UAE Sign Trade Agreement with Australia

Marking a new chapter in its bilateral trade relations and promoting private sector collaboration, the UAE has clinched another Comprehensive Economic Partnership Agreement (CEPA), this time with Australia on Wednesday.

The UAE’s CEPA programme is a key pillar of the nation’s growth strategy, which targets $1 trillion in total trade value by 2031 and aims to double the size of the wider economy to surpass $800 billion by 2030.

The latest agreement, which will facilitate investment inflows into both countries was signed by the UAE’s Minister of State for Foreign Trade Dr Thani bin Ahmed Al Zeyoudi, and Australian Minister for Trade and Tourism Don Farrell, in Canberra.

The UAE’s Deputy Prime Minister and Minister of Foreign Affairs Sheikh Abdullah Bin Zayed Al Nahyan, and his Australian Counterpart Penny Wong, the UAE’s Assistant Minister for Economic Affairs Saeed Mubarak Al Hajri, Emirates Ambassador to Australia Dr Fahad Obaid Mohamed Altaffag Almarashda, and other dignitaries were present on the occasion.

Once ratified, the deal will be Australia’s first trade agreement with a country in the Middle East and North Africa region and represent an important addition to the UAE’s CEPA programme. The deal is expected to propel bilateral non-oil trade to over $15 billion by the year 2032 – a threefold increase on the $4.23 billion recorded in 2023.

The UAE-Australia agreement builds on growing economic relations between the two countries, with bilateral non-oil trade reaching $2.3 billion in the first half of 2024, an increase of 10.1% from H1 of 2023.

Sheikh Abdullah said the CEPA was the latest milestone in a foreign trade policy that is reaping considerable rewards. The signing of a CEPA between the two countries is a clear demonstration of the UAE’s desire to build bridges of cooperation and mutual benefit across the globe.

The UAE is Australia’s leading trade partner in the Middle East and its 20^th largest partner globally. As of 2023, the two countries have also committed a combined $14 billion to each other’s economies, with more than 300 Australian businesses operating in the UAE in sectors such as construction, financial services, agriculture, and education.

 “Australia has long been an economic partner and trusted friend, with well-established links across trade, culture and sport, and this agreement will deepen these bonds and create greater opportunity for our businesses to collaborate and grow,” he added.

Importantly, this CEPA features dedicated chapters to enhance cooperation between the UAE and Australia on areas such as the environment, women empowerment, sustainable agriculture and food systems, and animal welfare.

Six More Agreements

In addition to the CEPA, six further agreements were signed during the UAE delegation’s visit to Australia, strengthening the partnership between the two nations.

These included an Agreement to Promote and Protect Investments, and five Investment Cooperation Memoranda of Understanding (MOUs) to facilitate and promote two-way investment in sectors of national priority including Green and Renewable Energy, Infrastructure and Development, Data Centres and Artificial Intelligence Projects, Minerals and Mining, and Food and Agriculture.

To date, agreements implemented in the programme, which was launched in September 2021, span the Middle East, Africa, Southeast Asia, South America, and Eastern Europe and encompass almost a quarter of the world’s population.