Business Traveller (Middle East)
THE NEW NORMAL I SAT I ON
WITH BILATERAL AGREEMENTS BETWEEN ISRAEL AND BOTH THE UAE AND BAHRAIN FRESHLY INKED, REGIONAL TRAVEL AND TRADE WILL BENEFIT EXPONENTIALLY
Freshly inked Gulf-Israel deals usher a new era for the region, with travel and trade set to flourish
When news that Israel and the United Arab Emirates (UAE) had reached a deal to normalise relations hit the global headlines on August 13, it took most people by complete surprise.
Considering the immensely complex history between the two nations and given that up until that point, Israel had no diplomatic relations with any Gulf Arab countries whatsoever, few had anticipated this course of action.
US President Donald Trump who brokered and announced the deal between Israeli Prime Minister Benjamin Netanyahu and His Highness Mohammed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi, described it as “a truly historic moment”. After all, it represents only the third Israel-Arab peace deal forged since Israel’s Declaration of Independence in 1948, after Egypt and Jordan.
“Now that the ice has been broken I expect more Arab and Muslim countries will follow the United Arab Emirates,” Trump told the media.
He wasn’t wrong, Bahrain was quick to follow suit by normalising relations with Israel too.
Both deals (the Abraham Accords) were signed at the White House on September 15, with leaders from all three countries taking a historic step, not only towards economic cooperation, but what many hope will be peace in the Middle East.
Israel’s Minister of Regional Co-operation, Ofir Akunis, told the Financial Times the accords would pave the way for bilateral trade and investments reaching “billions of dollars for each side”.
He even quoted US$500 million as an initial figure for the value of deals set to be clinched, citing Israel’s expertise in water desalination and agricultural technology as two of the most promising sectors for co-operation.
“[But] the main idea here is peace to prosperity,” Mr Akunis told the London publication. “We want bilateral economic relationships with the UAE and Bahrain to build a new Middle East.”
Since the accords were announced and subsequently signed, the UAE and Israel have made remarkable progress, with milestones between the two including: opening telephone and online communications; forging partnerships for Coronavirus research; and staging discussions regarding intelligence and national security, as well as food and water security.
Two higher education bodies have agreed to work together on artificial intelligence and Dubai’s largest bank by assets, Emirates NBD, has signed an MoU with Israel’s Bank Hapoalim,
enabling Israelis to transact directly with the UAE. At time of press, Israeli and Dubai diamond exchanges had also just signed a trade agreement.
Strategies for linking infrastructure are also on the table with Akunis hinting that if Saudi Arabia were to normalise relations with Israel it would present opportunities to integrate the Jewish state into a huge Middle East rail network. If plans came to fruition,
“We want bilateral economic relationships with the UAE and Bahrain to build a new Middle East”
the railroad would link the port of Haifa in Israel with the UAE and Bahrain, via Saudi and Jordan.
This would usher a new era of economic prosperity for the region and “bring billions of dollars to us all”, he says.
Other industries set to benefit from cooperation range from oil and gas to education and healthcare, to name a few, but perhaps one of the biggest benefactors is the travel and tourism sector.
The tourism potential
According to Professor Yaniv Poria, Chairman of the Department of
Hotel and Tourism Management at Ben-Gurion University of the Negev in Israel, who spoke exclusively to Business Traveller Middle East last month in his first ever interview with a Gulf-based publication, Israelis cannot wait to travel to the UAE, which they deem aspirational and exotic.
“Israelis love to travel and explore new places; they are interested in new destinations and they have never had to the chance to visit the UAE, which can offer them a great vacation and value for money,” he says. Israeli media is already anticipating that holiday package prices to destinations including Dubai and Abu Dhabi will be 40 per cent cheaper than to domestic hotspots like Eilat on the Red Sea, he reveals.
“And based on what we have seen [in the media], the shopping [in the UAE] is brilliant and not as expensive as it is here, so we will be able to shop, a lot.”
Poria says Israelis are also “fascinated” by Arabian cuisine and culture and favour adventure holidays, so desert safaris and Ras Al Khaimah’s outdoor pursuits, including the world’s longest zipline, could be drawcards.
Some travellers might also be curious to find out more about the way of life for Jewish people living in the UAE, Poria suggests.
“When Jewish people travel around the world, whether they are religious or not, they look to find a synagogue. Israelis will be interested to see how Jewish people living in the UAE pray,” he explains.
When it comes to food, while Israelis are “inquisitive and open minded” when they travel, “it will be beneficial for hotels to serve kosher food”, and although most speak good English, and some, Arabic, they will also appreciate menus in Hebrew, he notes.
Is there a need for Hebrew-speaking guides in the UAE? Poria says no, but learning a few words of Hebrew won’t harm to “show empathy”.
“People from Israel will also try to speak Arabic when visiting out of respect to the local people,” he adds.
Kosher ready
The UAE travel industry, which is more adept than most at catering to frontier source markets, is already preparing for a boom in Israeli visitors.
Last month the Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi) issued a circular to all hotels instructing them to seek kosher certification for handling kosher meals. General managers were also asked to designate an area of all hotel kitchens for kosher food preparation.
In neighbouring Dubai, the UAE’s first kosher restaurant, Armani/Kaf, has already opened its doors at Burj Khalifa’s Armani Hotel Dubai, with all food certified by the only UAEbased kosher certifier, the Emirates Kosher Supervising Agency. Cuisine served at Armani/Kaf, which is a 40-seater pop-up restaurant on the ground floor of the luxury hotel, complies with Jewish dietary laws ( kashrut) and menu staples range from Italian dishes like spaghetti
Bolognese to Middle East favourites such as hummus and baba ganoush.
Guests staying at the property, located in the world’s tallest building, can order kosher food from room service too.
Dubai-based Al Habtoor Group is also planning to introduce kosher food at its UAE hotels after forming a partnership with Elli’s Kosher Kitchen (EKK), which was founded by resident kosher chef Ellie Kriel last year.
Hilton Dubai, V Hotel, Habtoor Palace Dubai, LXR Hotel and Resorts, Habtoor Grand Resort, Autograph Collection LLC, Metropolitan Hotel and Habtoor Polo Resort will be among those serving kosher meals, all of which will be packaged and sealed with an OU Kosher Certification (Orthodox United) stamp.
“We all hope to see Etihad launching a direct flight from Abu Dhabi to Tel Aviv, but this might take more time ”
Airlines are making preparations too, with Emirates’ catering supplier, Emirates Flight Catering (EKFC) recently announcing plans to set up a dedicated kosher food-production facility in the UAE. The venture, named ‘Kosher Arabia’, is mooted to begin production by January 2021 and is certified by the Kashrut Division of the Orthodox Union (OU).
Emirates already offers kosher meals on board its flights, but these are currently produced by a thirdparty supply.
Although no announcement had been made regarding Emirates launching services to the Israeli capital Tel Aviv at time of press, the carrier is expected to do so in the future, with Kosher Arabia providing kosher meals on those flights, as well as onward services flown by those passengers.
An Emirates spokesperson told Business Traveller Middle East: “The operation of any route requires air traffic rights and government approvals. Once those are in place, Emirates will review market demand and a range of operational factors before making any decision to start flight services. With regards to new destinations, we have nothing further to announce at this time.”
Air time
Etihad Airways started courting the Israeli market last month, selling air tickets in the country for the first time through local General Sales Agent (GSA) TAL Aviation Group.
The partnership comes in response to “an increase in demand for travel between the two countries” following Abu Dhabi’s resumption of services post-lockdown and the announcement of the Abraham Accord.
Shuki Fishler, Sales Manager for TAL Aviation Group in Israel, says customers are keen to enjoy Etihad’s superior flight experience and are currently travelling to Abu Dhabi via Athens with Greek airline Aegean or via Amman with Royal Jordanian to transfer to onward flights operated by the UAE flag carrier.
“We all hope to see Etihad launching a direct flight from Abu Dhabi to Tel Aviv, but this might take more time and is not expected in the near future,” she says.
As part of the UAE’s humanitarian programme to fight COVID-19, Etihad Airways is operating dedicated humanitarian cargo flights from Abu Dhabi to Tel
“The main idea here is peace to prosperity”
Aviv to transport medical supplies bound for the Palestinian Territories.
“Etihad is the first commercial airline from the Gulf to have landed in Israel and welcomes the opportunity to explore operations between the two cities once a bilateral Air Services Agreement (ASA) is established and regulatory approvals have been obtained,” says an Etihad spokesperson.
“The result of a new bilateral ASA will not only lead to cooperation across various industries, but to stronger economic ties.”
Poria believes Israelis will prefer to travel with the likes of Etihad and Emirates because “they have a reputation for great service”.
“If they are cheaper than local airline and the service is better, they will not hesitate to fly with them and will also embrace it as part of the Arabian experience,” he adds.
Meanwhile, Israeli airline Israir has applied for permission to operate commercial passenger flights from Tel Aviv’s Ben
Gurion Airport ( TLV) to Dubai International, according to Reuters. The carrier’s ideal scenario is to operate eight round trips between the two should approvals be granted. When travellers do start flocking to the UAE from Israel, Turkey, a perennial favourite with Israeli vacationers, could lose out as a result, according to Poria.
Turkish company Rixos, known for its all-inclusive all-exclusive resorts, is taking the positives from this scenario by leveraging its brand strength. The group is already wooing Israeli travel agencies with “luxurious packages” at its UAE properties including Rixos Bab Al Bahr in Ras Al Khaimah, Rixos Premium Saadiayt Island in Abu Dhabi, Rixos Premium Dubai in Jumeirah Beach Residences and Rixos the Palm Dubai Hotel & Suites on the iconic Palm Jumeirah.
The normalisation of relations between Israel and the UAE marks a “new chapter for Rixos hotels”, says Ali Ozbay, Vice President of Marketing & Communications for Rixos UAE. “We look forward to welcoming Israeli guests at our four beachfront resorts, having them enjoy the hospitality and all-inclusive concept – the first of its kind in the UAE,” he adds.
While most major hotel groups
are remaining tight-lipped about their plans to cater to Israelis in the UAE and residents of Bahrain and the UAE in Israel, niche accommodation providers are already laying the groundwork. For example, Swiss-based property management company, Smiling House Luxury, part of the IBC Group, is collaborating with UAE-based holiday home rental agency, Gallery Suites, to promote cross-border tourism between the UAE and Israel. Gallery Suites operates more than 5,000 curated luxury holiday homes including suites, apartments, penthouses, villas and hotel apartments in prime locations such as Dubai Marina, Jumeirah Lake Towers, Palm Jumeirah, Downtown and Business Bay and IBC Group chairman Khurram Shroff has told media the company will provide special amenities and services for Orthodox Jews, including kosher food.
“We are especially keen to showcase the UAE’s renowned hospitality by offering holiday homes that are strictly compliant with kosher guidelines for those of our guests that request such facilities,” he says.
“We look forward to welcoming Israeli guests at our four beachfront resorts”
Beyond economic euphoria
One of the prime reasons Israelis will travel to the Gulf and citizens and residents of both the UAE and Bahrain will travel to Israel, is to seek investment, commercial collaboration and knowledge exchange, says Poria.
With “economic euphoria” currently being experienced by all three parties following the signing of the accords, the opportunities for trade and business are already flooding in, he notes.
Israel, known for its “spirit of innovation”, has much to offer the Gulf States he continues, citing “innovation in the desert, from agriculture to energy” and “hightech companies specialising in travel technology and medicine”, as prime examples. “There are many synergies and great potential for cooperation
and I can imagine Israelis travelling to the UAE to present their innovations to seek investment,” he says.
“For innovation, Tel Aviv is the place to be; it’s a great place to do business and a fascinating city.
“I think they (Emiratis and Bahrainis) will enjoy visiting a Jewish secular metropolis.”
Health tourism will also boom, he adds, with Emiratis travelling to Israel for treatment and Israeli doctors being invited to the UAE to work in the country’s “world-class hospitals”.
Poria also suggests students from the UAE and Bahrain will study at Israel’s universities, with an emphasis on “learning how to innovate”.
He hopes this “cross-cultural exchange” between young people will deliver many long-lasting benefits, including “cooperation that will lead to real peace”.
In this respect, Poria echoes the sentiments of the UAE’s Chief Rabbi, Yehuda Sarna, who stresses that while some say the Abraham Accord between Israel and the UAE is for political and financial gain only, “the truth is that this agreement is really about forging a shared future and kickstarting a cultural renaissance”.
He believes normalisation of the relationship “is an opening of the door to the better place”.
“For innovation, Tel Aviv is the place to be”