UAE and Israel trade agreement ushers in new era of cooperation

Staff Reporter, Gulf Today

The UAE and Israel have now agreed to a Comprehensive Economic Partnership Agreement (CEPA) between the two nations, a deal that will deepen trade and investment ties, accelerate growth and lead to a new era of peace, stability, and prosperity in the Middle East.

A high-level UAE delegation travelled to Israel this week to conclude talks on the CEPA and, following the final round of negotiations, the agreed text is now being finalised ahead of an expected formal signing between the nations’ respective leaders in the coming weeks.

Dr Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, heralded the deal – which follows the UAE-India CEPA signing in February 2022 – as the latest step in the UAE’s bold trade agenda designed to consolidate the country’s status as a global business hub.

“When we signed the Abraham Accords in September 2020 in Washington DC, we also opened a new chapter in regional trade, investment and exchange. This Comprehensive Partnership Agreement will enable us to build on these gains under a shared goal to create modern, progressive and technologically advanced nations that unlock benefits for business and entrepreneurship.”

“It comes at an important time. As the world emerges from the shadow of global pandemic and faces new challenges, multilateral approaches are needed to rebuild supply chains, reinvigorate economies and restore trust in the global system. We are confident that this deal will not only boost trade but increase investment, boost tourism, accelerate digital advances and promote collaboration in priority sectors such as energy, education, healthcare, food security, entrepreneurship, cybersecurity and advanced technology.”

The UAE-Israel CEPA will substantially reduce or remove tariffs on a wide range of goods, enhance market access for services, promote investment flows, create jobs, promote new skills, enhance climate action and deepen cooperation on strategic projects. It will also create mechanisms for SME expansion. After concluding a historic first bilateral trade agreement with India last month, the UAE is moving quickly to strengthen ties with Africa, Asia and South America.

Meanwhile, the  Dubai’s property market has proved remarkably resilient during the pandemic, and more than 84 percent of real estate professionals expect competition within Dubai’s real estate market to ramp up going forward, according to the 2022 EMEA Real Estate Report published by Berkshire Hathaway HomeServices global headquarters.

The report reflected the experiences of residential real estate professionals across seven key markets for Berkshire Hathaway HomeServices consisting of Dubai, United Kingdom, Germany, Italy, Spain, Portugal and Greece over the past 12 months.

More than two thirds (68 per cent) of respondents in Dubai said they had experienced growth over the previous twelve months and expect this positive trend to continue, with a noteworthy 77 per cent - the highest figure reported across EMEA countries - predicting the market will grow further in the coming year. These figures, when coupled with a strong outlook for further growth, suggest that Dubai’s property sector will continue to display considerable vitality soon.

In the last quarter of 2021, the UAE’s real estate market witnessed record-breaking growth since records began. In November 2021, Dubai registered the best month of sales on record, with a total of 6,989 transactions worth Dhs17.95 billion. When looking at transaction volumes, Dubai reported a total of 57,043 for 2021, representing a 73.6 percent increase on 2020 and a 51.6 percent increase on 2019.

Real estate professionals attribute Dubai’s growth over the past year to have been supported by Expo 2020 Dubai as they observed an increase in market value of property coupled with an increase in demand both regionally and internationally.

With UAE being at the forefront of innovations globally and geographically located around the center of the world, Dubai is getting acknowledged and respected by investors across the EMEA region and wider globe. Dubai’s real estate professionals estimate that roughly 60 percent of residential real estate investment has been generated from outside the region, with under half (40 percent) of demand for property originating locally. According to the findings, a third (32 percent) comes from international investors within EMEA, and just over a quarter (27 percent) from outside of EMEA. Additionally, more than 50 percent of respondents based in Dubai are most likely to say that the balance of international versus domestic investment will change in the next three to five years.

“We must recognise the Dubai’s market has totally transformed. In just a few years, we’ve seen a marked shift from a market that was almost entirely domestically driven in the past, to one that is attracting more and more foreign and institutional capital. The country’s investments in world-class infrastructure coupled with the exceptional lifestyle and amenities, from the world’s best hotels and restaurants have helped transform the city into a destination that people want to live in. We see this to be true as people from all parts of the world including Europe, India and UK continue to choose to live in Dubai and furthermore add up to the tally of over 200 nationalities of expatriates that make up for roughly 85 percent of Dubai’s population.” further commented Dounia.