Watan-The British newspaper “Financial Times” stated that the war on Gaza has not affected the trade relations between the UAE and Israel.
The newspaper reported that the trade relations between Abu Dhabi and Tel Aviv were tested following the Operation Al-Aqsa Intifada launched by Hamas on October 7 last year, and the subsequent war initiated by Israel on the Gaza Strip. However, fears of the impact on relations between the two sides quickly dissipated.
The newspaper highlighted the case of Israeli entrepreneur Ron Daniel, who left Dubai, where he had been living since 2021, fearing that he was “sitting on a volcano” and that the Gaza war would affect the trade relations between Abu Dhabi and Tel Aviv.
However, the CEO of Liquidity Group, specializing in asset management and financial technology, returned to the UAE after a month of leaving, after deciding that these fears were “mostly in his mind.”
Daniel is one of a small group of Israelis living and working in the UAE since the normalization of relations with Israel four years ago.
Daniel’s decision to return to the Gulf state reflects the hopes of Israeli businessmen that the normalization of relations, brokered by the US between Israel and the UAE and three other Arab countries – which allowed them to openly pursue deals in the Middle East – can withstand the anger and pain caused by the war Israel waged against Gaza.
Daniel said, “Peace remained, interests remained, and friendships remained… Although it was strange and embarrassing with Emirati friends at first, it quickly felt as if it had nothing to do with us.”
Protests supporting Gaza banned in the UAE
Like other Arab countries, the UAE condemned the destruction caused by Israeli airstrikes on Gaza, which angered Emiratis and a large segment of expatriates, who make up the majority of the country’s population. However, the anger and pain were contained to private conversations in this autocratic state, where protests are banned.
This led to the absence of widespread demonstrations in support of Palestinians, which were seen in other parts of the region and in other parts of the world. Authorities also warned against showing overt support for Palestinians, according to the newspaper.
Emirati leaders stated their commitment to the agreement with Israel, known as the “Abraham Accords,” despite their concerns about the war Israel waged against the Gaza Strip.
Most of the businesses that followed the normalization agreement between the two countries were carried out with entities affiliated with the state, especially entities located in Abu Dhabi, the oil-rich UAE capital that led the normalization deal.
Before the war, using private family offices in the UAE was more difficult than Israeli entrepreneurs expected, who wanted to use the Abraham Accords to gain a regional foothold and access to wealthy Gulf investors.
The Israeli war on Gaza caused a slowdown in the momentum of private UAE companies, which were making deals with Israeli companies, due to the severe anger among merchant families over the destruction in Gaza; many of them were already cautious about dealing with Israelis.
An Emirati executive said, “Whether it’s a business relationship between Abu Dhabi and Tel Aviv, everyone here will think twice… If I have business with an Israeli company, I will stop it immediately. Emotions are very high.”
Most of the major deals here involved state-linked companies in Abu Dhabi. Group 42, a company specializing in artificial intelligence based in Abu Dhabi and headed by Sheikh Tahnoon bin Zayed Al Nahyan, the influential National Security Advisor, was the first Emirati company to open an office in Israel.
Mubadala Investment Company, owned by the Abu Dhabi government, invested a billion dollars in an Israeli gas field, and 100 million dollars in venture capital and start-up companies in Israel.
Even if there is a noticeable slowdown in trade relations between Abu Dhabi and Israel by some businesses, there are signs of progress in other aspects.
Airlines continue their flights
Gulf state airlines continued to operate flights to Tel Aviv, even as many airlines canceled their flights there, confirming the interests represented in maintaining relations with Israel.