Stimulating bilateral trade to reach $10 billion annually within 5 years

The UAE and Israel sign a comprehensive economic partnership agreement

Officials of the Ministries of Economy in the UAE and Israel during the signing ceremony of the partnership agreement.

From the source

Yesterday, the UAE and Israel concluded a comprehensive economic partnership agreement, with the aim of consolidating trade and investment relations, and stimulating intra-non-oil trade, reaching $10 billion annually within the next five years.

The agreement was signed by the Minister of Economy, Abdullah bin Touq Al-Marri, and the Israeli Minister of Economy and Industry, Orna Barbivai, in a ceremony held at the headquarters of the Ministry of Economy in Dubai, to start a new era of constructive cooperation in light of the Abrahamic Peace Agreement signed between them in September 2020.

Economic advantages

The Comprehensive Economic Partnership Agreement between the UAE and Israel provides many advantages to the economies of the two countries, by eliminating customs duties on 96% of goods that generate about 99% of export revenues, and enhances exporters' access to markets, attracts more investments, and provides new opportunities in key sectors. Such as: energy, environment, e-commerce, digital economy, and technology.

The agreement also stimulates the growth of service sectors, such as hospitality, financial services, distribution, and construction, and provides a platform for small and medium-sized enterprises in the two countries to expand globally.

trade flows

The Comprehensive Economic Partnership Agreement is expected to stimulate trade flows between the two countries, reaching $10 billion annually within five years. non-oil state.

new model

The Minister of Economy, Abdullah bin Touq Al Marri, affirmed that the UAE continues to take firm steps to advance the national economy and enhance the country's position as a global center for trade, investment and future industries, in line with the leadership's forward-looking vision, and in implementation of the "fifty projects".

He said, "The comprehensive economic partnership agreement between the UAE and Israel will create a new model for constructive cooperation between the countries of the region, based on the premise that building flexible and sustainable economies of growth requires cooperation, integration, partnership and openness in light of the challenges the world is currently witnessing."

Two-way trade

He added, "The agreement also proves that cooperation and dialogue is the best way to turn challenges into opportunities," noting that trade and investment relations between the UAE and Israel have witnessed rapid growth since the signing of the Abrahamic Peace Agreement in September 2020, as intra-non-oil trade recorded about $2.5 billion since From then until the end of March 2022, it recorded $1.06 billion in the first quarter of 2022, which is five times what was recorded in the same period last year.

Economic Partnerships

For her part, the Israeli Minister of Economy and Industry, Orna Barbivai, affirmed that her visit to the UAE bears strategic importance for the economic relations between the two countries, after a comprehensive economic partnership agreement was signed between them, and a series of other economic partnerships were also moved forward.

"Together, we will overcome challenges, and we will work to promote comprehensive trade and advanced technologies that will serve as the basis for our common path, thus contributing to facilitating business and achieving the common interests of the two countries," she said.

She added, "This is the first comprehensive economic partnership agreement to be concluded with an Arab country, and it was successfully completed in a short time following the establishment of diplomatic relations."

new era

For his part, Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi, affirmed that the comprehensive economic partnership agreement between the UAE and Israel paves the way for a new era of trade and investment relations between the two countries, after the momentum witnessed in cooperation between them since the signing of the Abrahamic Peace Agreement in 2020.

He said, "The agreement aims to stimulate economic activity and provide more opportunities for the business communities in the two countries in promising sectors such as agricultural technology, renewable energy, and advanced technology, knowing that these sectors that represent the future economy are a common priority in the two countries."

He continued, "This agreement reflects the vision of the UAE to use trade and investment as the main drivers of sustainable growth for the national economy, and will lay solid foundations for stronger relations across the main economic sectors in the two countries, as well as enhance exports, and encourage the flow of more foreign direct investment."

Al Zeyoudi stressed that the agreement will provide a platform for small and medium companies in the two countries to expand internationally, by giving them access to new dealers, networks and means of cooperation, and will enhance the mutual trade flow, in light of the significant annual growth in the two countries currently witnessing.

chain of agreements

The Comprehensive Economic Partnership Agreement between the UAE and the State of Israel is part of a series of similar agreements with eight countries, with the aim of contributing to doubling the national economy, reaching three trillion dirhams by 2030, and stimulating economic recovery in the post-Covid-19 pandemic. This is under the umbrella of the "50 projects" aimed at promoting the country's internal and external growth over the next 50 years.

The agreement is the second concluded by the UAE after a similar agreement signed with India last February, and it has already entered into force in early May 2022.

Elimination of customs duties on 96% of goods, which generate about 99% of export earnings.

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