A free trade agreement (FTA) has been agreed between Australia and the United Arab Emirates (UAE) following the successful conclusion of the last round of negotiations, with the final deal expected to be signed later this year.

Bilateral trade between the two nations was worth AU$9.9 billion in 2023, making the UAE Australia's largest partner in the Middle East. In a statement, Canberra added that the deal will help provide a gateway for the country's exporters to diversify into the region, which offers a market with 58 million consumers and a combined GDP of AU$1.4 trillion.

Under the new deal, 99 percent of Australian imports to the UAE will be tariff-free. This is expected to lead to overall savings of AU$135 million in the first year, rising to AU$160 million per year once the agreement is fully implemented.

Key sectors set to benefit from this include mining, food and other agricultural producers, with major Australian exports to the UAE include alumina, meat, dairy, oil seeds, seafood, steel, canola seeds, nuts, honey, coal and chickpeas.

Meanwhile, imports to Australia from the UAE including furniture, copper wire, glass containers and plastic will also benefit from cuts to import duties. This is expected to save Australian households and businesses around $40 million a year.

Don Farrell, Australia's minister for trade and tourism, welcomed the deal, stating it would open up new opportunities for exporters, farmers, producers and businesses in the country.

He added: "Under this trade agreement, Aussie exports are expected to increase by AU$678 million per year, but this deal means more for Australia than just numbers. 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."