The Ministry of Economy and Industry, headed by minister Orna Barbivai, is trying to bring international food store chains to Israel from the United Arab Emirates, in an attempt to boost competition in the Israeli market. Sources inform "Globes" that the ministry's director general Ron Malka and other senior officials will hold meetings with the heads of supermarket chains in the UAE, at the same time as negotiations on a free trade agreement between the UAE and Israel.
The Ministry of Economy and Industry believes that the entry of supermarket chains with strong international backing will lead to competition for the Israeli shopping purse, and that the introduction of new products and brands will boost competition in an industry dominated by the giant Israeli food companies.
Three main international supermarket chains operate in the UAE: French company Carrefour, which is second worldwide for sales, after Walmart; Lulu Group International, headquartered in Abu Dhabi and with branches all over the Arab world and the Far East; and British supermarket chain Waitrose.
Free trade first
As mentioned, the main reason for Malka and his staff's visit to the UAE is the negotiations on a free trade agreement. Sources inform "Globes" that the agreement was meant to be signed in May, but the progress in the talks may enable it to be signed earlier, in April.
Ohad Cohen, head of the Foreign Trade Administration at the Ministry of Economy and Industry, says that the agreement will bring large advantages for Israeli companies. The UAE has free trade agreements with the Gulf states and with the EFTA countries (Iceland, Lichtenstein, Norway, and Switzerland), and after the agreement with Israel is signed, Israeli will be able to trade free of customs duties with these countries.
Israel has free trade agreements with the US, the EU, Turkey, most countries in Latin America, Ukraine, and the UK. An additional agreement was signed with South Korea last year, and an agreement with India is expected to be signed later this year. "Globes" has learned that talks have been taking place on a free trade agreement with China, and also on agreements with Russia, Belarus, Kazakhstan, Kirgizstan, and Armenia.
Published by Globes, Israel business news - en.globes.co.il - on February 16, 2022.
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