Israel has signed a free trade deal with the United Arab Emirates that will abolish tariffs on food, agriculture, medical equipment and medicine. 

On Tuesday, Emirati Trade Minister Thani al Zeyoudi announced that the deal was signed on Twitter.

“Today, we signed a Comprehensive Economic Partnership Agreement with #Israel that builds on the strong foundations laid by the Abraham Accords. It will push the value of our non-oil bilateral trade beyond $10 billion within five years,” Mr Zeyoudi said. 

The Comprehensive Economic Partnership Agreement was signed by the Israeli Minister of Economy and Industry Orna Barbiva and the UAE’s Minister of Economy Abdulla bin Touq Al Marri. 

Talks for the free trade agreement began in November last year and have finally concluded after four rounds of negotiations.

The deal would see the removal of tariffs on 96 per cent of goods, including food, agriculture, cosmetics, medical equipment and medicine. It is also expected to boost bilateral trade to more than $10 billion a year within five years.

“Our agreement will accelerate growth, create jobs and lead to a new era of peace, stability, and prosperity across the region,” Mr Zeyoudi said on Twitter.

The deal came after Israel, and the UAE first established ties in September 2020. 

For the UAE, the trade deal with Israel is its second bilateral free trade agreement after signing a similar deal with India in February.