Other BriefingsUAE, Israel, Sign Free Trade CEPA Agreement
The UAE and Israel have ratified a free trade agreement, reducing or removing tariffs on about 96% of goods traded between the nations, Israel’s Foreign Ministry has said. The two countries first reached the agreement last May, promising to boost bilateral trade after they normalized ties in 2020 in a U.S.-brokered deal under the Abraham Accords.
That has now been expanded into a full Closer Economic Partnership Agreement. The deal will also allow Israeli companies to gain access to government tenders in the UAE, and vice versa.
Israeli Foreign Minister Eli Cohen said the agreement would “strengthen the connection” with the UAE and that Israel was working to normalize ties with more Arab countries.
The deal will also support service sectors such as hospitality, financial services, distribution, and construction and provide a platform for small to medium-sized enterprises in both countries to expand internationally. It is expected to advance bilateral trade beyond US$10 billion within five years and add US$1.9 billion to the UAE’s GDP within the same time period. Total UAE exports to Israel are expected to increase 0.5% by 2030.
The UAE-Israel deal is part of a series of initiatives that the UAE has launched to build a stronger, more resilient economic future. Trade deal negotiations are due to start in a matter of weeks with Ukraine and follows the recent conclusion of other UAE CEPA with India and Indonesia.
The UAE is also in trade talks with Turkey, Georgia and Cambodia, as part of its strategy to double its economy to US$817 billion by 2030.
Dezan Shira & Associates have an office in Dubai and can assist Israeli businesses into the UAE. For assistance, please contact Maria Kotova at dubai@dezshira.com
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