Israel's fast-growing trade ties with the UAE

Image source, Reuters

The opening bell of the Tel Aviv Stock Exchange is rung by Mohamed Al Khaja.

Cheers erupt as Ittai Ben-Zeev, the boss of the exchange, shakes hands with Mr Alkhaja, the ambassador to Israel.

The main stock market in Israel is opening. It's another milestone in the relationship between Israel and the United Arab Emirates.

The United States and the United Kingdom agreed to normalise relations with Israel. The long-standing boycott of Israel by all Gulf states was ended.

Sabah Al-Binali was smiling as he watched the event in Tel Aviv.

The executive chairman of OurCrowd Arabia said that they are witnessing history in the making, seeing the steady development of a long, deep and fruitful relationship between natural Middle East neighbours.

The growing business ties between Israel and the U.S. are a win-WIN for everyone.

I expect the results of our cooperation to be even greater than the already impressive parts because of the synergy between Israeli and Emirati business and technology skills and experience.

We are looking at joint projects in med-tech, ag-tech, and cybersecurity, to name a few sectors where work is already advanced.

Several business deals were agreed in principle at the conclusion of the visit, according to Mr Al-Binali.

The Abraham Accords will lead to an increase in trade between Israel and the U.S., according to economists. Israel has a strong tech sector.

The second biggest economy in the Gulf is the United Arab Emirates. The United States is still dominated by oil sales.

One of the seven emirates that make up the U.S. is home to the founder and chief executive of Algorithm Research.

Over the next five years, she thinks trade between Israel and the U.S. will reach $10 billion.

The accord was signed in 2020 and has already given a huge boost to both Israel and the United Arab Emirates.

From 2020 to 2021, UN data shows that Israel's annual exports to the U.S. increased from $74 million to $384 million. The amount of trade going in the other direction went from $115 million to $632 million.

Agriculture, clean energy, cybersecurity and smart cities are some of the areas in which the two countries have signed a Memorandum of Understanding.

There was a free trade agreement signed between the two countries in early 2022, which resulted in the removal of tariffs on 98% of goods traded between the nations.

Following the Abraham Accords, Israel broke records in arms sales. The Israeli Ministry of Defence says that arms sales peaked at $11.3 billion in 2021.

Iran is a common security threat in the region according to the former defence minister of Israel.

Israel and the Gulf states have been facing common enemies in the last decade, namely Iran and her proxies, and there is no longer the Arab-Israeli conflict.

The normalisation deals with Israel have been criticized by the Palestinian Authority.

Morocco has also signed a normalisation agreement with Israel. Sudan and Israel have not been able to improve their relationship.

Mr Ya'alon is the Chairman of Synaptech.

He thinks defence alliances are part of Israel's new relationship with the Gulf states. He can't give a lot of details because of national security. He will only say that they have found a way to work together.

There are many areas for growth according to Mr Ya'alon.

"Gulf state leaders realized they need something more than oil, such as high tech, sophisticated agriculture in the desert, exploitation of water and so on." We are lucky to have achieved these technologies in Israel. We have a lot of interests.

There are deals being signed between Israel and the United Arab Emirates. The sale of New Med Energy's 22% stake in Israel's offshore gas field to Mubadala Energy was announced in September of last year.

It was necessary for New Med to find a buyer to comply with the rules.

The deal we signed with Mubadala was a significant step in furthering our regional activity and strengthens our relations with the countries of the region.

Mas Watad is a Palestinian citizen of Israel and the co- founder and president of a diet app.

The Abraham Accords allowed them to expand to the Gulf.

The agreements have made it possible for her and her team to move freely between Israel and the United Arab Emirates. Ms Watad's family home has been relocated to Abu Dhabi.

She says that the Abraham Accords allow Dawsat to see its "full effect and impact across the Arab world".

"I hope that other countries in the Gulf region will seek their own agreements with Israel as they see positive outcomes from the UAE's experience," she said.

She says that everyone is optimistic about the future.