The UAE and Israel signed a free trade agreement that will see tariffs eliminated on 96 percent of goods with the UAE predicting the Comprehensive Economic Partnership Agreement would boost bilateral trade to more than $10 billion a year within five years.
Emirati trade minister Thani Al Zeyoudi announced the trade deal on Twitter, writing: “Today we signed a Comprehensive Economic Partnership Agreement with Israel that builds on the strong foundations laid by the Abraham Accords. It will push the value of our non-oil bilateral trade beyond $10 billion within five years.”
“With the #UAEIsraelCEPA signed, sealed and delivered, we have written a new chapter in the history of the Middle East. Our agreement will accelerate growth, create jobs and lead to a new era of peace, stability, and prosperity across the region,” he tweeted.
The pact was signed in Dubai by Israel’s Minister of Economy and Industry Orna Barbivai and her counterpart, UAE Minister of Economy Abdulla bin Touq Al Marri and is Israel’s first big trade accord with an Arab state.
The historic normalisation of UAE-Israeli relations in 2020, known as the Abraham Accords, has led to further cooperation and investment from both countries and has also opened the doors for tourists to visit their once off-limits counterpart.
At $1.4 billion in March, the economic impact of the Abraham Accords has already been significant, according to Al Marri.
Speaking at an event in Dubai in March, Israeli Ambassador to the UAE, Amir Hayek, called the UAE “a growth engine for businesses looking to expand.”
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