About 5 months ago, the United States agreed with Israel and the United Arab Emirates to establish a financial fund of $ 3 billion, to be based in Israel, to support initiatives related to private sector development in the countries of the Middle East.

The tripartite pledge came as a supplement to the normalization treaty called the Abraham Peace Agreement between the UAE and Israel, which the two parties signed on the White House lawn with the participation of former President Donald Trump on September 15.

Months later, press reports indicated that the agreement entered the stage of "clinical death" with President Joe Biden's complete neglect of it, which led to the resignation of America's representative in the Fund, Arieh Larson, and Washington did not name a replacement for it.

Ambitious ideas or ink on paper?

On October 19, the three parties expressed their pride in establishing the "Abraham Fund", which was planned to attract more than $ 3 billion to support and finance investment and development initiatives led by the private sector to enhance regional economic cooperation and prosperity in the Middle East and beyond, according to Founders say it.

At the fund’s inauguration ceremony, then US Treasury Secretary Steve Mnuchin said, “The Abraham Accords establish direct economic ties between two of the most prosperous and advanced economies in the Middle East. These links create a tremendous basis for economic growth and opportunities ... and with greater economic prosperity, security is enhanced. ".

The fund was created as an arm of the US International Development Finance Corporation (DFC), a government-funded institution established in 2019 by combining the Overseas Private Investment Corporation and the Development Credit Authority of the United States Agency for International Development.

American reports indicated that more than 250 applications were submitted to the Abraham Fund from October 2020 to January 2021 by private companies and quasi-public initiatives from the United Arab Emirates, Jordan, Bahrain and Egypt, some of which were bilateral joint ventures. Eventually a project was sent to Washington for approval.

But the fate of these projects is not known.

Agreement under review

A former US ambassador told Al-Jazeera Net that "this type of agreement is signed with the aim of taking pictures only. Not many people have heard of this initiative. Perhaps that is because it took place days before the last presidential elections .. It is certain that the US government bureaucracy has suspended this initiative until the end of the period Trump judgment. "

The diplomat, who asked not to be named, indicated that "any new administration is expected to review any initiatives signed by the previous administration in its last days. With the great support for the peace agreement between Israel and the Arab countries, other details remain in the hands of the Foreign Ministry and Treasury officials appointed by the president." Biden: It is not strange that there is no enthusiasm for an agreement in which the foundations for implementation of what was stated in it have not been laid down, especially with regard to the sources of funding.

A legal expert also indicated that the legal implications within the United States should be considered when considering a tripartite partnership.

For example, and unlike Bahrain and Israel, the United States does not have a free trade agreement with the UAE, and the absence of such a bilateral agreement impedes freedom of trade, country considerations, and customs duties and taxes between parties to joint initiatives.