The world was of the view that the Hamas-Israel conflict will erase and undo all the success that Israel and other Abraham Accord countries had achieved. However, the developments for the past few days and now the latest news of Israel, UAE signing tax treaty to boost economic cooperation, can be observed as an endorsement of the UAE for Israel and more specifically Benjamin Netanyahu.
Israel and the United Arab Emirates inked a tax pact on Monday, according to Israel’s Finance Ministry, which described the move as a boost to commercial development after the two countries normalised relations last year. In October, the UAE finance ministry said that it had secured an agreement with Israel to avoid double taxes. The tax convention will be Israel’s 59th once ministers and parliament have ratified it this year. It will take effect on January 1, 2022.
UAE understands the farsightedness of Netanyahu and how important was his role in the Abraham Accords. In addition to this, the UAE elite is as desperate as Netanyahu himself to make sure that the Iran Nuclear Deal does not go through. In consideration of all these facts, Emiratis want to further solidify their bilateral relations with Israel at the time Netanyahu is at the helm of affairs, and by doing so provide an external endorsement during a politically unstable situation in Israel.
The aim of driving a wedge between Israel and the Arab world has turned out to be counterproductive and it has brought them together. The plans are still quietly underway for the upcoming opening of the Israel-Gulf Cooperation Council Chamber of Commerce and Industry in Dubai, the United Arab Emirates. The chamber was established only in February, after the United Arab Emirates, Bahrain, Sudan, and Morocco normalised relations with Israel last year under the Abraham Accords.
In addition to this, the billion-dollar UAE-Israel gas deal will go forward signalling no major impact of the Hamas-Israel conflict on the relationship among the Abraham Acord member countries. The UAE has condemned the earlier storming of the Al-Aqsa Mosque as well as the impending forced eviction of Palestinian families from Sheikh Jarrah. However, it has been cautious not to mark Israel as the aggressor in the Gaza conflict, a stance that is diametrically opposed to Arab public opinion.
Israeli Foreign Minister Gabi Ashkenazi said the treaty will enable the significant promotion of investment and trade that will help both countries economies. Since a normalisation deal was signed last September, Israeli and Emirati banks and other companies have signed cooperation deals, while also establishing direct flights.
Furthermore, according to a Tel Aviv University press release, Israel and the United Arab Emirates signed an agreement on Tuesday that will see the construction of a water research facility as part of a strategic business relationship. The study will be carried out as part of a collaboration between Watergen, Israeli water from air technology firm, Baynunah, a food security company based in the United Arab Emirates, and Tel Aviv University’s Moshe Mirilashvili Institute for Applied Water Studies.