UAE and Australia Trade and Investment Ties Following PM Albanese’s Re-election

UAE and Australia deepen trade and investment relations with the continuity in leadership under Prime Minister Albanese and signing of the CEPA.

With Prime Minister Anthony Albanese’s reelection in May 2025, bilateral ties between the United Arab Emirates (UAE) and Australia are poised for continued engagement. The reelection coincides with a period of expanding trade and investment activity, particularly following the signing of the Comprehensive Economic Partnership Agreement (CEPA) on November 6, 2024. The CEPA is awaiting entry into force pending domestic treaty ratification processes in Australia. In 2025, the two nations also mark 50 years of diplomatic relations, reflecting the long-standing nature of this strategic partnership.

Trade trends and economic engagement

The UAE is Australia’s most significant partner in the Middle East in terms of trade and investment. In 2023, two-way trade in goods and services was valued at US$6.34 billion. Australian exports to the UAE totaled US$3.33 billion, led by alumina, oilseeds, meat, and transport services. Imports from the UAE stood at US$3.01 billion, with key commodities including petroleum products, urea, fertilizers, and transport services.

Services trade remains a growing component of the relationship, spanning tourism, aviation, education, and professional services. UAE carriers such as Emirates and Etihad, along with Australia’s Qantas, maintain strong code-sharing arrangements that support passenger and freight movement. Emirates alone carried over 2 million passengers on its Australian routes in FY 2019–20 and supported over 21,000 jobs, contributing US$1.34 billion to Australia’s GDP. Dnata, part of the Emirates Group, is the largest flight caterer in Australia, employing around 3,000 workers across seven airports and handling over 16,000 flights and 780,000 tons of cargo annually. Etihad Airways has also played a vital role in enhancing connectivity, operating flights to major Australian cities and serving over 1 million passengers in FY 2019-20.

Source: Department of Foreign Affairs and Trade, Australia

Source: Department of Foreign Affairs and Trade, Australia

CEPA provisions and strategic alignment

The CEPA, signed in 2024, outlines key provisions that aim to support bilateral economic activity. Tariffs will be eliminated on over 99 percent of Australian exports to the UAE, with most taking effect upon the agreement’s enforcement. The agreement covers agricultural exports, vehicle parts, cosmetics, and aluminum oxide. Culturally and religiously sensitive goods remain subject to existing restrictions.

Market access is expanded to more than 120 service sectors, surpassing World Trade Organization (WTO) commitments. Australian firms are permitted full foreign ownership in selected sectors, and both parties commit to streamlined mobility for business professionals.

The CEPA established a Council on Investment to support cooperation in five priority sectors: renewable energy, data centers and AI, agriculture, minerals, and infrastructure. Five Memoranda of Understanding (MoUs) complement the CEPA, reflecting a commitment to collaboration in nationally strategic industries. The agreement includes digital trade provisions covering data flows, e-signatures, and electronic documents, as well as prohibitions on duties for electronic transmissions.

Intellectual property chapters address innovation and creativity while preserving access to medicines and public health safeguards. The CEPA also includes sections promoting gender equity, Indigenous business participation, labor standards in accordance with International Labor Organization norms, and environmental sustainability.

Read more: Australia and the UAE Forge Stronger Bilateral Ties Through Landmark CEPA

Investment landscape and business activity

UAE investment in Australia reached US$12.7 billion in 2023, including US$3.21 billion in foreign direct investment (FDI). The Abu Dhabi Investment Authority (ADIA) holds assets in sectors such as ports, power transmission, and transportation infrastructure. Mubadala Investment Company partnered with Global Infrastructure Partners to commit US$6.4 billion to the Perdaman Urea project in Western Australia, Australia’s largest investment in the fertilizer industry.

Masdar, the UAE’s renewable energy entity, formed a joint venture with Tribe Infrastructure to develop waste-to-energy (WtE) projects across Australia. Active projects include facilities in East Rockingham and the Latrobe.

Prominent Emirati firms play a pivotal role in Australia’s economy. DP World operates major container terminals across ports in Brisbane, Sydney, Melbourne, and Fremantle. Handling 3.8 million TEUs annually, DP World contributes substantially to Australia’s maritime trade. A Deloitte Access Economics report in 2017 noted DP World’s activities added AU$6.4 billion to Australia’s GDP and supported over 23,000.

Dnata, beyond its aviation services, plays a vital role in cargo handling and logistics, indirectly supporting employment across the hospitality and transport sectors. Emirates’ strategic alliance with Qantas has expanded global reach and enhanced trade and tourism flows. Etihad continues to serve Australian cities, supporting both passenger and cargo movement.

Australia’s investments in the UAE stood at US$5 billion in 2023, with US$0.64 billion in FDI. More than 300 Australian firms operate in the UAE, spanning construction, steel trading, agriculture, logistics, education, and financial services. Dubai serves as a key regional base for many of these firms due to its logistical and regulatory advantages.

Institutional and policy context

The CEPA builds on a shared policy direction. Australia has signaled interest in market diversification following its participation in Expo 2020 Dubai, which brought over 190 countries together and showcased Australian capabilities. The UAE, for its part, has been implementing economic reforms aimed at diversifying its economy beyond oil and gas, which still account for the majority of exports and government revenue.

The UAE’s GDP in 2024 was estimated at US$568, with around 70 percent generated by non-oil sectors. Abu Dhabi has invested in aerospace, IT, clean technology, and higher education, while Dubai continues to expand in ICT, events, finance, and logistics. These trends align with areas where Australian expertise can contribute.

The UAE’s trade facilitation includes multiple free trade zones, allowing full foreign ownership and tax benefits. The country has also been developing its AI sector, appointing the world’s first Minister of State for AI and launching the first Arabic-language large language model in 2022.

While there is no bilateral tax treaty between the two countries, Australia’s foreign income tax offset provisions help mitigate the risks of double taxation for businesses.

Despite these growing ties, the UAE’s global merchandise trade profile shows that Australia remains a relatively minor trading partner in comparative terms. According to 2023 data, Australia ranked 43rd among the UAE’s export destinations, accounting for just 0.3 percent of total UAE exports. In contrast, India, China, and Japan were the top three export markets, with India alone representing 11.8 percent of the UAE’s exports.

Source: Department of Foreign Affairs and Trade, Australia

On the import side, Australia ranked 25th among the UAE’s import sources, contributing 0.9 percent of the total. China was the leading source with 19.8 percent, followed by India at 7.8 percent and the United States at 6.9 percent. While these figures highlight the relatively modest trade share held by Australia, the CEPA is expected to help rebalance and elevate this relationship by improving access and reducing trade barriers.

Source: Department of Foreign Affairs and Trade, Australia

In brief

UAE-Australia trade and investment ties continue to evolve, supported by political continuity, mutual policy priorities, and strategic economic agreements. The CEPA reflects a commitment to enhancing market access, simplifying trade procedures, and creating frameworks for future investment. As the UAE expands its focus on AI, renewable energy, and infrastructure, and Australia pursues diversification of markets and partnerships, the bilateral relationship stands on a solid foundation.

With sustained engagement from both public and private sectors, the economic relationship is likely to grow further, providing opportunities across services, manufacturing, logistics, education, and energy.

Read more: How to Get a Crypto License in UAE and the Rise of Islamic Crypto Banking

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