The agreements concluded between Israel and the UAE within the framework of the strategic alliance between them in the Middle East carry many questions and ambiguities regarding growth and economic development and the measure of profit and loss for the two countries.
At a time when Israeli Prime Minister Benjamin Netanyahu continued to cheer and excessive enthusiasm when he received at Ben Gurion Airport the first official Emirati delegation headed by Hamdan bin Rashid Al Maktoum, Minister of Finance and brother of the ruler of Dubai, the positions of Israeli experts differed regarding the size of prosperity and commercial development, but they agreed that Israel You will be the beneficiary most from the agreements.
The Israeli side signed with the Emirati delegation – which also included, in addition to the Minister of Finance, Minister of Economy Sultan Saeed Al Mansouri, Omar Ghobash, Assistant to the UAE Foreign Minister, and a group of senior officials from Abu Dhabi and businessmen – 4 agreements in the field of civil aviation and the exemption of entry visas for nationals of both countries.
In addition, an agreement was signed to encourage investments, tax exemptions and secure investments, an agreement on developing the field of scientific research and technology, and another concerned with energy affairs, extending an Emirati oil pipeline and linking it to the pipeline network in southern Israel, and from it to Ashdod port and export to Europe.
In addition to the signing of the four agreements, which was also accompanied by an American delegation headed by Treasury Secretary Stephen Mnuchin and President Ronald Trump’s envoy to the Middle East Avi Berkowitz, Emirati Assistant Foreign Minister Omar Rubash made a formal request to Israeli Foreign Minister Gabi Ashkenazi to open an embassy in Abu Dhabi in Tel Aviv. Emirati in his message on “the need to inaugurate diplomatic representations in Tel Aviv and Abu Dhabi as soon as possible.”
According to the alliance agreement between Tel Aviv and Abu Dhabi, which was reached under the auspices of the United States, annexes to the agreements will be signed later on the following topics: trade and economy, health, outer space sciences, tourism, sports and culture, energy, environment, education, maritime transport regulation, communications and mail, Agriculture, food security, water, and legal cooperation.
In conjunction with the arrival of the Emirati delegation to Ben Gurion Airport and the signing of economic agreements with Tel Aviv, the US embassy in occupied Jerusalem announced the establishment of the “Abraham Fund”, which is a joint US-Israeli-Emirati investment fund aimed at implementing the two agreements to normalize relations between Israel, the UAE and Bahrain.
According to the American embassy, the headquarters of the investment fund will be in Jerusalem, and it will be financed by 3 billion dollars from the private sector, businessmen and investors in the three countries.
The “Abraham Fund” aims to enhance cooperation between countries in the Middle East and beyond, provided that its mission is also to monitor strategic projects for investment in the countries of the region, and to provide places and job opportunities in order to raise the standard of living and economic growth for the population in the Middle East, according to the words of the US embassy.
Amid cheering and persistent estimates regarding commercial and economic growth, the lecturer in Marketing and Management at the “LEAF” Academic Center in Jerusalem, Michael Hobris, downplayed the enthusiasm due to the normalization of relations between Tel Aviv and Abu Dhabi, the economic agreements signed between the two countries, and the tangible excitement regarding new economic opportunities, pointing out that On the surface, the combination of the Israeli entrepreneurial culture and the enormous oil resources of the Emirates seems like a match in heaven.
However, the Israeli lecturer says that a close examination of the economic data shows that the mutual benefit of the agreements is not clear, and surprisingly, Israel and the UAE are similar countries in many respects. The GDP per capita tops Israel.
Despite this, Hubrice explained that the UAE is considered a leader in the trade balance, as its exports far exceeded imports compared to the negative trade balance of Israel. By improving the various economic aspects, the impression is created that Israel and the UAE are to some extent equal in their economy.
He stressed that it is important to point out that the UAE – contrary to popular belief – is not an economic giant with countless resources and enormous opportunities to provide to Israel, and thus for economic relations to flourish raises many questions, most notably, what should Israel sell to the Emirates? What should the UAE sell to Israel?
“Israel must carefully study the economic aspects of the agreements and the economic benefits of the agreement with its new ally in the Middle East,” Hobrice says, explaining that the main economic benefits that may result from the new cooperation are access to additional oil resources, which is a great economic advantage for Israel, which gets 40 % Of the oil supply is from Azerbaijan, and therefore the oil coming from the UAE may be a closer and more efficient source for Israel.
He adds that in addition to the economic opportunities after the normalization deal that opens new channels for trade and investment for the Israelis and the Emiratis, it is important to remember that these are specific advantages and not an agreement that is expected to revolutionize the economies of either country, and certainly not the economy of the Middle East, and therefore it is proposed to “calm the enthusiasm.” Excessive surrounding the economic effects of the agreement, and mentioning the central importance of the agreement at the political level.
In an attempt to market normalization as the biggest achievement of Israeli diplomacy, Director General of the Israeli Ministry of Foreign Affairs Alon Auschbiz wrote an article in Maariv newspaper that was recalled through Israel’s behind-the-scenes efforts for two decades in the Gulf, which resulted in the normalization of relations with the UAE and Bahrain, pointing out that Tel Aviv It is the biggest winner from normalization.
The Director General of the Israeli Foreign Ministry stated that the recent weeks of mutual visits between Israel, the UAE and Bahrain resulted in the signing of several agreements that lay the foundation stone for the signing of more agreements and annexes of understandings between countries in various fields and aspects of life, saying that “these agreements are between people and aim to allow us to live with Each other, visiting each other, doing business together and continuing to move towards changing reality. “
Auschbiz explained that the Israeli Foreign Ministry will soon open embassies in partner countries by signing the Abraham Agreement, and the new Israeli missions in the Gulf and the fortunate Israeli diplomats who will serve in them will perform one mission: “To achieve our interests, achieve tangible achievements for the State of Israel, provide services to the citizens of Israel, and ensure that this peace Real, warm, tangible and fast as possible. “