June Edition 2021

44 In fact, energy, infrastructure and high-tech are among the throbbing engines driving the economic relationship between Israel and the UAE after they signed the landmark Abraham Accords, formalizing ties between the two countries last year. In March, the UAE announced the launch of a USD 10 billion strategic Israel investment fund to invest in and alongside Israel across sectors including energy, manufacturing, water, space, healthcare and agri-tech. The investment fund will support development initiatives to promote regional economic cooperation between the two countries. Fund allocations will derive from government and private sector institutions. Just this past month, Israel’s Aquarius Engines has signed a MOU) with energy company Kampac International PLC (KIP) on setting up a joint factory in the UAE to manufacture products for the automotive industry based on the technology developed by Aquarius Engines. Recently, the company announced a technological breakthrough involving the use of hydrogen fuel only, with no assistance from fossil fuels, with near zero gas emissions. KIP is active in oil and gas exploration and in mining. In the sensitive area of Middle Eastern oil, there was an early breakthrough. The Europe-Asia Pipeline Co. (formerly the Eilat-Ashkelon Pipeline Co.) (EAPC) has signed a binding MoU with the Med-Red company to operate a land bridge to transport oil between the Red Sea and the Mediterranean, providing both a cheaper alternative to the Suez Canal. Deals relating to infrastructure has seen Maniv Mobility LP, an Israel-based venture capital fund focused on smart mobility technologies, invest in Fenix, an Abu Dhabi-based start-up that plans to launch an electric scooter service in the Middle East. This was the first investment by an Israeli venture fund in a UAE-based tech start-up since the normalization of relations. This followed on from a deal which saw Jerusalem-based Mobileye announce a strategic partnership with the UAE’s Al Habtoor Group to set up the infrastructure to test autonomous vehicles in Dubai. In the field of agri-tech, and desert agriculture, there has been interest in using Israeli experience and innovation to help the UAE develop independent food capabilities that will enable them to be less dependent on imported food. UAE relationship bubbling along nicely