The International Trade Council commends Israel and the United Arab Emirates (UAE) on signing a historic Free Trade Agreement (FTA) on Tuesday – the first of its kind between Israel and an Arab country.
This milestone comes after the UAE agreed to normalize relations with Israel in 2020 as part of the U.S.-brokered Abraham Accords, which led to Israel signing agreements with four Arab nations. Since then, the two countries have strengthened cooperation across various economic sectors.
Israeli Prime Minister Naftali Bennett highlighted the significance of the FTA as the first comprehensive agreement of its kind between Israel and an Arab state. He also noted that it was the fastest FTA to be signed in Israel's history. Mohamed Al Khaja, the UAE ambassador to Israel, called the agreement "an unprecedented achievement."
The FTA is expected to benefit businesses in both countries by providing faster market access, lower tariffs, increased trade, job creation, skill development, and deeper cooperation. Dorian Barak, President of the UAE-Israel Business Council, predicted that bilateral trade would exceed $2 billion this year, growing to $5 billion within the next five years.
The International Trade Council celebrates this historic agreement as a testament to the growing economic cooperation between the two countries and a significant step in fostering peace and prosperity in the Middle East.