Israel UAE Peace Accord Rapidly Transforming Into Bridge For Business

A company that uses seismic sensors to detect insects that eat and destroy palm trees from the inside out? A firm that has developed a high-protein chickpea powder to make foods such as ice cream and vegan burgers?

The historic Abraham Accords signed by Israel with the United Arab Emirates and Bahrain in September are likely to bear fruit soon if the meetings already held between Israel technology firms and UAE investors are any indication.

Those are just two of the products that have found initial favor with UAE-based firms in a meeting held last week. Other developments include Israel’s important diamond industry signing a cooperation agreement with Dubai that sees representative offices of each country being opened in the other’s territory. Following that, Sarine Technologies, a leading diamond industry technology solution provider, has signed an agreement for it services to be provided by a locally based company.

Although Israeli firms have been doing business in Dubai for the last 15 years at least – with representatives usually using a second passport to visit Dubai – following the Abraham Accords they are now able to come out of the shadows and do business in the open.

And the countries are finding that they have a huge amount in common as well as the potential to increase business for the other. Take diamonds for example where Israel and Dubai are among the world’s largest diamond trading centers. Although diamond manufacturing – taking rough stones and cutting and polishing them – has fallen to extremely low levels, Israeli diamantaires are known for their ability to source rough goods. They send the stones for polishing at a competitive price – usually in India – before returning them to Israel where they are marketed. Israel’s customers are largely in the US, Hong Kong and China, along with hefty exports to Swiss match manufacturers.

With Dubai having become the world’s largest trading center, with an estimated turnover of more than $30 billion, according to Dubai officials where the Dubai Diamond Exchange is based, it can offer Israeli diamond dealers another location to source diamonds. In addition, it provides them with a huge jewelry retail market, as well as many jewelers looking for diamonds of all shapes and sizes which fits exactly with the production of the Israel Diamond Exchange. Furthermore, with the introduction of direct flights, Dubai is just three and a half hours away. That compares with a 7-hour flight to Mumbai, the center of the Indian diamond trade, and four hours to Antwerp in Belgium.

In the technology sector – the agricultural sector, including irrigation and transforming deserts, is an area in which Israel has excelled for several decades or more.

Yehonatan Ben Hamozeg, for example, is the founder and chief executive of Israel’s Agrint, and he was one of 13 businesspeople who took part in a four-day trip to the UAE organized by venture capitalist firm Jerusalem Venture Partners (JVP) which is led Erel Margalit a leading Israeli venture capitalist who has invested in scores of technology start-ups.

He points out that the UAE's potential for Israeli companies is huge due to both direct partnerships in the financial, tech and food sectors, but also as a gateway to Arab markets where Israel is still unable to operate.

The Israeli group mixed openly with Emirati business leaders and government officials as they networked at private meetings with potential partners.

Mohamad Mandeel, chief operating officer of Abu Dhabi's Royal Strategic Partners, said Israeli firms had a big advantage as business partners because they understand the difficulties in proeducing food for a burgeoning population in a challenging arid agricultural environment.

Tali Nechushtan, the CEO of InnovoPro, found that her protein powder product took off with some of the UAE hosts since it can be used to make foods including ice cream and vegan burgers, was attractive in a world where alternatives to traditional foodstuffs is becoming increasingly important.