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New Middle East trade route cemented as cargo ship from Dubai docks in Haifa

Bilateral trade following normalization could amount to $4 billion, with nearly all goods arriving by sea, Israeli officials say.

by  Reuters and ILH Staff
Published on  10-12-2020 15:35
Last modified: 10-12-2020 15:14
New Middle East trade route cemented as cargo ship from Dubai docks in HaifaMichel Dot Com

Haifa Port. Only a few months ago, a direct shipping line between the Emirates and Israel would have been unimaginable | File photo: Michel Dot Com

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The ship-to-shore crane paused above the cargo ship just arrived from Dubai, then set its load down on the pier in Israel.

One after another, eight containers filled with electronics, cleaning supplies, iron and firefighting equipment were unloaded off the MSC Paris, one of the first cargo ships to make the journey between the United Arab Emirates and Israel.

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Just a few months ago, such a journey from Dubai's Jebel Ali port to Haifa would have been unthinkable.

The countries announced a normalization deal in August which laid the ground for a potentially profitable new trade route.

The diplomatic breakthrough stemmed from a strategic realignment of Middle East nations, in particular Israel and Gulf Arab nations led by Sunni rulers, who face what they perceive as a shared threat from Iran.

But it is also grounded in economics and potential collaborations in the fields of business, investment and technology.

Israeli officials have estimated bilateral trade could reach as much as $4 billion a year – and nearly all goods will have to travel by sea.

"This is very exciting, "said Eshel Armony, chairman of the board at Haifa Port. "This is a new era in the Middle East, and I'm sure this will bring more and more trade," he said.

"We're going to see this line once a week by MSC and, who knows, later on maybe we'll have even more ... I hope that will happen quickly," Armony said.

An MSC spokesman said the MSC Paris was part of its Indus Express service, which originates in the United Arab Emirates and calls at Indian ports, the Mediterranean and the United States.

In mid-September, an MSC vessel on the Indus Express service made a low-profile stop in Haifa before the UAE-Israel normalization deal was signed at the White House.

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Tags: HaifaIsraelMiddle East peace processshippingTradeUAE

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