The UAE has formalized the historic normalization deal with Israel by signing the Abraham Accord in the US. The signing of the deal is bound to change the face of Middle East politics as Bahrain also joined the UAE in normalizing the ties with Israel. However, more than just politics the deal is a milestone in transforming the environment of business setup in the UAE, as well as Israel and the startup sector, is predicted to receive the windfall.
Also read: Five Reasons Why the Historical Deal With Israel is a Big Business Move for the UAE?
Israel is one of the world’s top startup innovation hubs and is nicknamed the startup nation. The UAE, especially Dubai, has also made big strides in encouraging the startups through its tech-free zones such as Dtec, Dubai Silicon Oasis (DSO), Dubai International Financial Centre (DIFC), and Dubai Internet City (DIC). As both countries strongly support and encourage innovation, the new deal is a watershed moment for the startups in the UAE & Israel. Israeli investors who wish to set up innovative startups can seek the advice of business setup consultants in Dubai for legal know-how.
Israel: A Powerhouse of Innovation
Israel earned the tag of startup nation for good reason as the country has more than 6,000 active startups. The UAE startup talents can explore profitable business opportunities in Israel and utilize the latter’s pioneering technologies. The following are some of the features that boosted the startup ecosystem in Israel
- Focus on high-tech innovation
- Strong R&D capability
- Educated & Skilled Workers
- Supportive system for Investment
- Flourishing Venture Capital Market
- A flexible economy
Top Startup Sectors of Mutual Interest for UAE & Israel
1. InsurTech
Israel has become a super powerhouse of InsurTech in recent years and is poised to become the global centre of the sector. Israeli Insurtech companies have been on cloud nine since the news of the Israel-UAE deal broke out first in August. Israel Insurtech startups may view the deal not only as an opportunity to sell the products to the UAE but as a golden chance to lay infrastructure to enter the Arab world as a whole. The UAE has been supporting the Insurtech sector through free zones such as DIFC that offers the Israeli startups an efficient opportunity of startup business setup in Dubai.
2. FinTech
The Israeli Fintech sector has generated immense buzz among the UAE investors right after the normalization deal. The Israeli Fintech sector is composed of around 530 startups and attracted funding of USD2 billion in 2019. Israel is regarded as a tech powerhouse but lacks an efficient financial centre. The process of business setup in Dubai’s DIFC becomes an attractive prospect for Israeli tech startups due to this reason.
Also read: DIFC Innovation License: A Big Boost for Startups in Dubai
3. AgriTech
The dry climate in both Israel and the UAE has opened the doors for business setup opportunities in the AgriTech sector. Israel is ready to share its expertise in how to do agriculture in the desert and to cultivate produce with the same quality grown in Israel. Israeli VC firm Arieli Capital and the Ramat Hanegev Regional Council have already begun discussions with the UAE officials about enhancing cooperation in AgriTech projects. This signals the chances of more AgriTech firms setting up businesses in the UAE.
4. Health Tech
Israel has achieved immense progress in healthcare and the country is already known in the Middle East for its aesthetics medical innovation. Two UAE firms have already signed MoU with the Israeli companies to enhance COVID-19 research. CardiacSense, an innovative health-tech startup has also made an agreement for selling its vital signs monitoring watch in the UAE. Since the UAE has prioritized healthcare as part of the normalization deal, more Israeli firms are likely to commence business setup in Dubai in the coming days. Opening a healthcare or health-tech business becomes easier with the guidance of the best business setup consultants in Dubai.
Best Business Setup Consultants in Dubai
The UAE-Israel normalization deal has opened the door for more investments and mutual cooperation that is poised to have a significant impact on almost every major sector, especially for the startup business setup in Dubai. Jitendra Business Consultants (JBC) regard the Abraham Accord as a landmark deal that would bring dramatic transformations in the environment of business setup in Dubai. Israeli investors seeking to initiate the process of company formation in Dubai, however, need expert assistance as they are new to the land and naïve about the UAE laws and regulations. This is where JBC’s highly qualified business setup consultants in Dubai come in handy for new investors.
Related: Why Do You Need to Hire Business Setup Consultants in Dubai, UAE?
JBC guides the investors in the right direction for obtaining the trade license and registering the company with the mainland, free zone, or offshore authorities. JBC’s business setup consultants in Dubai helps foreign investors more than just setting up the business. The investors can talk to the consultants even after incorporating the company for a wide range of requirements including the processing of visas, trademark registration, accounting, audit, and VAT registration.