Here’s what you need to know about the pact and trade between the UAE and Israel:
What does the pact entail?
Tariffs will be eliminated or reduced on 96% of goods sold between countries, including food, medicines, diamonds, jewelry, fertilizers and other chemicals.
Most fees will be removed immediately, while others will be removed for up to five years. Those projects that will be subject to tariffs will pay at a lower rate.
Dorian Barak, Co-Chair of the UAE-Israel Business Council, expects that by the end of the year, about 1,000 Israeli companies will be operating in or through the UAE, including Israeli subsidiaries, representative offices, sales operations, distribution networks, and new ventures.
What does each party gain from trading?
A study by Paul Rivlin, an economist at Tel Aviv University, shows that the value of Israeli imports from the UAE was more than double its exports last year, but other experts say Israel could gain much more from trade with the UAE in the future.
The UAE wants wealthy people, tourists, entrepreneurs, start-ups and cutting-edge technology, says Robert Mogelnitsky, senior fellow at the Gulf Arab Institute in Washington, but “Israel is likely to get more direct economic benefits. just get a lot more than the Emiratis.”
The UAE will see an influx of Israeli companies looking to set up a regional headquarters from which to target businesses in the Greater Middle East, South Asia and the Far East, Barak said.
Given Dubai’s status as a regional export hub, does trade with the UAE open up Israeli goods to a wider market?
According to him, the UAE should become the main regional export and re-export market for Israeli goods. “I expect you will now see Israeli goods appear on store shelves and in factories” in the region.
Mogelnitsky, however, says Israel is a controversial player in the region, so trading with the UAE will give it a chance to enter an untapped regional market, but not a “VIP pass.”
Business relationships between Israeli firms and public and private firms in the Gulf already exist, says Karen Young, senior fellow at the Washington-based Middle East Institute. The trade agreement “will help newcomers feel more comfortable and will encourage direct trade and investment.”
Will we then see Israeli goods on the shelves of Saudi Arabia?
Saudi Arabia is the largest Arab economy and access to its market is coveted. Experts say the kingdom recognizes this leverage and demonstrated it last July when it excluded Israeli goods exported from the UAE from preferential tariff concessions under agreements with other Gulf states.
“Saudi Arabia is not going to just give away its market to the Israelis through Dubai,” Mogelnitsky said. “The Saudis will want something big in exchange for access to the Gulf’s biggest market.”
What does this mean for the Arab boycott of Israel?
“The Arab boycott has loosened up over the years, and the Israel-UAE free trade agreement is the main nail in its coffin,” Rivlin says.
Trade with the UAE may not mean an end to the Arab boycott of Israel, Barak says, but makes it “irrelevant from a business standpoint.”
Turkey promises Saudi crown prince visit
Turkish Foreign Minister Mevlut Cavusoglu said on Tuesday that Ankara and Riyadh had agreed on a visit by Saudi Crown Prince Mohammed bin Salman to Turkey, but no date had yet been set.
- Background: Relations between regional rivals escalated after a Saudi gunman killed Saudi journalist Jamal Khashoggi in the kingdom’s consulate in Istanbul in 2018. Cavusoglu said Prince Mohammed’s visit was originally scheduled for this month, adding that efforts to normalize strained relations with Riyadh are moving forward. fast.
- Why is it important: The Saudi Crown Prince’s potential visit follows Turkish President Recep Tayyip Erdogan’s trip to Saudi Arabia in April, ending tensions between the two countries as Turkey looks for ways to bolster its economy amid the economic crisis.
Human Rights Watch Says Russian Wagner Group Linked to Anti-Personnel Mines and Booby Traps in Libya
- Background: The Wagner Group, a private military security contractor, has previously been linked to the fighting in Libya, allegedly supporting eastern-based commander Khalifa Haftar and his Libyan National Army during their attacks on the Libyan capital between 2019 and 2020, according to Human Rights Watch and the United Nations. expert reports. The findings showed that deadly anti-personnel mines prevented citizens from returning home after the war. Human Rights Watch has demanded a “credible and transparent international investigation” that will bring justice to those “illegally killed and maimed by these weapons.”
- Why is it important: The United States classified the group as part of the Russian military”confidantwhich has operated in the Middle East and Africa for years. In March, British intelligence reported that Wagner was stationed in eastern Ukraine a month after the Russian invasion. The Kremlin denies any connection to the group.
Russian Foreign Minister Meets with Colleagues from Gulf Countries Before OPEC+ Meeting
Russian Foreign Minister Sergei Lavrov met foreign ministers of the Gulf Cooperation Council countries in Riyadh on Wednesday ahead of a meeting of oil exporting countries to decide on production.
- Background: Lavrov previously met with his Saudi counterpart, and both of them praised the level of cooperation within OPEC +, the Russian Foreign Ministry said. The alliance will decide on Thursday whether to continue a modest increase in oil production.
- Why is it important: Lavrov’s meetings took place shortly after the European Union agreed to a significant reduction in Russian oil imports as part of its latest sanctions related to Moscow’s invasion of Ukraine. Western states have urged oil producers to boost production to curb global inflation and help stifle Russian military action.
What to watch
Qatar Airways CEO Becky Anderson spoke about the country’s plans to operate more than 160 daily flights to transport spectators from the region to the 2022 FIFA World Cup.
Watch the interview here:
The book on gender roles in Libya won the prestigious award for Arabic fiction, but also drew some backlash against the author.
Mohammed Alnaas, 31, late last month became the first Libyan and youngest writer to win the International Prize for Arabic Literature (IPAF) for his debut novel Bread on Uncle Milad’s Table.
The book explores gender roles and challenges traditional notions of masculinity. Set in a remote village in Libya, the story revolves around the protagonist Milad. After the engagement, Milad’s family life becomes the talk of the town as he pursues his passion for baking bread while his fiancée Zeinab works to support the house.
Hearing the gossip, Milad publicly questions the ingrained notions of gender in society.
“The Libyan man is a victim of traditional laws, as is the Libyan woman, and while women’s struggles against social and traditional laws are clear, men’s struggles are not,” Alnaas told CNN. “[Men] fell into their own trap because they always have to prove to people that they are men, tough men, strong men. They are enslaved by this picture of the ideal man and become machines in the social order.”
Libyans celebrated the victory on social media, but the book also sparked controversy. Alnaas laments the social media “campaign” about the book’s ethics, noting that some of those who congratulated him have deleted their posts.
Under former Libyan leader Muammar Gaddafi, state censorship held literature in a stranglehold. Books that did not follow the official line, as stated in Gaddafi’s infamous “Green Book”, were banned.
Describing his view of the current landscape of Libyan literature, Alnaas told CNN that “she struggles, but she resists.”
Sponsored by the Abu Dhabi Arabic Language Centre, the IPAF is considered the most prestigious literary award in the Arab world. Alnaas’ book will be translated into English.
Adolf Eichmann, one of the architects of Nazi Germany’s “Final Solution”, was executed 60 years ago this week in Israel.
Born in Germany in 1906, he joined the elite Nazi SS organization in 1932 and quickly rose through the ranks. Ten years later, he carried out a plan to exterminate all European Jews in an operation called the “Final Solution to the Jewish Question.”
Eichmann was responsible for the identification, assembly and transportation of millions of Jews during World War II. After the defeat of Germany, he was captured by American forces but escaped in 1946 before being put on trial. He hid in Argentina until 1960, when he was captured by Israeli agents in Buenos Aires in what became known as Operation Finale.
Eichmann was smuggled out by the Israelis to stand trial in Jerusalem. In December 1961, Eichmann was found guilty on all counts, and on June 1, 1962, he was hanged in Tel Aviv.