Abraham Peace Accords Agreement is, without any doubt, the most life-changing Treaty of Peace that has taken place this year between the United Arab Emirates and Israel. It is a harbinger of peace between both countries, assures of peaceful coexistence for years to come, and comes with a promise of bringing a positive change in the upcoming decades in the geopolitical and economic landscape. The signing of this Agreement not only ensures that the countries will respect the freedom and dignity of each other but also reveals numerous economically beneficial opportunities for Israel and the UAE. It permits the building up of joint business projects among the two countries, which will ultimately strengthen their positions in a global arena.
After the signing of this Agreement, many Israeli businesses have taken interest in business setup opportunities provided by the UAE. And no wonder — the UAE’s highly developed commercial infrastructure and ease of business setup processes has led it to top positions in the Ease of Doing Business Ranking.
How Israeli Entrepreneurs Will Benefit From Setting Up a Business in the UAE
The UAE is often termed as business heaven by many businessmen who have established businesses in this country. Here are some of the best business benefits the UAE has to offer to the entrepreneurs:
Foreign investors get an exemplary investor-friendly atmosphere that permits a quick business setup at reasonable investments in approximately fifty Free Zones with excellent infrastructure and a wide range of facilities.
0% taxation. No corruption, personal or corporate income tax, bureaucracy, etc. It is probably this reason behind the UAE garnering approximately 20,000 launches of new businesses each year. The only applicable tax is the VAT, which is a mere 5%.
Access to diverse markets. An excellent strategic location of the UAE in the Middle East makes it an essential hub for expanding one's business globally. It gives businesses access to approximately 3 billion potential customers since the best global markets are close to it and require less than four-hour flights to reach.
World-class infrastructure for import & export. Seven international airports of the UAE, along with 12 commercial trading ports, accommodate excellent cargo services. It permits the transportation of goods to various markets of Asia, Europe, the Middle East, and Africa.
Business owners as well as employees get the Residence Visa of the UAE. The United Arab Emirates has taken significant steps, such as improving the visa system for businesses. It permits a 10-year visa of residency to the specialists and investors and a 5-year visa to entrepreneurs and students.
Where Israeli Entrepreneurs Can Invest in the UAE
Here is a carefully collected list of the most promising possessing areas of business any Israeli entrepreneur can consider making a base of their business in the UAE.
Artificial Intelligence (AI)
The UAE is the second highest regional investor in Artificial Intelligence over the past 10 years, investing USD 2.15 billion in total, according to the AI Maturity Report in the Middle East and Africa. The National AI Strategy aims to make the United Arab Emirates the global Artificial Intelligence leader before 2031. It includes attracting talented researchers and specialists, providing an upscale to the data-driven AI start-ups, and boosting AI innovations. To achieve this, a global high-tech ecosystem, Hub-71, worth one billion dirhams, has been set up in a prime area of Abu Dhabi to host, develop and support AI projects from all over the world. It is an attractive invitation for AI start-ups from Israel willing to get themselves, strategic partners.
The UAE is continuing to enhance itself in the world of technology, which poses to be a great opportunity for Israeli businessmen. Followed by the signing of the Abraham Accords Peace Agreement, one of the largest financial technological hubs in the UAE, DIFC FinTech Hive, and FinTech-Aviv of Israel, which serves the needs of the Israeli FinTech ecosystem and counts over 6,000 start-ups, have signed up an Agreement of Collaboration. This Agreement is the first of its kind for the UAE and Israel and ensures a lot of support to be given in the export of technology from Israel to the other newer markets..
The Dubai Industrial Strategy 2030 has identified six crucial sectors that will aid the development of the nation. These are maritime, aerospace, aluminum, and other fabricated metals, medical equipment and pharmaceuticals, machinery and other equipment, beverages, and food. As per the recent governmental acts, UAE will promote and foster advanced technology and science along with setting up business cooperation and joint businesses with Israel. World's no.1 Free Zone, DMCC, i.e., Dubai Multi-Commodities Center, has opened its office for representation in Tel Aviv. It will support all the Israeli businesses, industries, and other sectors that are keen to set up and make their presence in DMCC and Dubai.
Real Estate and Construction
The UAE comes in the world's most urbanized region and is still developing further with newer constructions. The recovery of real estate is estimated to be quick after the pandemic. In October 2020, Dubai's Land Department had recorded approximately 3,400 transactions of sales worth over AED 6.9 billion. It makes the yearly total to be more than 27,800 sales transactions that are worth AED 57.4 billion. A real estate company formation in the UAE can be profitable, especially because the upcoming Dubai Expo shall attract millions of visitors from across 190 countries. The Israeli architects, brokers, construction companies can expect enormous profits from the UAE market.
The exceptionally well-planned and established infrastructure of the UAE will make it easier for Israeli businesses to reach out to the entire MEASA region and make it a truly global affair. Jebel Ali Port has 170 routes for shipping and has the strength to accommodate approximately at least 15 million containers annually. Being one of the world's largest cargo airports, Dubai Airport has the capacity to load-unload freight of more than 2.5 million metric tons, as it did in 2019.
Ever since the agreement was made, the UAE has permitted Israeli citizens to issue a 90-day visa for tourism. Accompanied by the signing up of the aviation agreement, this moves promises to open up lots of business opportunities for tourism and will benefit both countries. If you plan to open a business in the UAE, you can consider opening up a kosher restaurant, tour agency, hotel, motel, or any tourism-related business.
How My Business Consulting DMCC Can Assist Israeli Businesses Enter the UAE Market
Even though the UAE offers an attractive environment for business, partial knowledge of the UAE's rules, regulations, and legislation or improper information of the local market can lead to enormous losses and can even cause a collapse of the business. To get easy access to all of the advantages the UAE has to offer, an Israeli business must get itself a responsible local partner who can help entrepreneurs easily build their roots in the UAE.
Our excellent team of Business Setup Experts at My Business Consulting DMCC have immense knowledge about the UAE business trends, business culture, business setup procedures as well as governmental policies and programs. We have significant experience in guiding new businesses in the Emirates from company formation, bank account opening, assistance in obtaining UAE Residence Visa to full further support by our professional Accounting and Tax Compliance Experts, we’ve covered it all.
If you too wish to experience and avail this excellent opportunity kindly email us at [email protected] or drop a message at WhatsApp Business +971 55 147 9576 right away so as to avail the best advice for free from our Business Setup Experts.