all of which have campuses in Dubai.
Abu Dhabi Investment Authority has invested in ports, the Transgrid electricity network and the Queensland Motorway project.