On September 15, 2020, the foreign ministers of the UAE and Bahrain joined Israel's prime minister on the lawn of the White House. The trio had shocked the world by signing the Abraham Accords, one of the most significant diplomatic achievements in the history of the modern Middle East.
For its more than 70 years of existence, Israel had known mostly enmity with its Arab neighbours. Only Egypt and Jordan recognised Israel’s existence, and that came as the result of bloody wars.
The Abraham Accords promised something far better: peace built on “mutual understanding and coexistence” – Israel finally had its first Arab friends.
The fifth paragraph of the accords detailed how the signatories planned to build this relationship: “We support science, art, medicine and commerce to inspire humankind, maximise human potential and bring nations closer together.”
Three years on, venture capitalist Sabah Al Binali of OurCrowd – the first Emirati partner at an Israeli firm – sat down with The National to give his assessment of the current state of UAE-Israel commerce.
“I believe the potential of the accords is much bigger than many think,” he says from his office in Abu Dhabi.
But Mr Al Binali is not starry-eyed – it has been a rocky start. Business is still business, and three years on, he thinks there is lots of work and introspection to be done.
“There’s a phrase in venture capital to describe a problem many tech companies face: the valley of death. It’s when a firm sees an opportunity and has developed something, but hasn’t yet got market validation,” he explained.
“They get overexcited, and then things drop suddenly. I believe we find ourselves in such a place.
“There was a big flurry of meetings at the beginning. But meetings aren’t activity. Activity is learning what each side wants and finding commonalities.”
It is not an admission of defeat. Bilateral trade between the UAE and Israel still reached more $2.5 billion in 2022.
But Mr Al Binali says it is crucial to learn from early growing pains if the commercial side of the accords is to grow in the years ahead.
“Many people thought it would take a shorter time to fulfil commercial potential than I ever did,” he said.
It is important to remember that the UAE and Israel were markets that had never met. They needed time to get to know each other and figure out how to work together
Sabah Al Binali,
partner at Israeli firm OurCrowd
“It is important to remember that the UAE and Israel were markets that had never met. They needed time to get to know each other and figure out how to work together.”
Early optimism caused a rush, and in that rush, not enough commercial players have “rolled up their sleeves and taken time to understand the other side”.
Stereotypes went unchallenged, leading to many companies misunderstanding the moment and quite how big, and also complex, the opportunity really was.
Mr Al Binali believes one of the main stereotypes that still lingers is that “innovation and technology comes from Israel and that capital comes from the UAE”.
“That’s limiting and untrue. The Emirates has innovation in services, freight, hotels and airlines, for example, and Israel has significant capital access from around the world,” he said.
“People talk about high expectations that fell short. I disagree. One part of the expectation fell short because people got overexcited about the time it would take to learn to work with each other.”
Life before venture capital might have helped Mr Al Binali adjust sooner than others. Israel and the Jewish world was not a surprise for him.
“I spent 10 years in the US as an undergraduate at Princeton University where there’s a big Jewish community. I made a lot of friends there. I then went to Columbia University for graduate school, where my supervisor was Israeli,” he said.
When OurCrowd approached him soon after the accords were signed, rather than starting to scramble for deals, the firm opened OurCrowd Arabia, an outpost that Mr Al Binali said was crucial to both sides understanding one another.
“Other enterprises came in never having worked with each other, and with certain preconceived notions,” he added.
“There’s nothing necessarily wrong with that. It’s how start-ups work. You have a preconceived notion, you test it, and it very rarely works the first time. So you adjust.
“On the whole, that adjustment hasn’t been happening, except in our case. I hope others start doing it, particularly as we start showing how the process works.”
In the short to medium term, Mr Al Binali thinks this adjustment phase creates favourable conditions for “a few focused companies” rather than the high number of “very large groups” that rushed in during the early, giddy days right after the accords.
“You can’t rush markets and economies. They’re like huge anchors … But I still think that this is going to pay off in a big way,” he said.
“It goes back to how to find an operating model that works for all the stakeholders.”
Even the successful pioneers of UAE-Israel commerce have not found that model yet. But Mr Al Binali does have a benchmark for success in the years ahead.
“At the 10-year anniversary of the Abraham Accords, I don’t just want to see more Emirati companies going to Israel and more Israeli companies coming to the Emirates,” he said.
“I want to see Emiratis and Israelis working together, building companies and bringing their different but complementary skill sets, networks and visions to build truly sustainable companies.”
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The Settlers
Director: Louis Theroux
Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
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%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EAyan%20Mukerji%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ERanbir%20Kapoor%2C%20Alia%20Bhatt%20and%20Amitabh%20Bachchan%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%202%2F5%3C%2Fp%3E%0A
Difference between fractional ownership and timeshare
Although similar in its appearance, the concept of a fractional title deed is unlike that of a timeshare, which usually involves multiple investors buying “time” in a property whereby the owner has the right to occupation for a specified period of time in any year, as opposed to the actual real estate, said John Peacock, Head of Indirect Tax and Conveyancing, BSA Ahmad Bin Hezeem & Associates, a law firm.
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
MATCH INFO
FA Cup final
Chelsea 1
Hazard (22' pen)
Manchester United 0
Man of the match: Eden Hazard (Chelsea)
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
Jawan
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Top investing tips for UAE residents in 2021
Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.
Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.
Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.
Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.
Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.
Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.
Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”
Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI.
UAE currency: the story behind the money in your pockets
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Indoor cricket World Cup:
Insportz, Dubai, September 16-23
UAE fixtures:
Men
Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final
Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final
The specs: Volvo XC40
Price: base / as tested: Dh185,000
Engine: 2.0-litre, turbocharged in-line four-cylinder
Gearbox: Eight-speed automatic
Power: 250hp @ 5,500rpm
Torque: 350Nm @ 1,500rpm
Fuel economy, combined: 10.4L / 100km
UAE currency: the story behind the money in your pockets
The biog
Favourite films: Casablanca and Lawrence of Arabia
Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins
Favourite dish: Grilled fish
Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.
RedCrow Intelligence Company Profile
Started: 2016
Founders: Hussein Nasser Eddin, Laila Akel, Tayeb Akel
Based: Ramallah, Palestine
Sector: Technology, Security
# of staff: 13
Investment: $745,000
Investors: Palestine’s Ibtikar Fund, Abu Dhabi’s Gothams and angel investors
UAE currency: the story behind the money in your pockets
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
What She Ate: Six Remarkable Women & the Food That Tells Their Stories
Laura Shapiro
Fourth Estate
More from Rashmee Roshan Lall
Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
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Brief scores:
Southampton 2
Armstrong 13', Soares 20'
Manchester United 2
Lukaku 33', Herrera 39'
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