The Aug. 13 announcement that Israel and the United Arab Emirates (UAE) have signed an agreement on the normalization of relations did more than just legitimize existing economic ties between the two countries. Direct relations will also allow for new business possibilities to emerge at a rapid pace. The UAE is not only an oil state, but the economic capital of the entire Persian Gulf region and one of the most advanced business centers in the world. There is good reason it has earned the nickname, “the Singapore of the Persian Gulf.”
Tally Zingher, an expert in economic development who worked for an independent foundation set up by the Dubai government, told Al-Monitor that the guiding vision of the Emirates is to become the leading nation in the region, economically, business-wise and politically, and that it can achieve this by investing heavily in new initiatives. The Emirates have adopted a more global worldview than just about anywhere else in the world. That certainly is the case among the Arab states, but it extends far beyond that.
In practical terms, the UAE serves as a business and commercial center on a vast scale, connecting the Gulf states with the rest of the world. This is where its enormous potential lies, she explained. The UAE operates commercial and economic “free zones” with very little regulation. The Dubai International Business Center, for instance, is considered to be one of the friendliest places in the business, financial and commercial world. Zingher said that the option of establishing a new firm and opening a bank account there with an Israeli passport would be an enormous boon to Israeli companies.
According to Ze’ev Lavi, director of the International Relations Division at the Federation of Israeli Chambers of Commerce, there are now some 300 Israeli companies operating in the UAE, most of them through international branches. Existing restrictions make it very difficult for smaller and mid-sized Israeli companies to do business there because of the expenses and other outlays necessary, when conducting business through a third party.
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