Kosovo ) Israel: From Political to Commercial Relations

Establishing diplomatic relations with Israel brought Kosovo increased trade exchanges.

In 2022, the value of imports from this country amounted to 42m euros, up from 22 million in 2020, when the two countries had no diplomatic ties.

Similarly, exports ranging from 85,000 euros in 2020 to 783,000 euros in 2022, according to Kosovo Customs Data.

Kosovo imports mainly fuel and plastic products from Israel, while exports mostly textile products.

Kosovo and Israel formalised diplomatic relations in February 2021.

They were preceded by the so-called Washington Agreement, which Kosovo and Serbia signed on September 4th 2020, aimed at normalising economic relations.

Kosovo opened its embassy in Jerusalem in July 2021 in exchange for recognising its independence from Israel.

But the move prompted the reactions of Palestinians and several majority Muslim states.

Although the United States recognized Jerusalem as Israel's capital in 2017, Palestinians aim to have eastern Jerusalem the capital of their future state.

After the establishment of diplomatic relations between Kosovo and Israel, the two countries' economic interests pledged co-operation in the field of economy and trade.

In 2022 Oda Economics Kosovo-Israel opened in Kosovo, which later signed a memorandum of co-operation with the Kosovo Economic Ode.

In order to strengthen economic co-operation and trade ties, the Kosovo-Israel Investment and Development Corporation (KIDIC) opened in Pristina.

This corporation's official website reportedly “K IDIC offers an ideal gateway to business development”, as well as “opportunity and co-operation between organisations in Kosovo and Israel”.

The sectors mentioned there include technology, defence and security, response to disasters and emergencies, agriculture, medical research and export-import.

REL asked the KIDIC for the co-operation and investments that may have been made between the two states, but until the publication of this article, there was no response.

According to data it provided REL from the Kosovo Central Bank, foreign direct investments from Israel total over 1.6m euros.

The investments, according to the CEC, are made in the real estate and trade sector.

In February of this year, Kosovo's Ministry of Foreign Affairs announced a meeting held between Kosovo authorities and those of Israel, where Kosovo's economic opportunities for investment were presented by the Israeli business community.

The joint conclusion of representatives of the two countries was that there is much room for co-operation and that the two states should deepen co-operation through various visits and meetings, which enable real recognition of businesses and concreteise investment co-operation fields”, was said at that meeting. /Complete text: REL