U.S., UAE, Israel to Form Joint $3 Billion Fund in Jerusalem

(Bloomberg) -- Israel, the United Arab Emirates and the U.S. will set up a joint $3 billion investment fund headquartered in Jerusalem as part of efforts to normalize relations and promote regional economic development.

The fund was announced on Tuesday during a first official visit to Israel by a UAE delegation, following a formal agreement on normalizing ties last month, to which Bahrain was also a party. It will invest in projects in the Middle East and North Africa.

The venture will focus on areas including infrastructure, energy security, agricultural productivity and clean water access, according to a statement from the U.S. Embassy in Israel. The statement added the venture would mobilize “private sector-led investment.”

Adam Boehler, chief executive for the U.S. International Development Finance Corp., said the fund was already making progress on two deals: An energy bridge connecting the Israeli cities of Ashkelon and Eilat, and a program modernizing Palestinian and Jordanian checkpoints.

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