Cross curricular Politics article: Where will change occur following the Israel- UAE normalisation agreement?

Where will change occur following the Israel-UAE normalisation agreement?

Oliver

On 15 September 2020 representatives of both Israel and the United Arab Emirates (UAE) completed the signing of the Abraham Accords which was witnessed and brokered by the President of the United States, Donald Trump. The signing of these accords completed by Prime Minister Netanyahu and the Minister of Foreign Affairs Sheikh Abdullah, is a critical milestone towards bringing peace and developing healthy international relations throughout the Middle East. In this article, I will outline the major areas where significant change will occur and the potential effect it may have on both the people and businesses of Israel, the UAE and the Middle East.

Upon further reading into the Abraham Accords, Article 5 outlines how ‘Cooperation and Agreement in Other Spheres’ could be achieved. The article briefly explains that a vital part of demonstrating peace and cooperation must begin with the opening of international borders for trade, tourism, and various other industries with reference to encouraging ‘investment relations’ as well as ‘advance regional economic development’. Finance, investment and business is one particular area in which both Israel and the UAE excel. Much of the UAE’s economic success lies in the exportations of oil, petroleum and natural gas whilst Israel’s major strength is research and development earning the nickname ‘The Startup Nation’. Following the agreement, both economies can now benefit by purchasing each other’s resources and services. In 2017, ‘Israel’s oil consumption was 247,000 barrels per day’ and now following the normalisation the UAE has gained a new customer for oil and petroleum exports. On the other hand, the UAE is home

to wealthy investors and from 2018-19 the UAE’s ‘foreign direct investment reached $13.8 billion’. With Israel being home to over ‘6,000 active startups’, Emiratis now have much more choice when internationally investing their money.

Another area which the two countries will want to promote amongst their citizens is the travel and tourism industry. The accords mention ‘developing closer peopleto-people relations’ and this could be achieved by ensuring both Israel and the UAE welcome each other’s people into their country. In 2016, the UAE reported that the travel and tourism sector made up ‘5.2% of the total national income’ and welcomed over ‘14.9 million visitors’ that year. In Israel, in 2017, ‘3.6 million tourists’ arrived which was a ‘growth of 25% since 2016’. Both nations already have established cities like Dubai, Abu Dhabi and Tel Aviv which act as major hubs for tourism with many five star hotels as well as entertainment and excursions on offer. Furthermore both nations offer quite different experiences, Israel is known for its ancient historical sites and religious tourism whereas the UAE attracts many due to the glamourous buildings and scenic coastlines. In addition, the countries’ currencies are valued very equally with one dirham equalling 0.88 Israeli shekel (as of 28 Dec). Furthermore, the Dubai Expo 2020 scheduled for October 2021 could potentially see many Israelis travel to the event.

Aside from the potential business benefits that this agreement could produce, both parties have stressed the importance of providing the best for their citizens. Israel and the UAE hope to strengthen the interconnectedness of their people, showing that not only did this treaty go ahead for financial gain. Both nations invest heavily into developing new technology and researching in various scientific fields and potentially one way to begin international relations is through ‘scientific cooperation and exchange between scientists, researchers and academic institutions.’ By pushing for more joint international research, further into the future, universities may choose to link together and promote international study. It’s essential that residents from Israel and the UAE understand as well as see that the normalisation agreement was created and completed to not only benefit both economies and boost trade but to improve relations between citizens and encourage peace amongst them.

Additionally, the Abraham Accords states that both nations along with the United States, are prepared to establish a ‘Strategic Agenda for the Middle East’. This proposed agenda hopes to create change across the Middle East in many ways which includes promoting peace and stability amongst nations as well as improving prosperity and creating more economic freedom. One way of setting this strategic agenda in motion could be through the creation of more normalisation agreements and following the completion of the Abraham Accords, speculation of other nations like Oman and Saudi Arabia, following what the UAE did, has increased. Nations may potentially choose to normalise relations with Israel because they may see that the UAE has economically or socially gained and decide that establishing relations between Israel is beneficial for both their economy and citizens.

This agreement is the next phase towards creating positive changes for the future that should benefit not only those who reside in Israel and the UAE but all who live in the Middle East. Through the strengthening of international relations, as well as the endorsement of trade and business, both nations have the opportunity to cooperate peacefully and discover much economic success.

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