Understanding the Middle East Trade Route: Essential Insights

November 11, 2020

The “Abraham Accords” and the normalized relations between Israel and the United Arab Emirates has opened a new world of opportunity for trade in the region. 

WHY is this an important economic breakthrough?

Following the recent normalization deal between Israel and the United Arab Emirates, a direct trade route was established for the first time ever. The new Middle East trade route means closer trading ties between the two countries, which is greatly beneficial for business in the region. As a result of the budding relationship, the importing and exporting of shipments is now easier, faster, and cheaper. 

Dubai’s port is at a strategic location for shipping and trading goods globally. Dubai Ports World (DP World) is a multinational logistics company in Dubai, UAE. They trade goods with countries as far east as Australia and as far West as Canada, and handle roughly 10% of all container traffic around the globe.

This opens a whole new world of opportunity for businesses. Israeli goods can now be shipped easily and quickly to the wider Arab population. Israeli businesses can also utilize this new Middle East trade route to ship their goods to many other countries, passing through the strategic Jebel Ali Dubai Port. 

Companies are already taking advantage of this trade route. A Mediterranean Shipping Company vessel, the MSC Paris, was the first ship to dock in the Israeli Haifa port with Emerati cargo. Other carriers are quick to follow.

If you do any trade in the Middle East, or if you’re looking to jump on the opportunity, now is the time to take action. There’s a great, profitable opportunity here for easier, faster and cheaper shipping to a wider consumer base. A freight provider like W Group can help you out with the logistics of this new and quickly evolving world of trade opportunity.

WHAT can be transported via this route? 

The United Arab Emirates is a great source of oil that Israel can now access easier than their other oil suppliers. Israel, on the other hand, has a highly developed high-tech industry, among other products, which can benefit the UAE greatly. 

The first container shipment from UAE that was unloaded onto Israeli shores contained iron, firefighting equipment, electronics, and cleaning supplies. The first air freight delivery following the peace accord transported perfume from the United Arab Emirates to Israel.

Though these goods may be the most popular, it is not the only goods that can be shipped. This new trade route has great potential for many other goods to reach a wider and more vast range of consumers. 

WHICH documents are required? 

The following is a list of basic documents required for clearing your goods through UAE customs, usually in addition to the standard internationally required paperwork:


  • Appropriate and necessary ID documentation
  • Detailed inventory (original and two copies) – this is important, as the officials may inspect the contents
  • Insurance certificate

Get more UAE customs information.

If this is an option you want to explore, an experienced freight forwarder, like W Group, can guide you with concrete and up to date information and assistance regarding this shipping process. 

WHEN do shipments leave and how long does it take to arrive?

Prior to the peace agreement between Israel and the United Arab Emirates, shipping a parcel between the two countries could easily have taken 10 days. Now, with a direct trade route, delivery time is cut in half.

Currently, the MSC line is scheduled to make the trip between these countries once a week. 

A weekly air freight shipment was also arranged between Israel and the UAE.

Other shipping companies are taking advantage of the opportunity to gain on the deal.  

  • Zim has offered their services in transporting goods from the Jebel Ali port in Dubai to the Israel Haifa port, and also bring products from Israel and from the Eastern Meditteranean to Dubai.
  • Maersk has also declared that they will ship ocean cargo between the 2 said countries.
  • DHL Express is another company that already delivered their first shipments from Israel to the UAE.

WHO will benefit from the peace treaty?

This new Middle Eastern trade route opens up a world of opportunity for both countries and can help boost their economies significantly. Both countries’ products can now reach a greater market with cheaper shipping rates and faster delivery service. It only depends on who takes advantage of the opportunities.

We were all hit economically from the Corona pandemic.

Israeli GDP is set to drop by 6.2 percent this year, and unemployment has risen from 3.4 percent to 23.5 percent in recent months. 

But, this can help. The estimated profits that Israel can receive from conducting trade with the United Arab Emirates can eventually amount to $4 billion a year, and this can also create roughly 15,000 new jobs.

Which categories of trade are we looking at? Israel can benefit greatly from Emerati oil, and the UAE will enjoy Israeli  technology and cyber know-how. Tourism is also an obvious benefit resulting from this agreement. 

Additionally, before the agreement, goods exported to the UAE from Israel needed to be manufactured in other countries. Now, following the Peace treaty, Israelis can proudly boast their products as ‘made in Israel’. This removes a big headache for the Israeli exporting businesses.

WHERE can I get more info on utilizing this trade route?

Researching and finding the best option with the best conditions for the most affordable rates can be a complicated and time-consuming process. W Group is ready to assist you with all the necessary global freight services, guiding you with your specific business considerations. Find out how you can benefit from this new trade route.

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