Since normalization, UAE-Israel trade volumes hit $2.5bn, says Minister

Dubai (QNN)- Trade volumes between the United Arab Emirates (UAE) and ‘Israel’ have hit $2.5 billion since normalizing ties in 2020.

Speaking at the World Economic Forum in Davos on Friday, the UAE Foreign Trade Minister Thani Bin Ahmed Al Zeyoudi said that “in the last two years, the trade volume between the UAE and Israel exceeded $2.45 billion just in two years.”

“Only in the first quarter of 2022, we already exceeded $1 billion, which means this year we’re going to exceed $2 billion.”

The minister explained that 65 deals and memoranda of understanding have been signed between the UAE and ‘Israel’ so far, adding that “more than 1,000 Israeli companies are expected to base themselves in our country this year.”

According to Al Zeyoudi, ‘Israel’ and the UAE also plan to continue cooperation in the areas of water, energy, health and green energy.

Al Zeyoudi remarked on future bilateral plans, saying the two are making progress towards signing a free trade agreement after less than four months of negotiations which could boost bilateral trade to $5 billion annually.

“Relations between our two countries have existed for only 18 months, and this confirms the fact that one of the main objectives of the Abraham Accords is economic,” he said.

On Tuesday, ‘Israel’ signed a free trade agreement with the UAE, its first big trade accord with an Arab state since normalizing relations.

“Done,” Israel’s Ambassador to the UAE Amir Hayek said on Twitter, replying to another tweet he posted earlier saying “the UAE and Israel will sign FTA in the next hour.”

President of the UAE-Israel Business Council Dorian Barak said the trade agreement defined tax rates, imports and intellectual property, which would encourage more Israeli companies to set up offices in the UAE, particularly in Dubai.

The council predicts there will be almost 1,000 Israeli companies working in or through the UAE by the end of the year.

The agreement was signed amid escalating violence in occupied Jerusalem as extremist Israelis took part in the annual ‘flag march’ over the weekend and systematically attacked Palestinians, including the elderly.

The UAE was the first country to agree to normalize ties with the occupation state under the Abraham Accords, a pact brokered by the United States, a move that was followed by Bahrain, Morocco and Sudan.

Palestinians condemned the normalization agreements, saying they encouraged Israel’s denial of their rights and do not serve the Palestinian cause.

Abu Dhabi said the deal was an effort to stave off Israel’s planned annexation of the occupied West Bank, however, opponents believe normalization efforts have been in the offing for many years as Israeli officials have made official visits to the UAE and attended conferences in the country which had no diplomatic or other ties with the occupation state.