UAE Reports Massive Trade Growth with Australia, Sets $10bn Goal

Trade between UAE and Australia jumped 33 percent to $3.03 billion in the first half of 2025. This builds on their strong performance from 2024, when non-oil trade between both countries reached $4.2 billion.

The UAE-Australia Comprehensive Economic Partnership Agreement (CEPA) will revolutionize their economic ties. This 2024 partnership removes tariffs on more than 99 percent of Australian exports to UAE by value. The CEPA strategy will then boost trade between both nations from $4.2 billion to $10 billion by 2032. The program also plays a key role in UAE’s plan to reach $1.1 trillion in foreign trade by 2031.

UAE stands as Australia’s biggest trade and investment partner in the Middle East. Their two-way trade hit $6.4 billion with investments of $13.43 billion in 2023. Both countries’ strengths complement each other perfectly in agriculture, education, and advanced manufacturing. The CEPA agreement will boost these partnerships even further.

UAE Sets $10bn Trade Target with Australia After CEPA Signing

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“”We are a trading nation. More trade means more higher-paying jobs, more opportunities for businesses, greater investment and cheaper bills for Australian households.”” — Senator the Hon Don Farrell, Minister for Trade and Tourism, Government of Australia

Officials from the UAE and Australia signed the Comprehensive Economic Partnership Agreement (CEPA) in Canberra on November 6, 2024. UAE Minister of State for Foreign Trade Dr. Thani Bin Ahmed Al Zeyoudi and Australian Minister for Trade and Tourism Don Farrell finalized this historic agreement during Sheik Abdullah’s working visit to Australia.

CEPA agreement signed in November 2024

Both nations started their trip toward this landmark deal on December 13, 2023. Negotiators wrapped up the agreement on September 17, 2024 after months of diplomatic talks. The Australian Parliament received the CEPA on November 18, 2024. The Joint Standing Committee on Treaties recommended its ratification by February 12, 2025.

Trade goal set to triple by 2032

This partnership agreement aims to boost bilateral non-oil trade to AED 55.08 billion (approximately $15 billion) by 2032. The target represents three times the AED 15.53 billion recorded in 2023. Economic relations between the two countries are already growing strong. Bilateral non-oil trade reached AED 8.45 billion in the first half of 2024, showing a 10.1 percent increase from the same period in 2023.

Australian businesses stand to gain exceptional benefits from the CEPA agreement. Their estimated tariff savings will reach AED 495.71 million in the first year. These savings should grow to AED 587.51 million each year at full implementation. Independent modeling suggests Australian goods exports to the UAE could increase by AED 1.63 billion annually.

Australia becomes first MENA trade partner under CEPA

Australia’s first trade agreement with any Middle East and North Africa country marks a milestone achievement. The UAE has now secured its 14th CEPA deal since launching its program in September 2021.

The UAE serves as Australia’s largest trade and investment partner in the Middle East and ranks as its 20th largest partner globally. Both countries have invested AED 51.41 billion in each other’s economies as of 2023. Over 300 Australian businesses operate in the UAE’s construction, financial services, agriculture, and education sectors.

Australia-UAE Partnership Expands Across Key Sectors

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The UAE and Australia signed five complementary MOUs with the CEPA agreement. These MOUs create frameworks that support cooperation in major economic sectors and open multiple paths to mutual development and breakthroughs.

Agriculture and food security cooperation

Australia’s first standalone chapter on eco-friendly agriculture appears in this historic UAE partnership agreement. This breakthrough recognizes how agriculture plays a vital role in food security while supporting climate resilience and reducing emissions. The UAE ranks as Australia’s 11th largest agriculture export market, with exports reaching AED 6.24 billion in 2023-24. Australian food and agriculture exporters will save an estimated AED 183.60 million yearly in tariffs. Both countries aim to boost investment in agricultural supply chains. They will develop value-added products and climate-smart farming technologies.

Green and renewable energy investments

The UAE CEPA focuses on cooperation in renewable energy technologies since both nations target net-zero emissions by 2050. The dedicated MOU supports large-scale green energy projects that include green hydrogen, solar, wind, and hydro energy. New investments will support low-carbon liquid fuels, with special attention to sustainable aviation fuels, renewable diesel, and bioethanol. This framework helps develop technologies that cut production costs. It also improves energy transportation infrastructure, boosts storage systems, and enables carbon capture solutions.

Digital trade and AI infrastructure

The CEPA agreement sets complete digital trade rules for electronic signatures, e-payments, and cross-border data flows. A specific MOU details how both countries will cooperate in data center development and AI capabilities. Major investment areas include green data centers, safe AI solutions, and attracting cloud service providers. Both nations will help train local talent in AI and high-performance computing.

Education and professional services exchange

Dubai and Sharjah already host several Australian university campuses. The UAE CEPA guarantees market access in more than 120 service sectors. It creates high-quality rules that remove barriers to services trade. Australian service providers now have better access to professional services. These include legal, accounting, architectural, medical, dental, and educational services.

CEPA Agreement Unlocks New Investment Channels

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The landmark CEPA agreement between UAE and Australia brings major economic advantages that extend beyond specific sector partnerships.

Tariff elimination on 99% of Australian exports

UAE’s CEPA will eliminate tariffs on over 99% of Australia’s exports by value after full implementation. This agreement stands as UAE’s most liberalized free trade agreement to date. Most tariffs will end immediately when the agreement takes effect or remain at zero, while others will phase out over three or five stages. These reductions will save AED 495.71 million annually in the first year and grow to AED 587.51 million yearly at full implementation.

Access to UAE government procurement market

Australian suppliers now have guaranteed access to UAE’s government procurement market at the central government level. This groundbreaking provision enables Australian businesses of all sizes to participate in UAE government procurement processes and tenders.

Dedicated investment facilitation chapter

A dedicated chapter promotes bilateral investment flows. The agreement establishes an Investment Council that enables ongoing political and technical-level discussions about investment relationships. This chapter highlights environmental sustainability and modern provisions that cover corporate social responsibility.

Five MOUs signed for sectoral collaboration

The core agreement includes five specialized MOUs that target investment in national priority sectors. These memorandums establish collaboration frameworks between government agencies, sub-national governments, regulatory authorities, and private enterprises from both nations. Priority sectors include green and renewable energy, data centers and AI projects, minerals, food and agriculture, and infrastructure development.

How CEPA UAE Strategy Aligns with Global Trade Goals

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“”As Australia’s first trade agreement in the Middle East, this unlocks significant potential in the region.”” — Senator the Hon Don Farrell, Minister for Trade and Tourism, Government of Australia

Australia’s strategic CEPA agreement plays a vital role in UAE’s broader international trade vision with several ambitious goals.

UAE’s $1 trillion trade ambition by 2031

UAE moves quick to reach its AED 4 trillion (approximately $1.1 trillion) target in non-oil foreign trade by 2031. Recent performance indicates this goal could be achieved four years earlier than planned. Non-oil foreign trade jumped to AED 835 billion in the first quarter of 2025, showing an 18.6% year-on-year increase. CEPA UAE strategy serves as the life-blood of this accelerated growth path.

Diversification beyond oil and gas

UAE’s economy has transformed fundamentally beyond oil dependence. Non-oil sectors now contribute 75% of the nation’s GDP. This share will likely grow to 76.5% between 2025-2030. UAE’s partnership agreement aims to broaden into high-value segments such as advanced manufacturing, technology, transportation, and green energy.

Positioning UAE as a regional trade hub

UAE’s strategic location between Asia, Europe, and Africa has made it a vital gateway that connects global markets. The country’s world-class ports make maritime trade easier, establishing it as an essential distribution center. In spite of that, the CEPA agreement boosts this position through reduced tariffs and simpler customs procedures.

Australia’s role in UAE’s Asia-Pacific outreach

UAE’s CEPA with Australia shows a considered move to expand its trading network into the Asia-Pacific region. This agreement realizes significant opportunities for UAE businesses and gives Australian companies access to MENA markets.

The UAE-Australia CEPA marks a milestone achievement that has altered the map of economic relations between both nations. Trade numbers show impressive growth, with a 33% jump in the first half of 2025. This partnership takes advantage of strengths in various sectors and creates frameworks that help businesses of all sizes.

Without doubt, removing tariffs on 99% of Australian exports stands out as one of the biggest wins from this agreement. Australian companies will then save nearly AED 500 million in year one, and these benefits will grow as the implementation moves forward. The deal also gives Australian enterprises unprecedented access to UAE government procurement markets, which creates new business opportunities.

Both nations understand how vital sustainability is to their economic partnership. Australia’s first standalone chapter on sustainable agriculture shows their steadfast dedication to tackle climate challenges and ensure food security. The collaborative frameworks for renewable energy development match both countries’ net-zero emissions goals for 2050.

The agreement pays special attention to the digital economy. Complete digital trade rules paired with specific investments in data centers and AI infrastructure give both countries an edge in the faster evolving digital world.

This agreement serves purposes beyond just bilateral benefits. Australia secures its first trade agreement in the MENA region, while the UAE moves closer to its bold target of AED 4 trillion in non-oil foreign trade by 2031. The partnership accelerates UAE’s economic diversification efforts, reduces oil dependence and strengthens its role as a global trade hub.

The impressive progress suggests they might reach or even beat their goal of tripling bilateral trade to $10 billion by 2032. This complete economic partnership opens a new chapter of cooperation that will create lasting economic benefits and deeper diplomatic ties between Australia and the UAE for decades ahead.