Strengthening Trade Ties with New Agreement
A newly signed trade deal between the UAE and Australia is set to enhance trade relations and foster significant business growth across a wide range of industries. With tariff reductions and streamlined customs procedures, the agreement opens doors to more robust trade and investment opportunities between the two nations.
Agricultural Sector to Benefit from Tariff Reductions
The long-standing trade relationship between the UAE and Australia, particularly in agriculture, is expected to thrive under the new agreement. Australian olive producers, for example, may see the current 5% duty on exports to the UAE dropped, expanding market access. The UAE is already a key destination for Australian fresh fruit, importing over 1,300 tonnes of apricots, nectarines, peaches, and plums annually.
Livestock Exports and Investment Flourish
Australia’s livestock sector stands to gain as well, with exports contributing over A$1 billion (US$680 million) to the economy. The UAE remains Australia’s largest trade and investment partner in the Middle East, with bilateral trade valued at A$9.9 billion (US$6.7 billion) and investment flows totaling A$20.6 billion (US$14.1 billion). Both figures are expected to grow under the new deal.
Significant Tariff Savings
The agreement is projected to deliver A$135 million (US$92 million) in tariff savings in its first year, rising to A$160 million (US$109 million) annually once fully implemented. This financial benefit is expected to drive further trade expansion between the two countries.
UAE’s Growing Investment in Australia
The UAE’s investment in Australia continues to thrive, with the Abu Dhabi Investment Authority, one of the world’s largest sovereign wealth funds, investing in key infrastructure projects, including ports, the TransGrid electricity network, and the Queensland Motorway project.
Mubadala, another Abu Dhabi-based wealth fund, recently announced a A$6.4 billion (US$4.4 billion) investment in Australia’s fertilizer industry, the largest investment of its kind. The project aims to support sustainable farming through clean technologies like solar energy and green hydrogen.
Real Estate Developments in Australia
In addition to infrastructure, UAE-based property developer Arada has announced a US$2.5 billion investment in Australia’s housing market. The project will kick off with 2,500 homes in Sydney’s Castle Hill, incorporating green and retail spaces to enhance urban living.
Collaborations in Education and Space Industries
Educational institutions and space industries also stand to benefit from the strengthened ties. Western Australian universities Murdoch and Curtin have campuses in Dubai, specializing in fields such as agriculture, food security, and advanced technology. Meanwhile, the UAE Space Agency is leveraging Western Australian expertise in remote operations and satellite communications to support deep space missions.
A Promising Future for Bilateral Trade
Overall, the UAE-Australia trade deal is poised to unlock new business opportunities, supporting the goals of economic diversification and job creation in both countries. As tariff savings, investment, and trade flows grow, this agreement marks a significant step in deepening the economic partnership between the UAE and Australia.
