41. Israel and the UAE: Old New Friends
- Author:
- Paul Rivlin
- Publication Date:
- 11-2020
- Content Type:
- Working Paper
- Institution:
- Moshe Dayan Center for Middle Eastern and African Studies
- Abstract:
- In this issue of Iqtisadi, Paul Rivlin analyzes economic factors involved in the recent UAE-Israel normalization accords. In August 2020, the US, Israel and the United Arab Emirates (UAE) announced the full normalization of relations between Israel and the United Arab Emirates. In September, the Abraham Accords were signed at the White House between Israel, the UAE, Bahrain and the US. The establishment of diplomatic relations between Israel and the UAE and Israel and Bahrain opens the door for trade, investment and cooperation. Israel is looking for markets, investments and joint projects. The UAE is dominated by two emirates: Abu Dhabi and Dubai. Abu Dhabi is the main oil producer in the UAE and is thus one of the largest in the world. It has a strong interest in reorienting its economy away from oil and has invested in green technologies. Dubai has invested heavily in real estate and tourism and also wants to diversify its economy. Israel is a very suitable trading partner given its strength in hi-tech.
- Topic:
- International Relations, Treaties and Agreements, Economy, and Normalization
- Political Geography:
- Middle East, Israel, Palestine, and United Arab Emirates