The United Arab Emirates on Thursday announced it was setting up a $10 billion investment fund aimed at strategic sectors in Israel, with whom it normalised ties last year.
The decision, the UAE official news agency WAM said, was taken following a “constructive” phone call between Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al Nahyan and Israeli Prime Minister Binyamin Netanyahu.
In an interview with an Israeli radio, Netanyhau credited the establishment of the fund to “the Sheikh Mohammed’s belief in Israel’s economic leadership.”
He added that this fund will help jump-start the Israeli economy as the country emerges from the economic throes of the coronavirus pandemic.
UAE announces $10bn investment fund with Israel
— The National (@TheNationalNews) March 12, 2021
• Leaders agreed on support for sectors including energy and manufacturing https://t.co/UIGmdFzRap pic.twitter.com/VbyqhvTnXX
Through the $10 billion fund the UAE “will invest in and alongside Israel, across sectors including energy manufacturing, water, space, healthcare and agri-tech,” it said.
Israel and the UAE established ties last year in a diplomatic coup for Netanyahu brokered by his staunch ally, former US president Donald Trump.
The deal made the UAE only the third Arab state to establish relations with Israel, following Egypt in 1979 and Jordan in 1994.
Bahrain, Morocco and Sudan subsequently reached similar US-brokered agreements with Israel, in what has become known as the “Abraham Accords.”
“The fund builds on the historic Abraham Accord and aims to bolster economic ties between two of the region’s thriving economies, unlocking investments and partnership opportunities to drive socio-economic progress,” WAM said.
It said fund allocations “will derive from government and private sector institutions”.
The announcement came as Netanyahu cancelled a historic visit to the UAE on Thursday, citing a disagreement with Jordan over crossing its airspace.
The #UAE announces it is setting up a $10 billion investment across multiple sectors in #Israel, with whom it normalized ties last year.https://t.co/WZ0rXLciqI
— Al Arabiya English (@AlArabiya_Eng) March 11, 2021
Netanyahu said the trip “was not possible due to a misunderstanding” with Jordan, with which it has been bound by a peace treaty since 1994.
But said he spoke to Sheikh Mohammed and that the pair agreed to meet “very soon.”
The Israeli prime minister also said the UAE would invest $10 billion in Israel.
This article has been adapted from its original source.
