Strengthening Trade Ties Between UAE and Australia
A newly signed trade deal between the UAE and Australia is expected to enhance their long-standing trade relationship, driving significant business growth across various industries. With reduced tariffs and simplified customs procedures, both countries stand to benefit from increased trade and investment opportunities.
Agricultural Trade to Benefit from Tariff Reductions
The UAE and Australia have enjoyed a stable trade partnership, especially in agriculture. With this new deal, market access is expected to improve, and tariffs on products like Australian olives, which currently face a 5% duty, may soon be eliminated. The UAE is already Australia’s fourth-largest market for fresh fruits, importing over 1,300 tonnes of apricots, nectarines, peaches, and plums annually.
Livestock Sector to Experience Growth
The livestock sector is another area set to benefit from the trade deal. Australian livestock exports contribute over A$1 billion (US$680 million) annually, and the UAE ranks as Australia’s largest trade and investment partner in the Middle East. The removal of tariffs will further strengthen this vital sector.
Projected Tariff Savings and Increased Investment
Tariff savings from the trade deal are estimated to reach A$135 million (US$92 million) in the first year, with this figure rising to A$160 million (US$109 million) annually once the agreement is fully implemented. Currently, over 300 Australian companies operate in the UAE, using the country’s advanced transport, financial, and trade infrastructure as a regional base.
Major UAE Investments in Australian Infrastructure
The UAE’s investment in Australia is growing rapidly. The Abu Dhabi Investment Authority, one of the world’s largest sovereign wealth funds, has invested in significant infrastructure projects, including ports, the TransGrid electricity network, and the Queensland Motorway project. Mubadala, another UAE wealth fund, recently made the largest investment in Australia’s fertilizer industry, worth A$6.4 billion (US$4.4 billion), to support sustainable farming through clean technologies like solar energy and green hydrogen.
Property Sector Investment in Australia
UAE-based property developer Arada has announced a US$2.5 billion investment in Australia’s housing market. The company plans to build 2,500 homes in Sydney’s Castle Hill area, incorporating green spaces and retail facilities, further enhancing bilateral investment in the real estate sector.
Collaboration in Education and Space Industries
Education and space exploration are also areas of collaboration between the two nations. Western Australian universities, Murdoch and Curtin, have established campuses in Dubai, focusing on agriculture, food security, and advanced technology. Additionally, the UAE Space Agency is working with Australian experts in remote operations and satellite communication to support its deep space missions.
Conclusion: New Opportunities for Bilateral Growth
The UAE-Australia trade deal marks a new chapter in their trade relationship, creating vast opportunities for businesses and industries in both countries. With its focus on economic diversification, job creation, and mutual investment, the deal is expected to significantly boost bilateral trade in the years to come.