Israel-UAE peace agreement set to boost agricultural trade

UAE Arable Land 1961-2020

Source: World Bank

Impact of the agreement on the exchange of technology and agricultural expertise

The UAE is a dry country encompassed by desert land and limited underground water resources. This has led agricultural experts to seek alternative methods of irrigation and conservation of the remaining green pastures, as agricultural water demand continues to rise, reaching 1,400 billion cubic meters (bcm) in 2000 and is expected to reach 2,050 bcm by 2025. Israel also suffers from water scarcity and has turned to sustainable irrigation methods, contributing to many breakthroughs in smart solutions for efficient farming.The country has been developing hardier crops, alternative sources of nutrition, and safer packaging and storage. Examples of these innovations include the utilization of treated wastewater (TWW) for drip irrigation of orchards and non-crop foods., dealing with fruit flies that affect mangoes, and precision agriculture, which focuses on utilizing data-collection and analysis technologies to lead to more productive and efficient farming. The UAE could ,therefore, adopt similar protected farming practices to better preserve water resources.

The UAE is also set to benefit from the supply of a wide range of fruits and vegetables from Israeli exporters, including citrus fruit, avocados, and mangoes. Demand for avocados is high in the United Arab Emirates, with local production still in its beginning stages and not able to meet the domestic demand. Similarly, while the UAE is a major citrus import destination, production is on a downward trend, falling by over 20K tonnes between 1991 and 2018.

United Arab Emirates - Citrus fruit production quantity

Source: Knoema

Market Outlook

2021 is set to be a monumental year for both Israel and the United Arab Emirates, with both parties set to benefit from the peace agreement. Trade between the two countries has already begun to flourish, with Israeli exporters shipping consignments of fruits and vegetables to the UAE in November and December. Israeli suppliers will also be able to market their produce in the UAE, with the first-ever display of Israeli produce showcased at Dubai’s Fresh Market in November.

Display of Israeli produce at Dubai’s Fresh Market

Source: Government of Dubai

Sources:

Israel Agri. “Israel & UAE: First corporate cooperation for Agriculture.” 

The Economic Times. “Israel to export agricultural produce to UAE.” 

BBC News. “Israel-UAE peace deal 'big' for trade in Middle East.” 

Israel 21c. “The top 12 ways Israel is feeding the world.” 

United Nations. “Agriculture.” 

Keren Kayemeth LeIsrael Jewish National Fund. “Sustainable Agriculture in Israel.” 

Knoema. “United Arab Emirates - Citrus fruit production quantity.” 

Fresh Plaza. “Avocado market in Dubai is in its infancy.” 

Gulf News. “Protected farming is the future of UAE agriculture.” 

Hortidaily. “UAE/Israel peace agreement promotes trade opportunities.” 

Israel 21c. “Why the UAE is looking to Israel to secure its food supplies.” 

Lexology. “International Trade After the Abraham Accords between the UAE and Israel.” 

Lexology. “UAE-Israel Trade and Business Opportunities - The Benefits of the Abraham Accords.” 

Macro Trends. “UAE Arable Land 1961-2020.”