300 million shekels will be allocated over the next ten years to support private sector collaboration and investment
On Sunday, the Israeli cabinet approved the establishment of a joint research and development (R&D) fund by Israel and the United Arab Emirates (UAE) to support technology projects involving Israeli and Emirati companies.
The fund is designed to encourage collaboration in technological innovation and to help Israeli companies access resources that are not available in Israel, according to a Foreign Ministry statement.
It will also help Israeli companies find Emirati partners, navigate local regulations and develop digital communication strategies.
In 2020, the UAE and Israel signed a normalization agreement under the Abraham Accords negotiated under the auspices of the United States.
During his December visit to the UAE, Prime Minister Naftali Bennett and his host, Crown Prince Sheikh Mohammed bin Zayed Al Nahyan, agreed to open the fund.
“This joint fund, along with the corresponding joint business council, will mobilize key economic and technological minds from the UAE and Israel and task them with commercializing solutions to challenges ranging from climate change and desertification to clean energy. and the agriculture of the future,” the two leaders said in a joint statement.
On the Israeli side, the fund will be managed by the Ministry of Foreign Affairs, Ministry of Science, Ministry of Finance, Ministry of Economy and the Innovation Authority.
In a statement, Yair Lapid said that Israel and the UAE share a passion for advanced technologies that improve citizens’ quality of life, protect the environment and promote economic development.
“The Bilateral R&D Fund is the engine to get the process started in the private sector, encouraging companies, with a focus on SMEs (small and medium-sized enterprises), to connect, develop, create and to commercialize innovative technology products in the region and globally,” he said.
He also thanked his Emirati counterpart, Abdullah bin Zayed.
Orit Farkash-Hacohen added that the fund “will create a bridge that will facilitate Emirati investment in Israeli technology” in energy, infrastructure and other areas.
The fund is part of a wave of investments between the two countries following the Abraham Accords. Last week, the Wall Street Journal reported that Emirati sovereign wealth fund Mubadala Investment had invested $100 million in six Israeli venture capital firms.