New Economic Partnership Agreement between the UAE and Australia strengthens the bilateral relations.
The UAE and Australia have enjoyed growing economic ties, with non-oil bilateral trade reaching $4.5 billion in 2022.
As well as 28% increase from 2021 and nearly double the total recorded in 2020.
Last year, the UAE was Australia’s most important trading partner in the Middle East region and ranked 19th among Australian export destinations.
The significance of the New Economic Partnership Agreement (CEPA)
This agreement between the UAE and Australia will strengthen the growing economic relationships.
By removing trade and investment barriers and opening new markets for Emirati and Australian products and services.
This agreement is expected to lead to several economic benefits for both countries, including:
- Increased bilateral trade: The agreement will surely increase bilateral trade between the UAE and Australia by up to 50% within five years.
- Attracting foreign investment: The agreement will also attract new foreign investment from Australia to the UAE, especially in high-growth sectors such as logistics, food security, tourism, renewable energy, and mining.
- Creating new jobs: The agreement is going to create new jobs in both countries by increasing investment and boosting trade.
Sokovo Agricultural Company announced the opening of a vertical farm in Dubai Industrial City, affiliated with the TECOM Group, to produce thousands of tons of leafy vegetables and microgreens annually 💯 pic.twitter.com/WhuIy474kx
— UAE Voice (@uae_voiceeng) December 12, 2023
Potential areas of cooperation
The UAE and Australia have complementary industrial and economic sectors, which present ample opportunities for cooperation between the two countries.
Some of the most prominent sectors for potential collaboration include:
- Logistics: The UAE’s strategic location makes it a global logistics hub.
While Australia has tremendous potential in agriculture and livestock, creating opportunities for cooperation in logistics services to export Australian products to global markets. - Food security: The UAE seeks to achieve self-sufficiency in food security.
While Australia boasts a strong agricultural industry, offering opportunities for collaboration in this area. - Tourism: The UAE has a thriving tourism sector, While Australia offers numerous natural and cultural tourist destinations, presenting opportunities for cooperation in the tourism industry.
- Renewable energy and mining: The UAE aims to transition to a sustainable economy.
While Australia has significant potential in renewable energy and mining.
As well as creating opportunities for collaboration in these fields.
Conclusion
The UAE and Australia share growing economic ties.
They also have complementary industrial and economic sectors, creating ample opportunities for cooperation.
The CEPA between the two countries aims to strengthen these relationships, open new markets for Emirati and Australian products and services.
And also generate numerous economic benefits for both parties.
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