Israel wants to build land corridor with UAE for movement of goods

Israel is looking into the potential of establishing a trading land corridor with the UAE to further develop its bilateral relationship.

The intent was outlined by Eitan Na’eh, head of mission at the newly established Israeli embassy in Abu Dhabi, in an interview with UAE state news agency WAM.

Na’eh who is expected to officially submit his diplomatic credentials to the UAE government soon, said that existing air and sea links permit goods to transit between the two countries within a few hours and via shipping routes in 16 days.

“Now we are looking into the potential of trailers and lorries carrying goods from the UAE reaching Israel in three days and vice versa in the near future,” said Na’eh, the 57-year-old diplomat who earlier served as the Israel’s Ambassador to Azerbaijan and Turkey, and even the deputy head of mission at the embassy in London.

Read: UAE cabinet approves decision to establish embassy in Tel Aviv

“I truly believe that the UAE on the eastern part of Arabia and Israel on the western part of Asia – on the Mediterranean – can create a trade corridor through land and sea [to the rest of the world],” he added.

“This ‘corridor of peace’ will create great possibilities for trade and tourism.”

He pointed out that Israel has trade agreements with several Western countries, whereas the UAE has strong trading relationships with Easter countries and by joining forces, the UAE and Israel could stand to mutually benefit from each other’s trading strengths.

“Business communities in Israel and the UAE are now looking into ways to increase trade. Each country brings its relative advantage. We have trade agreements with the West [US and European Union]. You are an opening to the East. So, it is a huge market.”

Since the UAE established diplomatic relations with Israel following the signing of the Abraham Accords, direct flight between the two countries have resulted in an influx of tourists from Israel into the UAE. The envoy said that around 130,000 Israeli tourists visited the UAE in the wake of the Abraham Accords.

He added that that there is a potential for nearly 50,000 Israelis a month to visit the UAE during the winter season. “We are talking about a few hundred thousand of visitors a year.”

Once the vaccination against Covid-19 is complete in both countries, he expects increased tourist traffic. “I know that UAE tourism companies are already making enquiries about packages in Israel. Israel has got many climate zones, forests and mountains and water bodies, which will attract visitors from the UAE.”

On a business front, he said that Israel has identified around 29 potential areas for cooperation with the UAE, and bilateral agreements in eight areas have already been signed.

“Israelis are firm believers and that’s why we believe in what we call circles of innovation. We can set up joint circles of innovation.”

“I think there is a lot of room for mutual investments. More Israeli companies will open their front offices here in the UAE or set up factories,” he said.

There have already been a number of trade, banking, aviation, and technology agreements signed between Israeli and Emirati companies.

The Abu Dhabi Investment Office (ADIO) chose Tel Aviv to open its first international branch recently.

Read: Abu Dhabi Investment Office establishes international presence in US, Asia and Europe

Dubai’s trade meanwhile with Israel in five months, from September 2020 – January 2021, has reached a value of Dhs1bn.

Read: Dubai-Israel: Trade hits Dhs1bn in five months