Dr Mike Evans

Israel signs free trade deal with UAE in historic first with Arab nation

Israel joined its first free trade agreement with an Arab nation on Tuesday, joining a new deal with Abraham Accords partner UAE.

Israel’s Minister of Economy and Industry Orna Barbivay and the UAE Minister of Economy Abdalla Bin Touq Al Marri signed the historic agreement on Tuesday.

Barbivay stated the move was “of strategic importance to the economic relations between the State of Israel and the United Arab Emirates. Together we will remove barriers and promote comprehensive trade and new technologies,” according to the Jerusalem Post.

“I’m certain that this is not only about developing opportunities in the business community and initiatives and developing new technology in Israel but also in the Emirates. And you know what? It will be an inspiration to the countries that are watching about the things that are possible. I am convinced that we have here an unlimited potential,” she added, according to CBN News.

The agreement follows a series of new partnerships between the two nations that have emerged since both nations, along with Bahrain, signed the Abraham Accords in Washington, D.C. in 2020. Sudan and Morocco also later joined in the normalization agreement.

Last year’s trade between the two nations was a reported $885 million. The number is expected to grow further following the agreement.

Dr. Sabah al Binali, Executive Chairman of OurCrowd Arabia says the deal will take the two markets beyond imports and exports
“The next steps we’ll see is, operating joint ventures, joint contractual ventures between Emirati and Israeli businesses to figure out how to work with each other,” al Binali told journalists.

In addition to the new agreement with the UAE, the U.S. has reportedly been meeting with leaders from Saudi Arabia about the possibility of a normalization agreement with Israel. Though discussions have been positive, no current plans have been noted regarding a coming deal.