The normalization of relations between Israel and the UAE in 2020 opened a new chapter for both economies, especially in the tech sector. What started as diplomatic progress has quickly turned into a dynamic partnership, with both countries seeing clear benefits in innovation exchange and business expansion.
Today, Israeli tech companies are not just exploring the UAE—they’re actively building partnerships and opening regional offices in Dubai and Abu Dhabi. Joint ventures, tech conferences, and bilateral investments are creating a fast-growing ecosystem where Israeli innovation meets the UAE’s ambitious vision for digital transformation.
The ties between Israel and the UAE have strengthened rapidly in recent years, opening new opportunities for tech companies looking to expand beyond their home market.
In this article, we explore the key reasons why more Israeli companies are choosing the UAE as their next growth chapter.
The UAE has positioned itself as a magnet for global tech companies by investing heavily in digital infrastructure. From smart cities and AI-driven initiatives to fintech and cybersecurity, the country is actively shaping its economy around innovation.
Government-backed programs, tax incentives, and specialized free zones like Dubai Internet City make it easier for businesses to set up and scale. Add to this a supportive startup ecosystem, strong funding opportunities, and access to regional markets across the Middle East, Africa, and Asia, and the UAE becomes a natural choice for companies looking to grow beyond their borders.
The ties between Israel and the UAE have strengthened rapidly in recent years, opening new opportunities for tech companies looking to expand beyond their home market.
In this article, we explore the key reasons why more Israeli companies are choosing the UAE as their next growth chapter.
The normalization of relations between Israel and the UAE in 2020 opened a new chapter for both economies, especially in the tech sector. What started as diplomatic progress has quickly turned into a dynamic partnership, with both countries seeing clear benefits in innovation exchange and business expansion.
Today, Israeli tech companies are not just exploring the UAE—they’re actively building partnerships and opening regional offices in Dubai and Abu Dhabi. Joint ventures, tech conferences, and bilateral investments are creating a fast-growing ecosystem where Israeli innovation meets the UAE’s ambitious vision for digital transformation.
The UAE has positioned itself as a magnet for global tech companies by investing heavily in digital infrastructure. From smart cities and AI-driven initiatives to fintech and cybersecurity, the country is actively shaping its economy around innovation.
Government-backed programs, tax incentives, and specialized free zones like Dubai Internet City make it easier for businesses to set up and scale. Add to this a supportive startup ecosystem, strong funding opportunities, and access to regional markets across the Middle East, Africa, and Asia, and the UAE becomes a natural choice for companies looking to grow beyond their borders.
The UAE's strategic investments in technology have transformed it into a dynamic hub attracting tech professionals worldwide. In 2025, the technology sector is experiencing significant growth, with thousands of new job openings as global firms expand their operations in the country.
Government initiatives are key to driving this trend. The Ministry of Economy's 'Talent Attraction and Retention 2031' strategy aims to position the UAE among the top 10 countries in global talent competitiveness by attracting and retaining skilled professionals in sectors like technology, healthcare, logistics, and finance.
A recent survey indicates that 80% of Asian tech professionals recognize the UAE's growing reputation as a tech hub, with 45% expressing willingness to relocate there for work. This positive perception is bolstered by government support, with 93% of respondents deeming a supportive government crucial for the tech industry's growth.
Additionally, the UAE’s dedication to strengthening its talent pool is demonstrated through initiatives such as the 'Future of Jobs' workshop. It aims to empower, attract, and retain skilled individuals to support the nation’s vision for economic diversification.
These concerted efforts have resulted in a burgeoning tech community, with numerous startups and established companies contributing to the UAE's status as a global tech hub. The influx of skilled professionals not only meets the industry's demand but also drives continuous innovation and growth within the sector.
Since the normalization of relations between Israel and the UAE, numerous Israeli startups have successfully expanded into the Emirati market, leveraging the UAE's business-friendly environment and strategic location.
In November 2022, Israeli venture-capital firm OurCrowd announced plans to establish a venture capital office and an artificial intelligence (AI) tech hub in Abu Dhabi. This expansion is part of a $60 million joint investment with the Abu Dhabi Investment Office (ADIO), aiming to enhance AI-driven business solutions in the region.
Israeli fintech company Liquidity Group signed an agreement in November 2022 to open a research and development center in the UAE. This initiative is also supported by the ADIO's Innovation Programme, which offers financial and non-financial incentives to global companies expanding their operations in Abu Dhabi.
In February 2025, Emirati defense conglomerate EDGE invested $10 million in Israeli startup Thirdeye, specializing in AI-based electro-optical systems for drone detection. This investment signifies a 30% stake in Thirdeye and includes plans for further collaboration to enhance defense technologies.
Beyond individual company expansions, collaborative initiatives have flourished. For instance, Israeli and UAE companies have jointly established a tech recruitment platform, enhancing the recruitment of top tech talent and exemplifying the growing synergy between the two countries' tech ecosystems.
These developments underscore the UAE's emergence as a strategic tech hub, attracting Israeli startups seeking growth opportunities in a dynamic and supportive environment.
Expanding your tech team to the UAE offers exciting opportunities, but it’s essential to weigh a few key factors before making the move. Understanding the cost of living, cultural nuances, competition for talent, and the legal structure can help you build a strong foundation for your expansion.
The UAE’s growing tech ecosystem attracts skilled professionals from around the world, which means competition for top talent can be fierce. Many global companies have established their presence in the region, driving up demand for developers, engineers, and other tech specialists. Competitive salaries and a strong employer brand are indispensable for attracting the right candidates.
The country boasts a diverse, multicultural workforce, but it’s important to understand local customs and traditions. Communication styles may differ, and business practices are often formal, with a focus on relationship-building and respect.
Additionally, Islamic practices such as Ramadan and local holidays can influence work schedules and expectations. Being sensitive to these cultural elements will help foster a positive work environment and establish better connections with local partners and clients.
The UAE provides different business structures, such as free zone companies, mainland companies, and offshore entities. Each has its own set of regulations, licensing requirements, and tax considerations. Understanding the nuances of these structures, including the pros and cons of each for your business, will ensure a smooth setup. Additionally, the UAE has specific labor laws that you’ll need to navigate, including contracts, working hours, and employee rights.
By carefully considering these factors, you can effectively plan your expansion and maximize the potential of your UAE-based team.
At ALLSTARSIT, we understand the complexities of expanding your team into the UAE and other global markets. Whether you're looking to tap into the UAE's growing tech ecosystem or scale your operations across multiple regions, we provide the expertise and resources to make the process smooth and efficient.
Expand your business to Dubai, Abu Dhabi, or anywhere across the UAE quickly and efficiently. Hire local talent or relocate your Israeli experts without the need to set up a legal entity. ALLSTARSIT streamlines the process, enabling you to get your team in place faster and focus on growing your business.
Navigating local labor laws and tax regulations can be complex. With ALLSTARSIT, you can be confident that your expansion will fully comply with the UAE’s legal framework. We ensure all employment contracts, taxes, and legal processes are handled seamlessly, so you don’t have to worry about compliance.
Optimize your expansion costs with flexible employment models that suit your business needs. Whether you choose to hire full-time employees, contractors, or build a dedicated team, we offer scalable solutions that help you reduce overhead and maximize your ROI.
From legal support to HR and payroll services, ALLSTARSIT provides tailored expertise to help you navigate the complexities of hiring and operating in the UAE. We ensure that your expansion is both smooth and compliant with local regulations.
Ready to expand your business in the UAE? Contact us today to learn how ALLSTARSIT can help you set up and scale with ease.
The ties between Israel and the UAE have strengthened rapidly in recent years, opening new opportunities for tech companies looking to expand beyond their home market.
In this article, we explore the key reasons why more Israeli companies are choosing the UAE as their next growth chapter.
