DUBAI: Israel’s largest lender, Bank Hapoalim, expects to start working with banks in the UAE once the two Middle East states sign a normalization agreement, its chief executive said.

The UAE and Israel are due to sign the agreement, brokered by the US, on Sept. 15 at a ceremony held by US President Donald Trump.

The three sides have talked up the economic opportunities that normalization would bring and several business cooperation agreements have already been signed.

Hapoalim CEO Dov Kotler said a correspondent banking relationship facilitating direct money transfers between the countries would help develop trade and business ties.

“I believe that after the governments sign the agreement next week we will be able to work with the banking system here,” he told Reuters during a visit to the UAE.

In correspondent banking, a bank with no branch or network in a given country will typically channel payments there through a local bank that acts on its behalf.

Kotler is leading an Israeli business delegation on a two-day visit to the UAE as the two countries develop bilateral economic relations.

“We are here to build trust before talking business. In order to build trust I believe we have to meet face to face and that is what we are doing,” he said.

Israel and the UAE on Aug. 13 agreed to normalize relations, making the UAE the first Gulf country and the third Arab state to do so when a final accord is signed.

Kotler said he believed Hapoalim would establish relationships with the three largest lenders in the UAE, though he declined to name the banks.

The UAE’s largest lender, First Abu Dhabi Bank, has said it would open discussions with Hapoalim and Bank Leumi, another Israeli bank.

Bank Leumi is to lead a delegation to the UAE on Sept. 14.

Emirates BND, Dubai’s largest bank, declined to comment on the visit of Hapoalim this week.

Reuters