Leonid Altman / Shutterstock.com
Israel and the United Arab Emirates have signed a comprehensive free trade deal, in hopes to further boost economic ties between the two countries. The historic deal is first of its kind between Israel and an Arab-majority country. Both countries have praised the deal as an “inspiration” and a “new paradigm in the region”, with trade now expected to reach $5 billion a year by 2024.
The agreement covers regulation, custom services, government procurement, e-commerce, and protection of intellectual property wraps. The deal would mean approximately 96% of products traded between the two countries, including food, agriculture, cosmetics, medical equipment, and medication, will be exempt from customs duty, either immediately or over time.
The existing Israel-UAE deal signed during the 2020 Abraham Accords, has already led to trade in the first quarter of this year being recorded at $1 billion. With this new agreement, trade between the countries is forecast to reach $5 billion between 2023 and 2024.
Israeli Minister of Economy and Industry, Orna Barbivai signed the agreement with Emirati Minister of Economy Abdulla bin Touq Al-Marri, who said last year that the UAE hopes to generate over $1 trillion in trade with Israel over the next decade. Barbivai called the deal an “inspiration for the region” that will “generate unlimited opportunities for business, for entrepreneurs from both countries” to strengthen economic ties”. Al-Marri also echoed these sentiments, saying the deal “will create a new paradigm in the region” and “accelerate economic growth and strengthen the common belief that the only way to build sustainable economies in a complex world is together.”
Israel’s ambassador to the UAE, Amir Hayek tweeted “mabruk” (Arabic for congratulations), alongside a photograph of the signing ceremony. Emirati Ambassador to Israel Mohamed Al Khaja called the agreement “an unprecedented achievement,” saying it would benefit both countries greatly.
