Israel-Middle East trade soars, spurred by Abraham Accords and energy

Al-Monitor Pro Members

David Rosenberg

Israeli reporter specializing in business, economics and politics

May 15, 2023

Long isolated economically from the Middle East, Israel has seen a rapid expansion of merchandise trade with a select group of countries in the region, led by the United Arab Emirates, Egypt and Turkey. Cross-border investment and tourism are also on the rise, especially with the UAE. Political tensions, mainly due to Israel’s Palestinian policy, may slow growth and block some deals, and they will likely prevent Israel from expanding its existing circle of regional trade partners, most importantly Saudi Arabia. Tourism growth is especially vulnerable to political developments. But the compelling economics of regional trade and investment, especially in high technology and energy, as well as the creation of long-term business partnerships, should ensure growth in the coming years.