HUGE: Israel Signs First Trade Deal with an Arab Country!

This unprecedented deal grants Israel tariffs free access to Arab markets in the Gulf (including countries without diplomatic relations) via the UAE.

By Nosson Shulman: Licensed Tour Guide of VIP Israel Tours & Authentic Virtual Tours (click here to check out his free trailer videos)

In August 2020, the world was shocked when then President Donald Trump announced that Israel and the United Arab Emirates (UAE) were to sign a peace treaty, a deal he was instrumental in negotiating. In quick succession, the Trump administration would then go on to broker a deal between the Jewish State and Bahrain, Sudan, and Morocco. For the first 72 years, only Egypt and Jordan had made peace with Israel, and those deals led to nothing more than a cold peace between governments, practically limited to (important) security cooperation (the rank-and-file population of Israel’s two neighbors have largely rejected the treaty and being identifiably Jewish is still very dangerous in those countries). However, this particular treaty has turned out to be a game changer and has now been solidified with a new free trade deal that has just been signed between them. The deal removes tariffs on 96% of goods traded (including food, agriculture, pharmaceuticals, medical equipment, cosmetics, and more). Within five years, trade between the nations is expected to reach 10 billion dollars annually.

Merely 20 months into the deal, in addition to excellent government relations, there is general goodwill towards Israelis on the streets of Dubai and Abu Dhabi. Israelis can travel freely to the UAE. In the first 18 months alone, more than 130,000 visited (impressive considering that it was during the travel restrictions of the covid pandemic). No particular attempts were made to hide their identity (on the contrary, Israelis regularly reported being invited for tea and lunch by locals when they found out where they come from). For Torah observant Jews, wearing a clearly visible yarmulka, black hat, or exposed Tzitzit on the streets is the new norm (certainly a rarity in most of “civilized” Western Europe today). There are also Kosher restaurants opening, including a new one inside of the Burj Khalifa (the world’s tallest building). Synagogues, too, are being built with the encouragement of the Royal family, who have excellent relations with the fast-growing Jewish community. Recently, some antisemitic content has been removed from school textbooks and curriculum, although that is still a work in progress. Trade has been flourishing between the nations (already more than a billion dollars) and this free trade deal will accelerate business cooperation to a level no one could have ever imagined. Aside from the Gulf countries and EFTA (Ireland, Norway, Liechtenstein, and Switzerland) this is the first free trade deal the UAE has ever signed.

The benefits of this new free trade agreement are not limited to these two nations. Since the UAE has a free trade agreement with other (wealthy) gulf countries, including those who do not yet have relations with the Jewish state, Israel will now have access to these countries’ markets (and can have longer term implications in relations between Israel and the larger Arab world).

In truth, the entire world stands to benefit from this deal. Because Israel is a world leader in scientific research (including in the creation of life saving medicine and medical devices) and technological innovation (including instruments which make clean drinking water more accessible to the wider world) the partnership between these two nations in these important fields have the potential to make the world a better place!

Nosson Shulman is a journalist and Licensed Tour Guide in Israel specializing in Biblical tours. To allow tourists to experience Israel during the Corona era, he created the new hit Israel tour video series which brings Israel to the home of viewers by simulating actual tours. To check out his free sneak preview tour videos, click here. To view sample tour itineraries or to inquire about private tour opportunities with a personalized itinerary on your next trip to Israel, click here.