The beginning of a new round of peace-making in the Arab world sparked new prospects of economic and cultural growth. The Abraham Accords Peace Agreement was signed at the White House on September 15, 2020 to pursue normalized relations between The United Arab Emirates and The State of Israel.
On August 13, 2020 The United States, Israel, and the United Arab Emirates agreed to a joint statement under Treaty of Peace, Diplomatic Relations and Full Normalization making UAE the third Arab country, after Egypt in 1979 and Jordan in 1994, to agree to formalize its relationship with Israel, as well as the first Persian Gulf country to do so.
The agreement recognizes each state’s sovereignty, while obliging the two states to exchange ambassadors and conclude bilateral agreements on several topics including visa agreements, and will enter into force upon ratification. Israel agreed to suspend plans for annexing parts of the West Bank.
A joint statement issued by President Trump, Prime Minister Netanyahu, and Sheikh Mohammed bin Zayed Al Nahyan, read: “This historic diplomatic breakthrough will advance peace in the Middle East region and is a testament to the bold diplomacy and vision of the three leaders and the courage of the United Arab Emirates and Israel to chart a new path that will unlock the great potential in the region.”
An effective relation between UAE and Israel is bound to create innovative opportunities for trade, service and tourism. The agreement quickly established telephone and banking connections, business links, endorsed collaboration in medicine and security since many exports are likely to be technology based, including cyber-security, as well as the latest innovations in medicine and agriculture.
The first direct commercial flight from Israel to the UAE took place on 31 August 2020, and the first ship carrying cargo from the United Arab Emirates to Israel entered Haifa Port on 12 October. The new trade links are also likely to create a growth channel into Israel for Asian exporters who already use Dubai as their logistics hub in the region. Business cooperation is expected to boost on a broad range of areas including tourism, education, healthcare, and security. The two countries have also authorized 28 direct weekly passenger flights connecting Tel Aviv with Abu Dhabi and Dubai, according to a statement from Israel’s Transportation Ministry. Some of these flights are already operational. Furthermore, students are expected to be able to receive education in each country.
Israel will see a significant difference in business and trade due to the peace deal since UAE has the second largest economy in the Arab world with an estimated GDP of $421B last year. Israeli estimates suggest trade with the UAE could eventually total $4bn a year, creating 15,000 jobs
In terms of regional trade, internationalisation, infrastructural projects, regulatory affairs, etc., the potential collaborations will require seamless cooperation and well bolstered business partnerships that can facilitate solutions for firms, while identifying the correct approach to the renewed market conditions.