The Abraham Accords: Doing Business with UAE
In September 2020, the United Arab Emirates (UAE) and Israel signed a normalization agreement, The Abraham Accords, at the White House -- marking a momentous occasion in the trajectory of peace relations and global commerce exchange.
What does this mean for the UAE and Israel?
This historic normalization agreement opens the borders for general travel, tourism, business and commerce, imports and exports, and more; prior to the Accords, Emirates and Israelis were prohibited from conducting any commercial activities or tourism under the Boycott Laws. In just the few weeks since the Accords were signed, the two parties set forth an aviation agreement allotting 112 direct flights per week between Tel Aviv and the UAE, subject to be increased upon demand. Last week, Dubai hosted their first ever public Chareidi wedding. Progress has already been made between the two parties, and the opportunities for future growth are soaring.
We at Aviv Lazar & Co. offer international legal services and work to connect small businesses and entrepreneurs with global investors - this is why we want to advise you on some of the most exciting up and coming sectors to consider for conducting business as a result of the Accords.
Sectors to watch:
Food tech: As of now, about 90% of the food in the UAE is imported; in contrast, about 70% of the food in Israel is produced in Israel. Israel and the UAE’s close proximity lends itself to easy and lower cost trading.
Logistics and transportation: The UAE have one of the world’s most robust and advanced infrastructure systems. Combined with Israel’s innovation, the opportunities for development in both places are endless.
Financial services/Fintech: With over 50 free zones, and two financial free zones, incorporated to encourage new business and foreign investments, the UAE has positioned itself as one of the most enticing hubs for banking and finance. A perfect home to Israel’s wealth of start-ups, free zones allow 100% foreign ownership of an enterprise, access to top-notch facilities and skilled professionals, tax holidays and corporate tax exemptions, 100% import and export tax exemptions, 100% repatriation of capital and profits, among many other benefits.
Anything with global demand: It’s important to note that while the UAE and Israel are compatible partners due to their similarly sized economy, cultural likeness, and physical proximity, this relationship is not the end all be all; this relationship opens the gates to one another, but also opens the gates to whole new networks for both parties, globally. The UAE and Israel shall collaborate to appeal to a broader and bigger market, from a united front.
Our international team at Aviv Lazar & Co. has expansive expertise in tapping into burgeoning foreign markets; schedule a consultation today for any questions you may have in this historical moment for global commerce.