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Christopher Luxon’s important trip to the United Arab Emirates

New Zealand PM strengthens UAE ties with Economic Partnership Agreement and seeks investment

Christopher Luxon’s Landmark Visit to UAE to Sign Economic Partnership Agreement


As the first New Zealand prime minister to visit the Middle East in almost ten years, Prime Minister Christopher Luxon of New Zealand recently conducted a historic and symbolic journey to the United Arab Emirates (UAE). This visit is noteworthy due to the significant changes that have occurred in the region in recent years, as well as the length of time that has passed since New Zealand Prime Minister John Key’s last official visit in 2015.

Significant events like the election of Sheikh Mohamed bin Zayed Al Nahyan (MBZ) as president of the United Arab Emirates in 2022 and the arrival of Mohammed bin Salman (MBS) as Saudi Arabia’s Crown Prince and Prime Minister have altered the political and economic landscape.

The Gulf Cooperation Council (GCC) nations are undergoing more extensive reforms, including bold measures to get ready for life after oil.

The UAE, in particular, has committed to an economic transformation through plans like “We are the UAE 2031,” which seeks to double the country’s GDP by 2031, a significant initiative aimed at ensuring economic diversification and long-term stability. Likewise, the “Vision 2030” initiative of Saudi Arabia is charting a path for revolutionary megaprojects that seek to redefine the economic landscape of the region.

The wider Middle East has faced its own set of difficulties as the Gulf nations’ economies have developed, including protracted wars like the catastrophic war in Gaza that has killed tens of thousands of people. Despite these tensions in the region, New Zealand and the United Arab Emirates prioritize diplomatic solutions and the de-escalation of conflicts through dialogue because they are both smaller countries that prioritize diplomacy and peaceful resolutions.

Luxon’s visit, however, is not just about political engagement; it carries a strategic economic component as well. His visit’s main objective was to monitor and complete the signing of a Comprehensive Economic Partnership Agreement (CEPA), a significant step that will improve bilateral ties between the UAE and New Zealand.

Both nations benefit from this deal since it not only makes trade easier between them but also removes a barrier that had previously prevented them from negotiating more extensive trade accords with the Gulf Cooperation Council (GCC) as a whole.

By negotiating the CEPA, New Zealand aims to enhance its economic footprint in the GCC, which has seen promising growth in trade figures, particularly in exports like dairy, meat, and agricultural products.

The economic relationship between New Zealand and the UAE has grown steadily, with the UAE becoming one of New Zealand’s top markets for agricultural goods. Despite a desert climate that limits the UAE’s own agricultural production, New Zealand’s high-quality food exports, including dairy and meat, have found a lucrative market in the Gulf. Meanwhile, the UAE has become a major player in global investment, hosting some of the world’s largest sovereign wealth funds, like Mubadala and the Abu Dhabi Investment Authority (ADIA), although foreign investment in New Zealand has been comparatively low. With the CEPA and associated investment agreement, New Zealand hopes to attract more UAE investors, especially for major infrastructure projects where Luxon sees long-term potential.

Even though Luxon’s travel comes as New Zealand’s economic forecast worsens and the country is on the verge of a recession with a declining GDP, the prime minister’s focus on the UAE and the wider GCC offers some hope for economic recovery.
The signing of the CEPA will give exporters a much-needed boost and solidify New Zealand’s standing as a preferred trading partner in the Gulf. The CEPA also makes a clear statement about New Zealand’s growing significance in the Gulf, which is essential for negotiating future trade and investment agreements that could help the nation in the

Furthermore, this visit represents a broader strategy for New Zealand to increase its diplomatic and economic engagement with the Middle East. The economic goals of Luxon’s trip are not as significant as the common commitment to regional peace and stability. New Zealand and the UAE have called for an end to the violence in Gaza, highlighting similar diplomatic objectives. New Zealand may collaborate with smaller countries in the region, like Qatar and the United Arab Emirates, to get more involved in peacemaking efforts.

Deeper collaboration between the UAE and New Zealand is facilitated by this visit, which may mark the start of a more robust and resilient alliance. As fresh Zealand is looking for fresh prospects in the Middle East, the CEPA and investment agreements open the door to even deeper diplomatic and economic involvement. New Zealand’s relationship with the United Arab Emirates and the larger Gulf area is about to embark on a journey of expansion and promise.

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