DUBAI – Israel has signed a free trade agreement with the United ArabEmirates (UAE), its first mega deal with an Arab state that aimed atbolstering economic ties between the Middles Eastern countries.
Abdulla Bin Touq, Minister of Economy of the United Arab Emirates, andMajor General (Retd) Orna Barbivay, Minister of Economy and Industry forthe State of Israel, signed the UAE-Israel Comprehensive EconomicPartnership Agreement (UAE-Israel CEPA) in Dubai, a major developmenthappened such a short time after the establishment of diplomatic relationsin 2020 under the Abraham Accords.
The UAE-Israel CEPA offers unprecedented economic benefits for both partiesby lowering or eliminating tariffs on more than 96 percent of tariff linesand 99 percent value of trade, enhancing market access for exporters,attracting new investment, and creating opportunities in key industries,including energy, environment, and digital trade, the state-run WAM newsagency said.
Service sectors such as hospitality, financial services, distribution, andconstruction would also get benefit from the deal, which will also provideplatforms for SMEs.
Both sides hoped that the deal would take the bilateral trade beyond $10billion within five years.
Commenting on the occasion, Abdulla Bin Touq said: “Under the directives ofour leadership, the UAE continues to take bold steps to advance our economyand enhance our status as a regional hub for trade, investment, and theindustries of the future. This CEPA with Israel will create a new paradigmfor the region. It will accelerate growth and underscores a shared beliefthat the only way to build resilient and sustainable economies in a complexworld is by doing so together.
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“It also symbolises something greater than business: the importance ofbuilding meaningful partnerships. Our agreement can demonstrate to nationsand governments around the world that cooperation and dialogue are the bestways to transform challenges into opportunities.”
Meanwhile, Israeli official said that this is the first full free tradeagreement made with an Arab state by Israel, adding: “…that is happeningsuch a short time after the establishment of diplomatic relations”.
Earlier, the UAE signed a mega economic partnership agreement with Indiaand it come into force on May 1.
