Dubai: Israel signed a free trade deal with United Arab Emirates On Tuesday, it is building on its US-brokered normalization of diplomatic relations in 2020, a first with an Arab country.
Israel’s ambassador to the oil-rich United Arab Emirates, Amir Hayek, tweeted “Mabruk” – greetings in Arabic – along with a photo of Emirati and Israeli officials at a signing ceremony in Dubai.
The Emirati envoy to Israel, Mohamed Al Khaza, hailed the deal as an “unprecedented achievement” which, according to the Israeli side, eliminates customs duties on 96 percent of all products traded.
“Businesses in both countries will benefit from faster access to markets and lower tariffs as our countries work together to increase trade, create jobs, foster new skills and deepen cooperation,” Khaja tweeted.
The 2020 deal was part of the US-broker Abraham Agreement, in which Israel established diplomatic ties with Bahrain and Morocco.
According to Israeli figures, last year the two-way trade between Israel and the UAE was worth about $900 million.
Dorian Barak, President of the UAE-Israel Business Council, predicted that trade between the regional powerhouse economies would soon multiply by leaps and bounds.
“UAE-Israel trade will grow to more than $2 billion in 2022 to $5 billion in five years, strengthened by cooperation in the renewables, consumer goods, tourism and life sciences sectors,” he said in a statement.
“Dubai is fast becoming a hub for Israeli companies that look to South Asia, the Middle East and the Far East as markets for their goods and services.”
He added that by the end of the year there will be around 1,000 Israeli companies operating in and through the UAE.
– Trade Diplomacy – The UAE was the first Gulf country to normalize relations with Israel and only the third Arab country to do so after Egypt and Jordan.
Negotiations for a free trade agreement began in November and concluded after four rounds of talks.
The latest was held in March in Egypt between Israeli Prime Minister Naftali Bennett and Sheikh Mohamed bin Zayed al-Nahyan, the UAE’s longtime de facto ruler, who became president this month following the death of his half-brother Sheikh Khalifa Were.
Israel hosted a meeting of top diplomats from the United States, the United Arab Emirates, Bahrain and Morocco in March.
Sudan also agreed to normalize ties with Israel in 2020, but the conflict-torn Northeast African country has yet to finalize a deal.
Israel has already entered into free trade agreements with other countries and blocs including the United States, the European Union, Canada and Mexico.
In February, Israel signed a trade agreement with Rabat To designate special industrial areas in Morocco.
– Palestinian issue – The Abrahamic Accord breaks with the long-standing pan-Arab policy of isolating Israel until it withdraws from the occupied territories and accepts Palestinian statehood takes it.
Palestinians denounced agreements reached under then-US President Donald Trump, and conflicts continue, including tensions between Israel and the UAE.
Tuesday’s signing comes two days after thousands of flag-waving Israelis marched through Jerusalem’s Old City during a nationalist procession in which Israel occupied East Jerusalem in 1967.
Israel annexed East Jerusalem in 1980, a move that was never recognized by the international community.
The UAE on Monday “strongly condemned” Israel’s “storm” on one of Islam’s holiest sites, the Al Aqsa Mosque complex in Jerusalem.
The UAE “reiterated its firm position on the need to provide full security for the Al Aqsa Mosque and to prevent serious and provocative violations occurring there”, the official WAM news agency reported.
Israel’s ambassador to the oil-rich United Arab Emirates, Amir Hayek, tweeted “Mabruk” – greetings in Arabic – along with a photo of Emirati and Israeli officials at a signing ceremony in Dubai.
The Emirati envoy to Israel, Mohamed Al Khaza, hailed the deal as an “unprecedented achievement” which, according to the Israeli side, eliminates customs duties on 96 percent of all products traded.
“Businesses in both countries will benefit from faster access to markets and lower tariffs as our countries work together to increase trade, create jobs, foster new skills and deepen cooperation,” Khaja tweeted.
The 2020 deal was part of the US-broker Abraham Agreement, in which Israel established diplomatic ties with Bahrain and Morocco.
According to Israeli figures, last year the two-way trade between Israel and the UAE was worth about $900 million.
Dorian Barak, President of the UAE-Israel Business Council, predicted that trade between the regional powerhouse economies would soon multiply by leaps and bounds.
“UAE-Israel trade will grow to more than $2 billion in 2022 to $5 billion in five years, strengthened by cooperation in the renewables, consumer goods, tourism and life sciences sectors,” he said in a statement.
“Dubai is fast becoming a hub for Israeli companies that look to South Asia, the Middle East and the Far East as markets for their goods and services.”
He added that by the end of the year there will be around 1,000 Israeli companies operating in and through the UAE.
– Trade Diplomacy – The UAE was the first Gulf country to normalize relations with Israel and only the third Arab country to do so after Egypt and Jordan.
Negotiations for a free trade agreement began in November and concluded after four rounds of talks.
The latest was held in March in Egypt between Israeli Prime Minister Naftali Bennett and Sheikh Mohamed bin Zayed al-Nahyan, the UAE’s longtime de facto ruler, who became president this month following the death of his half-brother Sheikh Khalifa Were.
Israel hosted a meeting of top diplomats from the United States, the United Arab Emirates, Bahrain and Morocco in March.
Sudan also agreed to normalize ties with Israel in 2020, but the conflict-torn Northeast African country has yet to finalize a deal.
Israel has already entered into free trade agreements with other countries and blocs including the United States, the European Union, Canada and Mexico.
In February, Israel signed a trade agreement with Rabat To designate special industrial areas in Morocco.
– Palestinian issue – The Abrahamic Accord breaks with the long-standing pan-Arab policy of isolating Israel until it withdraws from the occupied territories and accepts Palestinian statehood takes it.
Palestinians denounced agreements reached under then-US President Donald Trump, and conflicts continue, including tensions between Israel and the UAE.
Tuesday’s signing comes two days after thousands of flag-waving Israelis marched through Jerusalem’s Old City during a nationalist procession in which Israel occupied East Jerusalem in 1967.
Israel annexed East Jerusalem in 1980, a move that was never recognized by the international community.
The UAE on Monday “strongly condemned” Israel’s “storm” on one of Islam’s holiest sites, the Al Aqsa Mosque complex in Jerusalem.
The UAE “reiterated its firm position on the need to provide full security for the Al Aqsa Mosque and to prevent serious and provocative violations occurring there”, the official WAM news agency reported.