MoF heads meeting to protect and encourage investments with Israel

Younis Haji Al Khoori, Under-Secretary of the Ministry of Finance (MoF), headed the participating UAE delegation in the first round of negotiations on the UAE-Israel agreement to protect and encourage investments, which took place virtually over a period of three days, from 12th-14th October.

This falls in line with MoF’s commitment to implement the nation’s strategy, promote economic and investment cooperation following the historic UAE-Israel peace accord, and the desire of both countries to create an investment climate within a legal framework to attract mutual investments.

Younis Haji Al Khoori noted that the UAE has made significant strides in signing agreements to protect and encourage investments, with 99 agreements to date that involve most of the UAE’s strategic partners from around the world.

He pointed that the UAE is also the first Arab country to conclude an agreement to protect and encourage investment with Israel.

He added that there is a preliminary agreement between both countries to start negotiations with Israel on Double Taxation Avoidance Agreement soon.

Al Khoori said, “The Ministry of Finance is keen to expand its international relations network by signing double taxation avoidance agreements and agreements to protect and encourage investments. This would strengthen the UAE’s commercial and economic relations with the UAE’s various strategic partners, thereby enhancing the country’s competitiveness and investment attractiveness on the global competitiveness map. The first round of negotiations on an agreement to protect and encourage investment confirms the two countries’ efforts to build investment partnerships in various fields.”

The agreement to protect and encourage investments works on protecting investments from non-commercial risks such as nationalisation, confiscation, judicial seizures, freezing assets, establishing licenced investments, and transferring profits and revenues in convertible currencies.

The agreement also provides national and MFN treatment, no interference on all investment related topics, fair and immediate compensation for the investor in case of seizures according to the law, without any form of discrimination and according to the market value of the investment.

Since the signing of the historic peace accord between the UAE and Israel, the two parties have taken many steps to strengthen bilateral cooperation in various vital areas of mutual interest.

The UAE and Israel have established a partnership in the areas of major conferences and exhibitions and broader trade development with the signing of an agreement between the Dubai World Trade Centre, the region’s leading business networking destination and Israel Export Institute.

As part of the agreement, the two organisations will work jointly to facilitate the participation of Israeli exhibitors in large-scale exhibitions in the UAE by the end of the year.

The agreement creates a framework for cooperation and participation in international conferences and large-scale exhibitions, organising and exchanging business delegations between the countries, and support in realising the significant business partnership opportunities between both countries.

The signing of the agreement is part of a new engagement between the UAE and Israel to further peace, dialogue and stability and enhance cooperation to drive sustainable development. The commercial potential of agreements between the UAE and Israel is estimated at $500 million per annum across several key sectors. The new agreement has been facilitated by cooperation between the Israel Export Institute and Israel’s Ministries of Economy and Foreign Affairs, which are actively engaged in the promotion of Israeli industry following the recent signing of the peace treaty with the UAE. The Israel Export Institute, responsible for Israeli participation in international exhibitions, will now take on this role for the first time in the Gulf States.

Separately, the Abu Dhabi Investment Office (ADIO) has signed a cooperation agreement with The Israel Export Institute. The signing of the agreement took place virtually, and was attended by Adiv Baruch, Chairman of the Israel Export Institute, Gadi Ariely, Director General of the Israel Export Institute, and Dr Tariq Bin Hendi, Director General of ADIO. The agreement establishes the foundation for strong trade bridges between Abu Dhabi and Israel by unlocking opportunities to collaborate on investments. It also covers the facilitation of introductions with potential investee companies in both markets, hosting joint events and supporting government and industry delegations.

WAM