UAE and Israel have recently joined hands to establish a friendly-business relationship offering more opportunities for both countries.

1. UAE-Israel Business Opportunities
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

2. 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.
Technology
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

3. 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

4. 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.
Banking
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

5. 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

6. 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.
Get Free Consultation
UAE-Israel Business Opportunities
Level 18, City Tower-2,
Sheikh Zayed Road
PO Box 32665
Dubai – United Arab Emirates. Tel: +971 4 327 7775
E-mail: dubai@hlbhamt.com
www.hlbhamt.com