Economic Synergies: The Rising Tide of Australia-UAE Investments
Australia and UAE Forge Stronger Economic Bonds, Capitalizing on Strategic Advantages in Finance and Real Estate.
4 min
Amidst evolving global trade landscapes, Australia and the United Arab Emirates (UAE) are poised to significantly enhance their economic ties. With both nations seeking to diversify and strengthen their international relationships, this partnership emerges as a crucial development.
It centers on increasing finance and property transactions, aiming to capitalize on unique strategic advantages—Australia’s gateway status to the Asia-Pacific and the UAE’s position as a pivotal Middle Eastern hub.
The relationship between Australia and the United Arab Emirates has steadily grown, with both nations recognizing the potential to leverage each other’s economic strengths. As Australia concludes significant trade deals globally, the focus shifts towards enhancing its ties with the Middle East, with the UAE at the forefront as a key partner. This initiative reflects a strategic alignment with broader economic and diplomatic goals, aiming to bridge the gap between East and West through robust economic exchanges and investments.
The UAE is well-known for its significant global investments in real estate and infrastructure, focusing on long-term strategies over immediate returns. Australian markets offer compelling opportunities for UAE investors, especially in sectors such as commercial real estate and major urban development projects. Additionally, the UAE’s dedication to sustainability is evident in its considerable investments in renewable energy worldwide, which aligns well with Australia’s environmental objectives and initiatives.
Why invest in Australia?
Kanebridge News recently engaged with key figures in the financial sector to gain insights into the current dynamics of foreign investment in Australia. Matthew Bode, Partner at leading Australian law firm Gadens, Hilton Wood, President at Overseas Bankers Association of Australia, and Ronnie Rahme, Development Director of KDMC in Sydney provided expert opinions on why Australia is becoming an increasingly attractive destination for investors from the Middle East.
Matthew, who has over 30 years financial services experience in Australia, London, Cayman Islands and Hong Kong, explained that the Australia-UAE Comprehensive Economic Partnership (CEPA) is currently collaborating to strengthen investment between the two countries, focussing particularly on reducing barriers to improve trade and enhance investment flows from the UAE into Australia.
Matthew says that “Australia is an attractive place for investors, particularly from the UAE and other parts of the Middle East, as Australia offers consistent economic growth opportunities, a stable government, a legal system derived from English law principles, and proximity to the dynamic markets of Asia Pacific”.
Investing in Australia offers several compelling benefits. The country boasts a resilient economy, ranked 12th globally in terms of GDP, and offers exposure to key industries including energy, resources, property, and education.
The nation’s growth and development prospects are sustained by record levels of immigration and significant infrastructure projects. Notable among these are the 2032 Olympic Games set to be held in Brisbane, the development of the Western Sydney International Airport in New South Wales, and new rail connections in Victoria and New South Wales.
Additionally, Australia’s strategic positioning provides an alternative gateway to the dynamic Asia-Pacific region, further enhancing its appeal as a prime location for investment.
Banking landscape
Whilst the “Big 4” major banks (ie ANZ, CBA, NAB and Westpac) continue to dominate the Australian banking market, international banks continue to expand their foothold into Australia.
Hilton Wood agreed and commented “we are seeing over 70 foreign banks now represented in Australia, from representative offices to foreign branches and fully licensed subsidiaries. It is true that some banks had exited the Australian market, but most of them are back and we are noting more and more second tier banks arriving as they see strong yields, coupled with an excellent regulatory environment. They are attracted by our strong performing property markets and increased activity in infrastructure, PPPs, trade finance and renewables”.
As Matthew explained, “The Australian banking landscape is highly regulated, as is capital raising and investment fund management. Apart from offshore lenders looking to obtain licensing in Australia, I am seeing an increase in enquiries from overseas clients looking to set up their own investment vehicles in Australia or to directly invest in already established structures. There is always an interest in our real estate/ property market or investment into our natural resources or agricultural sectors. Other clients are increasingly investing in wind and solar farms (particularly those seeking green renewables), or asking about our market-leading IT industry, medical equipment or education sector, for example.”
Ronnie Rahme also noted the significant need for housing, particularly in Sydney, saying ‘Australia has experienced record immigration since COVID which has further increased the demand for critical housing for both new ownership and rental across all states. The Government(s) are investing heavily into major infrastructure projects, reforming planning laws and accelerating rezoning to enable investment into much needed projects, such as midrise reforms and multifamily housing.
Regulation on foreign investment
Australia’s Foreign Direct Investment (FDI) is monitored and administered by the Foreign Investment Review Board (FIRB). FIRB examines foreign investment proposals on a case-by-case basis and makes recommendations to the Australian Government Treasurer, who has the responsibility for making decisions on foreign investment proposals. FIRB is multi-layered with specific thresholds and rules applying to different types of investors and the type of investment made.
FIRB regulates the investment of ‘foreign persons’ in Australia, and includes individuals who are not an Australian resident; a foreign government or foreign government investor; a corporation, trustee, or general partner of a limited partnership in which a foreign corporation, foreign government or an individual not ordinarily a resident in Australia and holds a substantial interest (being at least 20 percent); or a corporation, trustee, or general partner of a limited partnership in which two or more foreign persons hold an aggregate substantial interest (being at least 40 percent).
Investment structure
There are numerous ways to invest in Australia, including through the more traditional Managed Investment Schemes (MIS) or the newly legislated structure know as a Commercial Collective Investment Vehicles (CCIV) structure.
CCIV is a collective investment funds vehicle, limited by shares, and is established as an umbrella investment vehicle comprised of one or more sub-funds (with segregated assets and liabilities referable to each sub-fund).
Unlike an MIS, which is typically structured as a unit trust and which may or may not require registration with the Australian Securities and Investment Commission (ASIC), a CCIV is a fund that is a company registered with ASIC. Matthew commented that, “..the main benefits of using a CCIV structure are actually from a tax perspective, as CCIVs are taxed in Australia on a flow-through basis like a unit trust, whilst offering the benefits of segregation of assets and liabilities for each sub-fund”.
Matthew Bode has extensive experience in establishing investment structures suitable to foreign investment in Australia, and Kanebridge International can help facilitate an introduction to either Matthew or Hilton Wood, should you be interested.*
* This article is general commentary only and should not be construed or relied upon as financial or legal advice.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Whether you call it charisma, charm or magnetism, some people seem like naturals. Good news: It can be learned.
4 min
Great leaders have it. Gen Z has a new word for it. Can the rest of us learn it?
Charisma—or rizz , as current teenage slang has anointed it—can feel like an ephemeral gift some are just born with. The chosen among us network and chitchat, exuding warmth as they effortlessly hold court. Then there’s everyone else, agonising over exclamation points in email drafts and internally replaying that joke they made in the meeting, wondering if it hit.
“Well, this is awkward,” Mike Rizzo, the head of a community for marketing operations professionals, says of rizz being crowned 2023 word of the year by the publisher of the Oxford English Dictionary. It’s so close to his last name, but so far from how he sees himself. He sometimes gets sweaty palms before hosting webinars.
Who could blame us for obsessing over charisma, or lack thereof? It can lubricate social interactions, win us friends, and score promotions . It’s also possible to cultivate, assures Charles Duhigg, the author of a book about people he dubs super communicators.
At its heart, charisma isn’t about some grand performance. It’s a state we elicit in other people, Duhigg says. It’s about fostering connection and making our conversation partners feel they’re the charming—or interesting or funny—ones.
The key is to ask deeper, though not prying, questions that invite meaningful and revealing responses, Duhigg says. And match the other person’s vibes. Maybe they want to talk about emotions, the joy they felt watching their kid graduate from high school last weekend. Or maybe they’re just after straight-up logistics and want you to quickly tell them exactly how the team is going to turn around that presentation by tomorrow.
You might be hired into a company for your skill set, Duhigg says, but your ability to communicate and earn people’s trust propels you up the ladder: “That is leadership.”
Approachable and relatable
In reporting this column, I was surprised to hear many executives and professionals I find breezily confident and pleasantly chatty confess it wasn’t something that came naturally. They had to work on it.
Dave MacLennan , who served as chief executive of agricultural giant Cargill for nearly a decade, started by leaning into a nickname: DMac, first bestowed upon him in a C-suite meeting where half the executives were named Dave.
He liked the informality of it. The further he ascended up the corporate hierarchy, the more he strove to be approachable and relatable.
Employees “need a reason to follow you,” he says. “One of the reasons they’re going to follow you is that they feel they know you.”
He makes a point to remember the details and dates of people’s lives, such as colleagues’ birthdays. After making his acquaintance, in a meeting years ago at The Wall Street Journal’s offices, I was shocked to receive an email from his address months later. Subject line: You , a heading so compelling I still recall it. He went on to say he remembered I was due with my first child any day now and just wanted to say good luck.
“So many people say, ‘Oh, I don’t have a good memory for that,’ ” he says. Prioritise remembering, making notes on your phone if you need, he says.
Now a board member and an executive coach, MacLennan sent hundreds of handwritten notes during his tenure. He’d reach out to midlevel managers who’d just gotten a promotion, or engineers who showed him around meat-processing plants. He’d pen words of thanks or congratulations. And he’d address the envelopes himself.
“Your handwriting is a very personal thing about you,” he says. “Think about it. Twenty seconds. It makes such an impact.”
Everyone’s important
Doling out your charm selectively will backfire, says Carla Harris , a Morgan Stanley executive. She chats up the woman cleaning the office, the receptionist at her doctor’s, the guy waiting alongside her for the elevator.
“Don’t be confused,” she tells young bankers. Executive assistants are often the most powerful people in the building, and you never know how someone can help—or hurt—you down the line.
Harris once spent a year mentoring a junior worker in another department, not expecting anything in return. One day, Harris randomly mentioned she faced an uphill battle in meeting with a new client. Oh!, the 24-year-old said. Turns out, the client was her friend. She made the call right there, setting up Harris for a work win.
In the office, stop staring at your phone, Harris advises, and notice the people around you. Ask for their names. Push yourself to start a conversation with three random people every day.
Charisma for introverts
You can’t will yourself to be a bubbly extrovert, but you can find your own brand of charisma, says Vanessa Van Edwards, a communications trainer and author of a book about charismatic communication.
For introverted clients, she recommends using nonverbal cues. A slow triple nod shows people you’re listening. Placing your hands in the steeple position, together and facing up, denotes that you’re calm and present.
Try coming up with one question you’re known for. Not a canned, hokey ice-breaker, but something casual and simple that reflects your actual interests. One of her clients, a bookish executive struggling with uncomfortable, halting starts to his meetings, began kicking things off by asking “Reading anything good?”
Embracing your stumbles
Charisma starts with confidence. It’s not that captivating people don’t occasionally mispronounce a word or spill their coffee, says Henna Pryor, who wrote a book about embracing awkwardness at work. They just have a faster comeback rate than the rest of us. They call out the stumble instead of trying to hide it, make a small joke, and move on.
Being perfectly polished all the time is not only exhausting, it’s impossible. We know this, which is why appearing flawless can come off as fake. We like people who seem human, Pryor says.
Our most admired colleagues are often the ones who are good at their jobs and can laugh at themselves too, who occasionally trip or flub just like us.
“It creates this little moment of warmth,” she says, “that we actually find almost like a relief.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
