UAE, Israel ink CEPA to boost bilateral trade to $10 billion in five years
The Minister of Economy of the United Arab Emirates, Abdulla Bin Touq, and the Minister of Industry and Economy of the State of Israel, Major General (Retd.) Orna Barbivay, have signed the UAE-Israel Comprehensive Economic Partnership Agreement (UAE-Israel CEPA) in Dubai, beginning a new era of cooperation between the two nations that established diplomatic ties in September 2020.
The second bilateral trade agreement signed by the UAE, the UAE-Israel CEPA, will lower or eliminate tariffs on 96 percent of tariff lines and 99 percent of trade value, improving access to new markets for exporters, attracting capital investment, and creating opportunities in key industries, such as energy, environment, and digital trade. SMEs in both countries will also be able to expand internationally, with a particular focus on service sectors like hospitality, financial services, distribution, and construction.
Under the UAE-Israel CEPA, bilateral trade is expected to exceed US$10 billion within five years, and the UAE’s GDP will increase by US$1.9 billion. Total UAE exports are expected to increase 0.5 percent by 2030. Since signing the Abraham Accords, trade and investment between the UAE and Israel have grown exponentially. In the first three months of 2022, non-oil trade reached US$ 1.06 billion – five times what it was in the same period in 2021.