Israel and the United Arab Emirates signed a free trade agreement on Tuesday, Israel’s first with an Arab state.

The agreement was signed in Dubai by Israel’s Economy Minister Orna Barbivai and Emirati Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi.

In the two years since the Abraham accords were signed, Israeli-Emirati trade has surpassed $2.5 billion.

With the goal of boosting trade between the two nations, customs taxes will be waived for 96 percent of products including food, agriculture, cosmetics, medical equipment and medicine.

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