On August 13, the UAE and Israel agreed to normalise diplomatic relations in a deal brokered by US President Donald Trump.
The UAE on Saturday abolished a law that banned trade and business deals with Israeli firms, offering new growth avenues to local businesses in key sectors such as travel and tourism, hospitality, transport, telecoms, IT, defence, architecture and F&B.
The President, His Highness Sheikh Khalifa bin Zayed Al Nahyan, issued Federal Decree-Law No. 04 of 2020, abolishing the Federal Law No. 15 of 1972 regarding boycotting Israel and the penalties, thereof.
The landmark move will allow individuals and companies in the UAE to exchange or possess Israeli goods and products of all kinds and trade in them. On August 13, the UAE and Israel agreed to normalise diplomatic relations in a deal brokered by US President Donald Trump.
Israel’s Channel 13 TV said bilateral trade could initially be worth $4 billion a year, a figure it said could soon be tripled or quadrupled.
According to Israel’s Economy Ministry, the normalisation of ties could increase exports to the UAE up to $500 million annually and UAE investments in Israel could reach $350 million a year.
The UAE business community welcomed the law allowing local companies and individuals to carry out business with Israeli companies.
Kamal Vachani, director of retail major Al Maya Group, said they are looking forward to interact with Israeli companies and sees it as a very positive development. “We are keen to engage in food business with Israeli companies and see a lot of potential in food exports from the UAE to this new market,” Vachani said.
Rizwan Sajan, founder and chairman of Danube Group, said the peace deal with Israel will usher in a new era of cooperation and shared prosperity.
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