Mubadala eyes $1bn gas deal as UAE-Israel ties deepen

Mubadala eyes $1bn gas deal as UAE-Israel ties deepen

A United Arab Emirates sovereign wealth fund plans to buy a stake in an Israeli natural-gas field for up to $1.1bn, in what would be one of the first major business deals since the nations normalised ties last year.

Abu Dhabi's Mubadala Investment Co., a fund with $232bn of assets, announced a memorandum of understanding to buy Delek Drilling LP's 22 per cent stake in the Tamar offshore field, the Israeli company said.

“If finalised, the transaction will be the largest commercial agreement” since the signing of the Abraham Accords, Delek said.

Delek's shares rose as much as 9.1 per cent on Monday, before paring gains to 3.1 per cent at 12.10pm in Tel Aviv.

Israel and the UAE's deal in August was a historic breakthrough hailed by leaders including then-US President Donald Trump as a crucial step toward forging peace in the Middle East. The UAE was the first Arab nation after Egypt and Jordan to recognise Israel.

Investment Deals

Israeli Prime Minister Benjamin Netanyahu promised it would lead to billions of dollars of investment in his country. Bahrain, Morocco and Sudan have since then also normalised ties with Israel, following intense diplomacy from Netanyahu and Trump.

The UAE, of which Abu Dhabi is the capital,