UAE And Australia Strengthen Ties With Comprehensive Economic Partnership Agreement Signing
The UAE and Australia have taken a significant step in their bilateral relations with the signing of a Comprehensive Economic Partnership Agreement (CEPA). This agreement, attended by H.H. Sheikh Abdullah bin Zayed Al Nahyan and Penny Wong, aims to boost trade, encourage private-sector partnerships, and enhance investment flows. The signing occurred during Sheikh Abdullah's visit to Canberra.
Dr. Thani bin Ahmed Al Zeyoudi and Don Farrell signed the agreement, witnessed by officials from both nations. Once ratified, this will be Australia's first trade deal with a Middle Eastern country. It is expected to triple non-oil trade between the UAE and Australia to over US$15 billion by 2032, up from US$4.23 billion in 2023.
The UAE's CEPA programme is crucial for its growth strategy, targeting US$1 trillion in total trade by 2031 and doubling the economy's size to surpass US$800 billion by 2030. Since its launch in September 2021, it has reached regions like Africa, Southeast Asia, and South America, covering nearly a quarter of the global population.
The UAE-Australia CEPA includes chapters on environmental cooperation, women's empowerment, sustainable agriculture, and animal welfare. This agreement builds on existing economic ties; bilateral non-oil trade reached US$2.3 billion in the first half of 2024, marking a 10.1% increase from the same period in 2023.
Sheikh Abdullah highlighted the significance of this agreement as part of a successful foreign trade policy. "The signing of a Comprehensive Economic Partnership Agreement between the UAE and Australia is a clear demonstration of our desire to build bridges of cooperation and mutual benefit across the globe," he stated.
Investment Opportunities
During the visit, six additional agreements were signed to strengthen UAE-Australia relations further. These included an Agreement to Promote and Protect Investments and five MoUs focused on sectors like Green Energy, Infrastructure Development, Data Centres, AI Projects, Minerals Mining, and Food Agriculture.
Australia remains a key economic partner for the UAE with strong ties in trade, culture, and sports. The UAE is Australia's top trading partner in the Middle East and ranks as its 20th largest globally. As of 2023, both countries have invested US$14 billion into each other's economies.
More than 300 Australian businesses operate in various sectors within the UAE such as construction and education. His Highness noted that this agreement would deepen existing bonds: "Australia has long been an economic partner and trusted friend...this agreement will deepen these bonds."
This new chapter in UAE-Australia relations promises enhanced collaboration across multiple sectors while fostering mutual growth opportunities for both nations' economies.
With inputs from WAM
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