JERUSALEM: Israel and the United Arab Emirates have concluded negotiations for a free trade agreement after formally establishing ties in 2020.
The trade agreement includes 95% of traded products, which will be customs free, immediately or gradually, including food, agriculture and cosmetic products, as well as medical equipment and medicine, the Israeli Economy Ministry said in a statement.
The agreement included regulation, customs, services, government procurement and electronic trade and will come into effect when signed by the countries’ economy ministers and ratified, the statement said, though no timetable was given.
The UAE and Israel formally established relations in 2020 as part of the US-brokered Abraham Accords that also included Bahrain and Morocco. “This milestone deal will build on the historic Abraham Accords and cement one of the world’s most important and promising emerging trading relationships,” United Arab Emirates Minister of State for Foreign Trade Thani Al Zeyoudi said on Twitter.
We have concluded talks on a Comprehensive Economic Partnership Agreement with Israel and it is now ready for signature. This milestone deal will build on the historic Abraham Accords and cement one of the world’s most important and promising emerging trading relationships. pic.twitter.com/WgYgJ1YiLD
— د. ثاني الزيودي (@ThaniAlZeyoudi) April 1, 2022
Trade between the UAE and Israel is continuing to grow since the two states established diplomatic relations in 2020 as part of the US-brokered Abraham Accords that also included Bahrain and Morocco.
Following the normalization agreement, the nations have also embarked on a series of cooperative ventures – including a joint research and development fund of over $94 million to promote tech projects within Israeli and Emirati firms.
“This milestone deal will build on the historic Abraham Accords and cement one of the world’s most important and promising emerging trading relationships,” UAE Foreign Trade Minister Thani Al Zeyoudi tweeted.
Last month the CEO of the Dubai Chamber of Commerce and Industry Hamad Buamim said Israel could be one of the UAE’s top ten trading partners “in five years or more.”
