The United Arab Emirates and the State of Israel have developed a significant economic partnership since the signing of the Abraham Accords in 2020. Trade, investment, tourism, innovation, and connectivity have become important pillars of the bilateral relationship, creating new opportunities for businesses and institutions in both countries.
Bilateral merchandise trade has expanded substantially since 2020. In 2025, trade in goods reached $3.209 billion, broadly stable compared with $3.254 billion in 2024. UAE-to-Israel trade accounted for approximately 80% of total merchandise trade, while Israeli exports to the UAE represented approximately 20%.
The composition of trade reflects the complementary nature of the two economies. In 2025, Israeli exports to the UAE were concentrated in precious stones and metals, optical, medical and precision instruments, and electrical machinery and equipment, which together accounted for approximately 77% of Israeli exports to the UAE. UAE exports to Israel were more diversified, led by precious stones and metals and electrical machinery and equipment, alongside cereals, iron and steel, mineral fuels, mechanical equipment, plastics, and other industrial and consumer products.
The UAE-Israel Comprehensive Economic Partnership Agreement (CEPA) provides an important framework for further strengthening economic ties. The agreement supports trade liberalization, reduces barriers to goods and services, and provides a more predictable environment for companies and investors seeking to operate across the two markets.
Air connectivity is another important enabler of bilateral economic relations. Direct flights between the UAE and Israel facilitate business travel, tourism, commercial engagement, and people-to-people exchange. Direct flight frequencies have reached a record of 136 flights per week, with approximately 120 weekly flights during normal operating periods. Passenger traffic between the two countries reached approximately 1.53 million passengers in 2025, compared with around 892,000 in 2024, an increase of approximately 71.3%.
Recent economic highlights include:
- Cumulative bilateral merchandise trade reached approximately $14.53 billion between September 2020 and May 2026.
- Trade during January-May 2026 reached approximately $1.243 billion, around 1% higher year-on-year.
- Major areas of merchandise trade include precious stones and metals, electrical machinery, optical and medical instruments, cereals, iron and steel, mineral fuels, mechanical equipment, and other industrial products.
- Economic engagement extends beyond merchandise trade to areas including technology and innovation, logistics, health, energy, food security, tourism, and regional connectivity.
The UAE and Israel continue to develop a forward-looking economic relationship focused on facilitating trade, strengthening private-sector engagement, and identifying practical opportunities for cooperation and investment across sectors of mutual interest.
