Enhanced Trade Relationship Between New Zealand and the United Arab Emirates Surpasses NZ$1.3 Billion, Indicating Stronger Economic Bonds
In recent times, there has been a significant increase in trade and investment between New Zealand and the United Arab Emirates (UAE). This growth is primarily attributed to the implementation of the New Zealand–United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA), which has removed tariffs on nearly all New Zealand exports to the UAE, reduced red tape, and boosted services trade and investment links [1][4].
Key drivers of this growth include the CEPA eliminating tariffs on 98.5% of New Zealand exports immediately, rising to 99% in three years. The UAE’s high demand for imported food and premium products, aligned with New Zealand's strengths in fresh, safe agricultural exports, also plays a significant role [1].
The strategic government focus on doubling export values over 10 years by expanding trade beyond traditional partners, supported by government-led diplomacy and investment congress participation in the UAE, further fuels this growth [1][4].
Several sectors are benefiting from this growth. Agriculture and food products, such as dairy, meat, and fresh produce, are capitalizing on the UAE’s food import needs. Services, including investment flows and trade in areas linked to agri-technology, digital trade, and financial services, are also seeing significant growth [1][4].
Enhanced bilateral investment opportunities prompted by the CEPA and trade missions are fostering broader economic ties. In 2024, UAE investments in New Zealand exceeded NZ$200 million (AED440 million), spanning sectors like food, infrastructure, and high-value industries [4].
The fourth quarter of 2024 saw trade figures between New Zealand and the UAE reach NZ$400 million (AED880 million), and New Zealand's Minister for Trade, Todd McClay, confirmed a bilateral trade of NZ$1.3 billion (AED2.86 billion) with the UAE in 2024 [4]. There was a significant 60% increase in services trade between the two countries [4].
Looking ahead, opportunities include expanding into the UAE’s growing consumer market with increasing willingness to pay for quality food and beverages. Leveraging digital trade and AI-driven agriculture to improve product offerings and supply chain efficiencies for UAE clients is another potential avenue [5].
Strengthening services trade and financial investment links as the partnership matures, supported by further ratification and implementation of the CEPA, is another key opportunity. Positioning New Zealand as a leading exporter in the Middle East, potentially using the UAE as a gateway to broader GCC and Middle East markets, is another long-term goal [1][4].
Todd McClay highlighted the CEPA and other investment accords as key drivers for new capital flow channels, particularly in infrastructure and energy. He noted around 20 New Zealand companies are active in the UAE market. McClay attributed the trade upswing to the close alignment of both governments' visions and a shared commitment to deepening economic cooperation [6].
McClay also highlighted New Zealand's pro-investment climate, strengthened by a double taxation avoidance agreement offering preferential treatment to UAE sovereign wealth funds [6]. The future of the NZ-UAE trade and investment relationship is set to grow significantly, underpinned by the CEPA’s tariff removals and facilitation measures, which are unlocking a high-value market for New Zealand’s key agri-food exports and related services [1].
- The government's strategic focus on expanding trade with new partners, such as the UAE, has led to a significant increase in bilateral investment opportunities.
- The New Zealand–United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA) has not only eliminated tariffs on most New Zealand exports but also boosted investment flows in sectors like food, infrastructure, and high-value industries.
- With the UAE's rising demand for premium food products and New Zealand's strength in fresh, safe agricultural exports, the future of trade and investment between the two countries looks promising, particularly in the market for quality food and beverages.
- By leveraging digital trade, AI-driven agriculture, and financial investment links, both governments aim to position New Zealand as a leading exporter in the Middle East, potentially using the UAE as a gateway to broader GCC and Middle East markets.
