Israel, UAE sign ‘free trade’ deal
Israel and the United Arab Emirates (UAE) has signed a ‘free trade’ agreement on Tuesday in Dubai, in a move aimed at boosting trade between the two countries.
According to a report by the foreign news agency Reuters, the agreement was signed after months of negotiations.
Israel’s ambassador to the UAE, Amir Hayek, said in a tweet that “the UAE and Israel will sign the FTA in the next hour”.
The UAE ambassador to Israel, Mohammed al-Khawaja, described the agreement as “an unprecedented success”.
“Both countries will benefit from faster access to business markets and lower tariffs. The two countries are working together to increase trade, increase employment, develop new skills and strengthen cooperation,” he said.
Dorian Barak, president of the UAE-Israel Business Council, says the trade agreement clarifies tax rates, intellectual property and imports, encouraging Israeli companies to set up offices in the UAE, especially in Dubai.
The council predicts that about 1,000 Israeli companies will operate in or around the UAE, South Asia, the Far East and the Middle East.
Speaking to Reuters, Darian Barak said, “The local market does not fully provide opportunities, this opportunity is only going to be found in Dubai in which many companies will be able to expand.”
Prior to the signing of the agreement, the Israeli Ministry of Economy said that the agreement would eliminate tariffs on food, agriculture, cosmetics, medical equipment and medicines.
“Together we will end the resistance and promote trade, technology on a large scale, paving the way for a stronger common path,” said Israeli Minister of Economy and Industry Orna Barbivai.
She said that this agreement would help in the welfare of the citizens and ease of doing business.
The agreement comes amid increasing Israeli violence against Palestine
The UAE Foreign Ministry said in a statement that he had “condemned the clashes at Al-Aqsa Mosque in Jerusalem by extremist settlers under the protection of Israeli forces.”
The State Department also said in a written statement that it had called on the Israeli authorities to take responsibility for reducing tensions and ending all attacks and practices that could lead to continued tensions and further instability and emphasized on the need to work with maximum patience.
Media representatives invited on the same day were told they would not attend the signing ceremony, but did not give a reason for the sudden change.
Al-Aqsa Mosque is the third holiest site of Islam and in Judaism it is called ‘Temple of Mount’ which is a symbol of two ancient temples of their faith.
Israeli Foreign Minister Orna Barbivai told Israeli radio that he had “heard nothing unusual” about the violence at the Al-Aqsa Mosque during a visit to the UAE.
This is Israel’s second joint deal with an oil-dependent economy, following a similar deal with India in February.
Israel is also negotiating bilateral agreements with a number of other countries, including Indonesia and South Korea.
The UAE is aggressively pursuing such agreements in order to strengthen its economy and status, as an economic hub it has been hit hard by the Corona virus.
Israel and the UAE, which had a US interventionist relationship in September 2020 that had been strained for decades due to Arab policy, called for a Palestinian state before the relationship could be established.
This year, Bahrain and Morocco have also recognized Israel.
