Israel UAE | Business Guide | 2021

management. Israel's thriving venture capital industry has played an important role in funding the country's booming high-tech sector. Banking System in UAE The Central Bank controls the local economy, controlling prices and inflation and managing the Government’s gold funds. Four main types of banks exist in the UAE: Commercial Banks; Merchant/Investment Banks; Islamic Banks (implying that business is conducted in accordance with Islamic laws); and Industrial Banks. Islamic Banks do not charge interest on borrowings and keep away from activities considered immoral like gambling, alcohol etc. Apart fromthe locally registeredbanks, there are 28 foreign banks in theUAEBankingSystemwith 115 branches. Local banks are exempt from taxes while foreign ones pay 20 % tax on their profits. Opening an account in an UAE bank is a simple procedure. Legal System in UAE Being a MuslimCountry, Islamic principles form the core ofmost UAE legislation in criminal and civil laws. However, the direct influence of Islamic principles is limitedmainly to social laws - family, divorce and ordinances regarding succession Statutes (Case Law) and precedents do not influence the legal system in UAE heavily. The legal structure in the UAE runs in two systems: the Federal Judiciary presided over by the Federal Supreme Court as the highest judicial authority; and the local judicial departments at the Local Government level. Each of the seven Emirates maintains the right to choose either to participate in the Federal Judiciary or to maintain its own local Judicial System. The courts of Dubai International Financial Centre (DIFC) follow the judicial law system. 10 Largest Banks in UAE Emirates NBD ● National Bank of Abu Dhabi ● Abu Dhabi Commercial Bank ● First Gulf Bank ● Dubai Islamic Bank ● Mashreq Bank ● Abu Dhabi Islamic Bank ● UnionNational Bank ● Commercial Bank of Dubai ● RAKBank 10 Largest Banks in Israel Bank Hapoalim B.M. ● Bank Leumi Le-Israel B.M. ● Bank Massad Ltd ● Bank of JerusalemLtd ● Bank “Yahav” Le-Ovdei Hamdina Ltd ● Israel Dexia Bank Ltd ● Israel Discount Bank Ltd ● Mercantile Discount Bank Ltd ● Mizrahi Tefahot Bank Ltd ● Otsar Hahayal Bank Ltd Incorporation Procedure in UAE As the ease of doing business is considered significantly high in the UAE, incorporation procedure is also simple. A company needs to comply with one of these three categories: Commercial License (all kinds of trading activity); Professional License (professionals, services, craftsmen and artisans); and Industrial License for establishing industrial or manufacturing businesses. Free Zones UAE is known for its Free Zone companies - over 40 Free Zones in the country - each of themdesigned for a specific activity. This systemoffers excellent conditions for start- ups in various sectors. Thebest-knownFreeZone isRasAl Khaimah (RAK), offering 0 % corporate tax, 100 % foreign ownership, 100 % capital repatriation, etc. for investors interested in starting a business in Dubai. Other incentives that the Free Zones offer are: No corporate taxation for 50 years; no personal income tax; full exemption from import duties; no currency restrictions; no recruitment issues, and more. Bilateral Israeli-UAE Investments InOctober 2020 , theAbrahamFundwas set up - a$ 3 billion investment fund for economic cooperation between the US, Israel and UAE. The money is allocated for private sector investments and promoting initiatives for nurturing regional cooperation in the Middle East. The first Israeli private venture capital investment was made in November 2020 , in the micro-mobility sector. Abu Dhabi State investors, on their side, plan to identify Israeli high-growth technology firms inwhich to co-invest. The fields of interest include agro-tech, food security, Fintech, water treatment and efficiency, cyber-security and clean energy. Another UAE investment company, which specializes in clean energy, announced the first major investment in renewable energy in Israel. The investment amounts to hundreds ofmillions of dollars to develop renewable energy projects in Israel. In addition, the Abu Dhabi Investment Office (ADIO) announced that one of the eight newoffices it is opening around the world will be located in Tel Aviv. 41