UAE-New Zealand Trade Volume Surpasses AED 2.8 Billion By End Of 2024 Amid Strong Economic Ties

The economic relationship between New Zealand and the United Arab Emirates (UAE) is experiencing rapid growth, as highlighted by Todd McClay, New Zealand's Minister for Trade. In 2024, bilateral trade reached NZ$1.3 billion, equivalent to AED2.86 billion, with the fourth quarter alone accounting for NZ$400 million (approximately AED880 million). This growth reflects the alignment of both governments' visions and their dedication to enhancing trade and investment.

McClay noted a significant increase in the services sector, with growth reaching up to 60 percent. This expansion underscores the robust and diverse nature of cooperation between the two nations. Direct investments from the UAE into New Zealand surpassed NZ$200 million (AED440 million) in 2024, covering sectors such as food, infrastructure, and productive industries.

Investment agreements like the Comprehensive Economic Partnership Agreement (CEPA) are paving the way for increased capital flows between the countries, particularly in infrastructure and energy sectors. McClay mentioned that around 20 New Zealand companies are currently operating in the UAE market. Meanwhile, discussions continue with several UAE companies interested in establishing offices in New Zealand.

New Zealand's favourable investment climate is bolstered by key bilateral agreements, including a double taxation avoidance agreement. This agreement offers preferential tax treatment to UAE sovereign wealth funds. McClay emphasised that these agreements make New Zealand an attractive destination for investment.

New Zealand is actively seeking investments in renewable energy sectors such as wind, solar, and geothermal. Additionally, there are promising opportunities in processing industries, agri-tech, artificial intelligence, pharmaceuticals, and data centres. These sectors present ideal prospects for UAE investors looking for long-term ventures.

The country has also launched an ambitious plan to expand its road network alongside large-scale infrastructure projects. These initiatives offer excellent opportunities for UAE sovereign wealth funds and companies interested in construction management and operation.

McClay confirmed that New Zealand remains open to investments across various sectors. The shared commitment of both nations to strengthen economic ties continues to drive this positive momentum forward.

With inputs from WAM