23 March 2021

Peace Dividend Widening the Economic Growth and Development Benefits of the Abraham Accords

by Daniel Egel, Shira Efron, Linda Robinson

The Abraham Accords have heralded a dramatic shift in the relationship between Israel and the Muslim nations of the world. Over the course of just four months, from August to December 2020, four nations—the United Arab Emirates, Bahrain, Sudan, and Morocco—initiated diplomatic processes to normalize bilateral ties with Israel.

These accords represent a major political breakthrough. They also represent a possible new chapter in the region's development: away from conflict and toward a shared vision of economic prosperity. If these new relations evolve into deeper economic integration, we estimate that the economic benefits for Israel's partners in this endeavor could be particularly significant, creating approximately 150,000 new jobs for just the four current signatories. This number could grow to more than four million new jobs, and more than $1 trillion in new economic activity over a decade, if the accords grow to include 11 nations (including Israel) as some have speculated may be possible.

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