Israel and the United Arab Emirates Sign Historic Trade Agreement

On 31 May 2022, Israeli Minister of Economy and Industry Orna Barbivai and her counterpart, UAE Minister of Economy Abdulla bin Touq Al Marri, signed a Comprehensive Economic Partnership Agreement (CEPA) providing for the reduction or elimination of customs duties on more than 96% of goods traded between the two countries.

The agreement marks “a new chapter in the history of the Middle East and aims to accelerate growth, create new jobs and usher in a new era of peace, stability and prosperity across the region,” stated Thani Al Zeyoudi, UAE Minister of State for Foreign Trade.

The outlook appears highly promising. Indeed, the UAE-Israel CEPA could increase the value of bilateral non-oil trade to more than USD 10 billion over the next five years. According to the Emirates News Agency (WAM), the objective is to further open markets for exporters, attract investors and create opportunities in key sectors such as energy, environmental sustainability and digital trade. Products benefiting from immediate or phased customs duty exemptions over the next three to five years include food products, agricultural goods, cosmetics, medical equipment and pharmaceuticals.

The UAE-Israel CEPA represents another step towards the UAE’s goal of becoming a regional hub for trade, investment and future industries, as highlighted by Abdulla bin Touq Al Marri. To achieve this objective, the UAE is actively building meaningful relationships with strategic partners around the world. The UAE-Israel CEPA is, in fact, the second major trade agreement recently signed by the country, following the UAE-India CEPA signed in February and entered into force on 1 May.

For further information, please contact Paula Vega at p.vega@bmvinternational.com.