Israel and the UAE signed a free trade agreement. This is the first such agreement between Israel and an Arab country, based on the normalization of diplomatic relations brokered by the United States in 2020, AFP reported.

According to Israeli data, bilateral trade between Israel and the UAE totaled about $900 million last year.

Dorian Barak, President of the UAE-Israel Business Council, predicted that trade between the region's leading economies would soon increase.

Trade between the UAE and Israel will exceed $2 billion in 2022 and grow to around $5 billion in five years thanks to cooperation in renewable energy, consumer goods, tourism, he said. Dubai is rapidly becoming a hub for Israeli companies that are looking to South Asia and the Middle and Far East as markets for their products and services.

By the end of the year, about 1,000 Israeli companies will be operating in and through the UAE, he said.