In August 2020, high-level delegations from Israel and the United Arab Emirates (UAE) signed a historic US-brokered peace deal at the White House. Bahrain’s foreign minister signed another agreement to normalize relations with Israel.
Called as the Abraham Accords, President Trump called the deal between Prime Minister Netanyahu and Abu Dhabi Crown Prince Mohammed bin Zayed Al Nahyan “a truly historic moment“.
The international community has welcomed the move, and under the terms of the deal, Israel has agreed to suspend its controversial plans to annex parts of the occupied West Bank.
What are the Abraham Accords?
† The Israel–UAE normalization agreement is officially called the Abraham Accords Peace Agreement.
† It was initially agreed to in a joint statement by the United States, Israel, and the United Arab Emirates (UAE) on August 13, 2020.
† The UAE thus became the third Arab country, after Egypt in 1979 and Jordan in 1994, to formally normalize its relationship with Israel and the first Persian Gulf country to do so.
† Israel has agreed to suspend plans for annexing parts of the West Bank. The agreement normalized what had long been informal but robust foreign relations between the two countries.
The “Abraham Accords” is a significant shift in the balance of power in the Middle East.
Communication Links
Israel and UAE established telephone links and direct communication channels with UAE’s telecom providers unblocking calls to numbers with Israel’s +972 country code. The Israeli foreign minister Gabi Ashkenazi called his Emirati counterpart Abdullah bin Zayed al-Nahyan and exchanged greetings following the historic peace accord.
Strategic Agreements
The leading business and logistics hub in the UAE, Jebel Ali Free Zone (JAFZA), has signed a strategic agreement with The Federation of Israeli Chambers of Commerce (FICC) in a focused effort to support businesses and encourage economic cooperation. Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, and Uriel Lynn, President, FICC signed the agreement virtually. As part of the Memorandum, the entities intend to foster and boost partnerships between the two nations to increase and promote bilateral trade ties.
What are the Benefits?
The recent development in the UAE’s and Israel’s bilateral agreements has opened up new avenues in various sectors. This development will lend an impetus to economic growth, transforming the business landscapes in both countries.
Israel has phenomenal innovation and technological capabilities, whereas the UAE holds a prime position in global trade and is one of the greatest business hubs in the world. Building trade ties will be beneficial for both sides. The countries intend to strengthen ties to usher in a new level of prosperity.
The Israel-GCC synergy
† With defense and security cooperation as one of the strong points, both sides are ready to realize their economic complementarity’s full potential.
† The UAE and Bahrain can become the entrepôts to Israeli exports of goods and services to diverse geographies.
† Israel has niche strengths in defense, security and surveillance equipment, arid farming, solar power, horticultural products, high-tech, gem and jewelry, and pharmaceuticals.
† Tourism, real estate, and financial service sectors on both sides have suffered due to the pandemic and hope for a positive spin-off from the peer-to-peer interactions.
† Further, Israel can supply skilled and semi-skilled workforce to the GCC states, particularly from the Sephardim and Mizrahim ethnicities, many of whom speak Arabic.
† Even the Israeli Arabs may find career opportunities to bridge the cultural divide. Israel is known as a start-up nation, and its stakeholders could easily fit in the various duty-free incubators in the UAE.
† Israeli cyber surveillance manufacturers are eager to tap into the large GCC market.
† Israel is working on potential joint projects that could improve UAE’s food security, such as water desalination and crop cultivation in the desert.
Logistics
There have been considerable developments in the field of logistics as well. DP World, one of the world’s largest port operators, has announced its plans to make a joint bid for Israel’s Haifa Port.
DP World has also made strategic alliances with the Israeli Bank Leumi to explore potential logistics sectors’ potential opportunities. DHL has already completed the first shipment from UAE to Israel. Other logistics service providers have been exploring ways to tap into opportunities.
CSS introduces UAE-Israeli service
CSS has been one of the first logistics providers to step into this new arena by opening new trade avenues between Israel and the UAE. We have established logistic routes to ensure seamless and speedy shipments between the UAE and Israel. Speaking on the newly rolled out services, Chairman T.S. Kaladharan emphasized. “At CSS, we are thrilled to carry cargo between Israel and the UAE. We are sure that our new logistic services to Israel will benefit businesses in both countries with the seamless flow of goods.”
News sources state that the bilateral trade could initially be worth $4 billion a year, and this could soon be tripled or quadrupled.