United Arab Emirates country brief

Bilateral relations

Bilateral relations between Australia and the United Arab Emirates (UAE) are warm, multi-faceted and growing rapidly.  They are underpinned by extensive trade relations as well as people-to-people contacts arising from the strong growth of direct air links between the two states and the large number of expatriate Australians living and working in the UAE. 

The UAE and Australia also share a strong interest in a stable and secure Middle East and Gulf region, and have a shared strategic view on regional security.  The Australian Government values high-level dialogue with UAE leaders.

The UAE has hosted a number of high-level Australian visitors in recent years, with the Governor-General; the Prime Minister; Ministers for Defence; Foreign Affairs; Trade; Agriculture, Fisheries and Forestry; and several state Premiers and Ministers having visited.  The most recent bilateral visit by the Foreign Minister, Stephen Smith MP, was in March 2009.  The Trade Minister, Simon Crean MP, visited in November 2008.  Sheikh Mohammed bin Zayed Al-Nahyan, the Crown Prince of Abu Dhabi, has been the most high-profile visitor to Australia in recent years.

The Council for Australian-Arab Relations (CAAR) is working to broaden and deepen relations with Arab countries, including the UAE.  In 2009, the CAAR was a sponsor of the inaugural Australia-UAE Dialogue convened in Dubai by the Lowy Institute.

Australia's Ambassador to the UAE is located in Abu Dhabi; Australia also has a Consulate-General in Dubai.

Political overview

The UAE is a federation of seven Emirates (Abu Dhabi, Dubai, Sharjah, Ras Al Khaimah, Ajman, Umm Al Quwain and Fujairah) that federated in December 1971. Since this time, the UAE has developed rapidly into a nation with modern infrastructure (particularly in Abu Dhabi and Dubai) and a high standard of living.

The President of the UAE is HH Sheikh Khalifa bin Zayed Al-Nahyan, who is also Ruler of Abu Dhabi Emirate. The Ruler of Dubai Emirate, HH Sheikh Mohammed bin Rashid Al-Maktoum, is the Vice-President, Prime Minister and Defence Minister.

The UAE federal structure includes a Federal Supreme Council (comprising the Rulers of each Emirate), a Council of Ministers, a semi-appointed Federal National Council (half the members are elected) with advisory powers and judiciary. Each Emirate is nevertheless still governed by its own Ruler and has its own local government.

The UAE is a member of the Gulf Cooperation Council (GCC), which also includes Saudi Arabia, Kuwait, Oman, Bahrain and Qatar.  It is a member of the Arab League, the Organization of the Islamic Conference, the United Nations and the World Trade Organisation.  The International Renewable Energy Agency, officially established in 2009, has its headquarters in Abu Dhabi.

Economic overview

The UAE has the world's sixth largest crude oil reserves and natural gas reserves and is a major player in world energy markets. These reserves are overwhelmingly located in Abu Dhabi Emirate. The UAE is the Middle East's second largest economy after Saudi Arabia.

In the medium term, the UAE economy will continue to rely on its huge oil and gas reserves – which account for around a third of GDP, over two thirds of exports, and the bulk of government revenue – to underpin its economic development. Investment income is also substantial and provides a further element to economic activity.

Extensive efforts are being made by both the Abu Dhabi and Dubai emirates in particular to diversify their economies and deliver long-term development and employment opportunities.  Abu Dhabi has made significant investments into the establishment of aerospace, defence, information technology (microprocessing), petrochemical and clean tech industries – the latter most obviously represented by the multibillion dollar initiative to establish 'Masdar Future City', a carbon-free city outside Abu Dhabi.

Dubai Emirate has diversified into the tourism, ICT, re-export and financial sectors. Taking advantage of its position near the head of the Gulf, it has consolidated its historical reputation as a regional entrepot. Dubai has developed prestige hotels, massive port facilities and a range of free trade zones to attract both manufacturing and services industries.  Dubai's development suffered a setback in November 2009 when quasi-government entities sought to restructure significant outstanding debts.

Bilateral Economic and Trade Relationship

The bilateral relationship continues to have a strong commercial focus.  In 2008-09 two-way merchandise trade between Australia and the UAE was worth over A$5.5 billion.  Of this, Australian exports to the UAE were A$3.6 billion, while imports were A$1.9 billion, including crude petroleum imports worth A$1.7 billion.

Australia's exports have undergone diversification away from a primary product base to one based on elaborately transformed manufactures (ETMs). ETMs now constitute over 20% of Australia's total exports to the UAE.  This trend gathered pace with the start of passenger motor vehicle (PMV) exports in 1996: in 2008-09, passenger motor vehicles were one of Australia's largest exports to the UAE, worth A$279 million. Other notable ETM exports in 2008-09 included telecommunications equipment, tubes, pipes and fittings of steel, PMV parts, civil engineering equipment and plastic tubes, pipes and hoses. Gold, wheat, zinc, alumina, meat, dairy products, live animals and vegetables were the lead primary product exports.

The Australian Embassy in Abu Dhabi estimates there are around 12,000 – 15,000 Australian nationals and over 300 Australian companies based in the UAE.  Approximately one third of all Middle East tourists to Australia are from the UAE.  UAE nationals have access to online tourist visa applications. This significantly improves visa processing times and improves access to visa services in the UAE. 

While overall numbers are modest compared to some other countries, the number of UAE nationals studying in Australia continues to grow, with the UAE being Australia's third-largest education market in the Middle East. In October 2009, there were over 1,500 UAE students in Australia.

Austrade has an office in Dubai (where the Senior Trade Commissioner is also the Consul-General), as well as an officer at the Australian Embassy in Abu Dhabi.  New South Wales, Queensland, Victoria, Western Australia and South Australia all have representational offices in the UAE.

Bilateral free trade agreement negotiations between Australia and the UAE began in 2005 and made substantial progress, but were converted to broader GCC-wide negotiations in 2006 following a change in GCC policy.  Four rounds of negotiations have been held, the most recent in June 2009.  

Future Prospects

The UAE is Australia's largest market in the Gulf, with excellent growth prospects. It has a sound economy, a fast-growing and youthful population, low barriers to entry, a well-managed banking system, excellent infrastructure, and a sophisticated business community familiar with Western practices. It is an intensely competitive market.

Australia's profile in the UAE is high. There is increasing recognition of Australian companies, institutions and capabilities. The rapid increase of UAE visitors to Australia, of students studying in Australia, and of expatriate Australians living and working in the UAE are also prime drivers in this new business engagement.

The activities of Australian companies in the UAE include steel trading, building, construction and financial services, banking services, materials and equipment, agricultural supplies and services, industrial minerals, dairy products, marine manufacturing, education and training services, sports and recreation, health services, livestock, oil field supplies, courier and freight services.  Many use Dubai as a regional base in view of its world-class transport, financial and communications infrastructure.  Growing attention is also being paid to Abu Dhabi's similarly impressive infrastructure and services on offer.

Highly complementary economies produce a good fit. Australia's advanced engineering capability is ideal for the UAE's huge infrastructure programs. Australian small- and medium-sized enterprises offer world class services that can be readily adopted by the UAE government and private sector.

Further information

• Business Guide to the UAE
• Economic developments in Bahrain, Kuwait, Oman, Qatar and the UAE 
• Austrade's country profile page for the UAE

Tradeinfo Contacts

If you would like more information on the trade and economic conditions in UAE please email the Department of Foreign Affairs and Trade.

Last updated: January 2010