The Abraham Accords latest benefit to the Israeli economy is on its way. Abu Dhabi Growth Fund (ADG) will invest $200 million a year in Israel over the next ten years. This, reports Globes, is just the first part of United Arab Emirates (UAE) Crown Prince Mohamed bin Zayed Al Nahyan’s decision to unfreeze the $10 billion in investments in Israeli companies originally promised when the Abraham Accords were signed.
The news comes as Israel President Isaac Herzog returned home after making a historic visit to the UAE, the first time an Israeli President visited the country. The diplomatic benefits of the Abraham Accords were seen when the Israeli national anthem was played by the UAE state band at the royal palace in Dubai, which also flew Israeli flags when Israel’s President and First Lady were greeted there by the Crown Prince of Abu Dhabi.
According to Globes, the UAE’s large sovereign funds will divide the investments between them, including the ADIA Fund and the Mubadala Fund. But the first fund that will enter the Israeli market is the ADG (Abu Dhabi Growth) Fund, part of the ADQ Group. In this way, the Abraham Accords continue to prove that money not only makes the world go round, it can also bring peace.
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One reason cited for the delay in the investments, which are coming more than a year and a half after the Abraham Accords were first signed, is that the UAE was concerned with the political environment in Israel. Not long after the Accords were signed, Israel’s coalition government fell after it failed to pass a new budget for the year 2021. It then took four months before new elections were held, the fourth elections held in Israel in two years.
It then took a few months for a new coalition government to be formed in Israel. And this government was perceived to be, at best, a tenuous one that relied on the votes from the outside from an Arab party to be formed. It only holds a slim one-seat majority in the Knesset.
But the, near the end of 2021, the Israeli government succeeded in passing a new budget through the year 2022. As such, it is now seen as stable and is expected to last until at least 2023. So, this may be why the UAE may now be willing to move forward with the financial investments that were anticipated in the Abraham Accords.