The UAE reaches trade agreement with Israel

On Friday, April 1, state news agency WAM reported that the UAE and Israel have agreed on a Comprehensive Economic Partnership Agreement (CEPA) between the two nations.

A high-level UAE delegation reportedly travelled to Israel to conclude talks on the CEPA and, following the final round of negotiations, the agreed text is being finalised ahead of an expected formal signing between the nations’ respective leaders in the coming weeks.

The UAE-Israel CEPA has been reported to substantially reduce or remove tariffs on a wide range of goods, enhance market access for services, promote investment flows, create jobs, promote new skills, enhance climate action and deepen cooperation on strategic projects. It will also create mechanisms for SME expansion.

“When we signed the Abraham Accords in September 2020 in Washington DC, we also opened a new chapter in regional trade, investment and exchange. This Comprehensive Economic Partnership Agreement will enable us to build on these gains under a shared goal to create modern, progressive and technologically advanced nations that unlock benefits for business and entrepreneurship,” said Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade.

“As the world emerges from the shadow of global pandemic and faces new challenges, multilateral approaches are needed to rebuild supply chains, reinvigorate economies and restore trust in the global system. We are confident that this deal will not only boost trade but increase investment, boost tourism, accelerate digital advances and promote collaboration in priority sectors such as energy, education, healthcare, food security, entrepreneurship, cybersecurity and advanced technology.”

The UAE is seeking to grow economic ties with Israel to more than $1tn over the next decade, Economy Minister Abdulla Bin Touq said last year.

Read: UAE seeks $1 trillion in business with Israel over next decade

Also last year, the UAE also announced the establishment of a $10bn fund aimed at strategic sectors in Israel.

Read more: UAE announces $10bn investment fund with Israel

The UAE-Israel CEPA comes after a similar CEPA was agreed recently between the UAE and India too.