Since the signing of the Abraham Accords in September 2020, the Middle East has witnessed an unprecedented economic transformation that has redrawn the map of regional trade corridors and opened new horizons for cooperation between nations that had no formal ties for decades. These agreements were not merely diplomatic deals but genuine economic catalysts: UAE-Israel bilateral trade alone surpassed a cumulative $6.4 billion during 2021-2024 according to United Nations Comtrade Database, while partnerships are expanding into fintech, cybersecurity, agritech, diamond trade, defense, and tourism, laying the foundations for new economic corridors linking the Arabian Gulf to the Eastern Mediterranean and North Africa.
UAE-Israel Bilateral Trade: Rapid Growth and Historic Agreements
The economic relationship between the United Arab Emirates and Israel represents the cornerstone of the Abraham Accords’ commercial success. In 2024 alone, UAE exports to Israel reached approximately $1.62 billion, while Israeli exports to the UAE totaled $500.68 million, according to data from Trading Economics. These figures reflect a dramatic shift from zero official trade before normalization to a rapidly expanding commercial partnership.
The most significant milestone came in April 2023 when the Comprehensive Economic Partnership Agreement (CEPA) between the two countries entered into force, becoming the first free trade agreement between Israel and an Arab state. Both nations announced expectations that this agreement would raise bilateral trade from $2 billion to $10 billion within five years, as published by the UAE Ministry of Economy.
“The Comprehensive Economic Partnership Agreement between the UAE and Israel represents a new model for regional economic integration, eliminating tariff barriers and opening new markets for businesses in both countries.”
— Atlantic Council Report
In April 2025, both countries ratified a bilateral customs cooperation agreement that further facilitated the movement of goods between them. The UAE has become Israel’s second-largest trading partner in the region after Turkey — an achievement reflecting the depth of economic transformation driven by these accords.
Key sectors witnessing growth in bilateral trade include:
- Diamond Trade: This has formed a major pillar of commercial ties, with total trade including diamonds growing from approximately $200 million in 2020 to over $3 billion in 2024.
- Technology Products: Israeli software and technology solution exports to the UAE have seen notable growth, particularly in cybersecurity and IoT sectors.
- Food and Agriculture: Israel has leveraged its expertise in agritech to export advanced agricultural solutions and products to the Emirati market.
- Consumer Goods: Retail and consumer product trade between the two countries is expanding alongside growing tourism and direct flights.
Bahrain-Israel Economic Ties: Emerging Partnerships and Challenges
Although Bahrain was the second Gulf state to sign the Abraham Accords, its economic relationship with Israel remains in its early stages compared to the UAE trajectory. Israeli exports to Bahrain reached approximately $6.4 million in 2024, while Israeli imports from Bahrain totaled $102.34 million, according to Trading Economics data.
Despite the relatively modest figures, the two countries have signed several bilateral agreements covering promising sectors including:
- Technology and Innovation: Partnerships in digital solutions development and artificial intelligence.
- Healthcare: Cooperation in medical technology and pharmaceutical research.
- Tourism: Direct flights and facilitated tourist movement between the two countries.
- Telecommunications: Cooperation agreements in the telecom sector and digital infrastructure.
A Brookings Institution report notes that the Bahrain-Israel relationship is characterized by domestic sensitivities that affect the pace of economic development. However, the institutional framework established by the Abraham Accords provides a solid foundation for future growth, particularly given ongoing regional geopolitical shifts.
Morocco and Israel: Remarkable Trade and Tourism Growth
The normalization of relations between Morocco and Israel in December 2020 marked a distinctive chapter in the Abraham Accords story, given the deep historical and cultural ties between the two nations and the large Moroccan Jewish community in Israel estimated at approximately one million people. This rapprochement has had tangible effects on trade and tourism figures.
On the trade front, Morocco maintained a trade volume with Israel of $141.5 million in 2024, according to Morocco World News reports. Key Moroccan export sectors include:
- Textiles and Clothing: The largest share, valued at $76 million.
- Sugar Products and Confectionery: Valued at $34.41 million.
- Automotive Industry: Exports worth $11.43 million.
- Electrical and Electronic Equipment: Valued at $3.42 million.
On the tourism front, the sector experienced notable growth following normalization. The number of Israeli tourists visiting Morocco rose from 39,900 in 2019 to over 70,000 in 2022, before declining to 50,548 in 2023, affected by regional tensions. Nevertheless, the overall trend remains upward, as both countries seek to strengthen tourism links through increased direct flights and simplified visa procedures.
“Moroccan-Israeli relations possess a unique historical and cultural depth that distinguishes them from other normalization tracks. The Moroccan Jewish community serves as a vital bridge between the two countries, contributing to enhanced trade and tourism exchange.”
— Times of Israel Analysis
Technology Collaboration: Fintech, Cybersecurity, and Agritech
Technology collaboration is one of the most compelling and growth-promising fruits of the Abraham Accords. The year 2025 witnessed a major surge in cross-border tech funding among Accords nations, with private tech funding soaring by 431% year-over-year to reach $186 million, up from just $35 million in 2024, according to a Startup Nation Central report.
Technology cooperation centers on three main pillars:
First: Fintech
Fintech stands among the most prominent collaboration sectors between Israel and Gulf states. In November 2022, Israeli company Liquidity Group opened an office in the UAE as part of a $545 million government incentive program. Additionally, Rapyd became the first Israeli startup to receive a license from UAE regulators to sell its fintech products, reflecting the Emirati market’s openness to Israeli innovations in this vital sector.
Second: Cybersecurity
Cybersecurity cooperation was among the earliest initiatives following the Accords’ signing. An early meeting brought together Yigal Unna, head of Israel’s Cyber Directorate, and his Emirati counterpart Mohammed al-Kuwaiti, where joint cyber defense initiatives were proposed. In 2023, Israeli company Cyber Together signed a memorandum of understanding with its Emirati counterpart EliteCISOs to collaborate on knowledge sharing, joint cybersecurity workshops, and personnel development in electronic security.
Third: Agritech
Agritech cooperation holds particular strategic importance for Gulf states seeking to achieve food security. The year 2025 saw notable deal activity in the agriculture and food tech sector, with Israeli technologies being deployed in water optimization, agri-food systems, and industrial automation across Gulf states. Developing climate-resilient agriculture solutions represents an exceptional opportunity to strengthen cooperation between the countries amid shared environmental challenges.
Investment Flows and New Economic Corridors
The Abraham Accords extend beyond bilateral trade to establish ambitious regional and international economic corridors. The most prominent of these initiatives is the India-Middle East-Europe Economic Corridor (IMEC), a massive project aimed at creating a transportation, energy, and digital communications corridor linking Asia to Europe through the Middle East, leveraging the new geopolitical architecture established by normalization agreements.
In direct investment, Emirati funds have participated in funding rounds for Israeli companies in cybersecurity, fintech, and enterprise software sectors. The year 2025 also saw the approval of a natural gas agreement between Israel, Egypt, and American partners valued at $36 billion — one of the largest regional deals benefiting from the normalization climate, according to Reuters reports.
On the stock exchange front, the Tel Aviv Stock Exchange has been building bridges with UAE markets to facilitate cross-listing and enhance capital flows between the two countries. This financial integration opens the door for investors on both sides to access new markets and diversified investment opportunities.
Defense Cooperation and Diamond Trade: Hidden Pillars of Economic Relations
Away from media spotlights, defense cooperation and the diamond trade form two important pillars of the emerging economic relationships between Abraham Accords nations.
In defense cooperation, the UAE sent Mirage 2000-9 fighter jets to participate in a multinational military exercise with U.S. and Israeli air forces in Greece in April 2025, according to reports from the Washington Institute for Near East Policy. A notable deal is also being explored in which UAE’s Edge Group would procure the Hermes 900 unmanned aerial vehicle from Israel’s Elbit Systems — including technology transfer and localized production — representing the first major defense-industrial partnership between the two countries.
As for the diamond trade, it has become one of the most prominent success stories in post-normalization economic relations. Israel, one of the world’s largest diamond trading centers through the Ramat Gan Diamond Exchange, found in Dubai — the emerging diamond trading hub — a natural partner. This trade has grown enormously to become one of the primary drivers of total bilateral trade figures between the two nations.
Tourism Numbers: People-to-People Bridges Between Normalization States
Tourism stands as one of the most visible indicators of the Abraham Accords’ success in building genuine people-to-people connections. Tourist movement between Israel and normalization countries has witnessed notable growth, supported by direct flights and simplified visa procedures.
On the UAE-Israel axis, direct flights between Tel Aviv, Dubai, and Abu Dhabi have stimulated active tourist traffic in both directions. Dubai has become a preferred tourism destination for Israelis, while the number of Emirati tourists visiting Tel Aviv and Jerusalem continues to grow.
Between Morocco and Israel, the number of Israeli visitors reached a record 74,648 tourists in 2022 before declining to 50,548 in 2023. This decline is linked to regional tensions rather than weakening bilateral relations, as both countries maintain deep cultural bonds that support long-term tourism recovery.
A Bloomberg analysis indicates that regional tourism carries significant growth potential as geopolitical conditions stabilize, especially with expanding aviation infrastructure and the development of joint tourism products targeting travelers from both sides.
Challenges and the Palestinian Dimension: Factors Slowing the Economic Track
Despite tangible achievements, the Abraham Accords’ economic corridors face real challenges that cannot be ignored. Foremost among these is the Palestinian dimension and regional tensions related to the Israeli-Palestinian conflict.
A Carnegie Endowment for International Peace report indicated that the Gaza war fundamentally changed the context of the Abraham Accords, with indicators pointing to a decline in the pace of economic and defense engagement. Among the most telling signs, Israeli security and defense companies did not participate in the Dubai Airshow in October 2025.
Key challenges include:
- Public Pressure: Normalization countries’ governments face increasing domestic pressure from citizens who oppose deepening ties with Israel given conditions in Gaza and the West Bank.
- Geopolitical Tensions: Regional military escalations negatively impact the investment climate and investor confidence in the sustainability of new trade corridors.
- Absence of Comprehensive Solution: Analysts at the Brookings Institution argue that the full potential of the Abraham Accords will not be realized without tangible progress on resolving the Palestinian issue, which remains an obstacle to expanding normalization to other Arab states.
- Temporary Suspension of Some Initiatives: Some companies and institutions in normalization countries have postponed cooperation projects with Israeli counterparts pending improvement in regional conditions.
However, a report from the Abraham Accords Peace Institute affirms that the institutional framework of the accords has demonstrated remarkable resilience, with trade and diplomatic exchanges continuing despite challenges, albeit with a retreat in certain sensitive sectors such as defense and tourism.
Future Expansion: New Members and Broader Economic Corridors
The Abraham Accords are not confined to their founding members. In November 2025, Kazakhstan formally joined the grouping, while Somaliland pledged to join following Israel’s recognition of it as an independent country in December 2025. This expansion opens new horizons for trade corridors extending from Central Asia to the Horn of Africa.
On the broader regional level, the prospect of Saudi Arabia joining the Abraham Accords remains the grand prize that could fundamentally transform the regional economic landscape. With the Saudi economy exceeding $1 trillion, such a development would completely reshape trade corridors in the region, according to Atlantic Council analyses.
Expected future developments include:
- Deepened Financial Integration: Through cross-listing agreements between stock exchanges, facilitated capital movement, and cross-border investments.
- IMEC Corridor Development: Completion of infrastructure for the India-Middle East-Europe Economic Corridor, enhancing the region’s role as a link between the world’s largest markets.
- Joint Free Trade Zones: Establishing special economic zones leveraging the UAE-Israel CEPA as a model.
- Renewable Energy Cooperation: Joint projects in solar energy and green hydrogen leveraging natural resources and technical expertise from both sides.
Ultimately, the Abraham Accords represent a unique experiment in transforming diplomatic normalization into genuine economic integration. Despite geopolitical challenges and the Palestinian dimension casting its shadow over the path, the figures and indicators confirm that the new economic corridors created by these agreements have become an entrenched reality difficult to reverse. With new members joining and deepening technological and investment cooperation, these accords remain among the most prominent drivers of economic transformation in the Middle East during the current decade.
This article is for educational and analytical purposes only and does not constitute investment or financial advice. Please consult a licensed financial advisor before making any investment decisions. Information presented is based on publicly available sources and may change as events develop.
