The UAE and Israel have signed the Comprehensive Economic Partnership Agreement in Dubai, thus beginning a new era of co-operation between the two nations that established diplomatic ties in September 2020. The CEPA deal is expected to advance bilateral trade beyond $10 billion within five years.

 

The UAE-Israel CEPA, the second bilateral trade agreement signed by the UAE, offers unprecedented economic benefits for both parties by lowering or eliminating tariffs on more than 96% of tariff lines and 99% value of trade, enhancing market access for exporters, attracting new investment, and creating opportunities in key industries, including energy, environment, and digital trade. 

 

The deal will also support service sectors such as hospitality, financial services, distribution, and construction and provide a platform for SMEs in both countries to expand internationally, reported state news agency Wam.

 

The UAE-Israel CEPA is expected to advance bilateral trade beyond $10 billion within five years and add $1.9 billion to the UAE’s GDP within the same time period. Total UAE exports are expected to increase 0.5 percent by 2030, said Abdulla Bin Touq, the UAE Minister of Economy after signing the deal with Major General (Retd) Orna Barbivay, Israel Minister of Economy and Industry.

 

Bin Touq pointed out that this CEPA with Israel will create a new paradigm for the region. "It will accelerate growth and underscores a shared belief that the only way to build resilient and sustainable economies in a complex world is by doing so together," he noted.

 

"It also symbolises something greater than business: the importance of building meaningful partnerships. Our agreement can demonstrate to nations and governments around the world that cooperation and dialogue are the best ways to transform challenges into opportunities," he added.

 

Barbivai said: "This is a visit of strategic importance for economic relations between Israel and the UAE. Today we have signed a CEPA and advanced a series of economic partnerships. Together, we will break down obstacles and we will advance comprehensive trade and new technologies that will serve as a basis for our shared path, contribute to the benefit of our citizens and make it easier to do business."

 

"This is the first full free trade agreement made with an Arab state, that is happening such a short time after the establishment of diplomatic relations," he added.

 

The agreement builds on the exponential growth in trade and investment the UAE and Israel have enjoyed since the signing of the Abraham Accords. From September 2020 to March 2022, non-oil trade surpassed $2.5 billion, while it reached $1.06 billion in the first three months of 2022 – five times the total from the same period in 2021.

 

Dr. Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, said: "By establishing diplomatic ties in 2020, the UAE and Israel embarked on a new era of regional trade, investment, and exchange. The UAE-Israel Comprehensive Economic Partnership Agreement will further catalyze economic activity and, importantly, create new research and investment opportunities in agri-tech, renewable energy, and advanced technology, which are priority sectors for both countries."

 

"Over the past 18 months, our nations have demonstrated what can be achieved when we cast aside our differences and, as we emerge from the challenges of the global pandemic, the UAE and Israel believe that multilateral approaches are needed to rebuild supply chains, reinvigorate economies, and restore confidence. We are confident this deal will pave the way for a new era of regional economic success," he added.