Israel’s ambassador to the oil-rich UAE, Amir Hayek, tweeted
“mabruk” — congratulations in Arabic — with a photo of Emirati and Israeli
officials holding documents at a signing ceremony in Dubai.
The Emirati envoy to Israel, Mohamed Al Khaja, hailed as an
“unprecedented achievement” the deal that, according to the Israeli side,
scraps customs duties on 96 percent of all products traded.
“Businesses in both countries will benefit from faster
access to markets and lower tariffs as our nations work together to increase
trade, create jobs, promote new skills and deepen cooperation,” Khaja tweeted.
The 2020 deal was part of the US-brokered Abraham Accords
that also saw Israel establish diplomatic ties with Bahrain and Morocco.
Two-way trade between Israel and the UAE last year totalled
some $900 million dollars, according to Israeli figures.
UAE-Israel Business Council president Dorian Barak predicted
that trade would soon multiply between the regional powerhouse economies.
“UAE-Israel trade will exceed $2 billion in 2022, rising to
around $5 billion in five years, bolstered by collaboration in renewables,
consumer goods, tourism and the life sciences sectors,” he said in a statement.
“Dubai is fast becoming a hub for Israeli companies that
look to South Asia, the Middle East and the Far East as markets for their goods
and services.”
Nearly 1,000 Israeli companies will be working in and
through the UAE by year’s end, he said.
Trade diplomacy
The UAE was the first Gulf country to normalise ties with
Israel and only the third Arab nation to do so after Egypt and Jordan.
Talks for a free trade agreement began in November and
concluded after four rounds of negotiations.
The latest was held in March in Egypt between Israeli Prime
Minister Naftali Bennett and Sheikh Mohammed bin Zayed Al-Nahyan, UAE’s
long-time de facto ruler who became president this month after the death of his
half-brother Sheikh Khalifa.
Israel had in March hosted a meeting of the top diplomats
from the United States, UAE, Bahrain and Morocco.
Sudan in 2020 also agreed to normalise ties with Israel, but
the strife-torn northeast African country has yet to finalise a deal.
Israel has already struck free trade agreements with other
countries and blocs, including the United States, European Union, Canada and
Mexico.
In February, Israel signed a trade deal with Rabat to
designate special industrial zones in Morocco.
Palestinian issue
The Abraham Accords broke with long-standing pan-Arab policy
to isolate Israel until it withdraws from the occupied territories and accepts
Palestinian statehood.
Palestinians condemned the agreements struck under then US
president Donald Trump, and the conflict continues to inflame tensions,
including between Israel and the UAE.
Tuesday’s signing came two days after thousands of
flag-waving Israelis marched through Jerusalem’s Old City during a nationalist
procession marking Israel’s 1967 capture of east Jerusalem.
Israel annexed east Jerusalem in 1980, a move never
recognised by the international community.
The UAE on Monday “strongly condemned” what it called
Israel’s “storming” of Jerusalem’s Al Aqsa mosque compound, one of Islam’s
holiest sites.
The UAE “reiterated its firm position on the need to provide
full protection for Al Aqsa Mosque and halt serious and provocative violations
taking place there”, reported the official WAM news agency.