11. The UAE and Israel: Developing Relations and the Challenge Ahead
- Author:
- Paul Rivlin
- Publication Date:
- 05-2021
- Content Type:
- Working Paper
- Institution:
- Moshe Dayan Center for Middle Eastern and African Studies
- Abstract:
- In this issue of Iqtisadi, Paul Rivlin discusses the developing economic ties between the United Arab Emirates and Israel with an emphasis on investments in the energy sector. In April 2021, the Israeli firm Delek Drilling announced plans to sell its 22 percent direct stake in the Tamar gas field to investors led by the Abu Dhabi based state-owned Mubadala Petroleum for $1.1 billion. The Tamar field has an estimated 297 billion cubic meters (bcm) of reserves. This would be by far the largest commercial deal yet between Israel and the UAE. Mubadala Petroleum is a wholly owned subsidiary of Abu Dhabi state investor, Mubadala Investment Company. Its plans to move into Israel’s upstream gas sector have the backing of the UAE and Israeli governments. In March 2021, the UAE announced the establishment of a $10 billion fund to invest in energy and other strategic sectors of the Israeli economy. According to the official statement, the UAE will invest in and with Israel in sectors including energy, manufacturing, water, space, healthcare, and agro-tech. The investment fund will support development initiatives to promote regional economic cooperation between the two countries. Funding will come from government and private sector institutions and the Delek deal is part of this framework,
- Topic:
- Energy Policy, Treaties and Agreements, and Economy
- Political Geography:
- Middle East, Israel, Palestine, and United Arab Emirates