Economic Dividends of the Abraham Accords

Abstract

The UAE and Israel had no direct relations before August 2020, as UAE had not recognized Israel as a state. However, the UAE was keen on building diplomatic relations with all countries in the recent past and is progressively becoming more liberal and tolerant. The UAE signed the historic Abraham Accord with Israel in September 2020. The Abraham Accord is an avenue of peace. It supports the efforts for prosperity and advancement as it paves the way for deepening economic, knowledge and cultural ties between the countries. There are opportunities to expand cooperation, engagement and knowledge sharing in various sectors such as agriculture, energy, technology, tourism, education, health care and services, trade and homeland security, climate issues, water, food security and smart mobility. Since September 2020, several transactions have been signed between Israeli and Emirati firms in different fields, valued at tens of millions of dollars. On the anniversary of the agreements, the volume of trade between Israel and the Emirates amounted to more than $ 100 million per month. The Abraham Accord has paved the way, is gradually improving the relationships in the region, and will slowly but surely lead to better peace and economic prosperity of the region.