top of page
  • Writer's pictureAkram Cheik - Lawyer

The protection of Israeli investments in Dubai

Updated: Jan 8, 2023

All Israeli investments are protected in the United Arab Emirates

Following the peace agreements signed on September 15, 2020, the United Arab Emirates and Israel formalized the normalization of relations, which reinforces an already existing economic cooperation. Indeed, despite the absence of diplomatic ties between the two countries, the latter maintained important commercial ties, estimated at several billion dollars. Thus according to the agreement, Israel and the United Arab Emirates agreed to normalize their diplomatic relations and end all public hostility. Therefore, the Emirates therefore become the 3rd Arab country after Egypt and Jordan to normalize its relations with the Jewish state and at the same time repeals its 1972 federal law in favor of the boycott of Israel. Thus, the United Arab Emirates allow a commercial rapprochement which opens the way to several areas of cooperation between the two States, and remains in the continuity of its policy of protection of foreign investments, by encouraging Israeli investors to come and settle in Dubai. .

I - Diplomatic agreements for commercial purposes

A - Bilateral agreements between the United Arab Emirates and Israel

Israel and the United Arab Emirates have a bilateral agreement in place that provides incentives and protection for investors investing in each other's countries. Additionally, the UAE has signed an investment protection treaty with Israel which strengthens economic ties, encourages competition and increases the attractiveness of investment between the two countries. The said treaty protects investments from non-commercial risks such as nationalization, confiscation, judicial seizures, freezing of assets, establishment of licensed investments and transfer of profits and income in convertible currencies.

B – The consequences of the normalization of relations between Abu Dhabi and Tel Aviv

In order to facilitate trade, the standardization agreement allows nationals of the two countries not to have an entry visa to access the territories of one and the other, an agreement in force since October 2021. Thus , this agreement allowed the launch of airlines between the Emirates and Israel, in particular through the Abu Dhabi company Etihad Airlines, for its part on September 1, 2020, the Israeli airline El Al inaugurates the first direct commercial flight between Israel and the United Arab Emirates. Moreover, to facilitate relations and promote bilateral relations in various fields such as culture to science and technology. The Israeli Embassy in the United Arab Emirates has opened its doors in Abu Dhabi, the capital of the Emirates. Hence, the UAE Embassy in Israel was opened after the signing of the Abraham Peace Accord in 2020. The UAE Embassy in Israel is located in Tel Aviv, the main city of Israel .

II – Exchanges of an essentially commercial nature

A - The principle of investment protection in Dubai

All investments made by Israeli investors and investors from any other country in their activities in Dubai and the United Arab Emirates are fully protected, as the rulers of the United Arab Emirates continue to provide the utmost support to foreign investors doing business in the United Arab Emirates.

The Emirate of Dubai has a well-established, proven and solid regulatory and legal framework to protect all investors. The laws of Dubai and the United Arab Emirates protect the investments of all foreign investors, without any discrimination. Dubai and the United Arab Emirates are ranked among the top in the Middle East for the ease of doing business. The UAE is also among the top-ranked countries in the world for making it easier to do business. Government of the United Arab Emirates, chaired by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, initiates resolution regarding Abraham Accord and diplomatic relations between the United Arab Emirates and Israel.

B – Areas of cooperation between the Emirates and Israel

If it appears that these agreements aim to promote trade and investment between the two countries and to strengthen economic ties. They include provisions on trade facilitation, several areas of cooperation have been put forward. Especially :

Technology and innovation: The United Arab Emirates and Israel both have technologically advanced economies and could collaborate on research and development projects, particularly in information technology, renewable energy and health . Agriculture and agri-food: Israel has a highly developed agriculture and could share its know-how with the United Arab Emirates in this area. The two countries could also exchange agricultural and agri-food products. Energy and natural resources: The United Arab Emirates and Israel could cooperate in the field of energy, particularly in the production and distribution of electricity, as well as in the research and development of clean technologies. Tourism and Leisure: The UAE and Israel both have popular tourist destinations and could work together to promote mutual tourism and attract visitors from both sides. Defense and security: The United Arab Emirates and Israel could cooperate in the field of defense and security, particularly in the fight against terrorism and the proliferation of weapons of mass destruction.

By Akram Cheik, Lawyer in UAE for Nextcap

4 views0 comments


bottom of page