Gaza conflict tests UAE-Israel ties
13 June 2024

The stance of the UAE towards Israel has cooled dramatically in the past eight months amid the conflict in Gaza, which is proving to be a major test of the partnership built between Abu Dhabi and Tel Aviv.
From boasting of warm and open trade dealings, the UAE has gone quiet on its business deals with Israeli partners, while on a political and diplomatic level the humanitarian tragedy in Gaza has increasingly drawn condemnatory statements from UAE officials.
It is a twist in developments that neither country could have foreseen, as nor indeed had Saudi Arabia, which was nearing its own normalisation agreement with Israel. It has also taken a bilateral strategic partnership that was long in the making into uncertain territory.
Long-term partnership
The 2020 Abraham Accords that normalised relations between the UAE and Israel came at the tail end of at least a decade’s worth of interaction between the two countries. The agreement emerged first and foremost as a set of shared strategic interests in opposition to regional threats in the early 2010s.
In a very tangible interaction in 2016, pilots from the UAE and Israel for the first time participated together in aerial combat training exercises hosted by the United States Air Force (USAF) in Nevada.
The UAE’s relationship with Israel also intersects with its relationship with the US, including its hope of securing access to advanced US military technology and assets, such as the F-35 Stealth Fighter Jet.
In September 2020, UAE foreign ministry spokesperson Hend Al-Otaiba stated that a request for the F-35 had been made six years previously, and that, “given that the UAE intends to be a partner to Israel, and already has a deep strategic partnership with the US, we are hopeful the request will be granted”.
While the sale of the F-35 by the US to the UAE has yet to materialise, relations between the UAE and Israel have nonetheless thrived on their own since the accords, on the basis of ongoing shared security interests and the opportunities for business, trade and investment between the two countries.
Since 2020, the value of trade between the UAE and Israel has swollen to about $3bn annually, and defence ties have only strengthened. In 2022, Israel supplied the UAE with air defence systems following long-range attacks on the UAE's oil infrastructure by the Iran-aligned Houthi movement in Yemen.
Israel-Palestine problems
It was as early as June 2023, however, that US Secretary of State Antony Blinken first warned that rising tensions in Palestine and Israel’s actions in the West Bank could imperil the process of normalisation.
With the advent of the war in Gaza, those fears of a damaging escalation in tensions have been realised.
As the conflict erupted in October, the UAE kept its distance and restricted itself to only the most limited commentary, condemning the “serious and grave escalation” by Hamas-led militants while calling for the full protection of all civilians under international humanitarian law.
By November, as the violence in Gaza ratcheted up, Abu Dhabi similarly affirmed its commitment to the accords even as individual UAE officials publicly condemned Israel’s actions and called for an end to the violence, pushing for a ceasefire, humanitarian aid and the release of hostages.
Anwar Gargash, a diplomatic adviser to the president, labelled the conflict a “profound setback” for the region, and stressed that the tragic course of events should lead to a political re-engagement on the issues of realising a two-state solution with East Jerusalem as its capital.
The close working relationship between the UAE and Israel nevertheless continued, as evidenced by Israel’s acquiescence to Abu Dhabi’s humanitarian efforts in Gaza, which have included the UAE setting up a field hospital and performing aerial aid drops in the territory.
The long grind of the conflict and the increasing inflexibility and intransigence on ceasefire negotiations by Israeli Prime Minister Benjamin Netanyahu have nevertheless steadily eroded this early good will.
While in early January, Gargash affirmed that the normalisation agreement was “a strategic decision, and strategic decisions are long-term”, by late January, senior UAE officials were ringing alarm bells.
Four months on, speaking at the Arab Media Forum in Dubai in late May, Gargash lambasted the conflict in Gaza as having taken on “brutal and inhuman dimensions”, stating that the “heinous attack in Gaza and Rafah cannot be overlooked” – a far more critical tone than his earlier conciliatory speech.
Unreliable partner
On the international stage, the disinclination of the Israeli government to listen to any of its key allies or partners has been trying for all, including the US. For Israel’s normalised partners in the Middle East, the conflict has underscored the tension between the Abraham Accords and underlying regional sentiments.
The UAE’s own founding father, Sheikh Zayed, was an ardent personal supporter of the Palestinian cause, and under his watch, the UAE was one of the first states to recognise Palestine as an independent state.
In the present, the humanitarian catastrophe in Gaza is drawing the competing influences of the UAE’s contemporary strategic interests and underlying sympathy for the Palestinian people into stark relief, and it is having a chilling effect on relations.
Public announcements in the UAE of deals with Israeli companies, which abounded before the conflict, have evaporated, and at least one very public deal has been put on hold amid the uncertainty.
Abu Dhabi National Oil Company (Adnoc) had been due to take a $2bn stake, alongside the UK’s BP, in Israeli gas producer NewMed, which holds 45% of Israel’s Leviathan offshore gas field.
In mid-May, Netanyahu suggested that the UAE could be involved in the governance of Gaza – drawing a swift rejection from UAE Foreign Minister Sheikh Abdullah Bin Zayed Al-Nahyan, who stated: “The UAE refuses to be drawn into any plan aimed at providing cover for the Israeli presence in the Gaza Strip.”
The episode was a stark demonstration of the breakdown in communication and diplomatic alignment between Abu Dhabi and Tel Aviv, and it joins a wider pattern of reports that UAE officials are already looking beyond Netanyahu and cultivating relations with his potential successors.
On 5 June, the UAE’s foreign minister again condemned the Israeli government after it allowed the divisive annual ‘Flag March’ of Israeli settlers through Jerusalem’s old city, as well as settler activism in the Al-Aqsa Mosque compound, despite the extraordinarily heightened tensions over Gaza.
For UAE-Israel ties to thrive, Abu Dhabi needs a government partner in Tel Aviv that it can work with on a productive basis to safeguard interests between the two countries while avoiding diplomatic affronts.
Unfortunately for the UAE, the current Israeli government – with the far-right ministers that Netanyahu has brought into the cabinet – has had a habit of proving itself to be the very antithesis of such a partner.
Looking ahead, it could be a long road for UAE-Israel ties to return to resembling their halcyon state of 2021-22, and it will take a government in Israel under someone other than Netanyahu to get there.
Exclusive from Meed
-
Local contractor to build nine Bahrain substations30 July 2026
-
-
Oman tenders advisory for 3GW solar programme30 July 2026
-
Azerbaijan seeks interest for wastewater PPP29 July 2026
-
Kuwait construction holds up despite regional strife29 July 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Local contractor to build nine Bahrain substations30 July 2026

Bahrain’s Electricity & Water Authority (EWA) has awarded the local Al-Kooheji Electrical a contract to build nine 66kV substations across the kingdom, according to a source.
The project is estimated to be worth $110m and is intended to support rising electricity demand from Bahrain’s domestic, commercial and industrial sectors.
Four local contractors submitted commercial bids for the contract in January. The bidders were:
- Nass Contracting ($28.4m)
- Poullaides Construction Company ($31.7m)
- Mohammed Jalal Contracting ($32.4m)
- Al-Kooheji Electrical ($34m)
The substations will be located at South Hidd Industrial, Mondelez, Alba Downstream Park, Muharraq North, Hamala West, Bani Jamra, Hoora, Maqabah East and West Riffa Club.
The scope includes the construction of the nine substations and control rooms, as well as the installation of transformers, switchgear and feeders connecting the facilities to the grid.
It also covers communication cabling, monitoring systems, safety and security systems, and associated civil and structural works.
As MEED understands, the substations are scheduled to be commissioned in stages. Two are planned for 2026, followed by four in 2027 and the remaining three in 2028.
Serbia’s Energoprojekt Entel was appointed as consultant for the project in April 2025. The consultant’s contract was valued at about $460,000.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17834380/main.jpg -
CB&I’s newly acquired unit wins Abu Dhabi wells contract30 July 2026
US-based Chicago Bridge & Iron (CB&I) has announced that its Asset Solutions business – acquired earlier this year from UK-headquartered contractor Petrofac – has won a hydrocarbon well services contract in Abu Dhabi.
The contract was awarded by Cosmo E&P Albahriya, a wholly owned UAE-based subsidiary of Japan’s Cosmo Energy Holdings Company (Cosmo).
Under the well engineering services contract, CB&I Asset Solutions will support drilling, engineering, planning and operational activities for offshore Block 4 in Abu Dhabi.
Cosmo secured 100% exploration rights for offshore Block 4 – covering 4,865 square kilometres of Gulf waters northwest of Abu Dhabi city – in February 2021.
The block was offered in Abu Dhabi’s second hydrocarbons block competitive bidding round, launched by Abu Dhabi National Oil Company (Adnoc) in May 2019.
“The award strengthens Asset Solutions’ position in the Middle East and solidifies new relationships with key regional operators. With shared goals of prioritising safe, stable and environmentally conscious production, CB&I’s UAE-based team will draw on its local and global experience of delivering innovative well engineering solutions,” the Texas-based CB&I said in a statement.
ALSO READ: Abu Dhabi awards production licences for hydrocarbon blocks
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.
Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17834142/main4710.jpg -
Oman tenders advisory for 3GW solar programme30 July 2026
Nama Power & Water Procurement Company (Nama PWP) has invited bids for financial and commercial consultancy services for the development of three 1GW solar independent power projects (IPPs).
The projects will connect to Oman’s main interconnected system (MIS) and are targeted to reach commercial operation by the second quarter of 2030.
The successful bidder will provide financial and commercial consultancy services for the development of the projects and advise Nama PWP on the competitive tendering process.
The tender was issued on 28 July, and the bid submissions deadline is 10 September.
The three projects covered by the financial and commercial consultancy tender are understood to also be part of the 4GW programme, for which a technical advisory tender was issued on 15 July.
As MEED reported, this covers four 1GW solar projects connected to the MIS, also targeting commercial operation by the second quarter of 2030.
The deadline for bids is 26 August.
Oman Electricity Transmission Company (OETC) had earlier outlined the planned grid connection for four 1GW solar IPPs as part of the sultanate’s renewable energy expansion through 2030.
The projects are included in OETC’s Five-Year Annual Transmission Capability Statement for 2026-30.
The first, the 1GW Adam solar IPP, is scheduled for grid integration in 2028 and is further ahead in the procurement process, with Nama PWP issuing a request for qualification for the project in June.
OETC said it expects the 1GW Al-Kamil 2 solar project to be integrated in 2030 through the planned Sadaf 400kV grid station. The 1GW Dhofar solar IPP and 1GW Mahadha solar IPP are also scheduled for integration in 2030.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.
Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17817321/main.jpg -
Azerbaijan seeks interest for wastewater PPP29 July 2026
Azerbaijan has invited developers to submit expressions of interest (EoIs) for a public-private partnership (PPP) project to rehabilitate the Hovsan wastewater treatment plant (WWTP) and develop new wastewater recycling facilities.
The scheme will be Azerbaijan’s first wastewater PPP. The Asian Development Bank (ADB) is advising the government on the project.
The Hovsan WWTP is Azerbaijan’s largest wastewater treatment plant with a design capacity of 640,000 cubic metres a day (cm/d).
The project comprises two components. The first covers the rehabilitation, financing, operation and maintenance of the existing Hovsan plant to improve discharge quality and sludge management.
The second component covers the design, construction, financing, operation and maintenance of a new wastewater recycling facility with a capacity of 100,000 cm/d. The facility will supply recycled water for irrigation.
The overall project is expected to serve up to 2.5 million people in Baku.
ADB’s Office of Markets Development and PPP (OMDP) is acting as transaction adviser. Its role includes supporting project concept development and structuring, preparing and executing the competitive tender process, and assisting the government in achieving financial close.
The deadline for interested firms to submit EoIs is 21 August.
Azerbaijan has previously used the PPP model to attract private investment into large infrastructure projects, including in the water and renewable energy sectors.
The country’s first PPP tender in the water sector was for a seawater reverse osmosis desalination plant at Sumgayit Industrial Park, northwest of Baku.
As previously reported, a consortium of Saudi Arabia’s Acwa and Turkiye’s IC Ictas Insaat Sanayi ve Ticaret won the contract to develop the $400m plant, which will have a capacity of 300,000 cm/d.
In September 2025, Acwa signed agreements with the government of Azerbaijan covering a public‑private partnership agreement, a land lease, a sovereign undertaking, and a product water sale and purchase agreement.
The plant has a 27.5-year project term, with early commercial operations scheduled for the second half of 2028.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.
Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17805572/main.jpg -
Kuwait construction holds up despite regional strife29 July 2026

Kuwait’s construction and transport sectors are emerging from one of their strongest periods on record, with contract awards totalling $5.5bn last year, close to the record $5.6bn set in 2024.
Against that backdrop, momentum has held up better than expected in 2026. Awards in the construction and infrastructure sectors reached about $1.2bn in the period to 27 July, only marginally down from the $1.6bn recorded over the same period last year. Given the disruption to investor confidence and tender timelines across the Gulf caused by regional conflict, the near-flat comparison points to a market that has held its footing rather than stalled.
That steadiness reflects a broader push to keep major projects moving even as the region navigates a more uncertain operating environment. Underpinning the momentum is the $4bn engineering, procurement and construction (EPC) contract awarded to China Communications Construction Company (CCCC) in late December for the remaining phases of Mubarak Al-Kabeer Port on Boubyan Island, covering dredging, marine works and terminal infrastructure.
Although the deal predates the current period of regional disruption, it helped establish momentum that has carried into 2026, with Kuwait continuing to advance large-scale schemes across ports, roads and utilities.
This marks a notable shift for a market that, prior to its recent run, had a reputation for slow decision-making and a thin pipeline relative to regional peers. Contractors and consultants point to a steadier flow of tenders reaching the award stage this year, even with overall values marginally below last year’s pace – a gap narrow enough to suggest Kuwait’s pipeline has proven more insulated from regional volatility than many expected.
Infrastructure pipeline
Kuwait’s infrastructure pipeline is now approaching $16bn, spanning ports, roads and utilities projects at various stages of tendering and execution. The most recent addition came at Shuaiba Port, Kuwait’s oldest and principal industrial gateway, where the Kuwait Ports Authority (KPA) received bids in July for infrastructure and electrical modernisation works.
The package sits alongside longer-term plans for Shuaiba. Since December, KPA has been in talks with Abu Dhabi’s AD Ports Group over a possible concession to develop a new container terminal, adding to a pipeline that already includes upgrade works at Shuwaikh and Doha ports under KPA’s wider tender programme.
Elsewhere, Kuwait’s Public Authority for Housing Welfare (PAHW) has opened commercial bids for two major infrastructure and public buildings packages at South Al-Mutlaa Residential City. Local firm United Buildings Company has emerged as the lowest bidder on both, with combined offers worth KD44m covering the construction, completion and maintenance of services, infrastructure and public buildings across different district centres.
Tendering is also under way for the estimated KD222m ($718m) rainwater drainage networks serving Sabah Al-Ahmad, South Sabah Al-Ahmad, Al-Khairan and Al-Wafra. The works comprise a major concrete sewer, three collection basins and an extensive stormwater drainage network, with collection tanks linked through an independent system that discharges to sea via the Nuwaiseeb outlet.
Construction gains pace
This infrastructure momentum has been mirrored in the construction sector, where Kuwait awarded an estimated $232m contract to China State Construction Engineering Corporation (CSCEC) in mid-July to construct the new headquarters of the Kuwait Direct Investment Promotion Authority (KDIPA). The contract covers a 275-metre, 55-storey office tower in Kuwait City’s Sharq district, targeted for completion in the second quarter of 2028.
Beyond the KDIPA award, several schemes forming part of Kuwait’s estimated $36bn construction pipeline are expected to progress in the coming months.
The largest is the first phase of the planned $22bn Sabriya City project, for which Beijing- and Shanghai-listed Metallurgical Corporation of China (MCC) is expected to sign one of the main contracts. MCC presented a fully funded proposal to Kuwaiti ministers for the city last year. The project is expected to include 52,000 housing units, alongside a power plant, hospital and marina.
Consultants are meanwhile bidding for the design and supervision of the estimated $580m service hub buildings at Al-Mutlaa Health City, a project spanning more than 351,000 square metres.
The Kuwait Authority for Partnership Projects (Kapp) has also awarded two landmark public-private partnership (PPP) deals this year.
In January, it awarded an estimated $252m contract to develop the Al-Muthanna Complex real estate project to a local consortium comprising Real Estate House, National Investments Company, Arkan Kuwait Real Estate Company, Beyout Holding Company and Osoul Investment Company. The contract covers the rehabilitation, development, operation and management of the complex under a 15-year usufruct arrangement.
In February, United Real Estate Company was awarded the third phase of a waterfront real estate project in Sharq, Kuwait City, under a similar 15-year arrangement covering rehabilitation, development, operation and management.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17805093/main.gif