Tech investments into UAE expected to go up after Abraham Accords
Published 25 March 2021
The normalisation of business ties between UAE and Israel following the Abraham Accords, is starting to see a rush in technology investments.
In October 2020, Israel reached a bilateral agreement with UAE to provide incentives and protection to investors dealing with each country. Called the Abraham Accords Peace Agreement, it has opened up billions of dollars in trade and investment opportunities.
As a part of the deal, investors would be protected from arbitrary changes in regulation and political situations and will be able to transfer funds out of the country, thereby putting investors’ minds at ease.
Following the signing of the Abraham Accords, business has picked up steam. UAE has said that it will launch a $10 billion fund to invest in strategic sectors in Israel. This includes energy, manufacturing, water, space, healthcare and agri-tech, according to reports.
Recently, Waterfall Security Solutions, one of the leaders in OT cybersecurity, have announced their expansion into the UAE.
The Israeli cybersecurity company has opened an office in Abu-Dhabi. The normalisation of ties between Israel and the UAE, as well as several other countries in the Gulf, has generated strong interest in the region for Waterfall’s suite of unidirectional OT security products, as well as for partnerships and joint ventures with Waterfall Security.
Waterfall Security Solutions provides the strongest practical protection for industrial control system and Operational Technology networks and systems, and already protects many critical infrastructure sites in the region and throughout the world.
Waterfall counts customers in national infrastructures, power plants, nuclear plants, off-shore and on-shore oil and gas facilities, manufacturing plants, power, gas and water utilities’ companies as its clients. It has deployments throughout North America, Europe, the Middle East and Asia.
“Waterfall sees the Emirates as both an important market and as a gateway to the region, and we are moving quickly to provide direct support in the UAE,” said Lior Frenkel, CEO and Co-Founder of Waterfall Security. “We also recognise the importance of local support and existing customer, government and other relationships, and we are actively engaging with partners to complement our efforts in the new office.”
Waterfall’s Abu-Dhabi office is part of the company’s continued rapid expansion, despite the global pandemic and economic downturn. With the new office, Waterfall will initiate sales and marketing activities and provide solutions architecture and technical support to partners and end users.
“More investments involving technology will flow between these countries post COVID-19. Countries are interested in cybersecurity, healthcare, agri-tech and other technology from Israel,” said an analyst from a multinational research firm.
Similar to this development, the Abu Dhabi Global Market (ADGM) Registration Authority (RA), and the Registrar of Companies in the Israeli Corporations Authority, have entered into a Statement of Co-operation (SoC) to facilitate more business.
Dhaher bin Dhaher Al Mheiri, CEO of the ADGM Registration Authority, said: “In light of the UAE’s momentous signing of the Abraham Accords, we at ADGM are pleased to partner with the Registrar of Companies in the Israeli Corporations Authority to facilitate and realise the benefits arising from the increase of joint relations these two jurisdictions. We are confident that this agreement will result in fruitful outcomes for entities residing in both the UAE and Israel, serving as a gateway to valuable expansion and investment opportunities across both thriving business hubs and the wider region.
According to Dubai Customs statistics, the emirate’s trade with Israel in the five months (Sep 2020 -Jan 2021) reached a value of Dh1 billion and a volume of 6.217k tonnes. Of this, imports were valued at Dh325 million (718 tonnes), exports at Dh607million (5.4k tonnes), and transit trade at Dh98.7million (52.4 tonnes). The mutual trade expected to grow to Dh15 billion in the next few years.