Although 2020 has been a difficult year for the world, there have some extremely positive and historic moments in the Middle East. On August 13th, in a joint statement known as the Abraham Accords, Israel and United Arab Emirates announced the normalization of their relations, representing the first time since 1994 that Israel had made such an agreement with an Arab country.
Trade
For both Israel and the UAE, this strategic partnership will bring an enormous amount of prosperity, $5 Billion worth of trade according to one estimate. Whether it’s establishing a presence within the UAE, or teaming up on a joint venture basis with counterparts already in the UAE, the peace deal represents an enormous opportunity for Israeli companies looking to expand in the Gulf region. Furthermore, the UAE has one of the largest sovereign wealth funds in the world, even bigger than Saudi Arabia, however, in 20-30 years, crude oil may not be as relevant as it is today and so, therefore, trade agreements with Israel represent a fantastic opportunity for the UAE to expand its influence and economic future.
Already, there have been remarkable advancements in the fields of Health and Pharma between the two nations. For example, the Abu Dhabi Stem Cells Centre has already announced an agreement with Israel’s Pluristem Therapeutics for collaboration in research into regenerative medicine and APEX National Investment Company of the UAE has signed an agreement with Israel’s Tera Group to conduct research on Covid-19.
Significant acts of cooperation between the two nations have already been announced. For example, Group 42 (G42) the leading AI and cloud computing company based in Abu Dhabi announced they will be opening a new international office in Israel. "The establishment of the new Israeli office will strengthen G42’s presence in the region and give us access to one of the most vibrant and mature tech ecosystems in the world. It also reaffirms our ideals of openness and inclusiveness as we engage with international partners to harness best ideas and capabilities and solve problems in every sector for the benefit of society." This is the first time that a UAE company will have established international offices in Israel and represents the beginning of what is expected to a great period of collaboration between the two nations.
Another, somewhat surprising, example of collaboration, following the peace deal, has come from Sheikh Hamad bin Khalifa Al Nahyan and Beitar Jerusalem Football Club. The Emirati Sheikh has bought a 50% stake in the club, an investment of $92m over the next 10 years. "I am thrilled to be a partner in such a glorious club that I have heard so much of and in such a great city, the capital of Israel and one of the holiest cities in the world...Together, we all march the club to new days of coexistence, achievements and brotherhood for the sake of our club, community and Israeli sports.” Al Nayhan told the Jerusalem Post that his interest in investing in the club stemmed from his friendship with current Israeli owner, IT millionaire Moshe Hogeg.
Tourism
Whilst previously a place notorious for its difficulty in Israeli passport holders entering, the UAE is now expected to become a top tourist destination for Israelis. Just 3 hours from Tel Aviv, the UAE is expected to become a major travel destination for Israelis. Whilst it was previously a place notoriously difficult for Israeli passport holders to enter Israelis will now be able to enjoy the lavish cities of Dubai and Abu Dhabi, and even have access to Kosher food. Israeli airline ELAL is said to be running 14 flights per month starting December 2020, with more airlines expected to follow.
Tolerance
Other exciting news coming from the UAE is the planned development of a complex containing a Synagogue, Church and Mosque, in the city of Abu Dhabi. The project is spearheaded by the Higher Committee of Human Fraternity, with the mission of developing a ‘culture of mutual respect and dialogue across all backgrounds, beliefs and nationalities’. In a region known for its religious rivalry and intolerance, these acts of unity are a promising sign of hope.
Further peace
The greatest thing that we can hope for from the peace agreement between Israel and the UAE is more peace. There are hopes that more countries will follow, and indeed, more already have with Bahrain also signing a significant deal just a few weeks later, and most recently relations have been normalised with Morroco and Bhutan. With Saudi Arabia already permitting Israeli planes to use their airspace, representing a major development in itself, there is speculation and great hope that it could be the next country to normalise relations.
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