TEL AVIV—Israel and the United Arab Emirates signed a first-of-its-kind comprehensive free-trade agreement between Israel and an Arab country, boosting business ties less than two years after they established formal diplomatic relations in a U.S.-brokered deal.
The agreement, signed Tuesday in Dubai by the Israeli economy minister and the Emirati minister of state for foreign trade, will cover 96% of bilateral trade, which amounts to about $1 billion. Officials said the agreement would help trade grow to more than $10 billion within five years.
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