New Zealand is looking to Expo 2020 Dubai as a platform to ramp up trade with the UAE and broader GCC.
The country is specifically looking to up food and beverage exports to the UAE as consumers in the region are increasingly conscious, wanting to know where their food comes from and how it’s made.
“The Middle East is an exciting region for New Zealand exporters and the potential is significant,” New Zealand’s Consul General for Dubai and the Northern Emirates told Arabian Business.
As of December 2020, New Zealand’s two-way trade with the six countries of the GCC totalled $2.7 billion.
New research commissioned by New Zealand Trade and Enterprise (NZTE), found that UAE consumers are willing to pay a premium for high-quality food and beverage products that taste good, are healthy, and they can trust. Following the Covid-19 pandemic, consumers in the UAE care more about where their food comes from and how it was made, with more than 50 percent of those surveyed agreeing this impacts their F&B purchasing decisions.
McKenna, who is also New Zealand’s trade commissions for the UAE, Qatar and the Levant, spoke to Arabian Business about the island nation’s plans to further ramp up exports to the GCC – even as they rose during the pandemic – to target those conscious consumers, and what sectors are set to see the biggest boost.
New Zealand is looking to grow trade and investment within the GCC. What major areas of opportunity have been identified, and how will Expo help to achieve these goals?
There are growing opportunities for New Zealand businesses in the Middle East across a number of industries; including tech healthcare, FMCG, agritech and premium food and beverage.
Combined, the GCC countries are already our fifth largest export market. In the year since the Covid-19 outbreak, New Zealand exports to the Gulf countries – particularly the UAE and Saudi – have grown across the board, despite the pandemic.
We see Expo 2020 as the platform to explore these opportunities and support New Zealand’s trade recovery as we help companies connect with key players in the region.
Visitors to the Expo will discover a story about how New Zealand is “a nation of innovators who care for people and place”.
In parallel to the pavilion experience and storytelling, the Expo Business Leverage programme developed by NZTE will run for six months. The programme was created to help fast-track New Zealand exporters’ understanding of and entry to the Middle East region, as well as to showcase New Zealand industry expertise to buyers and channel partners in Gulf countries.
How is progress on the GCC-NZ FTA and are any advancements expected to be made during Expo?
Negotiations on the GCC-NZ FTA commenced in 2007 and were in fact substantively concluded in October 2009. However, the process towards finalisation and signature of the FTA never proceeded, initially due to an internal GCC review of its trade policy and, more recently, regional dynamics within the GCC.
We continue to receive positive signals about the readiness of the GCC to resume, particularly since this impasse was resolved, and we are optimistic that New Zealand’s trade relationship with the GCC will advance during Expo.
Has Expo increased interest from private sector players from New Zealand to trade in this region?
Expo 2020 Dubai is a unique opportunity to connect with international partners and find opportunities for growth. We currently have over 100 New Zealand businesses that have expressed an interest in the Expo Business Leverage Programme designed by NZTE and taken part in the virtual activities leading up to Expo, with a view to travel to Dubai in 2022.
The Middle East is an exciting region for New Zealand exporters and the potential is significant. As of December 2020, two-way trade with the six countries of the GCC totalled $2.7bn. GCC countries also import 80-90 percent of their F&B, and New Zealand is a key exporter to the region in this space.
In 2020, New Zealand was Dubai’s second biggest food trade partner, with dairy products, fruits, beef and honey among our top exports to the emirate.
Our innovative products and services are in demand too, particularly in healthcare, agritech and the broader technology sector. Countries across the Gulf and the Middle East have ambitious goals to make their nations more self-reliant and are looking to develop and implement transformational tech solutions across key economic areas like education, healthcare, finance and tourism.
Expo 2020 Dubai is a great opportunity for us to expand on opportunities in the food and beverage industry, where perceptions of New Zealand products are overwhelmingly positive. It is also the perfect time to increase awareness of our capabilities in other sectors like agritech, healthtech, fintech and edtech, where New Zealand companies have much to offer to regional government as well as business audiences.
What GCC trends are driving New Zealand exporters’ interest in the region?
The GCC markets have transformed dramatically in the last decade and the Covid-19 pandemic is accelerating their plans towards economic diversification. This represents significant opportunities for New Zealand exporters to expand their portfolios into new markets, where New Zealand goods and services are already in demand.
Increased state spending on health, education, technology, and infrastructure in the UAE and wider Gulf is also driving interest among New Zealand exporters in these sectors to explore opportunities for expansion to the region. Two of our fastest growing export sectors globally are tech and agritech, and we see great potential for relevant companies in this region.
We have always enjoyed a strong trade relationship with the GCC countries, primarily driven by F&B exports, which continue to increase. The rise of conscious consumerism is largely behind this upward trend.
New Zealand has a great opportunity to show how our Māori ethos of katitakitanga – care for people, place, and the planet – combined with our innovative agritech solutions, produces food and beverage that tastes good, is healthy, and can be trusted.
Beyond F&B, the transition of the Gulf countries into knowledge-based economies is creating new demand for foreign expertise, particularly when it comes to enhancing food security and achieving ambitious sustainability goals.
As one of the most progressive centres of agriculture and aquaculture knowledge New Zealand is recognised in this region for our government’s leadership in sustainable farming, production and nutrition.
Several governments in the region have turned to New Zealand for support with adapting and implementing innovative public sector solutions here. For instance, our government-to-government (G2G) work has seen New Zealand partnering with the UAE to carry out projects in sustainable fishing and groundwater management. We are also supporting Qatar with food safety ahead of the World Cup in 2022. This includes programmes to train Qatari food inspectors, to deliver food safety expertise to food processing operations, as well as assessing local food inspection and compliance services, and implementing recommended changes.
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