The state-owned Israeli Aerospace Industries (IAI) is advancing plans to establish a presence in the UAE by opening an air cargo facility, even as Israel’s ongoing military campaign in Gaza, now exceeding ten months, has resulted in nearly 40,000 dead and widespread devastation.
According to Bloomberg, IAI will retrofit 10 Boeing 777 aircraft from the Emirates fleet into cargo planes at two dedicated hangars, beginning in October.
This move underscores Abu Dhabi’s commitment to deepening normalization and strengthening ties with Israel as part of their bilateral alliance, despite escalating regional tensions and the intensifying conflict in Gaza.
In 2021, the Israeli company signed an agreement with the Emirati airline to convert four aircraft, marking one of the earliest outcomes of normalizing relations between Abu Dhabi and Tel Aviv.
The Israel Aerospace Industries Corporation has reported a growing interest from lessors and airlines in freighter aircraft converted from passenger planes, due to the limited availability of new aircraft from manufacturers Airbus SE and Boeing.
In 2023, Emirates Airlines’ cargo division experienced a rise in the volume of goods transported, accounting for 11% of the Dubai-based airline’s total revenue. To address the increasing demand, the company ordered five Boeing freighter planes worth $1 billion in July.
The American magazine Foreign Policy previously described the UAE as a major exception in the list of Arab normalization with Israel in light of the full alliance of the ruling regime in Abu Dhabi with Tel Aviv.
The magazine discussed the reasons why the Arab countries continue to maintain their relations with Israel and normalize relations with it, despite the overwhelming anger that afflicts the Arab peoples against the occupation.
Although Israel and Jordan have maintained diplomatic relations for 30 years, their peace has been lukewarm even during the best periods.
Since the war in Gaza began, their relationship has reached a state of deep stagnation, unlike the situation with the UAE. The magazine highlighted that the UAE’s economic interests in its relationship with Israel are focused on different priorities: trade, investment, and enhancing Abu Dhabi’s position as a global logistics hub.
Abu Dhabi’s economic interests are also based on trying to take advantage of Israel’s advances in advanced technology to build its technology industry and partner to solve the threat of climate change in the region.
Since the signing of the Abraham Accords in 2020, the UAE has become a significant purchaser of Israeli weapons, with Israeli arms exports to the countries that signed the accords increasing from virtually nothing in 2020 to $2.9 billion by 2022.
Although the economic relationship between Israel and the UAE is still relatively modest in dollar terms, it symbolizes a broader and more ambitious goal: transforming the Middle East from a region dominated by conflict and extreme politics into one focused on economic development.
The magazine noted that it is not surprising that business dealings between Arab countries and Israel remain an exclusive affair, largely confined to transactions between governments and major state institutions, as normal business practices are limited and often one-sided.
However, the UAE stood out as an exception to this trend. Following the signing of the Abraham Accords, Israeli executives and tourists flocked to the Gulf during the initial honeymoon phase.
Companies were actively signing investment and partnership agreements, with Abu Dhabi’s Mubadala Petroleum Company acquiring a 22 percent stake in Israel’s Tamar gas field, and several other investment deals were being discussed.
In 2023, bilateral trade reached $3 billion, up from $190 million in 2020.
But the popular response shown by the Emirati side was lukewarm. The Washington Institute poll found that a minority of Emiratis believe that dealing with Israel is “acceptable,” and Emiratis only visit Israel for the purpose of work.
