International Studies Journal (ISJ)

International Studies Journal (ISJ)

Political Economy of the Environment and Israel’s Relations with the Persian Gulf States: The United Arab Emirates and Bahrain (2020–2023)

Document Type : Original Independent Original Article

Author
Ph.D. Student of Regional Studies at Allameh Tabatabaie University.
Abstract
Environmental effects on the socioeconomic aspects of a country constitute one of the most critical matters considered by its governing and policymaking body. In other words, environmental issues cannot be analyzed separately and independently of the broader political economy. Energy, water, and the environment are the concepts discussed invariably within the political economy framework. In recent years, West Asia has witnessed a surge in the trade of cutting-edge environmental technologies. In particular, Israel has distinguished itself through its robust technological advances coupled with its distinctive small, open economy model. In this regard, the 2020 Abraham Accords provided new cooperation opportunities for Israel and the Persian Gulf states. This study aims to determine what effects the political economy of the environment in Israel has had on its bilateral relations with the United Arab Emirates (UAE) and Bahrain within 2020–2023. Employing both quantitative and qualitative research methods coupled with library resources, this study explains the political economy of the environment in Israel and its effects on relations with the UAE and Bahrain. The research hypothesizes that Israel has been adopting certain strategies for improving the environmental status and investing in different environmental projects to normalize relations with the UAE and Bahrain and attract Arab capital.

Highlights

Introduction 

Environmental issues are often deeply intertwined with the generation and distribution of power, wealth, and knowledge. They are also closely linked to patterns of energy consumption, pollution, industrialization, welfare, and overall, to politics and economy. The conception of natural resources as “natural capital” is a cornerstone of contemporary sustainable development economics. The political economy of the environment is a field that seeks to establish a platform for environmental sustainability through a variety of political and economic programs and policies. This approach is particularly well-suited to the analysis of environmental problems, as the economy and the environment are mutually dependent systems, where alterations in one can inevitably trigger responses in the other. Moreover, collective action is often indispensable for tackling these interconnected issues. Consequently, economic decisions, whether directly or indirectly, affect the environment, whereas environmental changes, in turn, affect economic activity.

In recent years, the West Asian region has witnessed an upward trend in the trade of efficient environmental technologies as well as knowledge exchange to ensure long-term water and food security. Israel’s advances in environmental technologies, combined with its small, open economy, have distinguished this country in the region. The 2020 Abraham Accords created new opportunities for relations between Israel and the Gulf states. The primary research question is: How has Israel’s political economy of the environment affected its relations with the United Arab Emirates (UAE) and Bahrain from 2020 to 2023? In response to this question, this study hypothesizes that Israel has sought to normalize relations with the UAE and Bahrain and attract Arab capital by adopting strategies to improve its environmental status and investing in various environmental projects.

 

Methodology

This study employs an explanatory-causal methodology, grounded in the assumptions of the scientific method (both quantitative and qualitative analysis), to elucidate the political economy of the environment in Israel and explicate its effect on the state’s relations with the UAE and Bahrain. This applied research also uses a comparative case study approach and conducts a cross-sectional analysis.

 

Findings

Research findings indicate that contemporary environmental challenges pose significant threats to the interests of most nations. Given the transnational roots of many of these issues, no single state can efficiently address them in isolation. Consequently, due to their transboundary nature and impacts, environmental crises have become the increasingly prominent foci of international cooperation. There is a steadily upward trend in the prominence of these issues within national, regional, and international discourses and policies. These matters cannot be analyzed in isolation from the broader context of the political economy. All environmental activities and issues are embedded within a political-economic framework, necessitating an interdisciplinary approach. Therefore, relevant concepts such as energy, water, and the environment must be analyzed through the lens of political economy. The socioeconomic status of a country is significantly shaped by environmental factors, necessitating a robust policy response from its governing body and policymakers.

Israel’s advances in water technology have set it apart from other nations in the West Asian region. By implementing certain strategies to enhance environmental conditions and investing in various environmental projects, the Israeli regime has sought to normalize relations with the UAE and Bahrain, thereby attracting Arab capital. The UAE has emerged as Israel’s most significant partner among the states with which it established relations in 2020. This alliance is primarily driven by economic interests. In 2022, the bilateral trade volume between the UAE and Israel reached a substantial level, ranking the UAE as Israel’s eighteenth-largest trading partner. Both countries have been developing collaborations in different sectors such as information and communications technology, finance, renewable energy, agriculture, water management, and healthcare. Bahrain is the fourth Arab country to normalize relations with Israel. Prior to these agreements, interactions between Israel and Arab nations on water-related issues were limited, often due to domestic opposition to normalization. However, these accords have dismantled political barriers, and cooperation in water and food security with Bahrain has surged at an astonishing pace for Israeli water industry experts, who have discovered vast new markets for their expertise.

 

Conclusion

The political economy approach offers a particularly apt framework for analyzing environmental issues, as economic and environmental systems are intrinsically linked, with changes in one invariably affecting the other. Moreover, collective actions are often essential for addressing such complex problems. This integrated approach can be employed to delve into the root causes of environmental degradation more effectively and identify the economic and political conditions required to mitigate such damage. Israel has strategically employed environmental technologies, particularly desalination, to enhance its influence in the Persian Gulf region, where water scarcity is a pressing concern. By fostering cooperation in environmental matters, Israel is leveraging soft power to expand its regional footprint. Investments from the UAE and Bahrain in Israeli technology startups have streamlined the development of innovative solutions. Moreover, Israel has incentivized the Persian Gulf states to invest in domestic desalination infrastructure. The Abraham Accords have further facilitated cooperation and information sharing on water and food security issues between Israel and its Arab partners. Furthermore, a primary objective of this regime has been to promote trade in water technologies and attract the Persian Gulf investments in Israeli desalination and water-related ventures. In recent years, there has been an upward trend in the trade of efficient and innovative water technologies, as well as knowledge exchange, aimed at ensuring long-term water and food security in the region. The Abraham Accords have substantially broadened opportunities for collaboration between Israel and its signatory partners in addressing their domestic water challenges and enhancing food security.

Keywords

Subjects


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