RIYADH: Australia has finalized a Comprehensive Economic Partnership Agreement with the UAE, which could boost its exports by A$678 million ($458 million) annually. 

In a press statement, Australia’s Trade Ministry noted that the deal will eliminate tariffs on about 99 percent of his country’s products, leading to savings of A$135 million in the first year and increasing to A$160 million annually once fully implemented. 

As Australia’s first trade agreement with a country in the Middle East and North Africa region, the CEPA aims to enhance bilateral trade and investment by streamlining trade processes, removing tariffs on a wide range of goods and services, and encouraging private-sector collaboration in key sectors. 

The agreement builds on the strengthening economic ties between the UAE and the southern hemisphere country with bilateral non-oil trade reaching $2.3 billion in the first half of 2024 — a 10 percent increase from the same period in 2023. 

Australia’s Trade Minister Don Farrell stated that, as a trading nation, the country is committed to opening up new opportunities for its exporters, farmers, producers, and businesses. 

“Under this trade agreement, Australian exports are expected to increase by $460 million per year, but this deal means more for Australia than just numbers. A trade agreement with the UAE will facilitate investment into key sectors, which is important to achieving our ambition of becoming a renewable energy superpower,” added Farrell. 

The trade agreement is also expected to unlock UAE investment in sectors such as renewable energy and the supply chain for critical minerals, thereby catalyzing Australia’s energy transition. 

“More trade means more higher-paying jobs, more opportunities for our businesses, greater investment to build things here in Australia, and cheaper bills for Australian households,” explained Farrell. 
 
The UAE is the country’s top trade partner in the Middle East and 20th globally. By 2023, the two nations had committed $14 billion to each other’s economies, with over 300 Australian businesses active in sectors including construction, financial services, agriculture, and education. 

“This CEPA will unlock significant opportunities for UAE businesses and provide Australian companies with a gateway to new markets across the MENA region. I look forward to collaborating with my Australian counterpart to swiftly ratify the CEPA and deliver its benefits,” said UAE Trade Minister Thani bin Ahmed Al-Zeyoudi. 
 
He added: “This milestone not only reaffirms our commitment to building strong relations with key partners, but to expanding the reach of our trading network into key regions such as Asia-Pacific.” 
 
According to the statement, the agreement is expected to benefit Australian farmers and food producers, with estimated tariff savings of A$50 million annually for the country’s food and agriculture exports. 

It also includes a framework to boost UAE investment in critical minerals, aiding the mining industry through tariff cuts on alumina exports. 

Australia’s Trade Ministry noted that the agreement would reduce import tariffs on UAE-produced furniture, copper wire, glass containers, and plastic, resulting in lower costs for businesses and households, with estimated savings of around $40 million a year. 

The deal encompasses commitments to promote labor rights, protect the environment, and ensure sustainable development. 

Australia and the UAE are working to finalize the legal treaty text, which is expected to be signed later this year. 

RIYADH: The UAE banking sector’s liquid assets reached 801.52 billion dirhams ($218.2 billion) by the end of the second quarter of 2024, reflecting a 20.2 percent year-on-year increase, official data showed. 

According to the latest report from the Central Bank of the UAE, the increase reflects a jump from 666.6 billion dirhams in the same period last year. On a quarter-on-quarter basis, it increased by 2 percent, or 14.9 billion dirhams, compared to 786.6 billion dirhams at the end of the first quarter of this year. 

Liquid assets accounted for 18.9 percent of the sector’s total assets, which reached 4.2 trillion dirhams by June.  

This comes as the UAE banking sector demonstrates strong growth and resilience amid global challenges. The CBUAE has supported this expansion with record increases in assets, credit, deposits, and investments, while maintaining robust capital efficiency and reserves.   

The report also highlighted the UAE banking system’s strong capitalization, with a total capital adequacy ratio of 18.3 percent at the end of the second quarter, improving from 18 percent in the first three months of the year, and 17.9 percent in the last quarter of 2023.  

This ratio remained significantly above the minimum regulatory requirement of 13 percent, including a 2.5 percent capital buffer and a minimum Tier 1 capital ratio of 8.5 percent. 

This metric, which measures core capital, stood at 17 percent at the end of the second quarter of 2024, up from 16.7 percent in the first three months of the year and 16.6 percent in the fourth quarter of 2023.  

Meanwhile, the Common Equity Tier 1 ratio, a key measure of a bank’s financial strength, rose to 15.3 percent, up from 15 percent in the inaugural quarter of 2024 and 14.9 percent in the last quarter of 2023. 

The UAE banking sector has demonstrated growth and stability in recent months, with the net international reserves seeing a surge of 29 percent, totaling 1.23 trillion dirhams by the end of May. This total includes 763.88 billion dirhams held by the CBUAE and 472.68 billion dirhams held by other banks operating in the UAE.  

In conjunction with this, CBUAE’s gold reserves grew by 19.7 percent year on year, reaching 20.61 billion dirhams. The gold reserves also saw a 1.3 percent increase in May compared to April.   

Time deposits increased by 17 percent to 842.98 billion dirhams, while demand deposits grew over 10 percent to 1.04 trillion dirhams. UAE Funds Transfer System transactions reached 7.9 trillion dirhams by May, up 17 percent from the previous year.