NZ-UAE Investment Treaty Enters Into Force, Boosting Global Economic Ties

Minister McClay emphasised that the new treaty provides investors from both countries with transparent and predictable rules.

New Zealand has taken another major step in deepening its economic partnership with the United Arab Emirates (UAE), as the NZ–UAE Bilateral Investment Treaty (BIT) officially enters into force. Trade and Investment Minister Todd McClay says the agreement will strengthen two-way investment, provide clearer protections for investors, and reinforce New Zealand’s commitment to expanding high-quality international economic partnerships.

The BIT accompanies the NZ–UAE Comprehensive Economic Partnership Agreement (CEPA), which came into force in August. Together, the two agreements form a powerful framework designed to promote market access, boost investor confidence, and encourage greater commercial collaboration between New Zealand and one of the world’s fastest-growing investment hubs.

A Framework for Secure, High-Quality Investment

Minister McClay emphasised that the new treaty provides investors from both countries with transparent and predictable rules. “This Treaty will help promote and facilitate investment, by providing investors in New Zealand and the United Arab Emirates with clear rules,” he said. “Together with the CEPA, it will help create the conditions for increasing two-way investment.”

The BIT includes modern investment protections, dispute-resolution mechanisms, and regulatory transparency provisions—factors that global investors increasingly expect when exploring opportunities abroad. McClay noted that high-quality foreign investment remains essential for New Zealand’s economic competitiveness, productivity growth, and long-term infrastructure needs.

“High-quality foreign investment is a critical source of capital for New Zealand to keep building a competitive and productive economy. This Government is working hard to enable it,” he said.

UAE: A Growing Economic Powerhouse

The UAE is not only one of New Zealand’s largest trading partners in the Middle East but also a major and fast-growing global investor. Dubai and Abu Dhabi, the country’s two major commercial centres, have become international hubs for finance, logistics, high-technology manufacturing, renewable energy, food security initiatives, and advanced aviation.

McClay underlined the importance of attracting investment from the UAE, a country that is increasingly deploying capital into sectors such as agritech, renewable energy, innovation, and infrastructure globally.

UAE Minister of Foreign Trade, HE Dr Thani bin Ahmed Al Zeyoudi, described the BIT and CEPA as transformative. “The UAE–New Zealand CEPA was a historic milestone in our economic partnership, and a transformative opportunity to enhance private sector engagement,” he said. “Now with the Bilateral Investment Treaty in force, we will continue driving the momentum forward and deepening our investment ties. Together, these agreements will pave the way for increased cooperation between our business sectors, benefiting both our economies.”

New Joint Business Council Launched

In Singapore today, Minister McClay and Minister Al Zeyoudi also signed a joint statement launching the New Zealand–United Arab Emirates Business Council. The Council will serve as a platform to strengthen private-sector cooperation, expand trade missions, support business networking, and identify new investment opportunities.

The initiative is expected to particularly benefit sectors where both countries share strong alignment, including:

• Agri-food and food security

• Renewable energy and clean technology

• Aviation and aerospace

• Digital innovation

• Infrastructure development

• High-value manufacturing

A Gateway to a Rapidly Growing Region

The UAE represents a gateway to a regional economy valued at US$500 billion, which is rapidly diversifying into advanced technology, green energy, logistics, health sciences, and global trade services. Increasing New Zealand’s foothold in this region offers significant opportunities for exporters, especially in food and beverage, education, technology, and specialised manufacturing.

For New Zealand businesses, the strengthened framework provides greater confidence to explore new partnerships, set up operations in the Gulf region, and foster long-term commercial relationships.

Setting the Stage for Future Growth

The entry into force of the NZ–UAE BIT marks an important milestone in New Zealand’s broader trade and investment strategy. It aligns with the Government’s goal of expanding global market access, supporting export diversification, and attracting international capital to drive economic growth.

With the BIT, the CEPA, and the new Business Council now working in tandem, New Zealand and the UAE are well positioned to deepen cooperation, expand trade flows, and unlock new investment opportunities for years to come.