JCPOA was designed to limit Iran’s nuclear program, in return for which Iran was granted relief from certain United Nations, EU and US sanctions. As a result of the US withdrawal, almost all of the US sanctions waived or lifted in 2016 will be reinstated. The EU, including the JCPOA parties Germany, France and the UK, advised they have decided to abide by the commitments under JCPOA, so long as Iran respects its obligations.
While the Australian government will also abide by UNSC Resolution 2231 which recognises the agreement under the JCPOS, the actions of the US could have a direct and indirect impact on the current bilateral trade and investment relations between Iran and Victoria. The Australian Government is encouraging Australian businesses to examine and take legal advice on implications of re-established domestic sanctions by the United States.
Expo 2020 Dubai Opportunity
As reported in a previous update, the 2020 World Expo in Dubai will be run from 20 October 2020 to April 2021, the first World Expo to take place in the Middle East, Africa or South Asia.
In October this year, the 2020 Expo committee will again be calling for innovative proposals under its Innovation Impact Grants scheme. Entrepreneurs, SMEs, NGOs and government entities are invited to submit proposals for innovative solutions that can improve people’s lives or preserve the planet or both. Companies could be eligible for up to USD100,000 if their project is chosen by the Expo 2020 team and their project showcased at Expo 2020 Dubai.
For more information see https://www.expo2020dubai.com/expo-live/Innovation#innovation-impact-grant-programme
Autumn 2018 Update
On 26 March 2018, the Australian Government announced it would participate in the 2020 World Expo in Dubai. Running from 20 October 2020 to April 2021, this will be the first World Expo to take place in the Middle East, Africa or South Asia. Expo 2020’s theme of Connecting Minds, Creating the Future will explore how global challenges can be addressed through the interlinking themes of Opportunity, Mobility and Sustainability. It's expected that around 25 million visitors will attend and that 70 per cent will come from outside the UAE, the largest proportion of international visitors in World Expo history.
Procurement by the Australian Government and Expo 2020 provide opportunities for Victorian companies to win business in the UAE, showcase their capabilities to a global audience and build their reputation within the Middle East and North Africa. Expo 2020 has earmarked 20% of its Dh25 billion budget for contracts with SMEs, providing a unique opportunity for smaller companies to access the market.
Opportunities exist in:
- Services – architectural, engineering, urban planning, facilities management, consultancy services and training (retail, food logistics, service delivery).
- Innovation – liveability and sustainability, clean energy, waste management, Internet of Things (IoT), blockchain, health, R&D and transport.
- Food and beverages – premium food and beverage products, solutions to food waste and food packaging.
Opportunities to supply the Australian Government will be advertised on AusTender. As at 3 April 2018, there is currently an open tender for Lead Consultant Services (Pavilion Design & Architecture).
Opportunities to supply goods and services to Expo 2020 are advertised on the Expo Procurement Portal. Tenders are open to companies from around the world, and SMEs are encouraged to apply.
Start-ups with innovative ideas may wish to apply for the next round of Expo 2020’s Innovation Impact Programme (IIP). IIP funds novel and innovative solutions which support the Expo’s key themes, such as opportunity, mobility and sustainability.
Summer 2018 Update
New Value Added Tax (VAT) Scheme for Saudi Arabia and the United Arab Emirates
On 1 January 2018, Saudi Arabia and the United Arab Emirates (UAE) implemented a new Value Added Tax (VAT) scheme at a standard rate of 5 per cent. Other members of the Gulf Cooperation Council (GCC) have also committed to introducing VAT. However, Bahrain, Kuwait, Oman and Qatar have delayed implementation until at least 2019.
The diplomatic standoff between Qatar and a coalition led by Saudi Arabia and the United Arab Emirates continues to drive government investment in food security. In addition to continued demand for reliable sources of food and beverage imports, governments in the Gulf Cooperation Council (GCC) are investing in projects to increase local production, such as Oman’s announcement of a new 25,000 head dairy worth US$260 million.
- Victorian food and beverage exporters can expect to see continued interest from buyers in the Middle East & North Africa.
- There are opportunities for water management and agricultural businesses to export goods and services to support GCC projects which build domestic production capabilities.
- Victoria is well positioned to attract further investment into farms and food processing sites, as GCC states look to secure supply chains.
In December 2017, the Victorian Government announced new initiatives to strengthen trade, investment and institutional ties between Victoria and Israel. This includes plans to establish a Trade and Investment Office in Tel Aviv, a new Biomedical Innovation and Commercialisation Exchange program and an exclusive agreement with the Israel Australia Chamber of Commerce to provide targeted in-market support for Victoria. In addition to new initiatives, Victorian organisations can still access funding through the Victoria-Israel Science Innovation and Technology Scheme (VISITS).
Implications for Victoria include:
- Improved access for Victorian exports to market intelligence, advice and introductions in the Israeli market.
- Greater profile in-market for Victoria’s world-class capabilities in key sectors such as health and medtech; water management and agtech; cyber security and defence; and digital technologies.
- An additional avenue to identify and engage with Israeli partners in biomedical research and commercialisation projects.