UAE and New Zealand Forge Landmark Trade Agreement to Boost Economic Ties

The United Arab Emirates and New Zealand have formalised a Comprehensive Economic Partnership Agreement , aiming to significantly enhance bilateral trade and investment. The agreement was signed at the Abu Dhabi National Exhibition Centre by Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Todd McClay, New Zealand's Minister for Trade, in the presence of UAE President Sheikh Mohamed bin Zayed Al Nahyan and New Zealand Prime Minister Christopher Luxon.

Under the terms of the CEPA, New Zealand will grant 100% duty-free access to imports from the UAE. Conversely, the UAE will provide duty-free access to 98.5% of New Zealand products immediately, with this figure set to rise to 99% within three years. This strategic move is projected to boost bilateral trade to $5 billion by 2032, effectively tripling the five-year average trade value of $1.5 billion recorded between 2019 and 2023.

The UAE has established itself as New Zealand's largest trading partner in the Middle East, accounting for 50% of New Zealand's trade with the MENA region and ranking as its tenth-largest trading partner globally. In the first nine months of 2024, bilateral non-oil trade reached $642 million, marking an 8% increase compared to the same period in 2023. Notably, New Zealand's dairy exports to the UAE amounted to $718 million, industrial products $237 million, red meat $46 million, horticulture $44 million, and tourism $31 million during this period.

The CEPA is anticipated to open new markets for UAE businesses, particularly in sectors such as agriculture and food production, where New Zealand has demonstrated considerable strength. Dr. Thani Al Zeyoudi emphasized that the agreement would not only boost bilateral trade but also strengthen the UAE's position as a gateway to the high-growth Asia-Pacific region. He stated, "Our foreign trade agenda aims to expand opportunities for the UAE's private sector."

In addition to trade, the agreement is expected to increase foreign direct investment between the two countries. UAE investments in New Zealand totaled over $170.2 million in 2021, while FDI from New Zealand to the UAE reached $74.2 million. The UAE's economic stability, low taxes, and robust legal framework make it an attractive destination for New Zealand's investment community.

The CEPA also includes provisions aimed at enhancing cooperation in areas such as indigenous trade, sustainable development, women's economic empowerment, and transparency. This comprehensive approach reflects the shared ambition of both nations to develop resilient, future-ready economies built on knowledge, innovation, and talent.