DUBAI: Israel signed a free trade deal with the United Arab Emirates on Tuesday, its first with an Arab country, building on their US-brokered normalisation of relations in 2020.<\/p>\n
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.<\/p>\n
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.<\/p>\n
“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.<\/p>\n
The 2020 normalisation deal was part of the US-brokered Abraham Accords that also saw Israel establish diplomatic ties with Bahrain and Morocco.<\/p>\n
Two-way trade between Israel and the UAE last year totalled some $900 million dollars, according to Israeli figures.<\/p>\n
UAE-Israel Business Council president Dorian Barak predicted that trade would soon multiply between the regional powerhouse economies.<\/p>\n
“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.<\/p>\n
“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.”<\/p>\n
Nearly 1,000 Israeli companies will be working in and through the UAE by year s end, he said.<\/p>\n