UAE and Israel ready to talk business and how
Industry leaders excited about new opportunities created by accord
Launch of direct commercial flights between UAE and Israel is just a matter of weeks away, now that the historic accord between the countries is a reality. And those flights will be the springboard for UAE businesses to tap opportunities in Israel and vice versa.
But the timing on the direct flights will, of course, depend on technicalities around Covid-19. “Theoretically, the [air travel] pact could be ready for direct flights from mid-October/early November onwards,” said Linus Benjamin Bauer, Managing Director of Bauer Aviation.
“Two weeks ago, Saudi Arabia announced that it would allow any flights going to and from the UAE to fly over its territory. Such historic developments would speed up the entire process to launch direct flights between the UAE and Israel.”
Already there
But some UAE companies are not waiting for the flights to commence. Abu Dhabi based Group42, which is into cloud computing services, last week became the first to announce that it has set up an office in Israel. It also didn’t waste time tying up alliances with Israeli partners.
“Israel is today home to more than 6,000 high-tech companies and start-ups, has the highest concentration of hitech companies in the world [apart from Silicon Valley], and leads the world in the number of scientists and technicians in the workforce,” Group42 said in the statement announcing the office set up.
Traditional strengths
While alliances in financial technology or agri-tech could be seen as natural fits, heads of UAE businesses representing the ‘Old Economy’ are not losing sight of what it could mean once this trade “route” opens up.
“In the construction and building materials supply sectors, the UAE businesses are more than ready for a new market such as Israel,” said Rizwan Sajan, Chairman of Danube Group. “This peace deal will help us build homes in West Bank and Gaza.
Handpicking sectors
Ofir Bar-Noy is part of the newly created Emirates Israel Investment Group. According to him, there are three key sectors where the new partners could generate maximum opportunities:
Cyber security: Israel is home to leading surveillance companies and UAE is a strong base for cyber security, technology and surveillance;
Energy: Israel has become a regional renewable energy leader and has started to develop natural gas. The country has also heavily invested in green energy solutions.
Agriculture: Israel is a world leader in agriculture featuring less use of water and despite high heat. Israel has strong research that has been studied and developed over the past 50 years and will help in promoting desert agricultural projects in the UAE.
Hospitality gains
The hospitality sector would gain from the launch of direct flights as well as the transit points the Dubai and Abu Dhabi airports serve as.
Hotel industry sources say it’s only a question of when such a boost will be felt — a destination like Dubai would score given its short-haul status.
Health care benefits
“Being two major economic powerhouses in Middle East, there can be a boost in infrastructure, technology, environmental sustainability, etc,” said Dr Azad Moopen, Chairman and Managing Director, Aster DM Healthcare. “As an health care organisation born and brought up in UAE, we are looking for exciting partnerships with counterparts in Israel in various areas.”
New opportunities
Bharat Bhatia, CEO of Conares, the steel mills operator, says it is about realising opportunities that will be created from access to a brand new market. “The UAE business sector needs more innovative ideas to enhance manufacturing and FMGC sectors,” he said.
“Specifically, on the building materials and infrastructure development sector, there are possibilities for UAE suppliers to reach out to Israeli market.”
In the construction and building materials supply sectors, the UAE businesses are more than ready for a new market such as Israel.”
Rizwan Sajan | Chairman, Danube Group
As an health care organisation born and brought up in UAE, we are looking for exciting partnerships with counterparts in Israel in various areas.”
Dr Azad Moopen | Chairman, MD, Aster DM Healthcare The [air travel] pact could be ready for direct flights from mid-October/ early November onwards.”
Linus Benjamin Bauer | Managing Director, Bauer Aviation
On the building materials and infrastructure development sector, there are possibilities for UAE suppliers to reach out to Israeli market.”
Bharat Bhatia | CEO, Conares