The Israeli energy company Delek Drilling reported on April 26 that it signed a nonbinding memorandum of understanding to sell its stake (22%) in the Tamar natural gas reserve in the Mediterranean Sea to Mubadala Petroleum of Abu Dhabi.

This is the largest and most significant commercial agreement signed between Israel and the United Arab Emirates since the normalization agreement (the Abraham Accords) was signed between the nations, which opened diplomatic and economic contacts between the countries.

Energy Minister Yuval Steinitz said to Al-Monitor, "The agreement to sell Delek’s stake in the Tamar natural gas reserve to a company from Abu Dhabi is further proof for the success of the gas plan that I initiated and fought to pass a number of years ago. The gas monopoly came apart, and large international companies are coming in and expressing their faith in our gas market. Now, after the signing of the Abraham Accords, a company from an Arab nation is investing in Israel’s gas market. I believe that this is the beginning of cooperation between the nations in the energy field and in additional economic and diplomatic fields to the benefit of our citizens.”

According to Steinitz, this is a significant step in economic relations between the nations — but it’s only the first on the road to strengthening these ties, with emphasis on the energy market. He further said that cooperation with the Emirates in the field attests to the deep connection that was established almost immediately upon signing the agreement with this nation and shows that the Middle East can create big changes when joining forces.