UAE-Israel Economic Partnership Agreement Will Go Into Effect From April 1st, 2023

The UAE-Israel Comprehensive Economic Partnership Agreement, signed on May 31, 2022, takes effect on April 1, 2023.

Tariffs will be removed or reduced on more than 96% of product lines, accounting for 99% of the current value of trade between the UAE and Israel.

Following the successful implementation of the UAE-India CEPA in May 2022, the UAE-Israel CEPA is now the second of the UAE's new foreign-trade deals to be ratified.

Aside from the new tariff structures, the agreement with Israel eliminates unnecessary trade barriers, improves market access for service providers, and opens up opportunities in government procurement.

It also serves as a platform for SMEs to expand internationally, establishes parameters for digital trade, safeguards intellectual property, and develops transparent trade remedy mechanisms.

The CEPA aims to increase non-oil bilateral trade between the UAE and Israel from US$1.3 billion in 2021 to $10 billion by the end of the decade. Bilateral non-oil trade reached $2.49 billion in 2022, a 90% increase over the previous year, with re-exports from Israel increasing by 71.2% and non-oil exports to Israel increasing by 48.6%.

The CEPA between the UAE and Israel is part of the UAE's new trade agenda and efforts to double the size of the economy from AED1.4 trillion to AED3 trillion by 2030. CEPAs have now been signed by the UAE with India, Israel, Indonesia, Turkey, and Georgia.