How is the growing trade relationship between the UAE and Israel benefiting both countries?
Mohammed al-Khajah presses a button to ring the bell at the start of the day at the stock exchange in Tel Aviv, Israel, when suddenly the gold-leaf heart symbols on the gleaming building light up.
Amid applause, Mohammed Al Khajah, the UAE ambassador to Israel, shakes hands with Attai Bin Zaiv, head of the exchange, and Ahmed Al Zaubi, chairman of the UAE Financial Center Abu Dhabi Global Market.
This is no ordinary start to the day for Israel’s stock market. Rather, it is an important milestone in the growing relationship between Israel and the United Arab Emirates that resulted from the Abraham Accords reached two years ago as a result of US diplomacy, which also included Bahrain.
Under this agreement, the United Arab Emirates and Bahrain ended their boycott of Israel and established full diplomatic relations.
Emirati investor Sabah Al Banali, part of the UAE delegation, was smiling as he watched the scene unfold at the Israeli stock exchange.
“We are witnessing history in the making, the beginning of a long, deep and fruitful relationship between the natural neighbors of the Middle East,” he said.
He believes that a business relationship between Israel and the UAE is a win-win.
I expect the results of our partnership to be excellent. Our partnership in areas like cyber security including logistics, medical and agricultural technology has already progressed considerably in the form of joint projects.
He said that after last month’s visit, many business agreements have been agreed upon.
Economists agree that the Abraham deal will increase trade between Israel and the UAE. On the one hand, Israel has a strong technology sector, including military technology, on the other hand, the UAE has emerged as the second largest economy in the Middle East after Saudi Arabia. The oil-rich country is now focusing on other sources of income.
Ketaki Sharma is the founder and chief executive of Algordam Research Company. The company operates in Dubai on data and economic research.
