Strategy

Israel's Accord With The UAE Brims With Private Banking Potential - Citigroup

Tom Burroughes, Group Editor, March 8, 2021

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The UAE is also a net importer of the kind of tech know-how that Israel has, Mills said. “If this [Abraham Accord] was a corporate merger you would see the complementary angles,” he said. 

The agreement happened rather sooner than people had expected, he said. 

“It is an incredibly exciting time. And this is a massive step in normalizing Israel’s relations with the rest of the world,” Corney said. 

A big prize in terms of improved relations would be Saudi Arabia, he said.

Already, investment flows between the UAE and Israel can be counted in the billions. “There’s potential for goods and services trade to be more like $3 billion,” Corney said.

The UAE is interested in what Israel has to offer in areas such as cybersecurity technology, he said. About 8 per cent of the world’s cybertech is Israel-based. There is potentially strong UAE interest in investing in the Israel bond market, as well as in equities and foreign exchange,” he said.

The fast rollout of vaccines by Israel and the UAE also underscores the benefits of co-operation. The speed of the distribution in Israel also attests to how Israel, which has been attacked many times since its founding in the late 40s, has a survival mind-set, Corney added. 

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