*Check against delivery*
Let me start by thanking the Abu Dhabi Australia Business Group, led by Kelvin Templeton, for hosting this morning’s breakfast.
It is good to have the opportunity to address you all today.
The Australia Business Group offers up an ideal forum to facilitate increased economic ties between the UAE and Australia.
It allows us to meet, discuss and look at some of the upcoming trade and investment opportunities.
In my view Australia has a lot to offer in this regard.
Located in a region with abundant petroleum reserves, and with the world’s sixth largest oil reserves, the UAE, like Australia, appreciates the opportunities a rich endowment of natural resources presents.
Australia’s resources and energy sectors: a snapshot
In the last half century Australia has built up its resources sector predominantly through exports of coal and iron ore.
Today, those commodities continue to underpin much of our export trade and we have seen a number of both new projects and major project expansions announced over recent months.
However we are also tapping into new growth markets and increasing our exports of other key commodities such as LNG and uranium to help supply the growing energy demands of emerging economies.
On Australia’s East Coast we are seeing the emergence of a new coal seam gas to LNG industry with final investment decisions being taken on more than $30 billion of investment in new projects in the last six months, with potentially more to follow.
This, along with major developments on our Northern and Western coasts has the potential to significantly increase our LNG exports in the next few years.
Australia is currently the fourth largest supplier of LNG, and by 2015/16 we are forecast to be number two, behind Qatar.
This is in addition to our position as the number one exporter of coal and having the world’s largest uranium reserves.
Reserves that have the potential to help meet the energy needs here in the UAE.
I would remind you of course that Australia’s Foreign Minister announced during his visit here last month that the Australian Government will soon begin negotiations with the UAE on a bilateral nuclear safeguards agreement on peaceful uses of nuclear energy.
A successful outcome to this process could allow Australia to export uranium to the UAE for use in your planned civil nuclear power generation capacity which is to be operational by 2017 and will be an additional source of electricity to meet future demand.
The fact is that Australia’s resources and energy sectors are booming, with a number of significant projects already underway and further substantial investment in the pipeline.
Let’s take a look at some of the figures:
- Last financial year Australia’s energy exports were worth more than $55 billion;
- Exports of non-energy minerals returned more than $80 billion;
- This year, mineral exports are forecast to increase by almost one-third; and
- Around 70 mining projects are at an advanced stage of development, with record expenditure on capital for those projects at over $130 billion.
Less well known – but increasingly important – is the expertise that comes with the development of these resources.
Australia is one of the few places where expertise, resources and reputation combine in such an investment-friendly way.
Australia is a world leader in mining technology services and equipment.
Investors see a comparative advantage in Australia thanks to these qualities.
Without them, many mineral deposits would be beyond our reach, or too expensive to recover.
Australia’s mining technology services and equipment sector is worth around $9 billion a year.
Around one-third of those products and services are exported.
When investors buy into Australian resources, they’re also buying the technology and skills transfers that often come with them.
Expertise turns simple exports into value-added exports.
Let me put all these qualities into the context of foreign investment more broadly.
Australia welcomes foreign investment.
At a government level, we are working to make sure our investment frameworks are open and transparent.
The opportunities are there and we want to encourage investors, be they Australian or overseas investors, to take them up.
Two way investment between Australia and the UAE is fairly modest but by no means insignificant with potential for real growth.
The links between our two countries are growing.
And one notable area of potential future growth is in clean energy.
Clean energy
Like Australia, the UAE is committed to action to address climate change.
Like Australia, renewable energy is high on the UAE’s agenda.
And like Australia, the UAE is promoting investment, research and development of renewable energy sources through a variety of mechanisms.
Given the UAE’s forecast growth in electricity usage it is important to bring on clean energy technologies to meet some of this demand.
Both nations have adopted renewable energy targets to direct new investment into renewable energy sources.
Both nations are exploring the options for carbon capture and storage.
And both nations are engaging internationally in the clean energy debate - the UAE being, of course, home to IRENA.
This opens up the potential areas for collaboration, for joint research and investment partnerships.
As is the case with fossil fuels, Australia has an abundance of clean energy resources.
The challenge, which in many respects is one shared by the UAE and others, is how best and most cost-effectively to harness those resources.
We need innovation and investment to achieve this on a commercial scale.
The Australian Government, like the UAE, is investing heavily to support projects both domestically and in an international context, through for example, the Global Carbon and Capture Storage Institute of which UAE is an important member.
We are also working to put in place the right settings for Australia in terms of our domestic climate change policy.
The debate in Australia at the moment centres around how we put a price on carbon in a way that protects jobs and energy security, while also reducing emissions and bringing on investment in low emissions and clean technologies.
The Government will continue to work its way through this debate, in consultation with industry until we arrive at an appropriate outcome.
Our direct funding support domestically for renewable energy technology complements the RET and the carbon price.
In partnership with industry the Government is helping prove up new technologies.
Geothermal is a case in point and a common area of research both here and in Australia.
I am paying close attention to developments here as part of the Masdar Initiative, in particular the drilling program at Masdar City and I hope to hear more about this during the course of my visit.
Our two countries have much to learn from each other, and our cooperation on clean energy development is one that I will continue to push.
Tourism
Now of course in addition to my responsibilities in terms of resources and energy, I am also Minister for Tourism.
Tourism is an important global industry. It is a major employer, and as well as servicing the leisure market, it drives investment in infrastructure for the business travel market.
And like all major industries it requires greater investment – investment for new developments, and re-investment to refresh existing developments.
Here in the UAE, we’re seeing new race tracks, galleries, theme parks and museums – all sending a clear message that modern, diverse economies embrace tourism.
I applaud Emirates work to develop the award-winning Wolgan Valley Resort and Spa in the Blue Mountains west of Sydney. The resort joins a collective of luxury resorts in Australia servicing the high yielding domestic and international markets.
We have a shortage of modern hotel accommodation, particularly in capital cities, and the highest accommodation occupancy rates in the OECD.
Room rates are going up, visitor numbers are up and governments across Australia are working together to remove barriers to investment.
Better aviation access is timely.
There are now 94 weekly flights between Australia and the UAE – and I welcome the growth of UAE carriers in the Australian market.
I’m also pleased to see V Australia servicing the UAE – the first Australian carrier to do so in 20 years.
V Australia and Etihad are giving travellers a glimpse of the expanded choice that comes with new capacity.
Business-to-business and people-to-people
The partnership between these two airlines is another positive example of the business ties between our nations.
Australia already has over $1 billion invested in the UAE.
Last financial year, two-way trade was worth over $4.25 billion, roughly shared between the two countries.
More broadly, over 300 Australian companies have a presence in the UAE.
Australia receives around 50,000 short term visitor arrivals from the UAE each year, and this figure has grown at an average annual rate of 18.5 per cent between 2006 and 2010.
In the other direction, the UAE is one of Australia’s most important markets for tourism and education from this part of the world.
In fact, it’s Australia’s third-largest education market in this region – 1,200 Emirati students at the last count.
So there’s a lot going on – as we will see at next month’s Australia Arab Business Forum Expo in Melbourne.
This inaugural forum, being held on the 5th and 6th of May 2011, reflects the growing trade and investment links between this region and Australia and I would encourage interested businesses to attend.
Come and see for yourselves what Australian business can offer in renewable energy, tourism, hospitality and mining to name just a few key areas of our mutual interest.
Sometimes, the attractions of investing in Australia seem so obvious that we glance over them.
We often forget the value of a secure, low-inflation, cohesive society with stable government, sensible regulation, good corporate governance and the rule of law.
We sometimes take for granted our world-class hotels and cities – including Perth which is hosting LNG-18 five years from now.
Australia is well placed with our vast natural resources on the doorstep of booming Asian markets, and our first-rate transport links and modern infrastructure to capitalise on these opportunities.
And at the heart of our appeal as a trading partner, Australia has a highly-skilled, outward-looking workforce.
Approximately 16,000 Australian nationals live in the UAE – many of them strengthening our reputation for business know-how.
Conclusion
By investing in Australia, you are buying expertise in a stable investment environment on Asia’s doorstep.
In so many ways, Australia is an attractive investment destination.
And I applaud everyone who turns that simple, compelling message into tangible business results every day.
Thank you