Israel signs free trade deal with UAE in first of its kind with Arab state

Israel has signed a free trade agreement with the United Arab Emirates, the first major agreement with an Arab country aimed at strengthening economic ties between the Middle East.

UAE Minister of Economy Abdullah bin Touk and Israeli Minister of Economy and Industry Major General (retd) Orna Barbawei signed the UAE-Israel Comprehensive Economic Partnership Agreement (UAE and Israel CEPA) in Dubai. Significant progress was made in the immediate aftermath of the establishment of diplomatic relations in 2020 under the Abraham Accords.

The UAE-Israel CEPA law allows both sides to reduce or eliminate tariffs on more than 96% of tariff lines and 99% of trade value, increasing exporters' market access, attracting new investment, and creating opportunities in key industries.  Provides unparalleled economic benefits.  The state news agency (WAM) said, including energy, environment and digital trade.

The services sector, such as hospitality, financial services, distribution and construction, will also benefit from the agreement, which will also provide a platform for small and medium-sized businesses.

Both sides hope that the agreement will increase bilateral trade to more than 10 10 billion in five years.

Commenting on the occasion, Abdullah bin Touk said: "Under our leadership, the UAE will continue to grow our economy and strengthen its position as a regional hub for trade, investment and industry in the future."  The CEPA, along with Israel, will build a new model for the region, accelerate growth and highlight the shared belief that the only way to build flexible and sustainable economies in a complex world is to find a bold way forward.  To do

"It also symbolizes something bigger than business: the importance of meaningful partnerships. Our agreement can prove to countries and governments around the world that cooperation and dialogue are the best ways to turn challenges into opportunities."

Meanwhile, an Israeli official said that this is the first complete free trade agreement that Israel has made with an Arab country, adding: "... this is happening in such a short time since the establishment of diplomatic relations.  . "

Earlier, the UAE had signed a comprehensive economic partnership agreement with India, effective May 1.