Amir Hayek was appointed as Israel’s first Ambassador to the United Arab Emirates, just as a major agreement about a crude oil pipeline through Israel to Europe was temporarily frozen on environmental ground.
Israel and the UAE normalized ties only last year under the rubric of the Abraham Accords that was brokered by former US President Donald Trump.
There was a particularly emphasis on the economic benefits to both countries.
One of the cornerstone agreements was a deal by which the UAE would transport crude oil to Europe through the Israeli business Europe Asia Pipeline Company, a deal that could be worth over $700 million.
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The deal has included an understanding with MED-RED Land Bridge, a company with Israeli and Emirati owners, in Abu Dhabi.
The UAE would make use of an already existing pipeline that connects the city of Eilat on the Red Sea with the Ashkelon along the southern Mediterranean coast, but would involve an expansion of the facilities including storage tankers.
On Sunday the Environment Ministry rejected a risk assessment conducted by EAPC and frozen the project pending an government hearing on the continuation of the plan.
Environment Minister Tamar Zandberg instructed her office to notify the company of the decision not to deal with any further documents relating to the plan until such a hearing was held.
Should the government agree to continue the deal, the ministry told EAPC it would only accept documents and studies that met the requested professional standard.
The Foreign Ministry made no mention of the possible pending crisis with the UAE when its announced Hayek’s appointment.
Lapid recalled that he had helped inaugurate the first ever Israeli embassy in the Emirates in June. The UAE in turn opened its first ever embassy in Tel Aviv.
“It was time to appoint the first ambassador to the United Arab Emirates,” Lapid said.
Hayek is the President of Israel’s Hotel Association and has served as director general of the Manufacturers Association. He has served as director general of the Ministry of Industry, Trade and Employment.
Reuters contributed to this report.