Six Years After the Abraham Accords: What UAE–Israel Business Looks Like on the Ground

Six years after the Abraham Accords were signed on 15 September 2020, the UAE–Israel partnership has become one of the most dynamic business corridors in the region. Trade has grown every single year, investment is flowing in both directions, and companies on both sides are building for the long term.

At Sen & Ray, we have watched this corridor from inside it. As a founding member of the UAE-Israel Business Council, we have helped Israeli companies set up in the UAE, from defence and aerospace entities in Abu Dhabi to healthcare distribution businesses. This piece sets out what the numbers show, where deals are actually closing, how to make the most of the opportunity, and why we believe the best is still ahead.

By the numbers

Trade has grown every year since normalisation, rising from a standing start in 2020 to about $3.2 billion in 2024 on Israeli data, an 11% increase on 2023 alone. With the free trade agreement now removing tariffs on almost all trade, the $10 billion ambition gives the corridor plenty of room to grow.

The headline figures also understate the true scale. Services, software and defence contracts, where much of the corridor's value lies, are largely excluded from official goods-trade statistics.

Where the deals are

The corridor is strongest where UAE strategic priorities meet Israel's world-class technology, and that is where we see the most momentum.

• Defence and security. This is the deepest and quietest channel. In January 2025, Abu Dhabi's EDGE Group paid $10 million for 30% of Israeli counter-drone company Thirdeye Systems and committed $12 million more to a UAE joint venture (Times of Israel). In December 2025, Intelligence Online reported that the UAE was the international customer behind Elbit Systems' record $2.3 billion contract (Calcalist).
• Healthcare and life sciences. Israeli medical-device, digital-health and diagnostics companies are using the UAE as a regional distribution base. CEPA made medical equipment and medication duty-free.
• Technology. AI, cybersecurity and fintech feature in almost every bilateral framework. Most of the value moves through services and licensing rather than goods.
• Water, agritech and food security. These are natural fits for a desert economy, and they are among the least politically exposed sectors.
• Diamonds and precious stones. This is still the largest line in recorded goods trade, a natural partnership between two of the world's leading diamond trading hubs, Dubai and Ramat Gan.

The pattern we see: Israeli companies that treat the UAE as a regional platform, with a local entity, local partners and GCC or Africa ambitions, do far better than those treating it as an export destination.

Making the most of the corridor

The companies winning in this corridor share four habits, and none of them is complicated.

1. Think long term. The partnership's strategic logic has held steady through six years of regional change, and the UAE has maintained the accords throughout. Companies that plan on a multi-year horizon capture the most value.
2. Lead with the private sector. Company-to-company partnerships have been the most consistent engine of growth, delivering results year after year.
3. Agree visibility with your partner. Many Emirati counterparties prefer to let results speak for themselves. Agree press releases, branding and event appearances up front.
4. Build compliance in from the start. Bank onboarding, Israel's DECA licensing for defence and dual-use exports, UAE EOCN requirements and AML/CFT rules are all well-trodden paths. With the right preparation, they run smoothly alongside the commercial work.

Lessons from the advisory desk

Our work with Israeli clients in defence and aerospace and in healthcare comes down to five lessons.

1. Choose the jurisdiction for the counterparty, not the tax rate. For defence work tied to Abu Dhabi, an ADGM or Abu Dhabi entity usually signals commitment to the right buyers. For healthcare distribution, a mainland licence may be required to sell into the local market, whatever a free zone offers on paper.
2. Start regulatory liaison on day one. Ministry of Defence and EOCN engagement takes time and runs in parallel with entity set-up, not after it. Clients who do this move fastest.
3. Structure joint ventures to last. Cross-border JVs need clear governance, IP ownership and step-in rights, as well as clauses that anticipate export-control changes on either side. The Emirati partner's expectations on localisation and technology transfer should be written down early.
4. Bank early, and bring a complete file. Ultimate beneficial ownership records, source-of-funds evidence and a clear activity description shorten onboarding far more than introductions do.
5. Local presence beats frequent flying. Deals close when there is a resident team, or a trusted local representative, who can attend the second, third and fourth meetings.

What comes next

We are optimistic. The partnership's structural logic is as strong as ever: the UAE is investing in technology, defence capability and food and water security, and Israel brings world-class innovation and is looking for a regional hub and capital. With the free trade agreement in force and a growing base of companies operating on both sides, we expect the next six years to see the corridor deepen and broaden.

Our advice to companies on both sides:

• Israeli companies: establish a UAE entity with a regional mandate, build compliance in early, and let the Emirati partner lead on visibility.
• Emirati investors: minority stakes, JVs and licensing are the fastest routes into Israeli innovation.
• Both: use contracts tailored to this corridor, with governance, IP and export-control clauses drafted for it rather than copied from a template.

About Sen & Ray

Sen & Ray LLC-FZ is a Dubai-based management advisory, accounting and audit firm, and a founding member of the UAE-Israel Business Council. We advise on entity set-up across mainland UAE, the free zones, ADGM and DIFC, as well as regulatory liaison, cross-border JV structuring and ongoing compliance. To discuss a move into, or out of, the UAE–Israel corridor, contact our team today.