Business
Israeli investor glee met with Emirati caution after deal on ties
TEL AVIV/DUBAI (Reuters) – From a proposed rail link to the Gulf from the Israeli port of Haifa, to quick-hop direct flights from Tel Aviv, the prospect of formal relations with the United Arab Emirates is stirring excitement in Israel.
In the UAE, which Israeli business executives with foreign passports have visited for years, companies that are likely candidates for above-board deal-making with Israel are taking a more cautious line, apparently awaiting government guidance on future policy.
Israel and the Gulf State announced on Thursday they would normalise relations under a U.S.-sponsored deal that still awaits negotiations on details such as opening embassies and travel links before it is officially signed.
Israeli officials have been quick to play up the economic benefits of the accord, which once formalised would also include agreements on tourism, technology, energy, healthcare and security, among other areas.
Some Israeli and Emirati businesses have already signed deals since Thursday, and several small-scale medical and defence collaborations were announced in the weeks preceding the normalisation agreement.
But Emirati state entities and private businesses have been circumspect in discussing investment opportunities before ties are official, with many declining to comment.
Conglomerate Al Habtoor Group, which has several hotels in Dubai, is in talks to partner with Israeli carrier Israir, a spokeswoman said, declining to provide further details. It was too early to discuss expanding the group’s business into Israel, she said.
Abu Dhabi state fund Mubadala declined to comment about potential business opportunities emerging from the deal, and some government departments deferred requests for comment to the foreign ministry.
‘Significant upgrade’
Israeli Finance Minister Israel Katz said official ties with the UAE “could be a basis for a very significant upgrade of Israel’s economy, alongside, of course, the things they need from us – in water technology, agriculture, hi-tech”.
On Israel’s Kan Radio, Katz highlighted the potential for grand, regional transportation projects – “a rail connection between Gulf countries and Haifa port” – that he said would make Israel the UAE’s “gateway to the Mediterranean”.
Such a rail network would have to cross Saudi Arabia, which has no relations with Israel and has so far been silent on its deal with the UAE.
An Israeli delegation is expected to travel to UAE within weeks to work out the modalities of normalisation, a historic shift that could reshape Middle East politics from the Palestinian issue to the fight against Iran.
The UAE would only be third Arab state in more than 70 years to establish relations with Israel, after Egypt and Jordan.
‘Not going to bet their shirts’
But there are sensitivities for businesses in openly welcoming Israeli investment in the Arab world’s second-largest economy when public opinion in the Middle East is largely pro-Palestinian.
Some in the UAE have called for boycotting Israel over its treatment of Palestinians in occupied territories.
Robert Mogielnicki of the Arab Gulf States Institute in Washington said UAE businesses would carefully gauge regional reactions to the deal to avoid tensions in existing relationships.
“Established UAE companies and family-owned businesses are not going to bet their shirts just to enter Israeli markets,” he said.
Israeli investors acknowledge that new trade agreements would likely take time to strike, but say Israel’s booming high-tech scene and innovations in agriculture would be tough for the UAE to pass up.
Jon Medved, CEO of Israeli crowdfunding firm OurCrowd, said “co-investment talks are ongoing (with Israelis) throughout the Arab world, not just with the UAE” – alluding to Israeli expectations that Bahrain and Oman would follow in normalising ties.
Tourism could also stand to benefit, some analysts say, though it would take time to kick off given the coronavirus pandemic’s impact on global travel.
Prime Minister Benjamin Netanyahu said on Monday Israel is preparing for direct flights, over Saudi Arabia, to the United Arab Emirates, but gave no timeframe for their start.
Saudi Arabia does not recognise Israel and its air space is closed to Israeli airliners.
Asked about flying to Israel, Dubai’s Emirates said it had nothing to announce. Abu Dhabi’s Etihad Airways had no immediate comment when contacted by Reuters.
Reporting and photo: Reuters
Maldives on Thursday welcomed the one millionth tourist to visit this year.
The one millionth tourist is a Thai named Sutapa Amonwivat, who arrived from Singapore with her husband and two children. This is her second visit to Maldives.
Maldives Marketing and Public Relations Corporation (MMPRC) and the Ministry of Tourism gave a warm welcome to Sutapa at the Velana International Airport (VIA) Thursday afternoon. She was welcomed at the VIA by tourism minister Ibrahim Faisal, MMPRC Managing Director Ibrahim Shiury and senior officials of various relevant agencies.
After welcoming her with traditional offerings, she was presented with various gifts by the ministry, MMPRC, customs, immigration, Maldives Association of Travel Agents and Tour Operators (MATATO) and Trans Maldivian Airways (TMA).
Maldives reached one million tourists in June, three weeks earlier than last year. The number of tourists reached one million on July 16, 2023.
Maldives expects to reach 2 million tourists this year.
Chongqing Airlines on Monday began its inaugural flights to Maldives.
The Chongqing-Male route, scheduled three times a week, is expected to strengthen the bonds between China and the Maldives, opening up exciting new opportunities for tourism and cultural exchange.
The inaugural flight was welcomed upon its arrival at Velana International Airport (VIA) in Maldives, where local officials and tourism representatives expressed their enthusiasm for this new development.
“We warmly welcome our friends from China to our beautiful islands. This new connection strengthens our bonds and opens up new opportunities for tourism,” the tourism ministry said on X.
Maldives currently welcomes four airlines from China, including China Eastern, Beijing Capital Airlines, Xiamen Airlines.
In January, Maldives government urged tourism stakeholders in both Maldives and China to ramp up efforts to restore China’s position as the primary source market for Maldives tourism, a status held before the onset of Covid-19.
China, being the largest source market for Maldives tourism before the pandemic, saw a resumption of tourist arrivals from January 2023 after a three-year hiatus due to the pandemic. In 2023, the Maldives welcomed 187,118 Chinese tourists, marking a significant recovery in numbers. This year, the Maldives has welcomed the most number of tourists from China, with over 107,940 or 11.5 percent of total arrivals by June 12.
CROSSROADS Maldives has introduced WeChat Pay, widely known as Weixin Pay in China, across its world-class resorts, SAii Lagoon Maldives, Curio Collection by Hilton, and Hard Rock Hotel Maldives. This payment option is made available to enhance the convenience and overall experience for guests from China, making their stay in the Maldives more enjoyable and hassle-free.
Understanding the needs of the diverse guests, CROSSROADS Maldives has integrated WeChat Pay into operations, allowing guests from China to easily and securely conduct transactions using a payment method familiar to them. The introduction of WeChat Pay is a testament to CROSSROADS Maldives’ dedication to enhancing guest satisfaction by offering exceptional experiences at every turn. What is also expected through this initiative is that the guests could benefit from better foreign exchange rates, translating to better savings on their expenditures during their stay.
The option is available for guests in-house conveniently at both resorts as well as across the Marina at CROSSROADS Maldives where a wider variety of unparalleled dining and retail experiences are available for all guests. The day visitors from China will also therefore equally benefit from this new introduction at the Maldives’ premier multi-island integrated leisure destination.
SAii Lagoon Maldives, Curio Collection by Hilton, is a vibrant tropical escape that offers unique and locally inspired experiences. The resort features spacious rooms and villas, a variety of dining options, and an array of recreational activities designed to cater to the desires of modern travellers. Guests can escape to the island’s SAiisational natural beauty, enjoy water sports, and indulge in spa treatments, all while relishing the personalised service that defines Hilton’s Curio Collection.
Hard Rock Hotel Maldives brings the iconic Hard Rock spirit to the tranquil shores of the Maldives. This family-friendly resort offers a perfect blend of relaxation and entertainment, featuring music-inspired experiences, live performances, and the brand’s signature amenities. With luxurious accommodations, diverse dining options, and a plethora of activities for all ages, Hard Rock Hotel Maldives ensures an unforgettable holiday experience for every guest.
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