The new relationship between Israel and UAE

published on 18 September 2020 | reading time approx. 2 minutes

The United Arab Emirates has issued a decree abolishing a previous law that mandated an economic boycott of Israel following the historic agreement to normalize relations between the two countries. Clandestine relations between Israel, the UAE and Gulf Arab states have existed for decades. The relationship between Israel and the Gulf States has already become closer in recent years. Gradually, unofficial ties have been established through cultural, political and economic exchanges – perhaps most visibly in an Israeli invitation to the 2020 Dubai Expo which has been postponed until next year.

The peace agreement, or the Abraham Accord, between Israel and the United Arab Emirates was agreed on 13 August, 2020. Israel and the UAE will establish full diplomatic relations. In return, Israel will suspend this very claim to Palestinian-inhabited territories on the West Bank. The formal signing of this agreement was hosted in the White House on 15 September 2020.
 
This normalization deal is the first of its kind between an Arab country and Israel in more than 20 years. The UAE is just the third Arab country to agree to establish official relations with Israel, after Egypt and Jordan and also the first Persian Gulf country to do so.
 
Since then, both countries have been planning and exploring their new business and investment options. According to the joint statement about the Abraham Accord, Israel and the UAE will exchange embassies and ambassadors, and they plan to sign bilateral agreements regarding investment, tourism, direct flights, security, telecommunications, technology, energy, healthcare, culture, the environment and other areas of mutual benefits.
 
The two countries signed already an agreement related to Covid-19 research and they have inaugurated direct telephone services between their countries following their agreement in August.
 
Scoop-The Israeli Shoe Company has already signed contracts to open up five stores in the UAE, also the two largest banks of Israel are coming to the UAE to explore opportunities for economic cooperation’s this month.
Since the two countries are only three hours flight away with one hour time difference and they have the same working days Sunday to Thursday it will be a clear advantage to extend each businesses internationally.
 
“In three to five months, holders of an Israeli passport will be able to visit the UAE. The flights from Tel Aviv to Dubai and from Dubai to Tel Aviv will go over Saudi Arabian.” Said Prime Minister Benjamin Netanyahu.
This agreement will open up a lot of business opportunities for companies either based in UAE or in Israel. We – as Roedl & Partner - will have a close eye on the further development of the economic relationship between both countries and certainly are able to assist companies in evaluating business opportunities in each jurisdiction.