The Arab-Israeli peace process did not begin with the Abraham Accords in 2020. Its roots stretch back decades, starting with the 1979 Camp David Accord between Egypt and Israel, followed by the 1993 Oslo Accords with the Palestine Liberation Organization, and the 1994 Wadi Araba Treaty with Jordan.

Morocco (1994), Tunisia (1996), and Mauritania (1999) also established relations with Israel before freezing them during the Second Intifada (2000–2005). The most significant transformation came with the Abraham Accords, when the United Arab Emirates and Bahrain formalized diplomatic ties with Israel in September 2020, followed by Sudan in October, and Morocco in December through a trilateral agreement that included U.S. recognition of its sovereignty over Western Sahara.

From Peace to Trade

Over the decades, these political agreements gradually paved the way for economic engagement. Trade moved slowly at first but accelerated markedly after the Abraham Accords came into effect.

Just a decade ago, Arab countries were barely on Israel’s commercial map. Today, they are among its largest trading partners in the Middle East and North Africa. From 2021 onward, the flow of goods and services between Israel and countries including Egypt, Jordan, Morocco, the UAE, Bahrain, and Sudan surged from $1.9 billion in 2021 to $4.5 billion in 2024—representing roughly 3% of Israel’s global trade.

To provide a clearer picture of these dynamics, we present a series of analytical charts showing annual and monthly trade flows, as well as trade balances. This series allows readers to track trends and understand the evolution of commercial ties between these nations over time.

The UAE: Monthly Trade Trends with Israel

Monthly data shows that UAE-Israel trade dipped in the three months following the October 7 events, then rebounded in February to reach a record $277 million.

Egypt: Trade Resilience Amid the Gaza War

Egypt maintained a steady upward trajectory in trade with Israel despite the Gaza conflict, reaching peak levels by the end of 2024.

Jordan: Temporary Dip, Rapid Recovery

Trade between Jordan and Israel declined in the three months following October 2023, before recovering sharply by summer 2024.

Morocco: Weapons Over Commerce

Detailed data shows that while Morocco’s trade with Israel increased, the bulk of it consisted of defense-related imports.

Bahrain: Explosive Growth

Bahrain recorded the fastest trade growth with Israel, with trade expanding more than 1,700% between 2021 and 2024, following the Abraham Accords.

Arms and Military Spending

A significant component of this expanding trade is military procurement. Morocco imported over $200 million in defense equipment since 2021, with Israeli weapons accounting for roughly 11% of its total arms purchases. SIPRI data indicates that Morocco acquired air defense systems like Barak and Barak MX, as well as drones including the Wander-B, alongside joint ventures to localize drone production.

The military collaboration extends beyond Morocco. In September 2022, Israel approved supplying the UAE with SPYDER mobile air defense systems, and Barak systems were deployed on Emirati soil. SIPRI’s data highlights a notable increase in military spending across all Abraham Accord signatories over the past five years, underscoring the growing economic–military nexus in the region.

Military Spending of Peacemaking Nations

1970–2024 (in millions of dollars)

Despite recent political developments in the region, trade between Arab countries and Israel continues to grow, albeit unevenly. Jordan’s trade with Israel surged from $264 million in the first seven months of 2024 to $375 million over the same period in 2025.

Morocco saw a more modest increase, with trade rising from $66 million to $71 million, while trade with Egypt remained steady at roughly $320 million.

Not all markets followed the same upward trajectory. Bahrain experienced a dramatic collapse, with trade plummeting from $88 million to just $7.3 million—a decline exceeding 1000 percent. The United Arab Emirates also saw a contraction, though more moderate, at 13 percent.