Arab countries have long avoided extensive agreements with Israel over the Palestinian question.
Israel has signed its first free trade agreement with the Arab world. The agreement was reached after more than six months of negotiations between Israel and the United Arab Emirates.
Ambassador of the United Arab Emirates Amir Hayek told of the emergence of the deal on Twitter, briefly stating “Done!”.
Israeli representatives said earlier that the agreement would eliminate tariffs on food, agricultural supplies and medicines, for example.
According to Jerusalem Post (you will switch to another service) the agreement covers 96 percent of trade between Israel and the United Arab Emirates, which, according to Israeli sources, was worth more than € 800 million last year. The agreement is expected to more than quintuple trade between the countries over the next five years.
Israel and the United Arab Emirates established full diplomatic relations just two years ago as part of an agreement brokered by the United States, in which Israel also established relations with Morocco and Bahrain. The agreements ended a decade in which Arab countries boycotted Israel over the Palestinian conflict.
Known as an oil state, the United Arab Emirates is currently negotiating a number of other bilateral trade agreements, but so far it has agreements only with India and Israel. With the agreements, the emirates hope to strengthen their economy, which has been damaged by a corona pandemic.
The United Arab Emirates-Israel trade delegation estimates that by the end of the year, nearly a thousand Israeli companies will also be operating in the Emirates. The country also serves as a route for them to the Central and South Asian markets.