AUSTRIA’s $3,000 payment to Dubai could have a bigger impact on the UAE than a $3 billion dollar deal struck with Beijing last month, a senior bank executive has warned.

Key points:Australian and UAE officials have agreed on a $2 billion agreementThe deal would see a total of 6,500 jobs created at the airportThe UAE has agreed to allow some expats to use the Dubai airport for businessThe deal was one of the most controversial deals of the past year in the region, with the Australian government threatening to pull out of the $US4.8bn deal with Qatar.

The UAE is now reportedly finalising a $7 billion deal that would see 5,000 jobs created in Dubai.

The move was seen as a major win for Australia, which has already spent millions of dollars on infrastructure upgrades at the Dubai Airport.

But senior bank officer John Beddington said the deal was worth much more than what was expected.

“I don’t think it’s going to be the last deal where the Australian Government’s going down the road of taking a look at what’s really going on in the Middle East,” he said.

“It is something that has been on our radar for some time and it’s certainly one of those deals that is going to have an impact on a lot of people.”

He said the $2bn payment to the UAE would be significant in terms of economic impact.

“For the Australian taxpayer, I think it is quite significant in the sense that this would be a major economic driver for the Middle Eastern economy and that it will be a significant contribution to the overall economy of the UAE,” he told the ABC.

“The amount of money that we are looking to get in this is quite big and we will be looking at it closely.”

The deal is one of a series of agreements Australia has struck with Gulf countries to promote tourism and economic growth.

“We’ve had a number of deals with other Gulf states in recent years,” Mr Beddingham said.

He said that the deal with the UAE was a “significant milestone” for Australia and the world, but said it was not the last major economic deal with a country that has such a strong relationship with the United States.

“That will not be the end of it,” he added.

The Australian Government announced a $US1.9 billion investment package to the Middle-East in January, with a $4 billion package set to come into effect next year.

Mr Beddham said the latest deal could bring the total to $US5.9bn.

“At a minimum, this deal will see a significant economic impact for the UAE as well as for Australia as a whole,” he noted.

“This deal will also be significant for the region as it is one that will benefit all the parties involved and it will also benefit our economy as a country.”

He warned that it would be premature to draw any conclusions about the future of the deal.

“There’s a lot more work to be done, and a lot is still to be worked out, but I think we are well positioned to make a positive contribution to this important region,” he explained.

Topics:world-politics,,dubai,united-statesFirst posted October 04, 2018 08:15:00More stories from Australia

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