The United Arab Emirates (UAE) draws a line between trade and political affairs, according to the trade minister, spurred by the ongoing Israel-Hamas conflict.
“We don’t mix the economy and trade with politics,” commented Thani Ahmed al Zeyoudi to the press in Dubai, October 10.
Regarding the imminent siege of Gaza, al Zeyoudi echoed the foreign ministry’s statement that Hamas did a “grave escalation.”
The UAE was the first Arab country ever to renew economic ties with Israel. In March, 2023, it signed a free trade deal (comprehensive economic partnership) with Tel-Aviv.
Beforehand, the UAE had made a bold move by restoring diplomacy with Israel in the shadow of the Palestinian cause.
Israel is by no means the only nation on Abu Dhabi’s multi-pronged search for economic partnerships via bilateral trade. The most recent such free trade deal was with Georgia this October.
What agricultural products do the two countries trade?
The UAE-Israel agricultural trade is a pittance, with more emphasis on agro-tech integration.
In 2022, Israel exported edible fruits worth $3.193 million to the UAE, up from the $364,000 of 2021. Key commodities included:
- 705 metric tonnes of pineapples, figs, dates and other fruits
- 94 tonnes of fruit and nuts
After the 2022 trade agreement, Israel agreed to export agricultural technology to its Arab ally. Integration of agricultural companies between the two nations would also happen across the private and government sectors.
Israel and the UAE ranked 50th and 55th respectively in the world’s Economic Complexity Index in 2021. This is a global ranking of yearly trade output per country.
On a broader trading angle, UAE top 3 exports to Israel are technology equipment for broadcasts, diamonds and gold. It imports diamonds, video recording devices and precious stones from Israel.
The total exports by the UAE to Israel in 2021 clocked $980 million while the reciprocal Israeli exports totaled $342m.
The Road to Free Trade
It all began at the White House on August 13, 2020 when President Trump endorsed the Abraham Accords Peace Agreement.
Israel’s cabinet ratified the document on September 15, 2020 while the UAE’s cabinet inked the accord four days later.
The effective date of normalized relations came on January 1, 2021, four months after the Abraham Accord.
The next major step was the acknowledgement of Israel’s sovereignty. On January 31, 2022, flags of the two nations swayed side by side in Dubai to mark the Israeli National Day. This was during Expo 2020 Dubai, which had begun in 2021 due to the Covid-19 pandemic.
Then came the historic trade agreement on March 26, 2023. The two countries reduced duty on almost 96% of all imports and exports between them. Food and agricultural commodities were some of the targets of the duty-free trade.
The deal went into full effect in May, 2023.
Trade was once almost in Jeopardy but survived
The first test to the normalisation of UAE-Israel bilateral relations came a month after the trade deal. This was when the far-right ruling coalition of Benjamin Netanyahu vowed more occupation of the West Bank. The UAE and other Arab nations condemned the decision.
The fact that trade survived showed that any other economic deal might last despite war.
Indeed, Israel and the UAE had other private sector ties even before the 2022 trade deal. In 2021, the Abu Dhabi-based oil giant, Mubadala Energy, bought 22% shares in Israel’s gas field at Tamala.
In short, the current agricultural and mainstream trade relationship between the UAE and Israel is in good hands during wartime.