UAE-Israel Business Opportunities

Lavin Nalinababu, Business Consultancy


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    UAE and Israel have recently joined hands to establish a friendly-business relationship offering more opportunities for both countries. Being in the top positions in terms of technology, education, infrastructure and being socially and economically advanced, they have proven their growth within a very short time after their independence. Both countries have numerous expatriates seeking shelter; they aim to provide a better life for their people.

    UAE is one of the most advanced regions in the Middle East, promoting trade within and outside the country, also holding a leading position as a business and financial hub. Israel on the other hand is called the “Start-Up Nation”, which is known for its advancements in the field of technology and innovation with the highest per capita start-ups, R&D spending, tech unicorns and Nobel prizes and many more innovations that grabbed global attention.

    On September 15, 2020, the leaders of both the countries signed the historic Abraham Accord at the White House, Washington, announcing their union to the world. The normalization of their relations has paved way for greater business opportunities for both the countries in many sectors.

    The new relationship between the countries is believed to hit $4 billion in three years with the support of UAE-Israel Business Council. With the trade restrictions being lifted, as per the Abraham Accord, business connections will flourish, joint ventures will be made and economic cooperation will be nurtured. According to the council, the demand from Israel to trade with UAE is already on the rise.

    A joint fund established by UAE, US and Israel(Abraham fund) to stimulate the private sector led investments across the two nations for better infrastructure, projects, for regional trade and to increase the energy security of $3 billion has been set. The peace treaty was confirmed by the UAE on 19th October, 2020 which normalises the border relations and the establishment of a full diplomatic relationship.

    Areas for cooperation

    The new arrangements between the two most dynamic economies are believed to bring in prosperity for both parties, as both of them have ‘highly complementary’ strengths which will benefit both the countries alike and will offer wide opportunities for business communities equally.


    Israel has excelled in their technological aspects. By joining hands with the world class technology leader, it is for sure said to benefit UAE in all possible ways and this alliance will soon help to overpower the rest of the world with their technological advancements. Both countries will benefit from commercialization, finance and expanded trade opportunities.

    Agriculture, Energy & Water

    Both UAE and Israel stand among the strongest ecosystems for the development and deployment of innovative technologies in the fields of agriculture, desalination, water conservation, energy production, and renewables.

    Finance, Logistics & Transportation

    UAE being one of the leading commercial and transport hubs offers the unique opportunity for commercialization, development and financing of joint initiatives in which Israel is active.

    Professional services

    Israel and UAE have members in the fields of law, accounting, corporate services, finance, venture capital and business development who has extreme interest to expand into both the countries markets.

    Medical & Biotech

    Israel is a world leader in the life sciences, and home to 2,000 medical device, biotechnology, and health care technology providers, in addition to world class medical and research facilities. UAE on the other hand is said to have the most respected and advanced health care systems in the world.

    Tourism & Hospitality

    Israel and the UAE have breath taking attractions and are both thriving to excel in the tourism industries. The members are looking forward to benefit both sides with their expansion plans in the tourism and hospitality fields.

    Collaborations between UAE & Israel

    The union of the two countries will reflect in many changes that are yet to be witnessed, as both UAE and Israel have immigrants residing in the countries; the cultural integration is something they have in common. It will benefit them to understand the cultures more deeply and will help them come up with innovative ideas. Israeli’s are warm and friendly in nature. In addition to it, they have both men and women enjoying equal participation and have equal opportunities. Women are often seen at the executive positions as well. UAE is no different.

    Trust is the base for any business for the Israelis. Both the countries will gain from the union. They have many more opportunities and investment options that can be opted for both their benefits. This collaboration will indeed be a road to success, opening up new and innovative doors of opportunities all through the way.

    Some pointers to learn more about Israel and its Economy

    Finance Aspects in Israel

    The Ministry of Economy and Industry that deals with the promotion of foreign businesses have come up with a clear and stable long-term regulatory policy. The government and the Ministry of Economy and Industry have worked hand in hand to avoid any unnecessary barriers to facilitate the investment processes in Israel. This decision will have a positive impact on the promotion and success of foreign companies in Israel.


    The banking procedures are different for each business. They offer services and have varying costs according to the type of business. For a foreign national to open a bank account, they must sign a confidentiality document that allows the bank to transfer the financial information to their home land and the account will be under the category of “foreign resident” to avoid any sort of money laundering.

    Company types

    There are three main types of business incorporation in respect to law and tax authorities, they are:

    • Exempt dealer
    • Licensed dealer/ Authorized dealer
    • Limited Liability Company

    The minimum wage in Israel is AED 32 per hour and the monthly working hours are 182 hours. According to the Jewish religion, the rest days allotted in the country are on Fridays and Saturdays, the same as UAE. Additional laws to preserve the personal life of the individuals are laid by each sector.

    Exempt dealer

    The exempt dealers are provided with an exemption from the VAT but all other taxes are applicable for them. These dealers need not collect VAT from their customers and are not allowed to issue tax invoices as well. The tax exemption ceiling as of 2017 is AED 104,312 per year which is AED 8700 per month. If the transaction limit exceeds the exemption ceiling then the dealer should pay the VAT only on the amount that has exceeded the limit. They should follow the obligations that are related to the small businesses. The exempt dealer should report VAT once a year, regarding the past years transaction. This is the cheapest form of incorporation.

    Authorized dealer

    An authorized dealer is registered to the tax authorities and is entitled to collect VAT from their customers. They file VAT reports and file VAT returns regularly. An authorized dealer’s transactions exceed the tax ceiling of AED 104,312 a year. They receive their file number at the time of incorporating their business from the VAT office. They are entitled to pay personal income taxes as well. It is similar to the form of calculation of employees’ income as specified by the Income Tax Ordinance.

    Limited Liability Company

    A limited liability company is an independent legal entity whose liabilities are limited to that of the company’s capital. The owners are considered as shareholders and they can withdraw a salary from the company like the rest of the employees. In order to establish an LLC a few one-time or fixed payments are required such as the company establishment fee, annual fee, attorney’s fee, and the payment of the accountant. Operating costs for an LLC are much more than that of an authorized dealer but will benefit the company in carrying out tax planning. The taxation if any will be done in the form of corporation tax after paying the owner’s salary. The corporation tax is 25% at present.

    The collaboration of the two leading countries in the world is bound to create history. UAE and Israel have their own strengths which will become a joint force from now on. This will bring in more foreign investments to both the countries as people believe this union opens up doors for unending opportunities. The location, infrastructure and technological advancements of Israel will bring in prosperity to UAE. This joint venture has sought global attention and the investors are rushing in to the countries at a high pace. The future is bright and full of fortuity for Israel and UAE.


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