Abraham Accords Pave Way For New Business Opportunities

The historic signing of the Abraham Accords, in the grounds of the White House in September 2020, saw the normalisation of relations between Israel and the Arab world, with the Kingdom of Bahrain and the United Arab Emirates the first two countries to sign the Accord. Hailed as one of the most important peace-oriented events for a generation, the event has garnered former President Donald Trump, his son-in-law, Jared Kushner and Avi Berkowitz (the brokers of the deal) a nomination for the Nobel Peace Prize. Beyond the political accolades, the agreement looks set to open up a wealth of international trade and investment opportunities. From real estate, to Fintech, digital banking, tourism, and more - industries across the board are poised to benefit from its signing and the impact could result in broader implications for MENA relations in the future.

Omar Al Busaidy, an Emirati Fulbright Scholar, entrepreneur, author and member of the US-UAE Public Affairs Committee tells us the benefits of the agreement are already taking shape, giving some gravitas to the old adage "there's strength in numbers."

"The Abraham Accords have proven to be the key to unlocking the prospect of peace, prosperity and a shining light for the region," explains Al Busaidy. He adds, "In such a short period of time since the signing of the agreement, trade between the countries as well as the flow of people has surpassed all expectations - especially in the midst of this pandemic. This goes to show that it's better to speak to your neighbours than shutting the doors on them."

Indeed, since the signing of the Abraham Accords, multiple deals and collaborations have already been made between Israel and the UAE, with annual trade expected to reach $4 billion in the next three to five years. Both countries' national carriers have now launched regular commercial flights between the two nations, and in December of last year, Zurich Capital Funds announced it had received $500 million in commitments from Israeli investors.

As both countries articulate a willingness to cultivate this new relationship in the long-term, the opportunities for industries to expand and prosper in both markets look positive.

One such partnership that emerged shortly after the agreement was reached, was between Israel's OurCrowd, a crowd-funding venture capital firm and Phoenix Capital, a Dubai-based business development company. When announced, it was the first major alliance between a top-ranked UAE corporation and a major Israeli venture firm. The partnership promises to identify and support UAE-based startups seeking growth and development in Israel, as well as utilising OurCrowd's diverse portfolio of 220 companies to enhance business development for UAE startups seeking to collaborate on innovative solutions.

Phoenix Capital, helmed by Abdullah S Al Naboodah, will serve as an investment platform for individuals and family offices located in the gulf, looking for opportunities to invest in the Israeli tech ecosystem. The company will act as the link between investors and OurCrowd's diverse range of tech investment opportunities across industry sectors. By leveraging their cross-industry reach, Phoenix will also be able to assist Israeli-based startups with potential partners in the Gulf region.

"Phoenix will be a bridge, a two-way conduit for both Israeli and UAE investors, as well as startups seeking strategic, business and investment partners in these powerhouse tech nations. This first of its kind major alliance will pave the way for the rapid expansion of business between our two countries," said Al Naboodah in a statement.

As more businesses look to capitalise on the agreement, it will be important to recognise synergies wherever possible. The UAE is known for its ability to scale, while Israel holds the title of the "Startup Nation." Israel is a leader in digital technology, and also adept at cybersecurity. The UAE will be keen to enter partnerships that can leverage this technology and protect its digital space in the future. On the other hand, corporate leaders from Israel will be attracted to business perks available in the UAE, such as 5% VAT and no corporate tax. Together, these countries will have the capacity to infiltrate new markets, bringing tech, talent and development to the forefront of every deal.

Niall Carroll, Chairman of CG Tech, an investment holding company with operations throughout the world, including in the UAE, believes the agreement gives businesses the perfect platform to expand, as well as explore the potential for new partnerships.

"Within our own group, we are always looking to develop in terms of new capabilities and geographies, and the ability to scale is something that every business should have its eye on. Recognising an opportunity and aligning strategies to create a mutually beneficial alliance is what CG Tech is all about," explains Carroll.

Al Laith, an engineering, project management and contracting services company within the CG Tech umbrella, headquartered in the UAE, is eyeing geographic expansion within the region. Like many entrepreneurs, Niall Carroll is excited by the opportunities an agreement like the Abraham Accords can provide.

"Today's market is rapidly changing, thanks in part to the events of the past 12 months. New partnerships allow for the introduction of new technologies to get in and disrupt established industries. Traditional growth is a thing of the past and businesses are redefining what it means to scale in the digital age. Identifying synergies and switching gears to get the most out of your talent pool and ensure productivity is at its peak, is the new mission," says Carroll.

For CG Tech this has meant utilising their unique ecosystem approach, where the group's Board of Directors is made up of owner-operators of the companies under the CG Tech umbrella. Alongside Carroll, CG Tech's Chief Ecosystem Officer Jason English believes that by creating an environment of openness and transparency, productivity, communication and company culture will automatically thrive. A distinct brand of leadership the team is hoping will drive CG Tech towards a billion-dollar business by 2030.

"One of the biggest questions we've had to look at is how can we continue to be a relevant market player, especially during times of disruption. For us, the answer is to constantly evolve, embracing new opportunities and technologies, while still maintaining a strong vision for the group," explains English.

Last year, one of the CG Tech subsidiaries, The Virtulab, honed in on a need in the market as the rise of "work from home" orders exploded across the globe. With the Virtuworx platform, the team was able to create a suite of digital solutions that transform traditional project management processes. Fully customisable, it can be used for virtual training, learning, offices, events, conferences and even trade shows. In November last year, the platform hosted the first virtual avatar-based TEDx event, TEDxLytteltonWomen.

Teaming up with Serious Stages, the group behind the iconic Pyramid Stage at the Glastonbury Festival, the group's latest partnership, Serious International, looks set to infiltrate the film world with their novel methods of soundstage design and construction. The company is currently involved in its first project, the latest instalment of a blockbuster Hollywood action movie franchise.

"To have a film this big as our first project is really incredible and proves how well our teams are working together to make things happen. In addition, many of today's biggest productions rely on digitalisation and key technologies. We believe other companies within our group, like The Virtulab, will be very useful in giving Serious International an edge moving forward" notes English.

Like many companies with interests in the UAE, CG Tech is excited by future prospects made possible by the signing of the Abraham Accords. As businesses and industries look to re-energise after a difficult 2020, the potential to collaborate and disrupt has never been greater. With investment opportunities in both countries experiencing step-change growth, opportunities remain high for those willing to open doors to their neighbours.