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Israel’s Gulf diplomacy and its discontents

As Israel and its new regional partners begin trade talks, Palestinians, Israeli Arabs and the Israeli left are on the sidelines.

TOPSHOT - (L-R)US President Donald Trump speaks as Israeli Prime Minister Benjamin Netanyahu,UAE Foreign Minister Abdullah bin Zayed Al-Nahyan and Bahrain Foreign Minister Abdullatif al-Zayani listen before they participate in the signing of the Abraham Accords where the countries of Bahrain and the United Arab Emirates recognize Israel, on the South Lawn of the White House in Washington, DC, September 15, 2020. - Israeli Prime Minister Benjamin Netanyahu and the foreign ministers of Bahrain and the United
(L-R) US President Donald Trump speaks as Israeli Prime Minister Benjamin Netanyahu, UAE Foreign Minister Abdullah bin Zayed Al-Nahyan and Bahrain Foreign Minister Abdullatif al-Zayani listen before they participate in the signing of the Abraham Accords under which Bahrain and the United Arab Emirates recognize Israel, on the South Lawn of the White House in Washington, Sept. 15, 2020. — SAUL LOEB/AFP via Getty Images

A diplomatic lift for Israel, Gulf economies

Israel may get even more than it bargained for, at least economically, as a result of the recent normalization agreements with Bahrain and the United Arab Emirates.

“In many of the sectors in which Israel historically has expertise, the Gulf states have already made significant inroads,” writes Karen Young of the American Enterprise Institute, “so much that the Gulf may be a source of innovation and new business for Israel.”

These sectors include agribusiness, food security, retail, and housing. In addition, Dubai-based DP World and Israel’s DoverTower have agreed to “assess the possibility of a direct trading route between Eilat on Israel’s Red Sea coast and Jebel Ali in Dubai.” DP World added that it will “set up a joint venture with the shipbuilding company Israel Shipyards Ltd.,” as we report here.

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