Todd McClay, Minister for Trade of New Zealand, has recently confirmed the accelerating growth in economic ties with the UAE, with bilateral trade reaching AED880 million (NZ$400 million) in the fourth quarter of 2024, bringing the total trade volume for the year to NZ$1.3 billion, equivalent to AED2.86 billion.
Speaking to WAM on the sidelines of the AIM Congress 2025, McClay noted that this sustained growth is driven by the alignment of the two governments’ visions and their shared commitment to enhancing trade and investment ties. He highlighted a notable growth of up to 60 percent in the services sector, reflecting the strength and diversity of bilateral cooperation.
New Zealand seeks Emirati investments in priority sectors
McClay added that direct UAE investments in New Zealand exceeded AED440 million in 2024, spanning sectors such as food, infrastructure and productive industries. Investment agreements between the two countries, including the Comprehensive Economic Partnership Agreement (CEPA), are opening new avenues for increased capital flows, especially in infrastructure and energy.
He added that around 20 New Zealand companies are currently active in the UAE market and discussions are ongoing with several UAE companies interested in establishing offices in New Zealand. He emphasised that New Zealand’s attractive investment climate is underpinned by key bilateral agreements, including a double taxation avoidance agreement, which grants preferential tax treatment to UAE sovereign wealth funds.
New Zealand has also launched an ambitious plan to expand its road network and implement large-scale infrastructure projects, presenting ideal opportunities for UAE sovereign wealth funds and companies seeking long-term investments in construction, management and operation.
In addition, McClay confirmed that New Zealand is welcoming investments in renewable energy sectors such as wind, solar and geothermal alongside promising ventures in processing industries, agri-tech, artificial intelligence, pharmaceuticals and data centers.
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UAE-New Zealand bilateral trade to hit $5 billion by 2032
Earlier this year, the UAE marked a milestone in its economic relationship with New Zealand through the signing of a CEPA aimed at boosting bilateral trade and creating new investment opportunities. The CEPA builds upon the strengthening economic relations between the two nations, with bilateral non-oil trade reaching $642 million in the first nine months of 2024—an 8 percent increase compared to the same timeframe in 2023.
As part of the CEPA, New Zealand will offer 100 percent duty-free access for imports from the UAE, while the UAE will extend duty-free access to 98.5 percent of New Zealand’s products, increasing to 99 percent within three years.
This agreement is anticipated to elevate bilateral trade to $5 billion by 2032, effectively tripling the five-year average trade of $1.5 billion shared between the UAE and New Zealand from 2019 to 2023. The CEPA also marks New Zealand’s inaugural trade agreement with a Middle Eastern country and stands as one of the UAE’s most comprehensive CEPAs to date, encompassing areas such as indigenous trade, sustainable development, women’s economic empowerment and transparency.
