Fintech and fighter jets: One year later, the relationship between the UAE and Israel bears fruit

One year has passed since Israel and the United Arab Emirates normalized their relations in the U.S.-mediated agreement, and a large number of transactions have been reached from tourism and aviation to cutting-edge technology.

On September 15, 2020, the UAE became the first Gulf countries Establish a formal relationship with the organization Jewish State, And third Arabian countries This was done in Egypt and Jordan after 1979 and 1994 respectively.

Bahrain signed on the same day, and later Sudan and Morocco also joined the Abraham agreement mediated by the United States to normalize relations with Israel.

The following are some of the key issues following the historic agreement, which violated Arab policy for decades, which is that no relationship should be established with Israel until peace is reached with the Palestinians.

What is the economic benefit?
The UAE and Israel have been trying to emphasize the economic dividends brought about by normalization, especially Dubai, which is constantly seeking to expand its tourism, technology and business sectors.

The two countries set up embassies in each other and signed a large number of trade agreements.

Since last year, many Israeli start-ups in the fields of artificial intelligence, financial technology and agriculture have opened stores in the UAE.

The economies of the two countries have been hit hard by the coronavirus pandemic. After the conclusion of travel, aviation and financial services deals, business exchanges between the two countries reached US$500 million (excluding investment) in August.

At the same time, after the UAE recognized the Jewish state, Israel’s staunch ally, the United States, approved the sale of US$23 billion worth of F-35 fighter jets to the UAE.

“The main benefit of the UAE is economic,” Elham Fakhro, an analyst at the International Crisis Group think tank, told AFP.

“Tourism, cultural exchanges, cybersecurity agreements and diplomatic exchanges benefit the two countries.”

According to the Israeli Consulate in Dubai, since the establishment of diplomatic relations, nearly 200,000 Israelis have visited the UAE.

will Saudi Arabia The relationship is also normalized?
Saudi Arabia, the Gulf power broker, has repeatedly stated that it will adhere to a policy of not establishing formal relations with Israel until the conflict with the Palestinians is resolved.

However, mutual concern for Iran has gradually narrowed the distance between Israel and the Gulf Arab countries, and Riyadh has been quietly establishing relations with this Jewish country for many years.

After the UAE reached a deal with Israel, Saudi Arabia allowed some aircraft to fly over from this Jewish country, but analysts said that normalization between the two countries has not yet arrived.

“It seems unlikely that Riyadh will officially normalize relations with Israel under the leadership of King Salman,” Hugh Lovat, a policy researcher at the European Council on Foreign Relations, told AFP.

“But it is clear that the two countries have indeed engaged in a considerable degree of political and security dialogue.”

According to Fakhro, if Saudi Arabia does achieve normalization of relations, it will be based on “its own conditions… and internal calculations.”

What about the Palestinians?
Palestinians who criticized the US mediation deal said that any normalization with Israel would legitimize the occupation of Palestinian territories.

According to the Emirati, Israel agreed to suspend annexation of occupied West Bank territories, but then Prime Minister Benjamin Netanyahu said that in the long run, the plan was not excluded.

In May, Israel’s new Arab allies found themselves in an awkward position and issued a statement of condemnation after the violence between Israelis and Palestinians escalated.

The violence in and around the Old City of Jerusalem and the respected Al-Aqsa Mosque compound was the worst since 2017, driven by years of bidding for Palestinian homes by Jewish settlers.

However, according to analysts, these incidents have no impact on the normalization agreement, and Fajro said that these agreements “have nothing to do with the Palestinians.”

Lovat also stated that normalized transactions with the UAE and Bahrain have never been in danger.

“These are based on important bilateral interests and are not actually related to the Palestinian issue,” he said.

“If anything, these events show how strong these connections are.”