When big regional economies meet, lives will change

Abu Dhabi / Photo: Shutterstock

UAE-based analyst Hasan Al Mujani describes the significance and potential of trade and tourism cooperation for Israel and the UAE.

The UAE-Israeli peace treaty, which has received wide Arab and international support, will contribute to opening horizons and major economic cooperation in the region.

The signing of the peace treaty opens the doors to agreements, projects, investments and cooperation in several areas, so that this treaty will be a gateway to change the map of life in the region in various fields.

The economic partnership between the UAE and Israel will positively affect the countries of the Middle East, whether in the form of injecting joint investments or arriving at modern technology and innovations whose returns may exceed the borders of the region.

The UAE and Israel possess many assets, and cooperation between them will benefit everyone. On the economic level, we are talking about two of the largest economies in the region, and therefore we are facing a great opportunity for more investments between the two countries.

And the treaty’s economic impact will cast a positive shadow on investment, especially in the technology sector.

I expect that the sectors of advanced technology, energy and agriculture will be in the forefront of the beneficiaries in the region as a result of the peace treaty between the UAE and Israel, pointing to the great economic potential of the two countries.

And there are free zones in the UAE, in which foreign companies can operate according to regulatory rules, and foreign investors are allowed 100% ownership in companies.

High-tech industries, and information and communication technology services, are an important driver in the Israeli economy, which have been able to attract major investments by international companies and forge effective partnerships with China and India.

In addition, on the tourism level, the UAE and Israel have distinctive tourism infrastructures with hotels and huge airlines, and cooperation can create a boom in this sector.

The UAE leads the Middle East in the tourism sector, and Israel is actively involved in this sector.

The historic peace treaty will create promising opportunities for cooperation in the energy field, as the UAE ranks sixth among the world's largest oil exporters, and Israel has huge gas reserves, which means that the UAE and Israel are among the main players in the global energy market.

This leads to the possibility of exchanging investments, technology and trained human cadres in the energy sector, especially since the two countries have extensive experience in energy sources, whether conventional, renewable or nuclear.

In addition, the trade and retail sector and the establishment of free zones will have the most important share in cooperation between the two countries, as the UAE is a major trade and logistical center in the Middle East, which provides promising opportunities to attract Israeli investments.

The remarkable development in the use of IoT technology and artificial intelligence in the UAE will be met with tremendous acceptance by Israeli companies, and investment cooperation between emerging technology companies.

The technology sector is considered one of the vital areas for cooperation between the two countries, as the UAE has a strong technological infrastructure.

The areas of cooperation between the two countries will extend to the communications and information technology sector, which is witnessing mainly a boom in the two countries.

Israel has succeeded in attracting around 300 multinational companies to work in its technology sector, placing it in an advanced position in research and development and occupying a central position in the global technological supply chain.

This parallels with the performance of the UAE and the programs to develop the economy and attract international companies to work in them. Therefore, it is expected that the two countries will seek cooperation in technological fields.

While Israel was one of the top 10 innovative countries in the world, in the Innovation Index of the United Nations World Intellectual Property Organization for the year 2019, the UAE maintained its Arab lead in the Global Innovation Index for the year 2019, and ranked 24 globally in the innovation input component.

Israel is a pioneer in some technological fields at the world level, as it ranks in agricultural technology and water treatment, and it is also first in the world in the field of technology for food security, and there is no doubt that this matter serves the Emirati interest. It works to enhance its food security.

And the UAE market could be an outlet for Israeli technology and an entrance to many Arab markets, and global markets, especially in Asia and Africa.

The UAE is also interested in the owners of emerging digital projects, and Israel is doing the same, and this will help the two parties to develop the technological infrastructure of the region, especially since the UAE has extensive experience in dealing with larger markets.

The author is a financial cost analyst specializing in digital transformation, and an activist for peace and regional reconciliation based in Abu Dhabi, UAE

Published by Globes, Israel business news - en.globes.co.il - on September 6, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Abu Dhabi / Photo: Shutterstock
Abu Dhabi / Photo: Shutterstock
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