• Ar
  • Es
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Feature
  • Videos
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Feature
Videos
Infographs
In Pictures
  1. Home
  2. News
  3. Politics
  4. UAE inches closer to "Israel" with $100 million tech sector investment
Politics

UAE inches closer to "Israel" with $100 million tech sector investment

  • By Al Mayadeen net
  • Source: Agencies
  • 15 Jan 2022 15:12
  • 4 Shares

Abu Dhabi's Mubadala Investment Co., which controls $250 billion in assets, has invested up to $20 million in six Israeli-based or focused venture capital companies.

  • UAE inches closer to
    Israeli Prime Minister Naftali Bennett and UAE Minister of Industry and Advanced Technology Sultan Ahmed Al Jaber (AP)

A United Arab Emirates sovereign wealth fund has invested nearly $100 million in "Israel's" technology sector, signaling a new sign of deepening ties between the two countries.

A year and a half after the normalization of ties with the Israeli occupation, trade is expected to reach $2 billion this year, up from $250 million annually before the agreement.

Israeli firms are establishing new offices in Dubai and Abu Dhabi, as well as relocating employees from "Tel Aviv". Emirati sovereign-wealth funds are investing directly in Israeli technological businesses, while UAE corporations are positioning themselves as partners for Israeli development throughout the rest of the Middle East.

According to a spokesperson, Abu Dhabi's Mubadala Investment Co., which controls $250 billion in assets, has invested up to $20 million in six Israeli-based or focused venture capital companies, including Mangrove Capital Partners, Entrée Capital, Aleph Capital, Viola Ventures, Pitango, and MizMaa.

According to a person familiar with the fund, Mubadala's investments, which have not been previously publicized, were based on each venture firm's financial success and the personal relationships created between the two teams after the Abu Dhabi fund met with about 100 investors.

While the Israeli investments are minor in comparison to Mubadala's size, they are crucial for Abu Dhabi that is desperate to encourage entrepreneurs to diversify its oil-heavy economy.

“It’s all grown from relationships, getting to know people, and not chasing a buck,” said AviEyal, whose fund has also now invested roughly $15 million in UAE-based startups.

"Israel" in the summer of 2020 agreed to re-establish relations with the United Arab Emirates, Bahrain, and, subsequently, Morocco and Sudan. Israelis flocked to the UAE in droves, and Israeli and Emirati corporations inked agreements to collaborate on developing technological and defense connections.

Emirati government entities set their sights on "Israel's" technological sector, however, there were few substantial tangible transactions at first. The epidemic has restricted travel, and businesses from both sides have taken longer than usual to comprehend each other, according to business executives.

“Sometimes Israelis think they can just go to the U.A.E. and do business,” he said. “You need to find ways to bridge gaps.”

Some Israeli companies have struggled to negotiate the UAE business climate, according to Samuel Shay, a member of the UAE-"Israel" Council and a consultant who attempts to connect Israeli IT firms with Persian Gulf development projects. While hundreds of international corporations have regional headquarters in the UAE, the country is also dominated by Emirati family or government-owned firms that have typically taken a share in foreign companies' local operations.

According to Mr. Shay, the message from such companies is, "Give us your best services and technologies, we will pay for it."

However, he says they are not looking to be partners with the "Israeli individual".

"Israel" has previously signed a non-double taxation treaty with the UAE, joining 58 treaties that "Israel" signed with several countries. 

According to the Ministry of Finance, the tax treaty is mainly based on the OECD Model Treaty. The treaty aims to "encourage economic cooperation between countries, along with provisions relating to non-discrimination, exchange of information, prevention of exploitation, and the provision of reduced tax rates."

  • UAE and Israel
  • UAE
  • Israel
  • UAE normalizing ties with Israel

Trending Now

All
Netanyahu

In a first since normalization, Netanyahu expected to visit UAE: Media

Most Read

Buzzfeed CEO Jonah Peretti (Getty Images)

Buzzfeed to use AI to write its articles after firing 180 employees

  • US & Canada
  • 27 Jan
Twitter headquarters is shown in San Francisco on Nov. 4, 2022 (AP Photo/Jeff Chiu, File)

FBI created dashboard to mislabel Twitter users as Russian bots

  • US & Canada
  • 27 Jan
The Russian-manufactured Marker 2 tank-striker (Military Review)

Russia reveals Marker 2 combat robots

  • Europe
  • 26 Jan
Russian troops entering Donetsk in March 2022 (Anadolu Agency)

Russian troops enter Vuhledar, block Ukrainian arms supply path

  • Europe
  • 26 Jan

Read this

All
demonstrators march in Place de la Republique during a rally in Paris, as workers go on strike over the French President's plan to raise the legal retirement age from 62 to 64. (AFP)
Europe

France braces for new strikes against Macron's pension 'reform'

  • Today
US Secretary of State Antony Blinken at a White House briefing (Bloomberg)
MENA

Iran calls out provocation by Blinken, will respond to 'aggressors'

  • Today
The funeral of Jana Zakarneh, a 16-year-old Palestinian girl who was shot by IOF in her family’s house. (Reuters)
Palestine

Report unmasks surge in Israeli barbarism against Palestinians

  • Today
Persons conscripted to the Ukrainian army seen here at one of the recruiting points in Kiev. (Sputnik)
Europe

Ukraine begins jailing draft dodgers: MP

  • Today
Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • About Us
  • Contact Us
  • Authors
Android
iOS