The imminent Zionist threat served as a rationale for introduction of Israel Boycott Law in 1970’s, when the recommendations of secretariat of all the Arab nations suggested to introduce a unified code for boycotting all relations with Israel. The law was simultaneously issued by UAE government in 1972 by virtue of Federal Law number 15 of 1972 imposing restrictions on trading with any individual or company residing or registered in Israel. In addition, the law prohibited any company or individual residing in UAE to trade with any person who belongs to that nationality or working for Israel government and prohibited dealing in all the goods or commodities that are manufactured in Israel.
Nevertheless, the recent accord between United States, United Arab Emirates and Israel confirmed and signed in August 2020 was a tremendous step towards a stable and thriving middle east. Following this accord, the government of UAE issued Federal Decree Law number 4 of 2020 for abolishing the 1972 Boycott Law. Legal Advisors of Dubai will herein outline the various restrictions removed by the government under the new law by abolishing the existent Israel Boycott Law.
In accordance with the provisions of the Boycott Law, the United Arab Emirates (UAE) joined the Arab League blacklist of Israel (the Boycott of Israel). Under the said provisions of the Boycott Law issued by the government of UAE and other countries of Gul cooperation Council and other Arab states, the accompanying exercises were restricted:
- entering into any arrangements, straightforwardly or by implication, with people or bodies corporate in Israel or those having Israeli identity; and
- exchanging of any nature of merchandise created in Israel, completely or mostly, or produced utilizing any Israeli material.
Earlier, the Boycott Law of UAE defined three types of boycotts that is primary secondary and tertiary. However, upon issuance of Cabinet Resolution in 1995, the concept of secondary and tertiary boycott were removed from the Law. Wherein, the secondary and tertiary boycotts were generally considered as restricting the people in UAE to trade with any parties that do business with Israel or with any blacklisted parties. Whereas, the primary boycott remain existent until 2020, where natural or legal persons were restricted to trade with any Israeli corporations or to buy products manufactured in Israel.
The Presidential Decree officially abrogates the Israel Boycott Law, which will permit people and organizations situated in the UAE to set up dealings, including exchange relations and to go into concurrences with Israeli nationals and companies/people situated in Israel.
The Decree issued by the government of UAE has been presented as one of the major step taken by the government to extend conciliatory and business participation with Israel, and by spreading out a resolution towards propelling joint collaboration, prompting respective relations by invigorating monetary development and advancing mechanical advancement in both the countries, especially in these times, when all neighbouring countries in support with each other.
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