A new era of trade and investment relations between the two countries

UAE-Israel Economic Partnership Agreement to Effect Tomorrow

The UAE and Israel during the signing ceremony of the Comprehensive Strategic Partnership Agreement. From the source

The Comprehensive Economic Partnership Agreement between the UAE and Israel will enter into force tomorrow, on the first of April, ushering in a new era of trade and investment relations between the two countries.

This historic agreement, which was signed on May 31, is the second of its kind to enter into force under the "Global Economic Agreements Program", after the Comprehensive Economic Partnership Agreement between the UAE and India entered into force on the first of May 2022.

Customs Duties

The Comprehensive Economic Partnership Agreement between the UAE and Israel builds on the momentum generated by the Abraham Accords, which established diplomatic relations between the two countries in September 2020. The agreement reduces or eliminates customs duties on more than 96% of product types, which represent 99% of the current value of goods trade between the two countries, and is designed to raise the level of trade between the UAE and Israel to more than $ 10 billion by the end of the decade, up from $ 1.3 billion recorded in 2021, noting that non-oil intra-regional trade witnessed a record growth in 2022 by 90% to $ 2.49 billion, while re-exports of products imported from Israel increased by 71.2%, and UAE non-oil exports to Israel increased by 48.6%.

Removal of barriers

The agreement also removes unnecessary technical barriers to trade, improves service providers' access to both markets, provides opportunities for companies to participate in government procurement, provides a platform for SMEs to expand internationally, sets specific standards for digital trade, protects intellectual property, and establishes transparent mechanisms to combat harmful trade practices.

Commercial Momentum

Juma Mohammed Al-Kait, Assistant Undersecretary for International Trade Affairs at the Ministry of Economy, said that "the entry into force of the comprehensive economic partnership agreement between the UAE and Israel on the first of April will be a catalyst for trade and investment momentum between the two countries." He added: "Trade and investment relations between the UAE and Israel have witnessed a significant development since the conclusion of the Abraham Accords in September 2020, and the entry into force of the Comprehensive Economic Partnership Agreement between the two countries, with its incentives, will facilitate trade and investment flows, and more constructive cooperation between two of the most vibrant economies in the region." He stressed that the abolition or reduction of customs duties, increasing mutual access for goods and services to the two markets, and facilitating the establishment of joint projects, make the Comprehensive Economic Partnership Agreement between the two countries the appropriate platform to achieve joint growth, and transform the expected figures of bilateral trade and investment flows into reality with the active participation of the private sector in the two countries.

• The EPC reduces or eliminates tariffs on more than 96% of product types.

«Global Economic Agreements»

The Comprehensive Economic Partnership Agreement between the UAE and Israel is a key part of the UAE's new trade strategy announced in September 2021 under the name of the Global Economic Agreements Program, which aims to contribute to doubling the size of the national economy from AED 1.4 trillion to AED 2030 trillion by <>.