Nili Shalev, the head of the Israel Export Institute, speaking at the Jerusalem Post Conference in New York, said that there is a great deal of business potential in the region, both with Abraham Accord countries as well as with Saudi Arabia.
She suggested that Israeli companies need to see the long-term partnerships and possibilities in business relationships. “Sometimes,” she said, “Israeli companies look at the short term for fast deals, and that’s not the case. They need to look at it as a long-term partnership both in the UAE and in Saudi Arabia.”
Shalev, who was participating in a panel discussion with Mark Bailen, Legal Counsel of TV Abraham, added that while Israeli companies have been working in the region for years, there is a great deal of potential, and much that can be accomplished. “I think the potential of these agreements is huge, and we are just scratching the surface of what can be done.”
While the subject of new US tariffs is of some concern, Shalev said that tariffs on physical goods have been reduced to 10%, which will have an impact on manufacturing and physical goods. Before the new tariff policy, Israeli products had a 0% tariff according to the Free Trade Agreement with the USA. It has now changed to 10% on manufactured goods. That is a big difference and manufacturing goods will need the innovative cutting edge to compete. Nevertheless, she added, the strength of the Israeli economy is in the high-tech industry, which is not affected by tariffs, which are only placed on physical goods, and not software.
Shalev then addressed potential normalization with Saudi Arabia and its impact on the economy. “The potential in Saudi Arabia and the UAE is huge, but we have to be patient and look to the long-term. We need to take it step by step, we need to build the connections, we need to deliver what we offer and what we put on the table. I think that once it’s done, it can transform the Israeli economy, and it can transform the region.”
Written in collaboration with Israel Export Institute