Trade Minister Tim Groser is hailing as a success a trade mission to oil-rich Middle Eastern countries despite delays in signing a free trade agreement and the absence of Prime Minister John Key.
Mr Groser said in Kuwait yesterday it was a simple formality to complete the signing of the free trade agreement between New Zealand and the six member Gulf Co-operation Council (Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Oman and Bahrain), and despite those issues causing major changes to the programme, the 90 businessmen on the trip were positive about prospects.
The immediate benefits of the free trade agreement, by removing tariffs, was estimated at $60 million a year, but Mr Groser said the bigger prize was showing the wider Middle East region that New Zealand was a friendly nation that was serious about doing business.
Apart from traditional food and beverage products, Mr Groser saw potential business opportunities for New Zealand in education, niche manufacturing and health services.
The Gulf Co-operation Council (GCC) was investing heavily in education to develop their economy, with Saudi Arabia alone investing 28% of its budget in the sector, and it was an area that should benefit from the 7500 Saudi Arabian students already studying in New Zealand.
The GCC population was disproportionately young and the region's wealth was growing, and in a sign of the importance GCC countries placed on New Zealand, Saudi Arabia would soon open a consulate in Auckland, the second largest in New Zealand.
In 1965, trade with the region represented 0.01% of New Zealand's exports.
Today, it is 8%, our sixth largest customer, and growing.
Trade between the two regions grew at a compound annual rate of 15% in the past five or six years.
Abdul Wallab Al-Wazzam, the vice-chairman of Kuwait's chamber of commerce and industry, said his members wanted to increase trade with New Zealand, and with Kuwait about to embark on a multibillion-dollar, five-year infrastructure upgrade, he said New Zealand could help.
He also saw opportunity in financial services and medical products.
In a region steeped in protocol and formality, Mr Groser said the region's political leaders understood the reasons for Mr Key's decision to return home following the Air Force helicopter crash that killed three servicemen.
"I spoke to the Kuwaiti Prime Minister for one hour and he was positive, welcoming and understanding of the tragedy and the emotional timing of Anzac Day.
"No offence was given to that," he said.
• Neal Wallace's trip to the Middle East was arranged by Fonterra.
