Saudi Arabia and New Zealand strengthen their relationships with a $100 million worth of business agreements.
In a significant move to foster cultural exchange and boost trade, an Memorandum of Understanding (MoU) was signed between the Saudi-founded creative organisation Rukun and New Zealand's Weta Workshop. This historic agreement was sealed during New Zealand Trade Minister Todd McClay's visit to Riyadh, where he led a delegation of 21 New Zealand businesses.
Saudi Arabia, one of the most dynamic markets in the Middle East and the 18th largest market globally for New Zealand, has been a key player in the growth of New Zealand's exports. Trade with Saudi Arabia has seen a substantial increase in recent years, with exports up 118% since 2021. As a result, two-way trade reached NZD 1.6 billion ($960 million) as of June, with exports valued at NZD 1.35 billion.
The Saudi Arabian entrepreneur behind Rukun, Princess Noura Al Saud, emphasised that the MoU marks the beginning of shared work that will contribute to cultural knowledge and open new pathways for exchange. Rukun promotes creativity, personal development, and social impact, and the MoU aims to set up a foundation for strong creative and cultural exchange between the companies ahead of Expo 2030 Riyadh.
Dairy and meat are the major exports from New Zealand to Saudi Arabia, accounting for 80% and nearly 10% respectively. The newly signed deals, valued at $100 million, are expected to generate more than $100 million in commercial value for New Zealand. Notable partnerships established during the trip include those between NIG Nutritionals and Al Dawaa Pharmacies, 26 Seasons and Qassim Strawberry & Fruit Cooperative Society, Gallagher Animal Management and Al Tajweed.
Minister McClay also held multiple sideline meetings, including with the Saudi Public Investment Fund to scout opportunities available in the Kingdom, as well as visiting the Expo 2030 site. He met with Khalid Al-Falih, Saudi Arabia's Minister of Investment, to discuss opportunities for deeper investment links between the two countries.
The success of the negotiation of the trade agreement is significant, according to Minister McClay, who considers it an honor for New Zealand. The free trade agreement between New Zealand and Saudi Arabia, agreed upon last year, is expected to be signed in the coming months. As the two countries mark 48 years of diplomatic relations as of 2025, these developments underscore the growing commitment to enhanced trade and investment cooperation.
Saudi Arabia, worth $2.8 trillion, is driving one of the largest global transformations and rebuild programs through its Vision 2030 strategy. With the potential for continued growth and collaboration, the future looks bright for the burgeoning relationship between New Zealand and Saudi Arabia.
