United Arab Emirates Investing in Israeli Hi-Tech

“Israel and the UAE share a passion for developing advanced technologies that will improve the quality of life of man.”

By Yossi Aloni | | Topics: UAE, Abraham Accords
Minister of Innovation, Science and Technology Orit Farkash Hacohen. Photo: Miriam Alster/Flash90

The Israeli government has approved a proposal by Foreign Minister Yair Lapid and Minister of Innovation Science and Technology Orit Farkash HaCohen to approve the establishment of a joint research and development fund for Israel and the United Arab Emirates (UAE) for hi-tech investments totaling NIS 300 million.

This is a bi-national industrial R&D fund with the UAE that will support requests for joint activity between Israeli and American companies. Like other international funds that exist today, it will provide financial incentives to Israeli companies to develop new technological products or substantial upgrades to existing technologies, as well as assist in locating foreign technology partners. The foundation’s support will enable access to international resources, knowledge, technology and infrastructure that do not exist in Israel. The support will also enable assistance to Israeli companies through the recruitment of local partners, adaptation to foreign regulations, and the creation of a marketing, economic and business advantage.

Israel will allocate a budget of NIS 15 million annually for 10 years, and the UAE will match the amount. As a result, the amount is expected to reach a total investment of 300 million ($94 mil.) in 10 years.

The initiative to establish the foundation, which will be led by Israel’s Ministry of Foreign Affairs, the Ministry of Science, the Innovation Authority, the Ministry of Finance and the Ministry of Economy, arose during Prime Minister Naftali Bennett’s visit last December to Abu Dhabi, and in his joint statement with the Crown Prince.

Foreign Minister Yair Lapid said: “Israel and the UAE share a passion for developing advanced technologies that will improve the quality of life of man, the environment and the economy. The bilateral R&D fund is the engine for starting the process in the private sector, by encouraging companies with an emphasis on small and medium-sized businesses to partner together, develop, manufacture and market innovative technological products at a regional and global level. I congratulate and thank my colleague the Emirati Foreign Minister for his support during its start. Hi-tech is a strategic asset to the country and it is important to maintain and develop it.”

Minister of Innovation, Science and Technology Orit Farkash Hacohen: “I see great importance in establishing a mutual investment fund in the hi-tech fields between the Israeli government and the Emirates. The UAE has historically invested in energy, infrastructure and more, as a result of which the new fund will create a bridge that will facilitate Emirati investments in Israeli technology in these and other areas.”

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