November Edition 2020

19 Putting Investors’ minds at ease The Stock Exchanges are talking infrastructure for banking relations through the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network - the mechanism that allows direct international payments between banks and investments. Previously Israeli companies had to open offshore accounts in Singapore and Europe in order to do covert business in the UAE. The deal was signed by the Israeli Prime Minister’s Office Acting Director-General Ronen Peretz and United Arab Emirates Central Bank Governor Abdulhamid Saeed. With the Central Bank at its apex, the UAE offers a modern banking system and a financial service sector of international standards. In early September, two senior delegations – led by HapoalimCEODov Kotler and Leumi chairman, Dr. Samer Haj Yehia - visited the UAE to meet with heads of UAE's banks and the senior economic and government figures. Both countries have also reached a bilateral agreement that will give incentives and protection to investors who make investments in each other’s countries. “The UAE has signed 99 investment protection treaties and this one with Israel would strengthen economic ties, encourage competition and increase the attractiveness of investments between the two countries,” UAE Finance Ministry Undersecretary Younis Haji Al Khoori said in a statement, as reported in Reuters. Under the deal, which still needs to be signed by both finance ministers, investors would be protected from arbitrary changes in regulation and political situations as part of a framework designed to reassure investors. Asmomentumcontinued to gather, in the capital markets field, it was reported in October that the Tel Aviv Stock E xchange and Abu Dhabi Securities Exchange have been discussing the formulation of an MoU setting out an agreed framework for regional cooperation in various areas, among them the possibility of dual listing on the two exchanges, relaxations of company requirements for the purposes of dual listing, and much more.