UAE and Israel to Establish Diplomatic Relations

Finally, two countries with tremendous technological wealth are going to officially tie the knot. Diplomatic relations between the United Arab Emirates (UAE) and the State of Israel will finally remove the need for behind-the-scenes business relationships and collaborations. The potential for joint technology development between Israel-based emerging technologies and Emirati industries could be tremendous for both countries and the region.

THE ECONOMIC IMPACT

The UAE ranks fifth in the world for GDP purchasing power parity per capita at $74,000 and Israel ranks 35th at $39,000. According to reports from Channel 13 in Israel, bilateral trade could initially be worth $4 billion USD a year. Ofir Akunis, Israeli Regional Cooperation Minister, said "We are talking about commercial deals worth $500 million in the initial stages, and this will keep rising all the time."

Dr. Anwar Gargash, Minister of State for Foreign Affairs, indicated the UAE would benefit from the “technological prowess of Israelis in certain areas, and they will benefit from the dynamic nature of the UAE economy.” According to Israeli Agriculture Minister Alon Schuster, potential joint projects would include improving UAE's water desalination and crop cultivation in the desert. Frankly, having UAE investment in Israel-based emerging technology companies would allow for increased technological growth and proliferation of these emerging technologies in the middle east. Look out for this region, Silicon Valley!

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