Strengthening Ties with Christopher Luxon’s Significant Visit to the UAE

New Zealand prime ministers frequently change planes in Dubai en route to destinations elsewhere. But Christopher Luxon’s visit to the United Arab Emirates (UAE) this week will be the first time since 2015 that a New Zealand prime minister has embarked on a visit to the Middle East itself.

Much has changed in the region since John Key’s visit in April 2015. In the UAE, Sheikh Mohamed bin Zayed Al Nahyan became president in 2022 after the death of his brother, Sheikh Khalifa. In Saudi Arabia, Mohammed bin Salman was promoted to Crown Prince in 2017 and became prime minister in 2022.

The six Gulf Cooperation Council (GCC) countries, including the UAE, have rolled out ambitious economic transformation programs to prepare for a post-oil future, including the UAE’s “We are the UAE 2031” plan and Saudi Arabia’s “Vision 2030.”

In a press release announcing the trip, Luxon cited a shared desire to de-escalate conflict in the Middle East as a common goal uniting New Zealand and the UAE. The UAE has been working toward a ceasefire in Gaza, while New Zealand has called for an end to the fighting.

The main purpose of Luxon’s mission to the UAE is to oversee the signing of a bilateral Comprehensive Economic Partnership Agreement (CEPA). Negotiations for the CEPA concluded in September last year.

New Zealand has much to be grateful for regarding the bilateral deal. The CEPA helped break a logjam for a wider free trade agreement (FTA) with the GCC, which was agreed upon just a month later.

Since then, New Zealand’s overall economic fortunes have darkened, while ties with the Gulf have burned more brightly. New Zealand sold NZ$2.74 billion worth of goods and services to the Gulf over the year, with significant purchases from Saudi Arabia and the UAE.

The GCC countries are particularly willing buyers of New Zealand’s food exports. In exchange, New Zealand continues to purchase mainly oil-based products from the Gulf.

While New Zealand can look forward to increasing its lucrative exports to the Gulf, the GCC states will be more interested in investment opportunities. A companion investment agreement is to be signed alongside the CEPA and may help make New Zealand more attractive for UAE investors.

Overall, Christopher Luxon will be eager to sell an economic success story during his quick trip to the UAE. The signing of the CEPA will be a major boost to bilateral trade and investment with the UAE.