Abraham Accord opens up a new era of economic possibilities
Agreement not only benefits UAE and Israeli businesses but also boosts economy of region
The long-term socioeconomic benefits of UAE and Israel signing the historic Abraham Accord to normalise their relations will not only pave the way for new business and investment opportunities for both countries but also boost the foundations of sustainable economic development in the region.
From energy, aviation, defence, cybersecurity and space science to technology, health care, food security, financial services and tourism, there are major opportunities for strategic cooperation in vital sectors that strongly support the UAE’s economic development agenda and its ongoing journey to diversify its economy from the dependence on oil to one of the world’s most advanced knowledge economies.
The historic Abraham Accord will thus not only stimulate trade and investment cooperation between the UAE and Israeli governments but also generate new cash flows and robust business activities that will immediately benefit the diverse private sector in both countries, as well as the regional economies
Aviation is one of the major sectors of focus, with the launch of direct commercial flights between UAE and Israel expected to be just a matter of weeks away — and world-class airlines such as Emirates and Etihad will serve as the springboard for UAE businesses to tap great opportunities in Israel.
They will also connect tourists from Israel with warm Emirati hospitality and the window to a wider world with several new destinations. Direct flights will also offer UAE residents as well passengers from the wide global network of these airlines to visit some of the world’s oldest and holiest pilgrimage sites in Israel in a convenient way.
Similarly, there are major convergences in the area of start-ups. Led by Dubai and Abu Dhabi, the UAE has quickly emerged as one of the world’s most attractive ecosystems for start-ups, with more than a third of start-ups in the Middle East and North Africa based in the country.
Start-up nation
According to its economy ministry, the start-up and tech sector in Israel — nicknamed the start-up nation — makes up more than 40 per cent of the country’s exports. The synergy between the two powerhouses in the technology sector is bound to generate lucrative opportunities.
The benefits also go beyond commercial terms to offer hope for the entire humanity — as the UAE and Israel engage in deep scientific cooperation to develop a vaccine against Covid-19.
A glimpse of the major scope of opportunities came from Abdulla Bin Touq Al Marri, UAE Minister of Economy, who told the US-UAE Business Council last week that the UAE is looking at eight trade and economic agreements, including double taxation and a free-trade agreement with Israel, at a later stage.
The historic Abraham Accord will thus not only stimulate trade and investment cooperation between the UAE and Israeli governments but also generate new cash flows and robust business activities that will immediately benefit the diverse private sector in both countries, as well as the regional economies.