UAE and Israel sign “historic” free trade agreement


The agreement plans to increase the volume of commercial exchange to more than $10,000 million per year over a period of five years.

Economic Minister of Israel and the United Arab Emirates
Economic Minister of Israel and the United Arab EmiratesAFP
  • near East Tension in Jerusalem over ‘parade of flags’

“Historic”. This is the word used by Israel You United Arab Emirates (UAE) to define the free trade agreement signed on Tuesday in a strategic move to strengthen their normalized ties in 2020.

“This is an important and historic agreement that will strengthen Israel’s economy and open up new and exciting opportunities for all citizens,” said Israel’s Minister of Economy and Industry, orna barbieboyAfter signing Israel’s first free trade agreement with an Arab country in Dubai. Something that did not materialize after the signing of peace with Egypt (1979) and Jordan (1994).

Barbibe, who announced that they would “jointly eliminate barriers” and promote “broader trade and new technologies”, praised the work of his Emirati counterpart, Abdullah bin Tuk Al Mari and Minister of State for Foreign Trade, Thani bin Ahmed Al Zayodiqwho declared after the signing of the Comprehensive Economic Partnership Agreement: “We have written a new chapter in the history of the Middle East. Our agreement will accelerate growth, create jobs and usher in a new era of peace, stability and prosperity across the country.” will start. area”.

“Our agreement can demonstrate to countries and governments around the world that cooperation and dialogue are the best ways to turn challenges into opportunities,” Al Marie said. According to him, “it will create a new paradigm in the Middle East.”

Beyond formal words about “bridges between countries and peoples”, the agreement plans to increase trade volume to more than $10,000 million annually over a five-year period and provide immediate or gradual tax exemptions in 96% of bilateral trade. provides. Basically focusing in the fields of agriculture, health and food. According to Emirates, The agreement would mean that its GDP would increase by $1,900 million. In these five years.

According to forecasts by the UAE-Israel Chamber of Commerce, the number of Israeli companies operating in the emirate, or specifically Dubai, will reach 1,000 by the end of 2022, while bilateral trade will exceed $2 billion. The agreement also includes regulation on intellectual property rights and electronic commerce.

After the normalization of relations sponsored by the United States in 2020 in the so-called “Abraham Accords“Emirate and Israel have signed a number of agreements in the economic, commercial, financial, technological and tourism sectors, including flights loaded with Israeli visitors to Dubai. Also, a joint fund to assist small and medium-sized companies who usually have many more difficulties in accessing and enjoying the succulent cake of profits of large Israeli companies operating in the Arab country for over two decades.

In this way, the UAE is trying to diversify its industry exclusively based on oil and gas. Interested in United Arab Emirates high tech Israel and its innovations, especially in the food and water sectors, while attracting Israelis not only because of its financial, logistics and commercial power or its luxury hotels and skyscrapers, but also because of its leadership, for example, In modern and green energy. The prosperous Persian Gulf country is an important enclave for trade not only in the region but also with South Asia and the Far East.

“This agreement, the first of its kind with an Arab state, will strengthen Israel’s economy and open up new and exciting opportunities for all Israeli citizens,” the foreign minister tweeted, yer lapido,

In Israel, they highlight not only the precedent of the agreement with a nation in the region, but also the fact that it was closed in just six months of negotiations. “It usually takes many years to sign free trade agreements between countries,” Prime Minister Naftali Bennett said, before revealing: “At the Sharm el-Sheikh summit about two months ago, Sheikh Mohamed bin Zayed and I agreed Were that it could take even 5 years. Done in a few weeks,” and we instructed the teams to work at top speed. And that’s exactly what happened.”

Israel has economic and trade agreements with Egypt and Jordan that focus on the area of ​​qualified industrial zones. A few days ago, the Israeli government approved initiatives to expand commercial ties with Egypt, including modernizing the Nitzana goods cross-border or increasing agricultural imports and exports. However, it still lacked a comprehensive free trade agreement with its neighbor and, by 1979, a great enemy, such as the one signed with the now new Arab partner.

Under the umbrella of the Abrahamic Agreement, Israel normalizes its relations youthBahrain, Morocco and Sudan However the process is not complete due to its turbulent internal developments with this African country. Israel has strengthened commercial, economic and tourist contacts with Morocco and Bahrain, although, logically, the headlines and focus were devoted to the agreements signed on security and defence.

The bigger question is whether Saudi Arabia will engage in a process of diplomatic normalization with Israel, as a mark of its traditional position, on the resolution of the conflict based on the creation of a Palestinian state. In EL Mundo’s statements, Israeli and Arab diplomatic sources rejected an official agreement in the short or medium term between Israel and Saudi Arabia that, despite less intelligent and more intense relations, shadowed its great common enemy Iran before. Coalition was inspired over the years. And intensified in recent weeks ahead of US President Joe Biden’s visit to the region next June.

according to the norms of

trust project

know more

About the Author

The co-owner & marketing chief of "The Business News", Sravya is also good at Writing and communicating. she has good networking skills. she is really passionate about publishing quality news articles. - - You can reach Her at Facebook:- @sai.sravya.3910

Leave A Response