Israel and the United Arab Emirates signed this Tuesday (31) a free trade agreement that consolidates the normalization of diplomatic relations between the two countries. It is the first pact of its kind between the Israeli government and an Arab country.
Under the plan, import tariffs on 96% of products traded between countries will be eliminated — goods include food, cosmetics and medical equipment, among others. The UAE’s ambassador to Israel, Mohamed Al Khaja, called the deal an “unprecedented achievement”.
“Companies from both countries will benefit from faster access to markets and lower tariffs as our nations work together to increase trade, create jobs and deepen cooperation,” he wrote on social media.
The initiative is an offshoot of the so-called Abraham Accords, signed in 2020 by Israel and former Middle Eastern enemies, including the United Arab Emirates, Bahrain and Morocco. The treaties were brokered by the US government and represent the most important advance in decades in the search for an end to the conflict between Arabs and Israelis.
Trade between Israel and the United Arab Emirates reached US$ 900 million (R$ 4.2 billion) last year. This Tuesday, the president of the business council that unites the two regional powers, Dorian Barak, said he believed in a considerable increase in negotiations.
“Trade between the Emirates and Israel will exceed US$ 2 billion [R$ 9,4 bilhões] in 2022 and will increase to nearly $5 billion [R$ 23,6 bilhões] in five years, reinforced by collaboration in the renewable energy, consumer goods, tourism and science sectors,” Barak said in a statement. He said he expected up to 1,000 Israeli companies to establish offices in the Emirates by the end of this year.
“Dubai is rapidly 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.”
Israel’s ambassador to Abu Dhabi, Amir Hayek, also celebrated the agreement and posted the word “congratulations” on social media along with a photo of the authorities of the two countries during the signing ceremony of the pact in Dubai.
Negotiations for the agreement began in November and concluded in April, after four rounds of talks. Israel has already signed free trade agreements with other countries and blocs, including the US, European Union, Canada and Mexico.
Tuesday’s signing comes two days after a march by Israelis through the old city of Jerusalem to celebrate the capture of its eastern part in 1967. The annexation has never been recognized by the international community.
The rally was marred by tension between police, Israeli and Palestinian protesters, who consider the annual event a provocation. Some people entered the Esplanade of Mosques, one of the holiest places in Islam, defying the ban on performing prayers in time. The UAE “strongly condemned” what it called an Israeli attack on the site.​
