Editor’s Note
This article examines the rapid acceleration of economic ties between Israel and the UAE following the Abraham Accords, highlighting early agreements and the significant potential for bilateral trade.
The economic exchange between Israel and the United Arab Emirates (UAE) could reach around $4 billion annually, and there are several examples that business between the two countries has already begun. A small avalanche of agreements began to be recorded just days after the Emirati government announced, last August, its intentions to establish diplomatic relations with Israel, and was reinforced after the signing of the Abraham Accords last month in Washington.
To recover that lost time, the governments and businesspeople of Israel and the United Arab Emirates are already finalizing deals. Here are some examples of the fruits of this new relationship:
In late September, Mobileye, an Israeli company based in Jerusalem and currently a subsidiary of Intel, announced a strategic collaboration agreement with the UAE’s Al Habtoor Group (AHG) to promote the deployment of autonomous vehicles and mobility services in Dubai.
Also in September, Israel’s Bank Leumi and the Emirati group DP World reached an agreement to “boost trade” between the two countries and the rest of the Middle East. In particular, according to the bank, the agreement includes possible financing for the development of Israel’s port sector.
Another of Israel’s major banks, Hapoalim, signed a memorandum of understanding with Dubai’s largest bank, Emirates NBD, just one week after authorities from the two countries reached a similar agreement on September 1st in the financial sector.
Of course, diamonds, one of Israel’s main export products, could not be missing from this wave of business. An agreement between the two countries will see the opening of an Israel Diamond Exchange office in Dubai, and a representation of the Dubai Diamond Exchange near Tel Aviv.
A few days ago, the transfer of the first Israeli footballer to play for an Arab team was finalized. This is, of course, a UAE club, Al-Nasr, which signed player Dia Saba, an Israeli Muslim who is often called up to the national team. In the football world, considering the multi-million dollar investments by Emirati businessmen in football clubs worldwide, it was not surprising that – according to rumors – an Israeli team, none other than Beitar Jerusalem, could be acquired by UAE capital.
During a webinar held at the end of last month, officials from both countries acknowledged – without giving further details – that they are collaborating in the cybersecurity sector, seeking more and better ways to work together to neutralize hacker attacks in the region.
Last week, the Israeli government said that, once the coronavirus pandemic has passed, it expects the country to gradually receive up to 100,000 tourists annually from the UAE. Abu Dhabi authorities are also preparing for the arrival of Israeli tourists and have already ordered hotels in the emirate to ensure they have kosher food certificates for the new visitors. On the other hand, the airline Israir announced that it has already reserved space at Ben Gurion Airport to operate its direct flights to the UAE.
