Israel inked a free trade deal with the United Arab Emirates on Tuesday, its first large commercial arrangement with an Arab state. The move aims to expand commerce between the two Middle East states.
After months of talks, the deal was inked in Dubai.
“Done,” Israel’s ambassador to the UAE Amir Hayek stated on Twitter, answering a message suggesting “the UAE and Israel will sign FTA in the next hour.”
Done ! https://t.co/Z4PCIY9dqt
— Ambassador Amir Hayek (@HayekAmir) May 31, 2022
UAE Ambassador to Israel Mohamed Al Khaja called it “unprecedented.”
#UAEIsraelCEPA is an unprecedented achievement. Businesses in both countries will benefit from faster access to markets and lower tariffs as our nations work together to increase trade, create jobs, promote new skills and deepen cooperation. Thank you Ohad Cohen for your efforts! pic.twitter.com/NIaLFp30L8
— Mohamed Al Khaja (@AmbAlKhaja) May 31, 2022
Businesses in both countries will gain from speedier market access and reduced tariffs as the nations continue to grow trade, create jobs, develop new skills, and strengthen collaboration.
UAE-Israel Business Council President Dorian Barak said the trade agreement defines tax rates, imports, and intellectual property, which would attract Israeli firms to set up operations in the UAE, notably in Dubai.
The council expects there will be over 1,000 Israeli enterprises functioning in or via the UAE by the end of the year.
“The local market isn’t the only chance. Setting up in Dubai to target the area is a good opportunity,” Barak said to Reuters.
Before the signing, Israel’s economics ministry stated the deal will reduce tariffs on food, agriculture, cosmetics, medical equipment and pharmaceuticals.
“Together we will eliminate obstacles and encourage comprehensive commerce and new technologies, which will establish a firm basis for our shared path, contribute to the well-being of residents, and make business simpler,” said Israel’s Economy and Industry Minister Orna Barbivai on Monday.
The deal is struck amid the rising Israeli-Palestinian conflict.
The UAE foreign ministry denounced the assault on Al Aqsa by “extremist settlers under Israeli support”
The foreign ministry called “Israeli authorities to take responsibility for minimising escalation and ending any acts and activities that contribute to continued tensions,” and urged “maximum restraint to prevent additional instability.”
The following day, reporters were ordered to skip the signing. Nobody explained the unexpected shift.
Al Aqsa is the third holiest location in Islam and a remnant of Judaism’s two great temples.
Barbivai told Israeli radio she had heard “nothing out of the norm” concerning Al Aqsa violence during her UAE visit.
Oil-rich UAE signed a similar pact with India in February. Trade negotiations are ongoing with Indonesia and South Korea.
The UAE is actively seeking these partnerships to improve its economy and commercial hub position after the coronavirus epidemic.
Israel and the UAE established relations in September 2020 in a US-brokered arrangement that broke with Arab orthodoxy calling for a Palestinian state before tying with Israel.
Bahrain and Morocco recognised Israel the same year.
Works at The Truth International Magazine. My area of interest includes international relations, peace & conflict studies, qualitative & quantitative research in social sciences, and world politics. Reach@ [email protected]
