Israel-UAE Peace Deal for Trade in Middle East
Peace Treaty between Bahrain, UAE, and Israel Is Of Mutual Benefits to Enhance Export Business
The joint collaboration of the Israel-UAE peace deal along with Bahrain is expected to be a big key event for the trade and business in the localized region. Sultan Ahmed bin Sulayem, the CEO, and chairman of the DP World, based in Dubai, stated that they are going to remove obstacles that might have to provide hindrance in the business links previously are now not allowed. To counter the issue, required measures would be taken, including trade route shortening and easier overall procedure to finalize deals in Europe.
Peace deal between Israel and UAE to promote export
It is being estimated that the Israel-UAE peace deal is expected to eventually gain profit of $4 billion in a year, along with creating around 15,000 new job opportunities. Bin Sulayem was in agreement that this Israel-UAE peace deal had been put into place for mutual benefits, as both parties require something from each other.
Most of the export goods would be based on technology, which also includes products for increasing cybersecurity along with the latest and advanced products in the medicine and agricultural sectors.
In the upcoming future, it is expected that the Israel-UAE peace deal would be further elaborated and grown, which would evidently include more physical shipping items from the Asian marketplace that would be exported through Dubai.
The first shipment for the Israel-UAE peace deal has been made by a cargo ship named MSC Paris between the two countries. During the time of the voyage, the parliament of Israel formally provided its approval to the United Arab Emirates regarding the peace treaty.
The first shipment for the Israel-UAE peace deal included electronic equipment, iron, fire fighting products, and cleaning items. According to the Prime Minister of Israel, Benjamin Netanyahu, the arrival of the first batch of export goods signifies the start of something big.
Effects of coronavirus pandemic on globally cargo shipping
The DP World, located in Dubai, is the largest port operators across the globe and is currently in collaboration with the Dover Tower of Israel to further expand their existence inside the country as a part of the Israel-UAE peace deal. Israel is looking forward to further provide upgrading of their existent port facilities at the Haifa and Ashdod, which are very fundamental to the country’s economy.
It is actually the ambition and drives towards broadening of their presence that Mr bin Sulayem said that had provided help for his firm go on better than the rest of the cargo shipping industry during the coronavirus pandemic, which has severely affected and exaggerated the economic recession across the world.
Before the coronavirus pandemic began spreading across various regions around the world, the DP World was responsible for handling for around 10% of all the cargo shipping containers that contained all items from electronic equipment to clothing and even automobile spare parts worldwide.
The numbers are expected to decline as the IMF has predicted that the global economy will reduce 4.4% due to the current economic instability in multiple countries globally. This issue is expected to be resolved during the Israel-UAE peace deal.
In the initial six months of this year, the DP World was responsible for handling around 33.3 million TEU (twenty-foot equivalent units), which is observed as a 3.9% reduction in the average number of cargo shipping containers as compared to the same time last year in 2019, during the time when the biggest loss was experienced by Australia and America.
The performance of DP World in the first quarter of 2020 was still better than the 5.6 % estimated decline across the world, which has been suggested by Drewry, a maritime research company. The functioning is expected to further escalate during the upcoming months after the Israel-UAE peace deal.