Dubai Airport Free Zone Authority signs agreement with Israeli Chamber of Commerce

The Dubai Airport Free Zone Authority (DAFZA) has signed an MoU with the Israeli Federation Israeli Chambers of Commerce (FICC) to define frameworks for bilateral cooperation between the two entities and to provide incentives to encourage Israeli companies to establish their businesses within the emirate.

There are over 5,000 businesses and organisations currently operating in more than 120 divisions across DAFZA, and the agreement aims to encourage Israeli companies to set up within the free zone to expand their reach into Asian and Middle Eastern markets aided by the operations of the nearby Dubai International Airport.

DAFZA will provide the companies of the FICC with incentive and will focus support on emerging companies from Israel, which has the second largest number of startups in the world.

The MoU aimed at supporting Israeli companies in establishing their businesses in #Dubai and taking advantage of commercial and investment opportunities and incentives.

— Dubai Media Office (@DXBMediaOffice) September 25, 2020

E-commerce companies which are FICC members will also benefit from Dubai Commercity, the dedicated e-commerce free zone, which will provide access to the emirate’s e-commerce infrastructure.

FICC and DAFZA also agreed to exchange information and help member companies ease their entry into each other’s markets.

The MoU is expected to benefit companies in the logistics, technology, electronics, precious stones and metals, agricultural, pharmaceutical, medical equipment, and research and development sectors.

DAFZA has contributed 12 per cent to Dubai’s foreign trade in 2019. Machinery and electrical and electronics equipment accounted for the largest share of foreign trade conducted out of DAFZA with 55 per cent of the total. It registered Dhs37.4bn worth of imports and Dhs53bn worth of exports and re-exports, according to figures shared by the Dubai Media Office.

Precious stones and metals were the second highest traded commodity with 38 per cent of the total import value at Dhs29.6bn and Dhs32bn worth of exports and re-exports.

Both sectors represent 92.6 per cent of DAFZA’s total trade.

Precious stones and metals accounted for a large share of overall Israeli foreign trade in 2019, with exports in this sector reaching $11.9bn, accounting for 20 per cent of its total exports. Exports in electronics, electrical and technology industries in Israel reached $7.98bn last year while imports totalled $8.03bn.

Therefore, the FICC and DAFZA will also combine their efforts to further trade within these sectors.

Dr. Mohammed Al Zarooni, Director General of Dubai Airport Freezone Authority, affirmed that this agreement reinforces the commitment of DAFZA as a vital tributary to the growth of the economy of the UAE in general and the Emirate of Dubai in particular, given its position as a global destination for business growth and prosperity and a vital engine for the economy of the Emirate of Dubai. In line with the strategic objectives of the Emirate of Dubai aimed at enhancing the contribution of non-oil sectors to the emirate’s GDP.

“DAFZA enjoys a strategic location that makes it a gateway to Asian markets, as it will redirect trade movement smoothly, faster and more efficiently to those markets through the emirate of Dubai, which provides important commercial opportunities for Israeli companies,” said Mohammed Al Zarooni, director general of DAFZA.

Uriel Lynn, President of the Federation of Israeli Chambers of Commerce, added: “The signing of the MOU with DAFZA- Dubai Airport Free Zone Authority is a historic event that will go down in history as an example what can be achieved in our world if two countries are bent on creating more prosperity for their people. It will be a mutually advantageous for Dubai and the Israeli business community, as more business will utilize the developed facilities and services in DAFZA, and create a bridgehead for Israeli business for enhancing its foreign trade in products and services.”

Following the peace agreement between Israel and the UAE, prominent finance institutions within the country have announced agreements with their Israeli counterparts to facilitate business.

Dubai-based lender Emirates NBD and Israel’s Bank Leumi Le-Israel – which holds holds an approximate 30 per cent market share in the Israeli banking system – signed an MoU on September 16.

Read: Dubai’s Emirates NBD signs MoU with Bank Leumi Le-Israel

Emirates NBD also signed a separate MoU with Israel’s Bank Hapoalim earlier this month.