According to Arab media, 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”. ‘
Mohammed al-Khawaja, the UAE’s ambassador to Israel, called the deal 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 capabilities and strengthen cooperation,” he said.
UAE Dorian Barak, president of the Israel Business Council, said the trade agreement clarified tax rates, intellectual property and imports, which would encourage 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.
“The local market doesn’t fully provide opportunities, this opportunity is only going to be found in Dubai, which will allow many companies to expand,” said Barak.
Prior to the signing of the agreement, the Israeli Ministry of Economy said that the agreement would eliminate tariffs on food items, agriculture, cosmetics, medical equipment and medicines.
“Together we will end the resistance and promote trade and technology on a large scale. The agreement will pave the way for a stronger common path,” said Israeli Minister of Economy and Industry Orna Barbie.
He said that this agreement would help in the welfare of the citizens and ease of doing business.
The agreement comes amid growing Israeli violence against Palestine.
The UAE Foreign Ministry yesterday condemned the raid on Al-Aqsa Mosque in Jerusalem by extremist settlers under the protection of Israeli forces.
The Foreign Ministry said in a written statement that it had “called on the Israeli authorities to take responsibility for reducing tensions and to end all attacks and practices that could lead to further escalation of tensions and further instability.” Emphasize 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 according to their belief is a symbol of two ancient temples.
Israeli Minister Orna Barbawei 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.
Relations between Israel and the United Arab Emirates, established in September 2020 under US mediation and have been strained for decades due to Arab policy, demanded a Palestinian state before the relationship could be established.
In the same year, Bahrain and Morocco recognized Israel.