Both Israeli and Arab investors as well as banks have already begun negotiations on new deals in the region. And the investors from the Arab side come from all over the Gulf area, not just the UAE.
Israel Ynetnews has reported that intermediaries have been sent to Israel to seek investment opportunities by “High-level” Saudi and United Arab Emirates business people. The newspaper also reports that a group of Israeli bankers led by representatives from Israel’s largest bank, Leumi and Hapoalim, will be headed to the UAE for talks.
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Hapoalim CEO Dov Kotler on Sunday described this as, “a unique opportunity to establish economic relations and cooperation between our countries and their financial systems, which will yield economic growth for both parties.” He is expected to head to the Gulf on Monday. His Bank Leumi counterpart is expected to go there in another week.
So money does talk after all. The oil rich gulf states need to be prepared for when alternative energy supplants the internal combustion engine. The price of oil has plummeted over the years and crashed completely because of the worldwide Corona Virus shutdown. Oil contracts were being listed in the negative for the first time in history.
The Arab Gulf states have been putting their oil money to work for them over the years by investing in just about every country in the world in anything from stock markets to real estate. In the last twenty plus years Israel has exploded as a hub of innovation in the high tech industry with many billions dollar exits. Of course anyone with money to invest would want to park it in startup nation.
Whatever the politics, it was an inevitability that the Arab world would put business first. And not just in the high tech sector either. There are also a great deal of real estate opportunities to be had in Israel as well.
Tally Zingher, an attorney, entrepreneur and economic development specialist who has lived and worked in Dubai said, “I would be shocked and surprised if investors are not already looking closely at this market.” Gulf investors are very likely to [become] part of Israel’s real estate landscape.”
Israel has a number of landmark buildings, specifically, hotels, which may be of interest to rich Saudis or Emirates to acquire. Or they may even build their own new luxury hotels just to cater to the new Arab tourism which Israel can expect after the Corona Virus shutdowns end.
In addition, anyone who been in the country recently has seen the constant building projects and a country covered in construction sites, both residential and commercial. There is no lack of such projects seeking cash investments.