Dubai said on Wednesday that Dubai’s DP World Group is cooperating with an Israeli group to bid for one of Israel’s two main ports and is studying the opening of direct transport routes between two countries in the Middle East.
The announcement was the second day after Israel and the United Arab Emirates signed a historic agreement to normalize relations, which marked a major development in trade and economic cooperation.
Dubai’s state-owned DP World operates the port from Hong Kong to Buenos Aires and signed a series of agreements with Israel’s DoverTower, including a joint bid for the privatization of the Mediterranean Sea Port, one of Israel̵
DP World chairman Sultan Ahmed bin Suleyem told Arab TV.
DoverTower is owned by Israeli businessman Shlomi Fogel, who is a shareholder of the Israeli shipyard and a partner of the port of Eilat.
Fogel said that as a result of the transaction, DP World will cooperate with the Israeli shipyard to establish a joint venture that will participate in the bidding for the privatization of Haifa.
DP World and DoverTower stated that they will also study the opening of a direct transport route between Eilat Port on the Red Sea and Dubai’s largest transshipment hub, Dubai Jebel Ali.
Bin Sulayem said: “Our work to establish trade routes between the UAE, Israel and other regions will help our customers to conduct business in this region more easily and efficiently.”
Israel is selling its state-owned ports and building new private terminals to encourage competition and reduce costs.
The Port of Haifa needs to be upgraded to compete with the modern ports built by China’s Shanghai International Port Group in the region.
Israeli shipyards and Dubai’s Dockyard World will also study partners that produce and sell products in Dubai.