People are pictured at the Dubai International Financial Centre in this November 10, 2013 file photo
IN PHOTO: People are pictured at the Dubai International Financial Centre in this November 10, 2013 file photo. Islamic banking is based on core principles of the religion. So it is striking that some banks are removing the word "Islam" from their names - a sign of both the potential of Islamic finance to grow, and the obstacles to it becoming mainstream. Reuters/Stringer

New Zealand Prime Minister John Key is on a visit to the Gulf nations, carrying a broader trade agenda. The PM's tour that started on 25th April will also be taking him to Saudi Arabia and make him the first PM of New Zealand to visit that country. Mr. Key's trade agenda involves talks towards a formidable Free Trade Deal with the GCC during the whistle-stop Gulf mission.

Dubai Speech

Radio NZ reports that Mr. Key kicked off his visit in Dubai and addressed its Chamber of Commerce. He welcomed their support for the trade deal and opined that the time is most ripe now. "In my view, a free trade agreement between New Zealand and the Gulf states would take our economic relationship to the next level and stimulate new ties," the PM said.

On Monday, Mr. Key will be opening the newly built New Zealand Consulate-General in Dubai as a sign of increased interest from New Zealand businesses. Mr. Key held a meeting with UAE Prime Minister Mohammed bin Rashid Al Maktoum at Burj Khalifa - the world's tallest building. He also visited capital Abu Dhabi.

FTA Talks

The Prime Minister is giving the visit a higher focus in sealing the NZ-GCC free trade deal, whose negotiations ended way back in October 2009, though it never took off because of the resistance by Saudi Arabia. "There were concerns about a Saudi investor in New Zealand that was one issue,” the PM said. The issue was live export of animals, which was stopped by the Labour government.

Currently, the annual trade between New Zealand and the Gulf Cooperation Council members is about NZ $4.8 billion and GCC is the fifth largest trading partner. Mr. Key said the free trade deal needed a final diplomatic push.

The PM also said security issues are part of his agenda for talks. "We obviously want to talk about trade and economic activities but secondly we want to talk about the region and the very complicated different issues here. Right through from ISIS, what's happening in Iraq and Syria, the issue of refugees but also of course what's happening in Yemen,” Mr. Key said.

Saudi Visit

The important part of the trip will be Mr. Key's visit to Riyadh. The Prime Minister is expected to hold talks with the Royal Family - new Saudi King Salman bin Abdulaziz and Crown Prince Muqrin bin Abdulaziz. Mr. Key has already stated that he would raise some human rights concerns with Saudi Arabia. The Prime Minister will also travel to Kuwait for government level talks.

The Prime Minister is accompanied by a delegation of executives drawn from 18 New Zealand companies. Some of them include Fonterra's John Wilson, former National Party president Michelle Boag, ex-diplomat Charles Finny, now Education NZ chairman, Silver Fern Farms chair Rob Hewett and Sir William Gallagher.

(For feedback/comments, contact the writer at k.kumar@ibtimes.com.au)

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