ABU DHABI, October 1, 2025: The Comprehensive Economic Partnership Agreement between the United Arab Emirates (UAE) and Australia formally entered into force on Wednesday, initiating a significant expansion of bilateral trade and investment frameworks between the two economies. The agreement, which eliminates or reduces tariffs on the vast majority of traded goods and services, was ratified earlier this year and received final legal assent in August. Its enforcement marks Australia’s first trade deal with a country in the Middle East and North Africa region and represents a strategic development in the UAE’s expanding global trade agenda.
According to official data, non-oil trade between the UAE and Australia reached $3.03 billion during the first half of 2025, reflecting a 33.4 percent increase compared to the same period in 2024. Annual bilateral trade stood at approximately $4.2 billion in 2024. The agreement is expected to accelerate the pace of trade growth by removing tariffs on over 90 percent of goods traded between the two countries. Australia will immediately gain duty-free access for key exports to the UAE, including meat, grains, dairy products, vegetables, and industrial goods such as aluminum oxide, steel, and automotive parts.
The UAE, in turn, will benefit from reduced trade barriers on its exports of plastics, aluminum, copper, ceramics, and glassware entering the Australian market. Australia’s Department of Foreign Affairs and Trade confirmed that more than 99 percent of its exports by value are now eligible for tariff-free entry into the UAE. Tariff elimination is projected to save Australian exporters up to AUD 185 million annually, with goods exports forecast to increase by AUD 678 million each year under the agreement.
Bilateral trade volume shows strong growth in 2025
The CEPA includes provisions to facilitate business mobility, enhance digital trade, and support intellectual property protections. Notably, it contains an Indigenous trade and investment chapter the first of its kind in any Australian trade agreement aimed at improving access for First Nations businesses to international markets. The agreement’s activation follows a high-level meeting held in Abu Dhabi last week between UAE President Sheikh Mohamed bin Zayed Al Nahyan and Australian Prime Minister Anthony Albanese.
The two leaders issued a joint declaration elevating bilateral ties to the level of a Strategic Partnership and reaffirmed their commitment to enhanced cooperation in sectors such as clean energy, education, infrastructure, and advanced technology. Current investment between the UAE and Australia is valued at nearly $14 billion, with over 300 Australian companies operating in the UAE across sectors including construction, finance, healthcare, and logistics. The UAE remains Australia’s largest trade and investment partner in the Middle East, and its 20th largest trading partner globally.
Over 300 Australian companies already active in UAE
The CEPA with Australia is the latest in a series of trade agreements signed by the UAE as part of its broader economic diversification efforts. The UAE has now concluded 31 comprehensive partnership agreements, several of which are already in effect, as it targets $1 trillion in total foreign trade and aims to double its gross domestic product to over $800 billion by 2031. The agreement is being implemented under the supervision of the UAE’s Ministry of Economy and Australia’s Department of Foreign Affairs and Trade. Customs and regulatory authorities in both countries confirmed that tariff schedules and compliance mechanisms have been updated to reflect the terms of the deal as of October 1. – By Content Syndication Services.