Economic leap in trade relations with the UAE. The Association of Chambers of Commerce signed three historic economic agreements with the UAE last week. The first was signed with the Dubai Chamber of Commerce and Industry and the other two with two of the largest free trade areas in the world located in Dubai. The signing of the agreements follows the normalization agreement between the United Arab Emirates and Israel.
The signing ceremonies were performed on web platforms. The agreements open up opportunities for the business sector in the two countries to increase and expand business ties and foster new ties. Free trade agreements are of special importance, such as creating an opportunity for Israeli companies to penetrate global markets such as China, India and East Africa. Following the signing of the agreements, delegations from both sides are organized to examine the markets and needs closely.
Joint delegations and an annual business forum
The Dubai Chamber of Commerce and Industry is a non-profit public organization. Its number of members, who come from all branches of the business sector, reached more than 245,000 at the beginning of 2020. One of the main tasks of the bureau is to promote Dubai as an international business center. Bureau services include, but are not limited to, assisting companies in setting up their businesses in the Emirates, an information and research center, issuing business documents, assisting in providing credit and opening a bank account, legal services, business development services and locating business opportunities online, not only in the UAE and GCC, but Also globally.
Both bureaus have signed a strategic partnership agreement paving the way for bilateral cooperation and new business opportunities for members in both markets. Under the terms of the agreement, the two bureaus will produce joint research identifying sectors of mutual interest; Create a joint annual business forum; Will organize business delegations and reciprocal visits; Will support the development of new businesses, start-ups and more. Also, collaboration in areas such as research, business opportunities, networking, arbitration, mediation, education, training, integration of women in business, best practices, sustainability, regulation and more.
Free trade agreement with Jabal Ali Port and Dubai Airport
In addition, two agreements have been signed with free trade zones in Dubai: The free trade zones in the UAE constitute an advantage for international economic activity. The Free Zones offer 100% foreign ownership – meaning without the need to bring in a local partner, and zero taxes, thus constituting a convenient infrastructure for businesses and investors from Israel. There are about 40 trade areas in the union, most of them sectoral and some industry-wide. There is competition between trade areas, and they offer different packages of services.
The meaning of the unique cooperation between the Association of Chambers of Commerce and these two free trade areas for businesses from Israel is the possibility of establishing a company and opening a local bank account with an Israeli identity – something that has not been possible until now; As well as a package of benefits, among others: discounts on renting logistics areas, issuing permits and documents for goods and equipment, legal and regulatory support, issuing work visas if necessary and more.
The agreement with the Free Trade Area in Jabal Ali (JAFZA), the largest seaport in the world west of China (and ranked 9th in the world in general, with all ten except it being ports in China and Vietnam). It is home to more than 7,500 companies and 100 companies from the Fortune 500, among the companies – Nestle, PepsiCo, Mercedes, Canon, Mitsubishi, LG Electric, Swarovski, and more. The agreement will shorten times and save costs for Israeli companies that will operate there. Also, Jabal Ali Port is also developing new trade channels with strategic markets, such as East Africa and Asia.
The agreement was signed between Adv. Uriel Lin, President of the Association of Chambers of Commerce, and Sultan Ahmad Ben-Sulim, Chairman and CEO of DP World, which owns JAFZA.
In addition, an agreement was signed with the DAFZA Free Trade Area at the Dubai Airport Free Zone Authority, which is mainly characterized by trade and services and air transportation of goods. More than 1,600 companies operate there and it is about a five-minute drive from Dubai Airport. DAFZA includes world-class infrastructure, with generous tax exemptions, investor incentives and no currency restrictions. It also offers operational services, IT services, and logistics facilities.
“Trade of billions in the coming years”
Advocate Lynn noted that “these agreements are of immense historical importance that will yield trade of billions in the coming years. They create a rare opportunity for our entire business sector, both in import and export, local activity there, and they are a springboard to huge markets, such as the UAE and all the Gulf states – Qatar, Bahrain, Kuwait and Saudi Arabia, and will be a bridgehead for direct trade development with The huge markets in India, China and East Africa. “The cooperation will contribute to two-way trade in areas such as high-tech, tourism, aviation, investment and real estate, cyber, cleantech, agtech and irrigation, digital health and more. Both Dubai and Israel have worked hard to build strong and prosperous economies for a better life for their people.”
Hamed Baumim, President and CEO of the Dubai Chamber of Commerce and Industry, who also serves as chair of the WCF (World Chamber Federation), and from there he and Lalin have a deep acquaintance, described the agreement as an important development that would build new bridges between the two business communities. Bilateral economic action and mutually beneficial partnerships. He noted that the agreement reflects the strong commitment of leaders on both sides to collaborate in a wide range of economic sectors to share knowledge and benefit from bilateral business opportunities, adding that it also reflects the openness of the Dubai economy and the importance its leadership attaches to international cooperation.
Sultan Ahmad Ben-Sulim, chairman and CEO of DP World, which operates the port of Jabal Ali and JAFZA, in Dubai, said: “Recent developments in bilateral agreements between the United Arab Emirates and Israel have opened new avenues in a variety of sectors. We at DP World, “We welcome the agreement, which will provide unlimited growth opportunities. Establishing direct links between two dynamic and advanced economies in the Middle East will undoubtedly provide impetus to economic growth, and lead to change in the business arena of the United Arab Emirates.”
Dr. Muhammad al-Zaroni, CEO of DAFZA, who signed the agreement with DAFZA, said that “this agreement emphasizes the role of DAFZA in encouraging companies from different sectors to open and expand their business in Dubai by providing all the facilities, competitive incentives and more.”
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