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
-
Delivery unlocks gigaproject investment29 September 2026
-
Giga developers absorb supply chain shocks29 September 2026
-
KBR seeks renewable energy contracts in Libya29 September 2026
-
Sharakat receives bids for Riyadh East sewage treatment plant29 September 2026
-
Egypt firm wins Al-Dabaa desalination O&M contract29 September 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
-
Delivery unlocks gigaproject investment29 September 2026

Register for MEED’s 14-day trial access
Completed infrastructure and open assets are making it easier to attract private developers and foreign investors to Saudi Arabia’s gigaprojects, said speakers at MEED’s Shaping Mega Projects conference in Riyadh on 28 September.
Dale Chadwick, acting CEO of King Salman Park Foundation, said investor appetite had grown as construction advanced. The foundation has received 23 expressions of interest from private developers, and Chadwick said that number was increasing.
“What the private sector is looking for in terms of investment is surety of what we’re doing,” he said. “As soon as a private developer comes in and sees what we’re doing, they’re blown away. The closer we get to completion, the greater the appetite.”
He said interest from foreign direct investors was also rising, and that a deal the foundation expects to award soon involves foreign investment.
The foundation times its private asset awards to follow infrastructure and landscaping works. “They don’t have to take the leap of faith that we are going to execute on our side of the equation,” said Chadwick. “They can see it.”
Partnership model
Mohamed Saad, president of DevCo at Diriyah Company, said investors wanted a relationship rather than a transaction.
“The first thing they’re looking for is partners,” he said. "They’re looking for master developers who act as true partners to them.”
Saad said master developers acted as the catalyst, investing in infrastructure and anchor assets before the private sector joins. He said investors also wanted healthy supply and demand, and a market able to absorb commercial assets in phases.
He said Diriyah had prioritised delivery over publicity. “People want to see to believe,” said Saad. “We are delivering on the ground, and when people come and visit, they’re pleasantly surprised.”
Chadwick said developers also wanted flexibility, with some seeking more height or a different mix of uses. “We ourselves have a plan, but in order to make that more attractive, we have to be prepared to make adjustments as well,” he said.
Ben Edwards, group head of cost, commercial and procurement at Red Sea Global, said the operating track record of The Red Sea and Amaala was now its strongest pitch to investors.
"We’ve gone past the field of dreams approach of ‘if you build it, they will come',” he said. "We’ve built it now. The tourists are coming.”
Edwards said Red Sea Global was at various stages of negotiation on several joint venture opportunities for future projects.
The developer’s utilities public-private partnership (PPP) at The Red Sea is fully operational. Its Amaala equivalent is in final testing and commissioning and is due to be operational before the end of the year. Edwards expects the model to spread.
"I’m sure the PPP market will continue to expand into the different infrastructure sectors here, and then lead into other sectors, from schools to hospitals,” he said.
He added that Red Sea Global’s environmental credentials were a selling point for investors.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20084647/main.jpeg -
KBR seeks renewable energy contracts in Libya29 September 2026

The US-headquartered technology and engineering company KBR is seeking renewable energy project contracts in Libya.
Representatives from KBR met with Abdussalam Elansari, chairman of the Renewable Energy Authority of Libya, earlier this month to discuss project opportunities, sources said.
The meeting with Elansari followed KBR’s opening of a new branch in Libya and its securing of several contract awards in the oil and gas sector.
In March, KBR announced that it had been awarded a contract by Zallaf Exploration, Production & Refining of Oil & Gas Company to provide project management and technical services for the South Refinery Project in Libya’s southern city of Ubari.
Under the terms of the contract, KBR will provide contract management, project management and supporting technical services throughout the engineering, procurement and construction (EPC) phases of the project, according to a company statement.
The EPC work is expected to be executed over a 50-month period.
KBR is also carrying out work to re-evaluate the front-end engineering and design (feed) for the project to develop Libya’s J6 North Gialo field.
In January, KBR signed a memorandum of understanding (MoU) with the state-owned Libyan Post, Telecommunications & Information Technology Company.
Under the MoU, KBR agreed to support efforts to develop and improve Libya’s communications infrastructure and enhance fifth-generation (5G) mobile networks in the country.
KBR has previously provided engineering services for major national projects in Libya, but was forced to shut down its office in the country several times amid political instability and security issues.
When the company was known as Brown & Root, it worked on the Great Man-Made River Project in Libya, which is widely recognised as the largest irrigation project in the world.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20081880/main.jpg -
Giga developers absorb supply chain shocks29 September 2026

Register for MEED’s 14-day trial access
Saudi Arabia’s gigaproject developers are rerouting shipments and absorbing higher freight costs as regional geopolitical tensions disrupt supply chains. Executives discussed the impact at MEED’s Shaping Mega Projects conference in Riyadh on 28 September.
Mohamed Saad, president of DevCo at Diriyah Company, said supply chain disruption was one of several challenges facing the developer. He said it required the company to be adaptive and quick in its decision-making.
He said the wider situation had also weighed on end-user demand. “The appetite to buy residential units or lease retail or commercial office spaces has softened,” he said. “We also see opportunity, and developers who believe in the future and invest and develop in these times will catch the opportunity.”
Rerouted shipments
Dale Chadwick, acting CEO of King Salman Park Foundation, said the park had been fortunate because much of its supply chain was already in place.
Some bespoke construction materials sourced from India have been affected, forcing suppliers to change routes. The foundation has also been unable to import some trees from China, because extended delivery times meant they would spend too long at sea.
“It is a genuine challenge, and it’s on a case-by-case basis,” said Chadwick. “We make the call, then we pivot and start trying to secure the material from elsewhere.”
He said one alternative was sourcing from Europe through a different supply route into the kingdom’s west coast. Chadwick said the impact had so far been manageable, with no significant effect on the park linked to the geopolitical situation. He added that contractors were facing the same pressures and suggested some might be seeking higher margins as a result.
Local content
Ben Edwards, group head of cost, commercial and procurement at Red Sea Global, said the developer had been shielded by the stage its projects had reached. The high proportion of local content in its procurement had also helped.
Red Sea Global set up a landscape nursery to bring plants in early and acclimatise them. Edwards said the nursery, the largest in the region, had doubled in size to about 200 hectares.
Freight costs have still risen sharply. “Container prices have doubled, and you have to just face that,” he said. “Where you haven’t got any other route to bring things in, and you’ve got to pay double, and you need the stuff, then you have to be flexible and deal with it accordingly with the supply chain.”
Edwards said the local supply chain had strengthened since the peak of gigaproject construction activity.
“The capability was here in Saudi, but the capacity wasn’t necessarily here at the time that everybody needed it three or four years ago,” he said. “Everybody needed all the same stuff all at the same time.”
He said support from the Ministry of Investment and government programmes to build supplier capability was starting to pay off. Supplier quality was improving as capacity grew.
Saad said the contracting market was also maturing. A correction was allowing contractors to be more selective about the work they pursue.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20082381/main.jpg -
Sharakat receives bids for Riyadh East sewage treatment plant29 September 2026
Saudi Arabia’s state water offtaker Sharakat has received bids for the contract to develop the $150m Riyadh East independent sewage treatment plant (ISTP).
Bids were submitted on 28 September.
The plant will have a treatment capacity of 200,000 cubic metres a day (cm/d) in its first phase, expanding to 500,000 cm/d in the second phase.
Five consortiums made offers, including:
- EtihadWE (UAE) / Metito (UAE) / Thrustboring Construction Company (TCC, Saudi Arabia)
- GS Inima (Spain) / Alkhorayef (Saudi Arabia)
- Lamar (Bahrain) / China Harbour Engineering Company (CHEC)
- Miahona (Saudi Arabia) / Marafiq (Saudi Arabia) / Bin Omairah Holding (Saudi Arabia)
- Suez (France) / Civil Works Company (Saudi Arabia) / Alwael (Saudi Arabia)
In May, MEED exclusively reported that groups had begun to form for the project, which will be developed under a build‑own‑operate‑transfer model with a 25‑year concession term.
It is understood that at least two other potential consortiums weighed up making an offer for the contract, but did not bid.
In 2024, Sharakat prequalified 53 companies that could bid for the Riyadh East ISTP, part of seven planned ISTP projects it said it would procure between 2024 and 2026. The request for proposals was issued last October.
WSP is the technical adviser, and KPMG Middle East is the lead and financial adviser.
The targeted commercial operation date for the facility is 2029.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20066914/main.jpg -
Egypt firm wins Al-Dabaa desalination O&M contract29 September 2026
Elsewedy Utilities has been awarded a three-year operation and maintenance (O&M) contract for a seawater desalination plant in Al-Dabaa on Egypt’s north coast.
The plant has a production capacity of 40,000 cubic metres a day (cm/d), and the contract runs for three years.
The award reflects Egypt’s increased focus on involving local private sector companies in operating and maintaining existing seawater desalination plants.
In March, Egypt’s Ministry of Housing, Utilities & Urban Communities directed that a number of existing desalination plants with capacities of more than 10,000 cm/d be offered to specialised local private sector companies for O&M. The plants include facilities in Al-Dabaa, Matrouh and El-Alamein, as well as sites in the Red Sea region and North and South Sinai.
The government said the move is intended to improve operating efficiency, strengthen maintenance systems and make greater use of specialised technical expertise. The contract value was not disclosed.
Elsewedy Utilities is the utilities and facilities management arm of Elsewedy Electric, with activities spanning engineering, procurement and construction, O&M and utility management.
As MEED understands, the contract is separate from the South Med desalination project at Al-Dabaa, which is being developed for the Engineering Authority of the Armed Forces’ Water Management Department.
Elsewedy Electric Infrastructure previously announced it is the main engineering, procurement and construction contractor for the planned 160,000-cubic-metre-a-day seawater reverse-osmosis plant.
Cairo-headquartered Engineering Experience Group also won a design and engineering services contract for the project in June.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20066727/main41574303.jpg