In May 2022, the United Arab Emirates (UAE) and Israel signed a free trade agreement, which has led to a significant increase in bilateral trade between the two countries. Israel’s Ambassador to the UAE, Amir Hayek, said that trade in goods (excluding software) between countries reached a record $2.56 billion in 2022. In comparison to $1.22 billion in 2021, a more than 100% increase in trade between the two countries, Arab News reported.
The UAE and Israel have continuously strengthened their collaboration since the Abraham Accord in September 2020. The free trade agreement signed last year benefited both countries’ development thanks to measures such as eliminating tariffs on 99% of the trade value. As mentioned above, this has led to a significant increase in bilateral trade between the two countries. In addition, the deal seeks to:
- Facilitate market entry for traders,
- Secure additional funding,
- And yield new opportunities to reach the bilateral trade objective of over $10 billion in the coming years.
One of the areas anticipated to see significant growth as a result of the agreement is Agri-tech. The agreement between the UAE and Israel provides new opportunities to develop vital sectors such as AgTech, and renewable energy, among other technologies.
The first financial dialogue meeting aimed to boost cooperation ties further and encourage innovation between the two countries. The panel discussed potential cooperation to further economic links at regional and international levels. Examples of collaboration included financial services and cyber-financial, among other financial areas.
One example of increased ties between both countries is the recent agreement inked by Israel’s vertical farming company, Vertical Fields, to deploy its vertical farming system in the UAE. Future crops, another Israeli company, has also inked a Memorandum of Understanding with the United Eastern Group to establish a facility for growing various crops in the UAE.