Continue to get closer: Israel and the UAE will collaborate on projects in Africa Israel today

A new economic initiative by the Abrahamic Agreements: Israel and the United Arab Emirates will cooperate in promoting projects in Africa.

The initiative is being promoted by the foreign ministries of the two countries, which are currently setting up a database that will connect companies from Israel and the United Arab Emirates.

After market research it was decided that the joint projects would focus on two domain clusters: agriculture and water, and communications and digital. 

The new agreement is another stage in the rapid development of economic relations between the two countries: following the Avraham agreements, the volume of trade between Israel and the Emirates jumped by 438% within a year and reached NIS 3.7 billion - more than the volume of trade between Israel and Egypt.

It is estimated that the volume of trade is expected to reach billions of dollars annually in the coming years.

As part of this process, a full free trade agreement was signed between the countries at the end of May. 

"About two years after the signing of the Avraham agreements, and following the laying of a comprehensive agreement infrastructure and the leap in mutual trade, business cooperation in third regions strengthens ties between economies and adds a dimension of depth to all relations between the two countries," Yael Rabia-Tzadok, VP Economics in the Ministry of Foreign Affairs. 

Signing of the Avraham Agreements, September 2020, Photo: EP

"Our interlocutors in the Emirates have reflected on the great interest of local companies to cooperate with Israeli companies in projects in Africa. The emirates know the reputation of Israeli companies in projects on the continent, and there is great economic potential here. And its effects on the Middle East and the African continent. "

As part of the Foreign Ministries' initiative in Abu Dhabi and Jerusalem, companies from both countries will apply to be included in a joint database, according to pre-defined criteria.

This pool will create mutual exposure that will enable the promotion of joint projects in Africa, where each company will bring its strengths.

In addition, Israel's foreign ministries and emirates will assist companies in working with governments in Africa.

The African side

The project will focus on six countries on the continent - Uganda, Kenya, Nigeria, Ghana, Ivory Coast and Senegal - selected according to criteria of the level of ability to promote business, political maturity, projects on the agenda and the like.

The nature of the demand for economic projects in these countries in relation to the relative advantages of companies from the Emirates and Israel was also examined.

According to Rabia-Zadok, Africa's population is expected to grow from 1.3 billion people in 2020 to 2.5 billion by 2050, when about a quarter of the world's population will live on the continent.

"According to the African Development Bank, the continent needs investments of between $ 130 billion and $ 170 billion in infrastructure, so it is enough to capture a smaller share of it in order to generate a huge profit.

Looking ahead, Africa is perceived in the world as a future grain barn and Israel brings with it world-class capabilities and a reputation of the highest rank in the fields of agriculture and water. "Cellular, fintech, available government and more - they are in huge demand in Africa."

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