Israel and the United Arab Emirates (UAE), which established relations in 2020, signed a free trade agreement in Dubai on Tuesday, described as historic for being the first of its kind between the Jewish state and an Arab country.and that will raise the bilateral exchange to about $10 billion in five years.
“The Comprehensive Economic Partnership Agreement between the UAE and Israel is expected to stimulate trade flows between the two countries, reaching $10 billion annually in five years”said the Emirati Minister of Economy, Abdullah bin Tuk al-Marieaccording to a statement from his department.
He also stressed that the pact, which was signed in Dubai with its Israeli counterpart, Orna Barbibai“will add about $1.9 billion to UAE gross domestic product during the same period”.
For his part, Barbibai stated that it is “an event of historical importance for economic relations between Israel and the UAE” as it is the “first Free Trade Agreement with an Arab state”according to a statement from the Israeli Ministry of Economy and Industry.
The minister trusted that the agreement will serve to “strengthen trade between both countries, eliminate barriers and promote new business opportunities and alliances”in addition to granting “an immediate or gradual tax exemption in 96% of trade between countries”, which was also confirmed by the Emirati statement.
The pact includes tax exemptions that will be concentrated in the areas of food, agriculture, cosmetics, medical equipment and medicinesand will also consider regulatory issues on electronic commerce and intellectual property rights.
The agreement signed today “will create a new model of constructive cooperation between the countries of the regionon the basis that building flexible and sustainable growth economies requires cooperation, integration, partnership and openness in light of the challenges that the world is currently witnessing,” added the Emirati minister.
Both countries have announced in the last two years numerous memorandums of understanding and millionaire investment agreements, such as the 1,200 million dollars that the Emirati fund Mubadala has invested in Tamarone of the main natural gas fields in Israeli waters.
According to Al Marie, non-oil trade and investment relations between his country and Israel registered close to $2.5 billion until March 2022, of which 1,060 million in the first quarter of this year.
For his part, the Emirati Minister of State for Foreign Trade, Thani al Zeyoudisaid on his official Twitter account that the new agreement with Israel “is based on the solid foundations laid by the Abraham Accords”.
Israel and the UAE established diplomatic relations in accordance with the so-called abraham accordssigned in September 2020 and mediated by the United States.
These agreements represented a shift in the geostrategic board of the Middle East, since they were joined by Bahrain, Morocco and Sudanthus added the countries with which Israel established peace agreements to six, after Egypt (1979) and Jordan (1994).
(With information from EFE)
United Arab Emirates and Israel: security agreements, but also important agreements on food and water
The President of Israel began the first state visit to the United Arab Emirates
United Arab Emirates inaugurated its embassy in Israel