Today (Sunday) Israel and the United Arab Emirates signed a free trade agreement to reduce customs duties on 96 percent of products.

Israeli Foreign Minister Eli Cohen signed a customs agreement with the United Arab Emirates ambassador to Israel, Muhammad Al Khajah, according to a statement issued by the Israeli Ministry of Foreign Affairs.

The signing of the customs agreement will allow the free trade zone agreement between the two countries, which was signed in May 2022, to enter into force.

With the entry into force of the free trade zone agreement, tariffs on approximately 96 percent of products will be reduced or eliminated and Israeli companies will be allowed access to government tenders in the UAE.

Prime Minister Benjamin Netanyahu said, "The historic peace agreement that we signed with the United Arab Emirates continues to bear fruit for the benefit of the citizens of both countries."

He added that the signed customs agreement will lead to the implementation of the free trade zone agreement between Israel and the United Arab Emirates, which will reduce customs tariffs, lower the cost of living and give a boost to business between Israel and the UAE.

Netanyahu stressed that he "will continue to expand the Israeli circle of peace with other countries in our region."

Eli Cohen said, "The entry into force of the free trade agreement is important news for the Israeli economy to strengthen the relationship with the UAE, and additional evidence of the importance of the Abraham Accords."

The free trade zone agreement between Israel and the UAE will be "a major driver in strengthening economic and trade cooperation between Israel and the UAE and another layer in strengthening relations between the two countries," according to the statement.

In 2022, bilateral trade between Israel and the UAE will amount to more than $2.5 billion, and with the entry into force of the free trade zone agreement, the Israeli Ministry of Foreign Affairs expects that the volume of trade between the two countries will increase significantly, which will lead to more job opportunities in the Israeli market and reduce the cost of living. in Israel.

Israel and the UAE signed a US-brokered peace agreement in 2020.