The Abraham Accords are a series of normalisation agreements between Israel and several Arab states, signed in September 2020 at the White House. The UAE and Bahrain were the first signatories, establishing full diplomatic relations and opening direct economic, trade, and travel links with Israel. Morocco and Sudan subsequently joined the framework.
UAE Agreement
The UAE-Israel normalisation agreement, formally titled the Abraham Accords Peace Agreement, established full diplomatic relations, direct commercial flights, visa-free travel, and bilateral trade and investment frameworks. Abu Dhabi played a central role in the negotiations, and the agreement reflected a strategic calculation by the UAE leadership that open relations with Israel would advance economic, technological, and security interests.
Bahrain Agreement
Bahrain signed the Declaration of Peace, establishing full diplomatic relations with Israel on the same day as the UAE agreement. Bahrain’s decision to normalise relations was consistent with its close alignment with Saudi and Emirati strategic positions and reflected an assessment that economic and security benefits outweighed the political costs.
Economic Impact
The Abraham Accords opened direct trade and investment channels between the signatories. Bilateral trade between the UAE and Israel grew rapidly following normalisation, spanning technology, financial services, agriculture, healthcare, and tourism. The Abu Dhabi Investment Office and Israeli companies have pursued joint ventures and investment partnerships, particularly in technology and innovation sectors.
Bahrain’s economic relationship with Israel has developed more modestly, reflecting the smaller scale of the Bahraini economy and more constrained investor interest. Trade volumes between Bahrain and Israel remain relatively limited compared to UAE-Israel flows.
Technology Cooperation
A significant economic dimension of the accords is technology cooperation. Israeli technology companies have established operations in Abu Dhabi and Dubai, and Emirati sovereign wealth funds have invested in Israeli technology firms. The partnership spans cybersecurity, agritech, fintech, healthcare technology, and artificial intelligence.
Diplomatic Context
The Abraham Accords represent a significant shift in Middle Eastern diplomacy, breaking the longstanding Arab consensus that normalisation with Israel should be conditional on resolution of the Israeli-Palestinian conflict. The agreements have generated both support and criticism within the region and internationally.
Role in Vision 2030
The Abraham Accords support the economic strategies of both Abu Dhabi and Bahrain by expanding the network of international relationships available for trade, investment, and technology transfer. The Abu Dhabi Economic Vision 2030’s fourth pillar — strong and diverse international relationships — is directly advanced by normalisation with Israel. For Bahrain, the accords provide access to Israeli technology and innovation ecosystems that could support the kingdom’s competitiveness objectives.