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chill factor

Tabreed seeks to buy PAL cooling unit from Abu Dhabi’s Multiply

Pilgrims in Mecca shelter from the heat under giant fans blowing a cool mist, one of the measures Saudi Arabia has taken to protect pedestrians from heat as the Hajj Pilgrimage approaches. A newly opened walkway also includes heat-reducing plastic surfaces, lighting and rest areas with mobile phone charging stations. (Esra Hacioglu/Anadolu via Getty Images)

The Daily Circuit: Tabreed keeps its cool + PIF tech IPO

dropping barriers

UAE, European Union see progress in clinching trade deal

WEIGHTED MONEY

UAE’s Globalpharma targets market for generic Ozempic

Free Access

China grants visa-free entry to all GCC nations amid new ties

Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, attended the 2025 commencement ceremony of Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) on Wednesday. (Emirates News Agency)

The Daily Circuit: UAE-EU trade talks + Mubadala’s $1B bond sale

football fever

Saudi PIF invests in surging soccer realm with Kings League

Trust fund

Dubai Holdings’ $584 million REIT surges 10% in IPO debut

UAE President Sheikh Mohamed bin Zayed received the Presidential Camel Racing Team at Qasr Al-Bahr palace in Abu Dhabi at a meeting attended by Sheikh Mansour bin Zayed, Vice UAE President, Deputy Prime Minister and Chairman of the Presidential Court, and Sheikh Sultan bin Hamdan, Adviser to the UAE President and Chairman of the UAE Camel Racing Federation. (Emirates News Agency)

The Daily Circuit: PIF backs the Kings League + Dubai REIT kicks off

shopping spree

TAQA looking to acquire U.S. companies amid expansion drive

Emir of Qatar Sheikh Tamim, Vietnam's Prime Minister Pham Minh Chinh, Crown Prince of Kuwait Sheikh Sabah Al Khalid Al Sabah, Malaysia's Prime Minister Anwar Ibrahim, Philippines' President Ferdinand Marcos Jr, Ruler of the UAE emirate of Ras Al Khaimah Sheikh Saud bin Saqr Al Qasimi, Sultan of Brunei Hassanal Bolkiah, Bahrain's Crown Prince Salman bin Hamad Al Khalifa, and Cambodia's Prime Minister Hun Manet pose for a group photo at the 2nd ASEAN-GCC Summit in Kuala Lumpur on Tuesday. (Jam Sta Rosa / AFP via Getty Images)

The Daily Circuit: TAQA shops for U.S. firms + DP World in Oman

A child runs through a fountain in front of the Dubai Opera on May 24, as pre-summer temperatures soar in the UAE. (Giuseppe Cacace / AFP via Getty Images)

NOT YET SUMMER

UAE sweats through record-breaking heat before Eid holiday

RIGHT TRACK

Egypt intercontinental rail plan needs go-ahead for Saudi bridge

Fun City

Joining Disney, Waldorf homes sell out on Abu Dhabi’s Yas Island

Saudi film producer Mohammed Al Turki and British model Naomi Campbell arrive trackside ahead of the Formula One Monaco Grand Prix on Sunday. (Andrej Isakovic/AFP via Getty Images)

The Daily Circuit: Waldorf meets Disney in UAE + Aramco asset sale

Gulf leader

G42 invests with OpenAI, Nvidia to build massive data center

The opening press conference for the Turkish Airlines EuroLeague Final Four Abu Dhabi was held at the Louvre Abu Dhabi on Thursday. Europe’s biggest basketball tournament is being held in the UAE for the first time this weekend at Etihad Arena on Yas Island. Pictured are (L-R): Saras Jasikevicius, Head Coach of Fenerbahce Beko Istanbul, Nigel Hayes-Davis, #11 of Fenerbahce Beko Istanbul, Kendrick Nunn, #25 of Panathinaikos Aktor Athens, Ergin Ataman, Head Coach of Panathinaikos Aktor Athens, Vassilis Spanoulis, Head Coach of AS Monaco, Mike James, #55 of AS Monaco, Georgios Bartzokas, Head Coach of Olympiacos Piraeus and Sasha Vezenkov, #14 of Olympiacos Piraeus. (Pau Barrena/Euroleague Basketball via Getty Images)

The Daily Circuit: Open AI, G42 to build data center + Qatar’s China stake

Launch time

Flynas IPO oversubscribed by nearly 100 times before trading

Cellular Solution

Abu Dhabi researchers aim to find cure for Type 1 diabetes by 2027

AIR FORCE 2.0

Pentagon okays Qatar’s Boeing 747 gift for future Air Force One

Quick Hits

tech change

Addressing the gender imbalance in Israeli high-tech

Female students in Israel do not traditionally study STEM subjects, but some are trying to change that

Courtesy

A participant in the Israel Aerospace Industries Engineers of the future program presents her final project.

By
Ruth Marks Eglash
February 10, 2022
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Not far from Ben Gurion Airport, in a spacious and airy hangar, sits Israel’s latest collection of highly sophisticated Unmanned Aerial Vehicles (UAVs). Large and small, short distance and longer range — even the first Israeli drone, circa 1980, strung from the ceiling — the space has everything one might expect to inspire, create and develop these innovative flying machines. However, among the workstations, spare parts and a plethora of highly trained engineers, there’s one thing conspicuously missing: women.

The space is part of a sprawling campus belonging to Israel Aerospace Industries (IAI), a state-owned company that develops all manner of civilian and military aerial systems it sells to more than 100 countries. It is a leader in the field both in Israel and around the world, however, among its 15,000 engineers only around a third are female.

The shortage of female engineers at IAI mirrors Israel’s broader technology and innovation sector today where women make up roughly a third of employees. And IAI is among the leaders in the industry looking for ways to address this gender imbalance.

“We want to raise the percentage of women in the engineering positions in the high-tech world in the future, not only for the IAI but for all of Israel,” Gili May, IAI’s chief relationship officer, who is responsible for the company’s social responsibility outreach, told Jewish Insider. “I think IAI has an obligation to fight for the right of women to take their place in the field of engineering. Of course, we hope that those graduating from our program will come back to us in the future, but that does not really matter as long as some of the girls from this program end up becoming engineers.”

The company’s Engineers of the Future program, launched six years ago, offers 100 teenage girls each year the chance to take a peek inside the industry, showing them the kind of jobs available and even connecting them with female mentors already working in the field who can guide them through their hectic adolescent years.

“I was always interested in science, and I always wanted to head in that direction but doing this program really helped to develop my dreams, it showed me what was possible and what I might be able to accomplish,” Eliya Harari, who participated in the program in 2017, told JI.

Now 21, Harari is completing a degree in computer science at Bar-Ilan University. She said that while she was interested in computers in high school, she did not receive too much encouragement or support from her family, her teachers or her peers.

“When you are young, there are so many things that you want to do and it is distracting,” Harari said. “But when I joined the [IAI] program, I met other girls who were like me, and that really made it fun and gave me some support.”

A recent study by Power in Diversity, a joint venture of more than 60 Israeli venture capital firms and more than 170 Israeli startups aimed at promoting diversity and inclusion, found that women account for only 33% of all industry employees. Dror Bin, CEO of Israel’s Innovation Authority, told JI in an interview last month that boosting the number of women in the sector was one of the authority’s main priorities, also in part to address an overall shortage of manpower in the country’s high-tech sphere.

“The manpower shortage in Israel’s high-tech [sector] is chronic,” said Maty Zwaig, CEO of Scale-Up Velocity, a branch of Start-Up Nation Central, which seeks to advance Israel’s high-tech industry and provide solutions to its human capital challenges.

Zwaig said that along the traditional route to careers in Israeli high-tech there were many points where young women could and should be encouraged and engaged much more, which would ultimately increase their participation in the industry.

“The pipeline to the high-tech industry in Israel begins with STEM, then there is the army and then university,” she described, using the acronym for the curriculum focused on science, technology, engineering and math. “We have a clear understanding of points where things go wrong, where we lose girls in the system.”

According to the Council for Higher Education in Israel, while the number of students overall studying STEM has increased over the past decade, still only 29% of students in subjects such as computer sciences, electrical engineering and electronics are female, Haaretz reported last month. The report highlighted that the gender gap begins in junior high school, where boys make up most of the students taking such subjects and continues on through the “pipeline” that Zwaig describes.

The number of girls or young women involved in science and technology dwindles even further when Israelis reach the army, said Zwaig, a former lieutenant colonel in the IDF, where she headed R&D units in the Intelligence Corps, citing her organization’s own research. 

Only around 27% of army programmers are women and only 17% of cyber units are female, she said, adding that by the time many young women reach university, degrees focused on technological or science – subjects that almost guarantee a future in engineering or some aspect of high-tech and innovation – feel out of reach.

At IAI, which has been working to advance female engineers in its own ranks, the four-month training program for junior high school girls not only promotes STEM, it also works to develop bonds with those already working in the field.

Dikla Avraham, one of the few female engineers at IAI and a mentor for the program (not Harari’s mentor), said that such outreach was important in introducing “young women to the world of engineering and science,” which they might be reluctant to join because it such a male-dominated industry.

The program, she said, gave young women confidence and the mentoring showed that it is possible to also become wives and mothers, even while working in a highly competitive and very demanding industry.

May, who is also IAI’s spokesman, said that encouraging teenage girls to stick with scientific subjects throughout high school, the army and into university when there were so many life distractions came down to is “branding.”

“Of course, you need the basic capabilities in order to succeed in one of these subjects, but you don’t have to be a rocket scientist in order to matriculate in physics,” he pointed out. “We want to emphasize that studying these subjects is cool and that being an engineer is cool too.”

Scale-Up Velocity’s Zwaig is hopeful too, saying that even beyond the traditional life path laid out for Israelis, “it is never too late for women to go back and learn these topics” and find employment in the high-tech field.

Among the programs run by Scale-Up Velocity, is a retraining course for ultra-Orthodox women who are the main breadwinners in their community and are becoming increasingly present in Israel’s high-tech hub.

“If women want to do something that pays more, then they can find a way in,” Zwaig concluded. “The main problem is that women, at a certain stage, tell themselves this field is not for them, but there are so many positions they can do, it’s just a matter of self-perception.”

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bon voyage

Herzog to make first Israeli presidential visit to the UAE

The president will meet with Emirati leaders and open Israel’s national day at Dubai Expo

Justin Tallis-WPA Pool/Getty Images

Israeli President Isaac Herzog meets with Britain's Prime Minister Boris Johnson (not pictured) inside Number 10 Downing Street on November 23, 2021 in London, England.

By
Tamara Zieve
January 25, 2022
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Israeli President Isaac Herzog is set to make the country’s first ever presidential visit to the United Arab Emirates on Sunday, his office announced on Tuesday.

The president, together with First Lady Michal Herzog, will visit Abu Dhabi and Dubai at the invitation of UAE Crown Prince Sheikh Mohammed bin Zayed Al Nahyan, with whom he will meet in addition to Minister of Foreign Affairs and International Cooperation Sheikh Abdullah bin Zayed; Vice President, Prime Minister, Defense Minister and ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum; and representatives of the Jewish community.

During the two-day trip, Herzog will also open Israel’s national day celebrations at Dubai Expo 2020 on Monday, which will include an official ceremony at the Al Wasl Dome, located at the heart of the Expo, and a public event at the Israeli pavilion. 

“We have the privilege of making history by making the first visit of an Israeli president to the United Arab Emirates,” Herzog said on Tuesday. “This important visit comes as the Israeli and Emirati nations are busy laying the foundations of a new shared future.” 

“I believe that our bold new partnership will transform the Middle East and inspire the whole region,” he added. “We are a peace-loving nation, and together we will expand the historic circle of peace of the Abraham Accords and create a better, more tolerant, and safer world for our children. I thank Sheikh Mohammed bin Zayed Al Nahyan for this gracious invitation to deepen our nations’ bonds of friendship.”

Last month, Israeli Prime Minister Naftali Bennett made the first official visit of an Israeli premier to the Gulf nation.

The historic visits of both leaders come over a year after the UAE established formal diplomatic ties with Israel. Bahrain, Sudan and Morocco all formalized ties with Israel in 2020.

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making history

In a first, an official Holocaust Remembrance Day event in Egypt

The event was the first of two in the region — the other will be held in Abu Dhabi — hosted by the U.S. Embassy and the U.S. Holocaust Memorial Museum

U.S. Holocaust Memorial Museum

Tad Stahnke, international outreach director of the U.S. Holocaust Memorial Museum

By
Gabby Deutch
January 25, 2022
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Egyptian officials, American scholars and foreign diplomats gathered on Monday at a luxury hotel on the banks of the Nile to commemorate International Holocaust Remembrance Day, the first time such an event has ever been held in Egypt. 

The gathering was hosted by the U.S. Embassy in Egypt and the U.S. Holocaust Memorial Museum (USHMM) in Washington, D.C. A similar event will take place later this week in Abu Dhabi, where Noura al Kaabi, the United Arab Emirates’ culture minister, is slated to speak. (International Holocaust Remembrance Day is commemorated on Jan. 27, the day the Auschwitz concentration camp was liberated.) Plans for additional events in Riyadh and Dubai were scrapped because of the COVID-19 pandemic. 

“It was symbolically, I think, very important that we were able to do this in Egypt,” Robert Satloff, executive director of The Washington Institute for Near East Policy and a speaker at the event, told Jewish Insider from Cairo. “I was just delighted with what happened today and the fact that this occurred in the largest, most populous, trendsetting Arab state.”

The event is the latest symbol of changing attitudes in the Middle East in the wake of the Abraham Accords signed in September 2020. While Egypt was the first Arab nation to sign a peace treaty with Israel, in 1978, the Camp David Accords did not lead to a significant shift in Egyptian attitudes toward Israelis and Jews. 

“There is a peace treaty between Egypt and Israel, but that peace has always been a cold peace,” said Mina Abdelmalak, who conducts Arabic outreach for the USHMM and was born and raised in Egypt. “It was never translated into the mainstream, people-to-people level. It was mostly government-to-government. So to be able to push this a little bit, that is significant.”

Abdelmalak and Tad Stahnke, the museum’s international outreach director, spoke at the event, as did Jonathan R. Cohen, the U.S. ambassador to Egypt, and Magda Haroun, the head of Egypt’s Jewish community. Satloff took questions from the audience following a screening of “Among the Righteous,” a documentary he produced about Arabs who helped protect and save Jews during the Holocaust. 

“If you would have told me a few years ago that such an event would take place in Cairo, I would laugh,” Abdelmalak told JI on Monday. “Until this morning, it wouldn’t have completely surprised me if the government of Egypt would say, ‘Due to security reasons, this is not going to happen.’” 

Some four dozen people attended the invitation-only event, including human rights activists, business people and former members of Egypt’s parliament. 

“This wasn’t hidden away in some obscure corner of some small, out-of-the-way building. This was right smack in the middle of Cairo. This was an event to which diplomats from around the world — Middle East diplomats, European diplomats and ambassadors — were there,” explained Satloff. 

From left: Mina Abdelmalak, Tad Stahnke, and Rob Satloff (U.S. Holocaust Memorial Museum)

The Abraham Accords “raised the bar for everyone,” Satloff said, including the “first-generation peacemakers” — Egypt and Jordan. But there were other factors at play, too: Egypt, like Israel, sees Iran as a foe. Last week, Egypt’s permanent representative to the United Nations gave a speech in Arabic on behalf of the Arab Group, condemning Holocaust denial as the United Nations General Assembly debated and then passed a resolution on the subject. The only country to vote against the resolution was Iran.

Satloff attributed the attitude change at least in part to Israel’s new leadership. With the “post-[Benjamin] Netanyahu enhancement of bilateral relations, it’s easier to be more public about it,” added Satloff. Domestically in Egypt, there is also “more consideration of the issues of religious minorities, countering extremism, interfaith relations. I think all these come together to make the environment more receptive and accessible to the type of event that we had today.”

The public event marked an important milestone for the USHMM, but came only after the USHMM’s efforts to build relationships in Arabic-speaking countries over many years. 

“We have for the past several years been working to cultivate partnerships across the Middle East and North Africa to develop educational programming to reach young adults and emerging leaders in those countries with accurate and relevant information about the Holocaust,” said Stahnke. Education efforts have begun to have an effect in Morocco and Tunisia, he added. But yesterday’s event in Egypt, the most populous Arab country with nearly 100 million people, marked the most visible success. 

Outright Holocaust denial is rarer than it used to be, Satloff said, explaining that it has been replaced by “relativism.” He defined the concept as “the idea that bad stuff happened, but bad stuff happens all the time, that sort of thing. Or: 600, 60,000, 600,000, 6 million, what’s the difference?”

Holocaust distortion has found a home in Egypt in the past because of the overall sentiment in the country regarding the Israeli-Palestinian conflict. Abdelmalak said the result is that “the Holocaust has been weaponized” in Egypt. 

“It takes a lot of work with civil society to ensure that we push back against years and years of Holocaust denial being established in that part of the world,” Abdelmalak added. Attendees at the event also reflected upon Egypt’s own treatment of its Jewish community, including in the 1940s, when some Arab leaders spread Nazi propaganda and pogroms racked Cairo. 

“I think everybody left with the sense that it was worthwhile and valuable,” said Satloff, “and perhaps just the first of many, which itself is a very important milestone.”

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man in manama

Meet the Israeli diplomat at the forefront of the Abraham Accords

Eitan Na’eh was the first Israeli diplomat in the UAE before moving to Bahrain

Emre Senoglu/Anadolu Agency/Getty Images

Then-Israeli Ambassador to Ankara Eitan Naeh gives a speech during his first reception in Ankara, Turkey on December 5, 2016.

By
Ruth Marks Eglash
January 24, 2022
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Less than a month after presenting his credentials to King Hamad bin Isa Al Khalifa, Israel’s ambassador to Bahrain, Eitan Na’eh, is still marveling at his new position. The longtime Israeli diplomat, who was famously expelled from Turkey in 2018, some days cannot believe that he represents his country in an Arab kingdom that less than two years ago had no formal ties with Israel.

“I sit here in Manama and look outside to a beautiful view of the [Persian] Gulf, and I am still pinching myself,” Na’eh told Jewish Insider in a recent interview. “I feel lucky to work in these countries.”

Na’eh arrived in Manama, Bahrain’s capital, last November, vacating his post in Abu Dhabi, where he spent nine months serving as the first diplomat to represent Israel in the United Arab Emirates. Israel signed normalization agreements with the UAE and Bahrain in September 2020, with Morocco and Sudan joining what is now known as the Abraham Accords a few months later.

“From the first day I landed here, I found myself sitting in homes and living rooms with people from all over the region – Iraqis, Saudis, Kuwaitis, Lebanese and Palestinians – and they all told me, ‘Enough, let’s put our political disagreements aside and do business; that in its place will calm things down,’” Na’eh told JI over Zoom from Manama.  

While Na’eh is focused on developing economic and trade ties between the two countries, he is also well aware of the kingdom’s regional and geographic value as a country that sits in the Persian Gulf just off the coast of Saudi Arabia.

“We are looking at Bahrain as a gateway to the region, to the East, and from the East to Israel,” he said.

Aside from the lucrative financial opportunities, including in tourism — Na’eh said direct flights from Tel Aviv to Manama will begin in a few months once the Omicron strain of COVID-19 subsides — Israel is long believed to have its sights set on drawing Saudi Arabia, the most powerful country in the region, into a closer alliance.  

“What I’ve learned since coming here is that Bahrain and Saudi enjoy a very close and amicable relationship, and I hope we will find an opportunity to cooperate with them,” Na’eh said. “Israel is obviously open to such cooperation — economic, financial, trade and investment.”

“Coming now from the first two countries – the UAE and Bahrain – that signed the Abraham Accords,” he added, “I would say that the idea is to build a model, a model of coexistence and a model of cooperation, where other countries in the region will begin to say, ‘Why not us?’”

Na’eh told JI that he hears more and more people in the region asking when such relations will be formed between their countries and Israel. It is “bound to happen” eventually, he said of Saudi Arabia.

“The Gulf countries, certainly Bahrain, the UAE and Saudi Arabia, are very advanced and I think together with Israel, we can do wonders,” Na’eh stated, adding that it was important not to ignore the Arab states who first signed peace deals with Israel: Egypt and Jordan.

“There is a real curiosity here about Israel, about the religion, the culture, the food, the holy sites, and the people,” he said of Bahrain, though he cautioned that there remained some contentious issues, such as the ongoing Israeli-Palestinian conflict.

“We don’t expect countries to simply become all lovey-dovey in a day,” said Na’eh, adding, however, that the Abraham Accords had “reversed a trend.” 

“In contrast to the past, when countries raced to show who boycotts more, who incites more, or who shows more animosity towards Israel, there are now countries in the region that are racing to invite Israeli companies to work there,” he said.

In terms of the economic opportunities between Israel and Bahrain, Na’eh observes that the scale of economic cooperation is quite different to the UAE. According to figures compiled by the Abraham Accords Peace Institute, trade between Israel and Bahrain stands at around $6.5 million, compared to $1.15 billion between Israel and the UAE.

However, he noted, the desire in Bahrain to build upon and strengthen growing cooperation with Israel is equally vibrant as in the UAE.

“I have found a real will among people here to live in peace and coexistence,” Na’eh noted.  “There is an indigenous Jewish community here that has lived here for many years, and the only synagogue in the Gulf was in Bahrain.”Na’eh said he is working with counterparts in the Gulf state to create more avenues of cooperation. “I think that there is plenty in the economic sphere and of course, in people-to-people relations, politics and security,” he said. “It is time to move on and time to explore, and the best way forward to live together is to trade together. That’s what the Abraham Accords is all about.”

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booming business

For Israeli high-tech, 2021 was a ‘bumper’ year says head of Innovation Authority

In the face of the pandemic, soaring investments in capital and a new crop of unicorns, creating the ‘best year ever’ for the sector

Hanna Teib

Dror Bin

By
Ruth Marks Eglash
January 12, 2022
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There aren’t too many people who would characterize 2021 as a “bumper” year for their field, but that is exactly the word that Dror Bin, CEO of the Israel Innovation Authority, uses to describe the country’s high-tech sector during the second year of a global pandemic that brought additional lockdowns, border closures and successive waves of virus variants.

“I don’t think anyone would have expected Israeli high-tech to peak in such a way,” Bin, who was appointed CEO of the authority a year ago, told The Circuit in a recent interview. “It was possibly the best year ever for Israeli high-tech.”

Bin’s decisive statement is backed up by staggering data collected by the authority, an independent public entity that works to bolster Israel’s innovation ecosystem and serves as a bridge to the government.

During 2021, Israeli companies raised more than $22 billion in capital; exits, mergers and acquisitions, and initial public offerings totaled $80 billion; the accumulated market capital of Israeli companies trading on Wall Street was $300 billion; and there was a record 79 unicorns, companies valued at $1 billion and up.

In addition, the IIA noted that Israel’s high-tech sector now accounts for some 50% of Israel’s total exports and for 15% of the country’s GDP. Ten percent of Israelis work in high-tech, paying some 25% of the country’s total income tax. National expenditure on civilian R&D stands at 4.9% of GDP, second only to Korea and ahead of the Organisation for Economic Co-operation and Development average of 2.47%. It also places third, after the U.S. and China, in the number of companies (116) listed on NASDAQ.

The normalization agreements between Israel and four Arab states in 2020 has also boosted the sector. The newly established UAE-Israel Business Council, which has united more than 6,000 Emirati and Israel businesspeople, is predicting that bilateral trade could reach $2 billion in 2022, an increase of over 50% from 2021 and many of the newly formed ties are in the tech sector.

“I’ve been working in Israeli high-tech for 25 years and two decades ago would never have dreamt that we would reach where we are today,” said Bin, former president and CEO of RAD Communications, a Tel Aviv-based company that manufactures networking equipment.

The COVID-19 pandemic, which forced many businesses and services into the virtual space, actually “stimulated the demand for high-tech,” Bin explained, adding that Israeli companies were quick to adapt to the new environment and the government stepped in to keep investment flowing into the startup sphere.

“There was a digital transformation, and many things that once took place in the physical world had to move to the virtual world, which increased demand,” he told JI. “The Israeli DNA has the ability to be flexible and to adapt quickly to changing circumstances, also there is a long history of entrepreneurs, investors and government policies that benefit the sector.”

“When [COVID] started, the market went into shock; many investors were reluctant to invest because the uncertainty was high,” Bin explained. “We got money from the government and, for a short while, invested in different types of startups until investors were ready to return — this was one of the main reasons we did not see a fall in the number of startups in the country.”

Established in 2016, the Israel Innovation Authority has three main functions — investing in research and development of innovative and ground-breaking products with an annual investment budget of NIS 2 billion ($640,000); preparing for future technology trends; and enabling regulation, including removing obstacles and finding ways to expand human capital for the high-tech sector.

After the “bumper” year, Bin said he expects the industry to keep growing and expanding, with an emphasis on maintaining Israel’s high-tech inside the country, in contrast to the past, and diversifying into new areas of innovation.

“There has been a paradigm shift that will change many things going forward,” he said. “Traditionally, Israel’s start-up ecosystem was based on the establishment of small companies whose goal was to find a multinational or American company to buy it out.”

Now, Bin said, there are around 10-15 companies that have become giants in their space and are choosing to remain in Israel. He estimates that a further 100 Israeli companies have the potential to become leaders in one of the global markets.

Bin also said that Israel’s high-tech market was beginning to branch out in new directions.

“If Israel was strong in cyber and fintech or the enterprise software market in the past, we have seen a shift into new markets like food-tech, specifically alternative proteins, agritech, and Bio-Convergence (developing new medicine and medical devices),” he said. “The imagination can keep on working here full-time to find many more exciting new things.”

In order to further facilitate the growth, IIA has been working to ease Israeli bureaucracy, loosening regulations in order to allow Israeli companies to flourish. Bin gives the example of the drone market, a focus in recent years for the authority. Bringing together Israeli regulators, the Israeli Aviation Authority and industry innovators, he said, was already “defining the playground so that all parties could benefit from it.”

He also said IIA has invested in one of Israeli high-tech’s biggest challenges — the shortage of manpower. “We intervened in this about two years ago and started implementing new models of recruiting manpower to enter the industry,” said Bin, describing a program for re-training for those with academic qualifications and another to bring in underrepresented populations such as women (who make up roughly 30% of the sector’s employees), Arabs and the ultra-Orthodox.

Bin said there was no single element to Israel’s success in creating a booming global innovation hub. “What you need to create this magic is for it all to happen in the right place at the right time,” he told JI.

Citing a combination of Israel’s risk-taking culture, the country’s necessity to develop defense systems and a very smart government policy, Bin added: “There is also the fact that Israel is so small, and being small is an advantage when it comes to innovation, which often evolves in dense places where everyone knows everyone,” he said. “All these things have blended together well to create wave after wave of innovation.”

“No matter how you want to look at the Israeli ecosystem, whether its capital raised, quality of capital, unicorns, IPOs, whatever metric you want to look at, the Israeli tech ecosystem grew exponentially in 2021, it was our best year yet by far,” concurred Hillel Fuld a tech columnist and startup advisor.

Explaining the growth, Fuld referred to last week’s Torah portion, where it talks about the Jews in Egypt and how the more they were oppressed, the more they multiplied.

“We have this tendency as Jews to thrive under pressure,” he said. “There is an inverse correlation between terror and innovation, meaning you would think that if there is more terror there would be less innovation but that is not the case at all, so in 2021, the year of a pandemic, you would think it would be slow or there would be a decrease in innovation but in reality, that was not the case.”

“To say I was surprised, I was not surprised because all indications showed that we were going to keep growing but the rate of growth did surprise me because it was just so explosive this year,” said Fuld.

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Take-Two Takeover

Strauss Zelnick’s Take-Two buys Mark Pincus’s Zynga in $12.7 billion deal

One of the largest deals in video game history will align a mobile-gaming firm with a PC- and console-focused developer under the same leadership

Liz Hafalia/The San Francisco Chronicle via Getty Images and Stuart C. Wilson/Getty Images

Marc Pincus and Strauss Zelnick

By
Jacob Miller
January 11, 2022
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Video game company Take-Two Interactive has reached a $12.7 billion deal to acquire rival company Zynga, catapulting the “Grand Theft Auto” creator into one of the industry’s most formidable game publishers.

The deal, one of the largest in video game history, was announced on Monday by Take-Two CEO Strauss Zelnick and Zynga CEO Frank Gibeau. Expected to be finalized later this year, the merger will unite Take-Two, which specializes in PC and console gaming, with Zynga, a free-to-play mobile-game behemoth.

The two executives, which described the purchase as a “hand-in-glove fit” in a Monday morning conference call, anticipate the merger will result in an annual cost savings of $100 million and an additional $500 million from improved collaboration between the two firms.

Under the terms of the deal, Take-Two will buy all outstanding shares of Zynga’s stock for $9.86 a share, a 64% premium on the company’s share price as of Friday afternoon. The acquisition will be paid in both cash and Take-Two’s stock, granting Zynga’s shareholders one-third ownership of Take-Two.

Zynga was founded by Mark Pincus in 2007 when it piloted an online poker game played on Facebook. Since then, Zynga has grown into a large company with $2.3 billion in sales in FY2020. 

In a Medium post discussing the deal, Pincus described the “bittersweet moment” and thanked his colleagues over the years for his business’s success. “We’re seeing games expand in every direction from hyper casual to entire persistent worlds,” wrote Pincus. “I believe the company will have the franchises and scale to lead in every category.”

The different specializations of the two firms will complement each other as they now work together. Take-Two, which boasts hits including “Grand Theft Auto,” “NBA2K” and “Borderlands” produces games designed for PCs and consoles, but does not have free mobile versions. Zynga’s business model, which offers free mobile entertainment with in-app premium purchase options, has pioneered successes including “FarmVille” and “Words With Friends.”

With mobile gaming ascendant, Take-Two will benefit from Zynga’s mobile development team, which is expected to develop mobile options for Take-Two’s offerings. Under the planned acquisition, more than half of Take-Two’s projected bookings in Fiscal Year 2023 will come from mobile, diversifying Take-Two’s offerings and making it competitive with other developers as mobile gaming gains traction.

Zelnick called rolling out mobile options for Take-Two games a “high-priority initiative,” saying, “We see tremendous untapped potential to bring Take-Two’s renowned console and PC properties to mobile.”

Take-Two will also benefit from Zynga’s in-house advertising team, removing the added costs of outsourcing advertising operations.

The deal comes after the gaming industry enjoyed a boom during the pandemic, as social distancing interventions and lockdown restrictions pushed consumers to spend more time gaming, a trend that translated to large share price increases for both Take-Two and Zynga over the past two years. Yet Zynga’s stock tumbled last summer amidst societal reopening following COVID-19 shutdowns and after Apple instituted privacy reforms restricting how advertisers can track consumers on its devices, which made gaming less profitable.

Zynga has consistently maintained that its stock downturn from reopenings and Apple’s new privacy policy are transitory, and has remained optimistic about a stock rebound. On the Monday call, Zynga’s Gibeau said that these factors will not contribute to long-term drags on gaming, and explained that Zynga accepted a deal despite a feeling that its stock is undervalued because of the growth opportunities afforded in the new partnership.

“We saw incredible strengths available to us with regards to scale, data, audience expansion into new categories and product capabilities that would help us aggressively pursue cross platform. So from our perspective, we would be able to grow faster together. And the deal that was constructed in the framework with a 64% premium really put us into a position where we felt that this was the right course of action for our shareholders,” explained Gibeau.

The mammoth merger was evaluated by a strategic committee of independent directors from Zynga’s board and decided with unanimous approval from Zynga’s board of directors. Combined, the two companies reach over one billion users and employ 8,000 developers.

Zelnick will continue serving as Take-Two’s CEO, with the rest of Take-Two’s management remaining intact, while Zynga’s leadership team will assume responsibility for Take-Two’s mobile operations. Take-Two will also expand its board to accept two new directors from Zynga’s board.

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Exclusive

Congress launches bipartisan Abraham Accords Caucus

The House-Senate caucus will be a ‘cheerleading squad’ for the normalization agreements, co-chair Sen. James Lankford told JI

Samuel Corum/Getty Images

Sen. James Lankford (R-OK) speaks alongside other Republican Senators during a press conference at the U.S. Capitol.

By
Marc Rod
January 10, 2022
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At a time when Congress appears increasingly fractured along party lines and between chambers, a group of eight House and Senate lawmakers will come together this week to launch a bipartisan Abraham Accords Caucus, focused on supporting and promoting the normalization agreements between Israel and Arab states.

The caucus’s co-chairs will be Sens. James Lankford (R-OK), Jacky Rosen (D-NV), Joni Ernst (R-IA) and Cory Booker (D-NJ), and Reps. Cathy McMorris Rodgers (R-WA), David Trone (D-MD), Ann Wagner (R-MO) and Brad Schneider (D-IL). Lankford described the new group as a “cheerleading squad” for the Accords in an interview with Jewish Insiderlast week.

“The bipartisan, bicameral Abraham Accords Caucus will provide a unique opportunity for world leaders to come together in our common pursuit of creating a better, safer and more prosperous world for our children and grandchildren,” Rodgers told JI. “I am encouraged by the progress we have made, and I look forward to the amazing things we can accomplish together through our shared commitment to a better future in the name of peace.”

Lankford and Trone said the group came together around a shared goal of supporting the Accords, which were signed in September 2020 between Israel, the United Arab Emirates and Bahrain, working to expand the agreements and promoting economic activity among the countries in the agreement.

“In just one year, the Abraham Accords have already transformed the Middle East by contributing to regional peace and stability, promoting U.S. interests, and enhancing Israel’s security,” Rosen added. “The Abraham Accords Caucus will build on that success by providing bipartisan leadership to strengthen existing partnerships and widen the circle of peace to new countries.” Since the signing of the Accords, Sudan and Morocco have also normalized relations with Israel.

Lankford said that the group can also help keep the executive branch focused on adding more countries to the agreement, both during the Biden administration as well as those of future presidents.

“I don’t want this getting lost in the State Department,” he said. “So this is a way that we can actually reach out to State and continue to push that, and continue to be able to encourage those countries… and we have relationships with them as well.”

The group has not yet sketched out any specific projects or initiatives that it plans to pursue, but Lankford said the group has discussed trips to and conferences with the signatory countries.

“Finalizing the Abraham Accords was a historic step toward peace in the Middle East,” Ernst said. “We must continue these efforts to further our nation’s partnership with Israel and promote peace and prosperity, and I look forward to working with my Democratic and Republican colleagues in the Abraham Accords Caucus to do so.”

Lankford also anticipates that the caucus will urge companies to engage economically with countries in the bloc and collaborate with members of the Knesset and government officials in the Arab states. Trone said the group will also work to support U.S. government investments in the Accords countries, as well as reach out to Egypt, Jordan and Palestinian leaders.

“The United States must continue to play an active role in fostering further dialogue and partnership between Israel and other Arab countries, and I look forward to doing just that as part of this bipartisan group,” Booker told JI.

The path to forming the caucus has not been without a few hurdles: The original plan was to launch the group around the first anniversary of the Accords last September.

Lankford primarily blamed the pandemic for the delays, adding that the Biden State Department’s calibration of its policy on the Accords also took time and that Democratic colleagues told him that they wanted “know exactly where State is on this” before joining the caucus.

“My concern initially was [that the] State Department was hesitant on it, to try to figure out, ‘Are we going to continue [the Accords]? Is this larger?’ They were slow to the trigger last year,” Lankford said. “I’m not not trying to throw anybody on the bus under it. State’s got to figure out what they’re going to do — I think they’re on board now… and working to be able to gain support on both sides of the aisle.”

Trone said, “The biggest focus has been that we really wanted to make it bipartisan and it took a little while for everybody to understand why the caucus will matter and what the caucus is trying to do… and that is a bipartisan — no politics, no party”

Trone said he expects the caucus, which will add members in matched bipartisan pairs, to grow quickly.

It’s less clear at this stage how the caucus might engage with the other major congressional initiative, the Israel Relations Normalization Act, which has garnered support from nearly three-quarters of both chambers but has stalled since being introduced last year. Rosen, Booker, Schneider and Wagner are the original sponsors of that legislation in their respective chambers, and all of the caucus’s members are listed as co-sponsors.

In the Senate, Sen. Ted Cruz (R-TX) is blocking fast-tracked unanimous passage of the legislation, citing concerns about language in the bill establishing U.S. policy as supporting a two-state solution between Israel and the Palestinians. In the House, the bill passed the Foreign Affairs Committee in September but has not yet received a floor vote.

Lankford declined to say specifically how the caucus might engage on the bill, explaining, “I don’t want to try to say for the other three that are helping me get this thing off the ground what’s going to be a priority at the beginning. So let me not say that as a priority. I’m just telling you, anything solidifies the agreement and expands the agreement, we’re going to be for.”

Lankford said he had not discussed Cruz’s objections to the bill with him.

A spokesperson for Rosen, one of the bill’s original Senate sponsors, offered a similar response saying, “Senator Rosen is a co-sponsor and a strong supporter of the Israel Relations Normalization Act, and the Senate Abraham Accords Caucus will explore a range of legislative opportunities once launched.”

Trone said that the caucus can “without question” help to move the bill through the House.

The leaders of the Israeli Knesset’s Abraham Accords Caucus congratulated their U.S. counterparts on the announcement in a statement Monday. 

“I deeply cherish the support from the United States and offer my congratulations on the establishment of a sister-caucus in America, with whom we can advance further frameworks for regional cooperation,” Knesset Member Ruth Wasserman Lande said.

The Abraham Accords Peace Institute, a group founded last year by former Trump administration senior adviser Jared Kushner to promote trade and tourism between Israel and the Accords countries, will be collaborating with the caucus.

The caucus “will play a role in a number of ways but the most important I think is to strongly show the support that exists in the U.S. popularly and within the government for the Accords and for their continuing growth and expansion,” the institute’s executive director, Rob Greenway, told JI. He expects the caucus can “do a great deal” to support the Accords’ expansion, keep the Accords top of mind in Congress and help shape pending legislation.

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survey says

Young Arabs rank Israel as the fourth most influential country on the Arab world

A plurality of respondents ranked the United Arab Emirates as the most desirable place to live

John Moore/Getty Images

Kurdish teenagers pose for selfies with a U.S. Army soldier on joint patrol with local allies on May 25, 2021 near the Turkish border in northeastern Syria.

By
Jacob Miller
October 22, 2021
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Arab youth consider Israel a formidable presence in the Middle East, trailing behind the United States, Saudi Arabia and the United Arab Emirates in terms of perceived influence in the region, according to the 2021 annual Arab Youth Survey, which seeks to measure the pulse of some 200 million Arab youths. 

The poll, conducted by consulting group PSB Insights from June 6-30 also found that, for the 10th consecutive year, a plurality of respondents ranked the United Arab Emirates as the most desirable country to live in (with 47% of respondents viewing the country as the best place to live), with the U.S. and Canada trailing in second and third places, respectively.

The 13th annual survey, which polled 3,400 people aged 18 to 24 across the Middle East and North Africa, found that 88% of respondents viewed Israel as an enemy, compared to 11% who classified the Jewish state as an ally. The results seem to indicate that recently minted ties between Israel and other Arab countries as part of the Abraham Accords have done little to change Israel’s reputation in the eyes of young Arabs, and that clashes between Israel and Palestinians contribute more to Israel’s image than its recent peace agreements.

Previous surveys have asked respondents if they consider countries such as Iran and Russia to be their enemies. The 2021 survey is the first to include Israel in the question.

Recent fighting in Gaza and the Israeli-Palestinian conflict left young Arabs disillusioned about the prospects for peace: 80% of respondents said they were “very concerned” or “somewhat concerned” about the Israeli-Palestinian conflict, placing concern for the conflict ahead of levels of concern about government corruption or personal debt.

Despite the affinity for the UAE and Western countries, few young Arabs (12%) are actively considering emigration, and many of those who are seeking to leave their countries hail from nations experiencing political and economic turmoil, such as Sudan, Morocco and Lebanon. Young Arabs who are considering emigrating cited the economy and educational opportunities as the top two reasons they’d consider leaving their home countries.

The results of the 2021 survey reflect optimistic sentiments: a majority of young Arabs believe their best days lie ahead, an improvement on the past four years, and desire to emigrate has decreased from the amount reflected in the 2020 poll.

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