Trade and economic cooperation between Israel and the United Arab Emirates (UAE) has been growing steadily since the signing of the Abraham Accords a year and a half ago. Most of this consists of business cooperation between private firms and companies, but the governments of both countries are planning to bridge the gap with large-scale, government-sponsored projects. One of these already being implemented is an agreement between Israel’s Trans-Israel Pipeline and the Emirati Med-Red company to carry petroleum from the UAE from Eilat to Ashkelon through the Israeli pipeline. This shortens the distance from the Emirates to Europe and spares the need to transport the oil by way of the Suez Canal.
Another energy project was signed earlier this month between Israel’s Electric Company and Energroup, a consortium of energy companies based in Dubai. This is a preliminary agreement to investigate projects to produce hydrogen. The participating firms will cooperate in the practical development of clean energy in the emerging field of hydrogen gas cells and the actual production of hydrogen. The announcement appeared in all major media across the UAE and in the press of other Gulf States, among them Saudi Arabia. It was later confirmed by Israel’s Electric Company.
The Emiratis are especially interested in this aspect of clean energy and have been investing enormous amounts of money into it. Their goal is to become a major international player in this field. The consortium also includes major energy companies from Europe, which will be involved in the various projects. A delegation of senior figures in Israel’s Energy Company recently returned from Dubai, where general manager Ofer Bloch signed a statement of intent with the general manager of Energroup, Murad Dahabi. While the companies did not provide specific data about the financial scope of the deal, they did say that their vision involves heavy investments by the UAE.
Teams will now be created by the Electric Company to discuss various possibilities for future projects with the Emirates. These include the creation of an entire system to manufacture, transport and store electricity. Apparently, the hydrogen will not be produced by the Israeli company, at least in the initial stage. Rather, it will participate in the development of international projects.
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