The free trade agreement signed May 31 in Dubai between the United Arab Emirates (UAE) and Israel reflects the importance both countries accord to the economic ties and the diplomatic relations between them. Israel’s Economy and Industry Minister Orna Barbivai and Emirati Minister of Economy Abdulla bin Touq al Marri officialized the agreement, which is expected, according to estimates of the Israeli Ministry of the Economy, to considerably increase the already impressive trade between the two nations in goods and services. 

Ohad Cohen, director of the Foreign Trade Administration at the Israeli Ministry of the Economy, told Al-Monitor that the agreement is expected to triple the scope of trade between the countries to $3 billion within three years. 

From September 2020 the scope of bilateral commerce reached $2.5 billion, and in 2021 alone more than a billion. In comparison, all of Israel's foreign trade encompasses close to $50 billion a year. Trade between Israel and Egypt, a country whose population is 10 times that of the UAE, is only $300 million a year. On the other hand, the scope of trade between Israel and Turkey is much greater, and reaches more than $5 billion a year. 

The agreement grants immediate or gradual tax exemption on most trade between the countries. It also covers issues of regulation and standardization, customs, cooperation, government acquisition, electronic trade and intellectual property rights.