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UAE-Israel Ties, A Great Push To UAE’s Startup Ecosystem

Israel provides a plethora of opportunities to aspiring technology entrepreneurs to engage with its booming innovation ecosystem. Innovation and innovative spirit that flows liberally throughout Israel have led to incredible economic success. It now has the largest number of start-ups per capita in the world. That is why Israel is known as the “Start-up Nation.” Now, Dubai is fast becoming the Start-up Nation of the Middle East. Let us learn how.

  • The Normalisation of the UAE-Israeli Ties:
    • The announcement of the Israeli-UAE Normalisation Agreement in August 2020 has propelled the start-up scene in both countries.
    • The agreement enables the UAE to develop commercial, diplomatic, and security ties with Israel.
    • The agreement permits the two countries to openly trade in a variety of goods and services, especially the ones that deal with military and intelligence.
    • The launch of public business ties between the two countries provides several opportunities to Israeli and Dubai companies.
    • Israeli businesses can now look forward to making deals in Dubai, which could serve as gateways to doing business with the larger Arab world. 
  • Opportunity to Leverage Israeli Technology:
    • With a diplomatic breakthrough between the two countries, UAE now has access to one of the world’s most advanced and high-tech sectors in Israel.
    • Businesses that start in the UAE can leverage Israeli technology, Israeli companies, and Israeli individuals to become global.
    • The agreement also gives the UAE access to advanced U.S. weaponry like high-tech drones, and sophisticated military arms and technology.
    • The UAE has an opportunity to collaborate on healthcare and biotechnology with Israel. After the deal was announced, there have been agreements to conduct research and develop applications for technological improvements in the medical and pharma sectors.
  • Transfer of Knowledge to Start-ups:
    • The agreement has sparked a rush for new business start-ups and deals to provide market access and advanced knowledge-sharing between the two technology hubs. 
    • With doors open to the Gulf, Israeli entrepreneurs are now tapping into their unrealised potential of start-up incubation/acceleration. They see the Emirate as a hub of tech innovators and are keen to open start-up incubators in Dubai, enabling knowledge transfer. They want to invest in young, dynamic, smart Arab entrepreneurs. 
  • Supportive Infrastructure for Start-Ups:
    • Israeli technology companies now have the opportunity to work with local UAE corporates to build an infrastructure that supports start-ups. This support furthers the growth of the technology ecosystem within Dubai.
    • There have also been many recent changes in the infrastructure to help start-ups in Dubai, backed by the large financial services sector in the UAE.
    • With aviation and logistics agreements in place, direct flights have started running between the two countries. This has drastically improved connectivity between the two countries, facilitating easy business travel, trade, and exchange.
  • Best Environment for Start-ups:
    • Investors in the UAE and Israel are striking deals and building long-term partnerships in a thriving and transformed business environment.
    • Today, Dubai provides the best environment for innovation in the UAE, seeking to be a powerhouse in the technology sector. That is why it has one of the best ecosystems for start-ups.
    • Early-stage start-ups make up for nearly 50% of all companies registered in Dubai. This fact validates Dubai’s appeal as a global centre for entrepreneurship, knowledge transfer, and innovation.
  • Business Opportunities in the Tourism Sector:
    • Avid holidaymakers from Israel can now explore all the deserts, beaches, and malls of the UAE, providing profitable business opportunities to start-ups in the tourism sector.
  • The Abundance of Resources:
    • Dubai offers an abundance of resources fulfilling the requirements of start-ups. It has succeeded in not only expanding its homegrown SMEs but attracting international talent as well.
    • The UAE is now offering visas to the founders of start-ups. This move, combined with the ease of doing business and quality of life in the Emirate, is a potentially strong reason to attract additional talent from across the region into Dubai. So, if Israel is a start-up nation, Dubai can be called a “Scale-up Nation.” 


From modern lifestyle to world-class infrastructure, ease of setup, and mentorship facilities, Dubai offers a comprehensive package to start-ups and early-stage entrepreneurs. Other incentives include a tax-free regime, administrative support for business setup, easy funding, co-working spaces at affordable rates, and networking opportunities with like-minded innovators. That is why Dubai is fast becoming a Start-up Nation of the Middle East.

If you are an aspiring entrepreneur, there is no better time than now to start your business in Dubai. Our team at Creative Zone can help you set up your business quickly, without any hassle. Call 800 LICENSE (5423673) to speak to one of our Business Setup Consultants and get started today!

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