CEPA to boost Australia’s investment relationship with the UAE

The United Arab Emirates (UAE) is Australia’s largest investment partner in the Middle East, with A$23.7 billion in two-way investment in 2024. 

When the Australia-UAE Comprehensive Economic Partnership Agreement (CEPA) comes into force, it will strengthen investment ties between the two countries, improve skilled labour mobility, and encourage meaningful engagement between investors and First Nations people.

The new trade agreement will galvanise quality investment in Australia’s clean energy transition and sectors of national priority.

‘The United Arab Emirates is a valuable source of potential investment for Australia across Sovereign Wealth Funds (SWFs) and private investors,’ says Bryony Hilless, Austrade’s General Manager for the Middle East, Africa and Pakistan. 

‘The UAE SWFs and family offices manage A$3.10 trillion and A$2.31 trillion in assets respectively. These entities are actively looking for opportunities to grow their portfolio and diversify global supply chains.’

Promoting investment in priority sectors

CEPA includes a chapter on investment, an Investment Agreement and five Investment Cooperation Memorandums of Understanding (MOUs). The MOUs facilitate collaboration between government agencies, regulatory authorities, and private and public sector enterprises.

CEPA is Australia’s first-ever FTA to include a chapter promoting First Nations trade and investment. The chapter encourages cooperation between our two countries and recognises the unique contribution that First Nations people and businesses can make to international trade and investment. It highlights the importance of empowering First Nations people and businesses to realise the benefits from opportunities created under CEPA.

Green and renewable energy

UAE entities are major investors in Australia’s renewables, waste-to-energy and resources sectors. The MOU will encourage further investment in priority sectors critical to Australia’s clean energy transition and net-zero ambitions, creating jobs and sustainable regional development. These include large-scale green hydrogen, solar, wind and hydro energy projects.

The MOU will also encourage investment that targets the development of low-carbon liquid fuels, including technology pathways to produce advanced biofuels and synthetic fuels. The focus is on sustainable aviation fuel, renewable diesel, biodiesel, bioethanol and e-fuels; as well as energy-efficient and low-emission technologies.

Digital infrastructure and artificial intelligence

This MOU will support investments which enhance digital infrastructure and capabilities related to data centres and AI. It includes opportunities for establishing new data centres, investing in safe and responsible AI, and developing local talent.

The UAE is leading the region’s AI technology drive. Around 150 new AI firms have launched in Abu Dhabi since the start of 2025. The Dubai Centre for AI is developing Public-Private Partnership models for data centres and AI infrastructure investments. UAE-based digital infrastructure companies and developers (construction and design) are now interested in investing overseas, including in Australia to leverage expertise.

Minerals

This MOU is designed to facilitate investment and cooperation in mineral exploration and extraction, mine development, and processing and mineral marketing. The UAE has been investing internationally to secure supply of strategic metals and critical minerals. Sovereign Wealth Funds (SWFs) and linked entities are interested in opportunities in Australia, to position the UAE in the global value chain of minerals processing and trading.

The Australia-UAE Comprehensive Economic Partnership Agreement will boost Australia’s investment relationship with the UAE in 5 key sectors. 

Food and agriculture 

New investment is needed to meet the growing demand for agricultural goods. The MOU supports building supply chains for bilateral agricultural exports; developing projects that enable producers and processors to diversify and create value-added products; and implementing climate-smart sustainable agricultural technologies and practices, among other initiatives.  

The UAE’s National Food Security strategy aims to position the UAE at the top of the Global Food Security Index by 2051. International partnerships and technology have been identified as key pillars of this strategy. Private and SWF-linked entities are investing domestically and internationally to develop global operations and deliver local food security initiatives, while leveraging and building global supply chains.  

The UAE is Australia’s 11th largest agricultural export market (worth A$1.6 billion in 2023–24), providing a strong foundation to attract productive investments in priority food and agriculture initiatives.  

Infrastructure development

Australia and the UAE will look to facilitate and drive investment in infrastructure projects that enhance productivity and resilience while supporting the transition to net zero. This includes projects in transport, social infrastructure, advanced technologies, and sustainable tourism.  

UAE SWFs are already investing in Australian infrastructure, maritime ports and airports. Tribe Infrastructure Group is developing sustainable infrastructure projects, including transport, energy and water. The company is currently leading an Australian-UAE consortium to develop a A$1.5 billion waste-to-energy facility at Parkes in New South Wales. 

Sovereign wealth funds

The UAE is home to several SWFs that manage the nation’s substantial energy revenues and other investments. These funds are crucial for the UAE’s economic stability and growth. 

Billions of dollars in investment commitments by SWFs are linked to sovereign investment partnerships and bilateral country agreements, including Comprehensive Economic Partnership Agreements. 

SWFs often co-invest with other SWFs or technical partners to increase exposure to regions or asset classes, and scale investments quickly. 

Forging a path for new investment 

Investors in the UAE have well-defined strategies and are looking for projects that show a clear return on investment or a portfolio play to blend the return. 

SWFs looking for larger investments (more than US$100 million) will consider a well-defined pipeline of total investable projects rather than a single investment. This approach also ensures a ‘balanced’ mandate for investing in a country, across several entities. 

‘Investors in the UAE are looking to diversify their portfolios,’ says Dubai-based Austrade Trade and Investment Commissioner Mounir Sankary. ‘Projects can be green or brownfield, but investors prefer shovel-ready with the necessary approvals in place and government support. This includes government projects and those with a private partnership/consortium approach.’ 

Australian entities are advised to have a clear proposition or project pitch. It needs to be specific and fit the investor’s strategic parameters. 

‘The UAE is a relationship-driven market,’ says Mr Sankary. ‘Investors and decision makers like to meet potential partners several times to get to know and trust them. While a good offer may ‘get you there’ – establishing a relationship and delivering specifics will help proposals progress faster.’ 

A leading global investment hub 

The UAE’s diverse and sophisticated landscape comprises various state-owned enterprises, government bodies, sovereign wealth funds, and private companies. Australian investors and businesses can work and partner with these entities. 

The UAE Ministry of Investment plays a pivotal role in shaping the nation’s investment policy and strategies. The Ministry works closely with other government entities to streamline investment processes and foster a business-friendly environment. 

Austrade’s team in the Middle East can help Australian investors and businesses to explore investment opportunities and partnerships. Our team can provide information about the UAE’s investment ecosystem and priorities in line with the five Investment MOUs under CEPA. 

For more information, contact Mounir Sankary, Trade and Investment Commissioner, Austrade.