Israel Signs Free-Trade Agreement With UAE in First of Its Kind Deal with Arab State
Israel and the United Arab Emirates signed a free-trade agreement this week less than two years after they established formal diplomatic relations. The establishment of formal diplomatic relations was brokered by the US. The free-trade agreement is recognized as the first of its kind, and was singed into action on Tuesday. The deal will cover 96% of bilateral trade, amounting to $1 billion. Officials claim that the agreement will help trade grow to more than $10 million within the next five years. In addition, the deal demonstrates the durability of a series of diplomatic deals that were signed in 2020, the Abraham Accords, normalizing relations between Israel and four Muslim countries in the region: Bahrain, Morocco, Sudan, and the U.A.E.
The Abraham Accords were largely recognized as the biggest diplomatic breakthrough in relations between Israel and its neighboring countries in decades. The latest trade deal can be attributed to those initial accords, making it one of the accord’s most tangible accomplishments. The free-trade deal was crafted amid high tensions between Israel and the Palestinians, including a series of terrorist attacks in Israel. The agreement will hopefully promote peace, stability, and prosperity, according to the U.A.E’s Minister of Trade.