Israel UAE | Business Guide | 2021

Global Competitiveness Index 2019 UAE score 0 - 100 | Israel score 0 - 100 1 st pillar: institutions 40 60 80 100 12 th pillar: innovation 11 th pillar: business 10 th pillar: market size 9 th pillar: financial 8 th pillar: labor market 7 th pillar: product market 6 th pillar: skills 5 th pillar: health 4 th pillar: macro economy 3 rd pillar: ICT adoption 2 nd pillar: infrastructures life expectancy, and more. The UAE and Israel are both ranked first in macroeconomic stability ( 4 th pillar). Additional noteworthy rankings for Israel include its innovation (ranked 15 th), ranking first in investment in research and development in relation to GDP ( 5 %of the GDP), and high life expectancy ( 9 th). Israel ranked comparatively low in regulatory burden, which is burdensome to trade, lowcommitment to sustainability ( 27 th), transport efficiency ( 26 th), information and communication technology adoption ( 42 nd), and market efficiency ( 32 nd) which is a result of low competition and industry barriers. The UAE is notable for its ranking in regulatory burden ( 15 th), transport efficiency ( 8 th), information and communication technology adoption ( 2 nd), and market efficiency ( 4 th) -as a result of its GCC membership, the UAE has trade agreements with many countries. In addition, the UAE’s geographic location is very attractive due to its free trade zones and low taxation policies ( 5 % VAT, 0 % corporate tax). Almost half of all imports to the UAE are registered as re-exports. The UAE received comparatively low rankings for life expectancy ( 92 nd), business environment and innovation, especiallywith regard to bureaucracy and costs of starting a business ( 31 st) and investment in research and development ( 33 rd). The two countries have complementary strengths and can help one another become more competitive globally. Building on the Emirati government’s strategy for the coming years, there are several fields that stand out as possibilities for cooperation between the two countries. Digitalhealthandmedicalequipment: Following the global health crisis, private and government investments have been high in order to make advancedmedical solutionsaccessible to the entire population. Israel has become a leader inmedical innovation in the past several years, and offers solutions in a variety of fields that can assist in reducing health costs, improving quality of health, accessibility, digitalization, andmore. Water: TheUAEdoes not use irrigation effectively, and has the highest water use per capita in the world. UAE's water strategy focuses on three main programs: the water demand management, the water supply management, and the emergency production and distribution. Israel is one of the driest countries in theworld and is a leader in these fields. Renewableenergy: TheUAE launched Energy Strategy 2050 which aims to increase clean energy to its total energy mix - from 25 % to 50 % by 2050 , and reduce its carbon footprint of power generation by 70 %. Food technologyandagriculture: As a desert nation, the UAE is heavily dependent on agricultural imports and strives to secure its food production systems. It also aims at implementing robust agricultural practices that increase the output and production in the country. Infrastructure and construction: Most investments are made in urban real estate and infrastructure. On a policy level, there are several major infrastructure projects in Dubai and in the port town of Sharjah. Cyber, HLS, and AI: As a leader in these fields, Israel can assist theUAE with its strategic goal of information and homeland security. Diamondsandprecious stones: Dubai is the third-largest diamond trading center in the world, which is also an important industry in Israel. The article courtesy of the Israel Export Institute 15