Officials sign a new agreement aimed at unlocking trade opportunities
New Zealand and Saudi Arabia have established a business council to strengthen trade and investment links between the two countries, with officials signing a joint statement this week, according to a media release.
Trade and investment minister Todd McClay and Saudi minister of investment H.E. Dr Majid bin Abdullah Al-Kassabi created the New Zealand–Saudi Arabia Business Council through the formal agreement.
The council aims to prepare New Zealand companies for opportunities arising from the upcoming Gulf Cooperation
Council free trade agreement and boost investment flows between the economies.
Economic significance
Saudi Arabia represents a USD$3 trillion economy and ranks as a top 20 export market for New Zealand. The Gulf nation is considered one of the world’s most dynamic economies.
“Worth nearly USD$3 trillion, Saudi Arabia is a top 20 export market for New Zealand and one of the most dynamic economies in the world. The establishment of this Business Council is an important step in strengthening trade and investment links between our two countries,” McClay said.
The minister highlighted the timing significance with the pending free trade agreement completion.
“The upcoming conclusion of the free trade agreement with the Gulf Cooperation Council will open the door to significant new opportunities, particularly in Saudi Arabia. The Business Council will ensure New Zealand companies are ready to seize those opportunities, while also boosting investment flows between our two economies,” McClay said.
Council functions
The business council will operate as a dedicated platform to raise awareness of commercial opportunities and strengthen relationships between New Zealand and Saudi Arabian businesses.
McClay emphasised the effectiveness of business councils in building commercial connections and supporting exporters.
“A dedicated New Zealand–Saudi Arabia Business Council will raise awareness of opportunities, strengthen relationships, and help Kiwi firms do well in this growth market. It will play a key role in contributing to the Government’s goal of doubling exports by value in 10 years,” McClay said.
National economic impact
The establishment aligns with the Government’s broader economic strategy of doubling export values within a decade, the media release noted.
McClay connected the initiative to domestic employment and wage growth prospects across New Zealand regions.
“Trade supports jobs in every region of the country, and stronger export and investment links mean more opportunities, higher wages, and greater opportunities for all New Zealanders,” McClay said.
