The role of economics in normalization agreements has gained increasing attention in academia throughout recent years. Yet it remains debated to what extent economic incentives drive bilateral...Show moreThe role of economics in normalization agreements has gained increasing attention in academia throughout recent years. Yet it remains debated to what extent economic incentives drive bilateral normalization agreements. This research problem will be investigated in the context of the Abraham Accords, a recently signed normalization agreement between Israel and the United Arab Emirates. Three empirical chapters analyze economic incentives that were present in 2020 in the spheres of trade & economic relations, finance & investment, and tourism & people mobility. Central research findings include firstly, the UAE’s economic diversification leads to a demand of modern technologies which fits into Israel’s characteristic as a tech-driven export economy. Secondly, the UAE’s reinvestment of petrodollars through foreign direct investments connects well to Israel’s start-up sector that relies on investments. Thirdly, (religious) tourism is not only of economic importance for both States, but people mobility is necessary to facilitate economic cooperation in the spheres of trade & economic relations and finance & investment. Based on these findings the main argument is that political-economic incentives in the spheres of trade & economic relations, finance & investment, and tourism & people mobility were the main driver for Israel and the UAE to sign the Abraham Accords. International Relations theory in the form of Realism, Liberalism, Constructivism, and Marxism is applied as the study’s theoretical framework to better understand the State behavior and decisions taken by Israel and the UAE. The study concludes that these research findings are significant to understand incentives for potential future normalization agreements, particularly between Israel and other Arab States.Show less