JERUSALEM, March 26 (Xinhua) -- A free trade agreement between Israel and the United Arab Emirates (UAE) came into effect on Sunday, the first such economic deal Israel reached with an Arab country.
Officials from both countries signed a customs agreement on Sunday, enabling the free trade agreement signed in May 2022 to come into effect, said a statement from Israeli Prime Minister Benjamin Netanyahu's office.
The customs agreement was signed by Israeli Foreign Minister Eli Cohen and UAE Ambassador to Israel Mohamed Al Khaja in the presence of Netanyahu.
According to the statement, the free trade deal is expected to reduce customs duties and lower the cost of living while increasing business between the two countries. Additionally, Israeli companies will gain access to UAE government tenders, the office said.
"The taking effect of the free trade agreement is important news for the Israeli economy, for the strengthening of ties with the UAE and is further testament to the importance of the Abraham Accords," Israeli Foreign Minister Eli Cohen said.
The Abraham Accords are a series of U.S.-brokered deals Israel reached with the United Arab Emirates, Bahrain and Morocco in 2020 to establish diplomatic relations.
According to the Israeli Foreign Ministry, the UAE is Israel's 16th largest trading partner, with bilateral trade volume reaching over 2.5 billion U.S. dollars in 2022.
Israel is currently in talks with Bahrain to sign a free trade agreement.
