Annual Report: A Year of Cross-Border Growth
This report draws on official trade statistics, international trade databases (UN Comtrade, the Observatory of Economic Complexity), and five-year assessments of the Abraham Accords to summarize the economic activity connecting Israel and the Gulf. Most of this activity runs through the UAE, with a smaller volume through Bahrain — Saudi Arabia, Qatar, Kuwait, and Oman have no formal diplomatic relations with Israel, though business activity linked to them exists through subsidiaries and third countries.
Israeli Companies Active in the Gulf
Research institutes and chambers of commerce estimate roughly 1,000 Israeli companies are active, directly or indirectly, in the Gulf — mainly in Dubai and Abu Dhabi. The leading sectors are cybersecurity, AI, fintech, agri-tech (agriculture and water technology), renewable energy, and security. Combined, these companies' government and private-sector contracts are estimated in the hundreds of millions of dollars a year, beyond direct goods trade.
Gulf Exports to Israel
Gulf exports to Israel significantly exceed the reverse direction, driven by large purchases of raw materials — rough diamonds, refined petroleum, and aluminum. UAE exports to Israel run about $1.11 billion a year (led by rough diamonds at roughly $460 million and refined petroleum/fuels at roughly $391 million). Bahrain's exports to Israel run about $103 million a year, almost entirely refined petroleum (roughly $99.7 million) and aluminum. Direct, visible trade from the Gulf to Israel totals roughly $1.21 billion a year.
Investment Flows
Investment splits between sovereign direct investment and private venture capital. The UAE committed a $10 billion strategic investment fund at the signing of the Abraham Accords, with significant allocations to energy (including Mubadala Energy's stake in the Tamar gas field), infrastructure, and high-tech. Gulf venture capital is also active in Israeli tech and security — for example, UAE-based EDGE Group invested roughly $22 million in Israeli defense-AI company Thirdeye Systems in early 2025. Gulf financial institutions have also participated in Israeli government international bond issuances at hundreds of millions of dollars. Cumulative Gulf-linked investment in Israel (venture capital, strategic acquisitions, and real estate) is estimated at $3–5 billion.
Total Bilateral Activity
Direct bilateral goods trade runs above $3 billion a year, mostly with the UAE under the Israel-UAE free trade agreement (CEPA). Since the Abraham Accords were signed, cumulative business activity — goods trade of more than $6.5 billion, energy projects, tourism, tech and security services, and capital investment combined — has crossed $10–12 billion.
Sources
The Heritage Foundation, Abraham Accords Annual Report; The Observatory of Economic Complexity (OEC), bilateral trade profiles for Israel-UAE and Israel-Bahrain; Statista, Israel-UAE trade value; Trading Economics, Israel imports by country; ORF Middle East, trade analysis within the Abraham Accords; The Middle East Institute (MEI) and Israel's Institute for National Security Studies (INSS).
