UAE Becomes Israel's 16th Top Trade Partners

KEY POINTS

Trade between Israel and the UAE increased by 109.7 percent in 2022
Comprehensive Economic Partnership Agreement served as a key factor in the increase
Market access for exporters from both Israel and UAE has enhanced

The UAE has become one of Israel's top trade partners. Israel's ambassador to the UAE, Amir Hayek, revealed that bilateral trade between the two countries more than doubled in 2022, making Emirates Israel's 16^th biggest trading partner.

Hayek said trade skyrocketed from $1.22 billion in 2021 to $2.56 billion last year, equivalent to an increase of 109.7 percent. The figure does not include software trade. The increase has propelled the Emirates to the top 20 trading partners of Israel out of 126 countries.

Business between the UAE and Israel has thrived since the signing of the Abraham Accord in September 2020. The Comprehensive Economic Partnership Agreement (CEPA), which removed and reduced tariffs on 96% of goods traded between the two nations, also contributed to this boom.

With the CEPA in place, market access for exporters from both Israel and UAE was enhanced, drawing new investment. The agreement also created more opportunities in key industries, including environment, energy, and digital trade. It also benefited the area of tourism in both countries, with more than 150,000 Israeli tourists reportedly coming to visit the UAE between March and December 2022.

In September 2022, Hayek said he envisioned the UAE to be among Israel's top 10 trade partners in the next two to three years. In celebration of the two years of the signing of the Abraham Accords that formalized fruitful diplomatic relations between the UAE and Israel, Hayek noted that both countries witnessed a multitude of bilateral agreements in various economic areas, including trade, technology, tourism, and innovation.

"I arrived here ten and a half months ago as Israel's first ambassador to the United Arab Emirates and since then we have had two visits from our president, two visits from our prime minister, about 20 visits from our ministers and we have signed 20 agreements, including the Comprehensive Economic Partnership Agreement (CEPA)," he said at the time.

Hayek also pointed out at the time that bilateral trade between the two nations had exploded by 117 percent in the first half of 2022 compared to the same period in 2021, adding that the two countries could cross $10 billion in bilateral trade in the coming years if they continue to deepen their ties in similar manners.