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UAE and Israel signed a landmark deal on Sunday to boost economic relations, trade and investments between the two countries.
The agreement, signed by the UAE’s Etihad Credit Insurance (ECI) and The Israel Foreign Trade Risks Insurance Corporation (ASHR’A) follows the historic peace accord between the two countries and is considered an economic “game changer” that will boost the exports sector and help various businesses.
Trade between the UAE and Israel, particularly in the areas of finance and investment, civil aviation, innovation, healthcare, tourism, education, telecommunications, agriculture and food security, among others, is estimated to reach $4 billion a year.
In the new deal, both parties have agreed to work together in supporting exports, trade and investment, as well as explore new business opportunities and collaborate in providing technical assistance, training and capacity building.
The move is expected to ease access to export credit facilities and non-payments risk mitigation, as well as access to both market key sectors like agriculture, water, treatment, renewable energy, medical and healthcare, aluminium, steel, cables, petrochemicals and technology.
Game changer
“This first-of-its-kind agreement between the export credit agencies of UAE and Israel is a result of the giant leap for sustainable peace taken by our visionary leaders through the Abraham accords. [It] is now ushering a fresh start of economic relations, and on this front, ECI is beyond confident that this alliance will be a game changer in terms of generating an efficient exchange of expertise that would bolster the trade and export communities of our respective countries,” said Massimo Falcioni, CEO of ECI.
Ben Ali, CEO of ASHR’A, said the agreement reflects the “fruitful efforts” of the two countries to create strong bilateral ties, adding that “various businesses” stand to benefit from it.
“With state guarantees from both countries, this deal will encourage exports and investments, help minimise political and commercial risks and raise export financing for the mid- and long-terms,” he added.
Insurance, co-insurance
Under the agreement, the two export credit agencies will not only work together to boost trade and business relations between the two countries, they will also explore mutual opportunities for insurance, co-insurance services for export of goods, investments and services to support insured exports and facilitate access for small and medium-sized enterprises (SMEs), among others.
“With accessibility to a vast array of export credit, financing and investment insurance products, the exporting communities in both countries stand to benefit from this strategic deal,” a statement said.
Inaugural flights between the two countries took place recently, following the signing of the Abraham accords. The UAE’s homegrown carriers, Etihad, Emirates and Flydubai, have already announced the launch of flights between the two states, while Israel and UAE agreed to allow their citizens visa-free travel.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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