United Arab Emirates

Bilateral relationship

An Air Services Agreement and a Visa Waiver Arrangement with the UAE took effect on 1 July 1999. A bilateral Agreement for the Avoidance of Double Taxation and an Arrangement on Trade and Economic Cooperation were signed with the UAE in September 2003. The inaugural Joint Ministerial Commission (JMC) was held in Abu Dhabi in March 2006, co-chaired by the UAE’s Minister of Economy, Sheikha Lubna Al Qasimi, and the NZ Minister of Trade Phil Goff.

In the trade year to June 2007 the United Arab Emirates (UAE) ranked as New Zealand’s 29th most significant bilateral partner, and is currently our second largest trading partner in the Middle East (after Saudi Arabia). Exports to the year ended June 2006 amounted to NZ$222.9 million. Over the same period, imports, which consisted mainly of crude oil, totalled $477.1 million. The UAE is New Zealand’s most diversified market in the Middle East. New Zealand exports to the UAE are made up of a wide range of products besides traditional meat and dairy exports. Merchandise exports include building materials, fruit, wine, refrigerators, machinery, underwear, timber and medical equipment. The supply of services, particularly in the fields of education, information and communications technology and building construction and management (for example in the “7-star” Jumeirah Beach Resort complex) greatly expand the diversity of the commercial relationship with the United Arab Emirate.

New Zealand companies are supplying a range of consultancy services to the UAE including postal services, education development, public sector management and English language training. Several New Zealand companies and consultancies have offices in Dubai.

The establishment of free trade zones in the UAE has allowed New Zealand information and communications technology companies, including those present in the newly established New Zealand Technology Oasis at Dubai Internet City, to demonstrate the positive contribution they can make to the UAE’s rapidly developing economy.

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Key facts

Geography/Demographics

Land Area - 77,700 sq km
Population - 4 million
Capital City - Abu Dhabi
Religion - Islam
Official Language - Arabic

Political

Political system - Federation of seven emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Ras al-Khaimah, Umm al-Qaiwain and Fujairah.
National government - Council of Ministers led by the Prime Minister, all appointed by the Supreme Council of Rulers. Each state is represented by at least one Minister. The Council of Ministers initiates legislation for ratification by the Supreme Council of Rulers, which is formed by the hereditary rulers of the seven emirates, is also a policymaking body which meets formally about once a year.
National legislature - Unicameral Federal National Council of 40 appointed members representing the separate emirates. It has a consultative role only.
Head of State - President Sheikh Khalifa bin Zayed al-Nahayan, Ruler of Abu Dhabi succeeded his father, Sheikh Zayed bin Sultan al-Nahayan, following the latter's death on 2 November 2004. The President is elected by the Supreme Council of Rulers.
Head of Government - Prime Minister, Vice President, Ruler of Dubai and Minister of Defence: Sheikh Mohammed bin Rashid al-Maktou.

Economic

GDP - US $162.6 billion (2006 estimate)
Real GDP growth - 8.9% (2006 estimate)
Exports - US $132.9 billion (2006 estimate)
Imports - US $80 billion (2006 estimate)
Main exports - Re-exports (34.3%); crude oil (32.7%)
Current account - US $25.6 billion (2006 estimate)
Inflation - 13.5% (2006 estimate)
Total external debt - US $38.3 billion (2006 estimate)

New Zealand Trade

NZ Exports (FOB) - NZ$325.7 million (for the year to December 2008)
Main Exports - Milk powder (27.2%); timber (7.9%); butter (7.4%); builders joinery (6.3%)
NZ Imports (CIF) - NZ$783.5 million (for the year to December 2008)
Main Imports - Crude oil (85.2%); refined oil (4.6%); carboys, bottles etc (3.3%)

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Visits

New Zealand Ministerial visits to United Arab Emirates

• The Hon Phil Goff visited Abu Dhabi and Dubai in March 2006, where he co-chaired the inaugural Joint Ministerial Commission as Minister of Trade, and as Minister of Defence met with his UAE counterpart also.
• The Minister of Communications and Information Technology led an ICT delegation to Dubai and Abu Dhabi in May 2004.
• The Minister of Finance, Hon Michael Cullen, attended the IMF/World Bank Annual Meetings in Dubai in September 2003.
• The Minister of Education, Hon Trevor Mallard, led an education sector delegation to the United Arab Emirates in May 2003.
• The Prime Minister visited in October 2002.
• The Minister for Trade Negotiations visited in April 2002. The Minister of Foreign Affairs and Trade visited in January 2001, the first official visit by a New Zealand Foreign Minister to the UAE since the Emirates was founded in 1971.
• Guest of Government invitations have been extended to the UAE Minister of State for Foreign Affairs and the Minister of the Economy and Planning to visit New Zealand.
• Since 1999 delegations from the New Zealand Tourism Board have visited the UAE, usually as part of wider Gulf visits, and conducted presentations on New Zealand as a tourist destination for Gulf nationals at the Arabian Travel Mart.
• Similar delegations from the education sector have also visited the UAE, the most recent being in May 2005.
• Additionally, Defence links with the UAE have been strengthened by visits by both the Chief of the New Zealand Defence Force and the NZ Chief of Army. The Chief of the NZDF visited Dubai and Abu Dhabi in August 2005, meeting with the Chief of the UAE Armed Forces and the Crown Prince of Abu Dhabi, among others. The Chief of Army made a defence diplomacy visit in October 2005, to reaffirm New Zealand’s interest in the Gulf region.

UAE Ministerial Visits to New Zealand

• In October 2000, two UAE government delegations visited New Zealand. The first delegation was from the Zayed Al Thani Military College, and the second from the UAE Ministry of Finance and Industry, to study New Zealand’s public sector financial management systems and to assess the suitability of New Zealand as a long-term investment partner.
• Delegations from the UAE Finance Ministry and the New Zealand Inland Revenue Department also made reciprocal visits during the negotiation of the Double Taxation Agreement.

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Representation

• New Zealand established diplomatic relations with the United Arab Emirates on 20 May 1985
• New Zealand is accredited to the UAE from its Embassy in Riyadh
• The Government has also maintained a Trade NZ office in Dubai since 1993. This was upgraded to Consulate-General status in 2002
• The UAE Embassy in Canberra is accredited to New Zealand

Travel advice

The Safetravel website provides a travel advisory for travellers to United Arab Emirates [external link].

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