• Home
• /
• Business

UAE and Israel to forge stronger ties in 2022

The UAE is keen to work with key players to enhance the capability and visibility of Israeli products in the coming years

The UAE and Israel will continue to forge stronger ties in 2022, as companies across a number of key sectors look for ways in which they can collaborate and expand their businesses, officials said at the Dubai-Israel: Future Horizons Mission forum in Dubai.

The forum was organised by Dubai International Chamber, the UAE Embassy in Israel and the Tel Aviv Stock Exchange, as part of The Executive Series, a new flagship series of VIP business missions. The event was the focus of a high-level trade mission which was joined by 50 businessmen representing 25 Israeli companies listed in Tel Aviv Stock Exchange.

In his opening address at the event, Hamad Buamim, president and CEO of Dubai Chambers, said that the relationship between the UAE and Israel has the potential to grow to the point where Israel will be among the UAE’s top 10 trading partners over the next 5-10 years. This, he said, will be achieved “when businesses collaborate more.”

He revealed that Dubai’s non-oil trade with Israel reached nearly Dh2 billion in the first half of 2021. This highlights the huge potential between the two business communities, and is also a key indicator of the importance of trade to the UAE’s economy. “We are looking forward to the free trade agreement that is currently being negotiated by both sides, and which we hope will be accomplished before the summer of this year; this will support investments and trade on both sides.”

Elaborating on the importance of trade to the UAE economy, he noted that developments in tourism, real estate, and retail have played a key role in the growth of the economy. “Dubai and the UAE are very dynamic in the way we do business.”

This is best seen at Expo 2020 Dubai, which he described as a transformation in innovation. The event has been a key platform for many companies to collaborate and form partnerships that are centered around innovation, especially during the Covid-19 pandemic.

Omar Khan, director of International Offices at the Dubai Chamber of Commerce, also spoke about the pandemic and how the UAE’s GDP had recorded “a slight dip” before bouncing back. “In today’s markets, you see ups and downs but we pride ourselves in having good mechanisms in place on the federal and local level to engage and manage the growth. We are ready to take advantage of the opportunities that present themselves. We want to have a nice and stable mechanism in place to allow our businesses to have clear forecasts. FDI has also been quite steady, and while we have recorded ups and downs, it just goes to show that the UAE is not an insulated country because we are very cosmopolitan and international. The UAE is always looking at where it can sow the seeds of the future for decades to come, and how it can strengthen ties with emerging markets.”

Khan also said that the UAE is keen to work with key players to enhance the capability and visibility of Israeli products in the coming years.

Mohammed Al Khaja, UAE Ambassador to Israel, said that he is excited to see Emiratis and Israelis show the world what can be accomplished through the joint efforts of their business sectors. “Towards that end, we must link our financial institutions, ease financial transactions, the flow of capital and investments to realise the true potential of the two markets working together in unison. By partnering we can increase the competitiveness of companies in both countries and better compete in the international arena. Israeli companies are warmly invited to take advantage of opportunities to pilot, grow and build mega-scale projects in and with the help of the UAE’s business sector.”

Cultural exchange will play a key role in the strengthening of business ties between the UAE and Israel, said Ittai Ben-Zeev, CEO of the Tel Aviv Stock Exchange (TASE).

Speaking to Khaleej Times on Tuesday morning, he said: “I think that we have a lot to learn from the emirates. Historically, a lot of Israeli companies relied on the Western hemisphere, but a lot of business development can be done with the UAE, which is a gateway to many new markets. We can collaborate on a variety of different projects in various different sectors and specific segments. When you look at TASE, we have over 500 public companies that are well diversified and our goal is to come to these companies and tell them that they can do more in different markets.”

However, before this can happen, he says that a cultural exchange needs to take place where both sides learn more about each other and the way they do business. “As time passes by, we understand that there are many things that we have in common, but that there are also a few differences. The UAE is led by a very strong government and leadership with a forward thinking vision that spans several years. Corporations that are looking to set a long-term strategy can benefit from this approach.”

He also noted that both the UAE and Israel are small nations with a very strong entrepreneurship and startups ecosystem which will be a game changer in the years to come. “We are leading the world with regards to startups and innovation. Over the last two years, we have had a lot of IPOs and two-thirds of these IPOs were all tech-related in very diversified areas of operations.”

rohma@khaleejtimes.com