TEL AVIV, Israel – After two years of scouting, Jared Kushner’s Gulf-backed private equity fund, Affinity Partners, will make its first investment in Israel, buying a $150 million minority stake in the country’s largest car rental agency and affiliated businesses.

Miami-based Affinity agreed on Wednesday to acquire 15% of the automotive and credit unit of Shlomo Group, which is located south of Tel Aviv in Tzrifin. Shlomo is the Israeli partner of Germany’s Sixt, the No. 5 international car rental company. The Israeli firm has a fleet of 78,000 vehicles, along with leasing, sales and car financing divisions.

“We are bullish on the long-term growth prospects of Israel and the broader new Middle East,” Kushner said in a statement, calling Shlomo Group’s growth from a small agency 55 years ago to the industry leader, “rock-solid.” Kushner is the son-in-law of former President Donald Trump and was his adviser in the White House.

The fund, which was backed by $2 billion from Saudi Arabia’s Public Investment Fund and hundreds of millions from sovereign wealth funds in the United Arab Emirates and Qatar when it was established in 2021, did not seek permission from any of its partners to buy the stake in the Israeli company, a person familiar with the matter told The Circuit. The person asked not to be identified due to sensitivities.

Saudi Arabia and Israel do not have diplomatic ties, although they are engaged in U.S.-brokered talks to normalize their relations, as the United Arab Emirates, Bahrain and Morocco did through the Abraham Accords in 2020. Qatar also doesn’t have official relations with Israel.

Under the agreement, a new $1 billion subsidiary will be created that will operate Shlomo Group’s rental, sales and credit business, the statement said. Affinity, which has an option to buy an additional 3%, will appoint a director and an observer to the division’s board of directors. It also plans to “promote joint company transactions in the Middle East and North America.”

Affinity, meanwhile, is also in negotiations to buy a 25% stake in Phoenix Insurance Agencies, Israel’s largest insurer, after a deal for the parent company was dropped by Abu Dhabi’s ADQ investment fund, Israel’s Calcalist newspaper reported.

The fund founded by Kushner is one of several potential buyers for the insurance company. Phoenix Group, a wide-ranging financial services firm based in the Tel Aviv suburb of Givatayim, was in talks to sell a controlling stake to ADQ in July. The deal would have been one of the largest between companies in the UAE and Israel, but the sale fell through due to regulatory hurdles, the sellers said in a July filing to the Tel Aviv Stock Exchange.

Affinity has reviewed requests for investment from more than 100 Israeli companies during the past two years, the person familiar with the matter said.

ABU DHABI, United Arab Emirates – The UAE’s biggest health-care network, PureHealth, has made two big-ticket acquisitions since forming last year, looking outside the region to the U.S. and U.K. for growth, while forging a research relationship with Israel. 

Last week, PureHealth bought one of the U.K.’s largest independent hospital operators in a $1.2 billion deal. Circle Health Group operates 53 private hospitals and marks PureHealth’s entrance into the British market. The news came three months after a deal was finalized for a minority stake in U.S.-based Ardent Health Services. The $490 million equity investment made PureHealth the only UAE-based health-care provider to ever directly acquire assets in U.S. hospitals and clinics.

ADQ, PureHealth’s largest shareholder, is one of the Middle East’s largest holding companies with a broad portfolio of large Abu Dhabi firms. 

As one of several sovereign wealth funds in the capital emirate it also has a unique mandate: to be the lead investor driving the UAE’s economic transformation from petro-state to a knowledge-based economy. Chaired by Sheikh Tahnoun bin Zayed Al Nahyan, the country’s national security adviser and brother to president of the UAE, Sheikh Mohammed bin Zayed, its portfolio includes holdings in agriculture, energy, financial services, health care and life sciences. 

ADQ merged its health-care subsidiaries with Alpha Dhabi’s Pure Health Medical Supplies in January 2022. PureHealth, which had branded itself as a research and clinical hub focused on longevity, was the main provider of the nation’s massive COVID-19 testing effort at the time. ADQ’s agreement consolidated the public health provider SEHA, major health insurer Daman and stem cell research center ADSCC into one group, creating a footprint of more than 25 hospitals, more than 100 clinics and more than 160 laboratories in the UAE. Its shareholders include Alpha Dhabi Holding, AH Capital, Ataa Financial Investments as well as International Holding Co., a company also led by Sheikh Tahnoon. 

“Going forward, PureHealth will actively seek expansion opportunities globally to further diversify its portfolio and leverage its success in the UAE,” Mohamed Thani Murshed Al Rumaithi, chairman of Alpha Dhabi Holding, a minority shareholder, said at the time.

Earlier this year, PureHealth also struck a strategic partnership with Israel’s Sheba Medical Center, a globally recognized medical research institution.

The two entities said at the time they will closely collaborate on joint clinical research projects, promote the use of advanced technology in health care, expand genetic research initiatives and boost health tourism in both countries.

The alliance will also focus on education and training. Both parties will jointly organize conferences and events, and create clinical specialization projects and internships.

This expansion strategy follows a wider trend in the Gulf, Bloomberg noted last week, with a glut of deals happening between the Middle East and the West in sectors spanning sport, energy, logistics and yes, health care. 

“Corporates in the Middle East, especially in Saudi Arabia and the UAE, are being empowered by their sovereign backers to go out and seek transformative transactions,” Hamza Girach, co-head of Citigroup Inc.’s Middle East and Africa, banking, capital markets and advisory unit, told Bloomberg in an interview. “This is the biggest shift that we are seeing when it comes to dealmaking in the Middle East, which is the emergence of these companies who are seeking overseas growth and keen to expand via acquisitions.” 

PureHealth’s deal with Ardent, which was first announced in September 2022, gives PureHealth board observer rights, although not a seat on Ardent’s board of directors. The investment also “does not include plans for either the expansion of Ardent’s physical footprint or collaboration between Ardent and PureHealth in the delivery of care”, according to a statement.

“The conclusion of this transaction marks the beginning of a new phase of growth for PureHealth in which we will build on our global relationships and strengthen our international reputation,” Farhan Malik, managing director and CEO of PureHealth, said at the time.

These global ambitions for UAE health care came after a strong pandemic performance, which to outsiders may have appeared unexpected. Health-care costs were increasing when COVID-19 took hold and the country had a shortage of nurses relative to Western nations, according to analysis by the U.S.-UAE Business Council in 2021. Yet on Bloomberg’s monthly global COVID-19 resilience ranking the UAE regularly sat in the top three, thanks to a high vaccination rate and relatively limited interference to travel and economic activity. 

Today, Abu Dhabi has ambitions to capture the world’s first population-wide genetic library and localize pharmaceuticals manufacturing while becoming a destination for clinical trials and research. The genome project is a foundational piece to Abu Dhabi’s ambitious plans for personalized medicine, which also include a connected network of the emirate’s medical records.

TEL AVIV, Israel – Enas Awwad, a 29-year-old Palestinian software engineer from the West Bank, credits interning at an Israeli startup four years ago with giving her many of the skills she needed to co-found a company in May.

Awwad is chief technology officer at NoledgeLoss Ltd., a developer of business productivity software that is germinating at the Google for Startups campus in Tel Aviv during its early fundraising stage. She is among the breakout stars of the Palestinian Internship Program, or PIP, an effort launched nine years ago by Israeli venture capital investors and technology firms to build peace through business partnerships.

“I am the bridge,” Awwad told The Circuit. Dressed modestly in a lavender hijab head covering, she now tries to help other young Palestinians enter the clubby and competitive Israeli tech market, which spawns more startups per capita than any other country. “I understand why they do things in certain ways and can explain it to the two sides,” said Awwad, who founded NoledgeLoss with Israeli partner Tal Givati, the CEO.

Created in 2014 by New York-born Yadin Kaufmann, a co-founder of Israel’s Veritas Capital Partners, PIP has placed paid interns at the Israeli branches of global giants ranging from Intel and Cisco to Microsoft and Google. Among the Israeli businesses employing Palestinian interns are VC firms Pitango and OurCrowd, as well as Teva Pharmaceutical Industries, Freightos and Redefine Meat.

Most recently, PIP’s leaders have been looking toward the Gulf, particularly for their affiliated mentorship program. Israeli companies have been setting up offices and forming joint ventures in the United Arab Emirates and Bahrain since the 2020 Abraham Accords. Skills the Palestinian interns acquire through PIP make them attractive local hires because of their strong technical skills and their native Arabic. Often they can work remotely from the communities where they live.

“The regional tech ecosystem is always looking for talent, and there is great Palestinian talent,” said Tally Zingher, a PIP board member and CEO of Dawsat, a weight-loss and wellness company for which Arab women are the target audience, and which has an office in Abu Dhabi.

Still, PIP’s main goal is to help the interns play a leading role in building the Palestinian tech sector by working in jobs in the Palestinian economy. The internship program and the more advanced Palestinian Mentorship Program, which aims to develop entrepreneurial skills, were designed to address the poor job prospects for Palestinians in the West Bank and East Jerusalem, who are cut off from the thriving technology climate in Israel. Participants from the Gaza Strip have participated in the mentorship program by video. More than 3,000 students graduate from Palestinian universities with technology degrees each year, but fewer than half find employment in their fields. Palestinian companies have been stymied by the political conflict with Israel, which limits international growth and investment.

That has led to a brain drain of Palestinian engineers and other tech graduates, who find themselves with a degree but no place in the West Bank to gain experience, Kaufmann said. Similarly, Israeli engineers and entrepreneurs are often lured to greener pastures in Silicon Valley. In the meantime, there are many companies in Israel that can offer fresh Palestinian graduates their first opportunities, he said. “We have developed great relationships and both partners have gained,” Kaufmann told The Circuit. “We wanted to provide them with skills, experience, and networks so they could return and help the Palestinian tech ecosystem by stimulating innovation, investment and opportunity.”

Kaufmann, who also founded Sadara Ventures to provide financing for Palestinian startups, said that PIP’s interns can create new opportunities for Israeli companies that want to expand regionally.

“In addition to benefiting from having a dedicated and talented employee, they have also benefited from having someone who can help open a window to neighboring Arab countries,” Kaufmann said.

When she started interning at Israeli startup Colabo five years ago, Awwad needed to cross through a military checkpoint from her home in the West Bank city of Tulkarm to reach the office in Herzliya, 25 miles west on Israel’s Mediterranean coast. PIP coordinated all the travel permits with the Israeli and Palestinian authorities.

Awwad’s new company, NoledgeLoss, addresses the database challenges companies face in losing information on customers and work processes when employees move to new jobs.

Another graduate of the two programs is Adnan Jaber, a Palestinian resident of East Jerusalem, who created a mobile app when he was an intern in the West Bank’s  Rawabi TechHub in 2017 and later developed personal-fitness tracking software. Now he engages in what he calls “peace tech,” trying to connect Israeli and Palestinian leaders who are making efforts through business to resolve the conflict.

Jaber also manages a video production company creating videos in Hebrew and Arabic that focus on positive interaction between Israelis and Palestinians.

“I found a philanthropist, I hired a team,” he told The Circuit. “I am using production management skills, entrepreneurship skills and business modeling skills. PIP was the first to give me those skills,” he said.

In the mentorship program, which started in 2020, many participants are eager to receive guidance from entrepreneurs and executives who have experience in the Gulf and other Arab countries, said PIP’s executive director, Anna Gol-Dekel.

“The mentors we have who have done business in the Gulf are in high demand,” Gol-Dekel said. “They bring a lot of value… with insights of how to expand a business into the Arab world,” she said. “That is the No. 1 thing our mentees are looking for.”

While the internship program tries to stay nonpolitical, politics are unavoidable in a region fraught with tensions and conflicts, noted Cecile Blilious, head of impact and sustainability at Pitango, one of Israel’s oldest and largest VCs.

“Things are always tense — we can’t overlook that,” Blilious told The Circuit. “We have to consider that people are really afraid on both sides, especially with all the violence going on now, it is terrifying,” said Blilious.

“But once you overcome that,” she continued, “there is obviously business to be done, and in the end we are in high-tech innovation, entrepreneurship and ideas impact, which means something for us as people.”

Still, with the Israeli-Palestinian peace talks at a standstill for nearly a decade and violent incidents breaking out daily in the West Bank, normalization is a very loaded word in the Palestinian lexicon. Both Jaber and Awwad said people have told them they shouldn’t be associated with the Israeli-backed internship program.

“There are always people who will criticize you and people who will support you,” Awwad said. “I choose to stay with those people who offer support.” 

JERUSALEM – New York City Mayor Eric Adams got a crash course in Israel’s startup scene with his three-day tour last week tailored to the former police captain’s interests in surveillance drones, crowd control and vegan cuisine.

During a demonstration at Israel’s National Police Academy, Adams showed particular interest in the symbiosis between leather-jacketed motorcycle cops and the  crowd-surveillance drones flying above them. He challenged the New York police brass with whom he traveled to figure out how such methods could be adopted back home. The mayor was less enthusiastic about face-recognition technology that has been criticized by some over concerns about privacy.

“Some methods we may not use, but there are other methods that they use that are really humane in nature,” Adams told reporters later in an online video briefing. “And, as when we had a similar incident in our city, how do we do it in the correct way? And they’ve learned how to do it correctly. And we walked away with some of those tactics.”

The New York metropolitan area has the largest Jewish population in the world outside of Israel with an estimated 1.5 million Jews. Adams has close ties to the Jewish community, and his trip was hosted and paid for by UJA-Federation of New York and the Jewish Community Relations Council of New York.

The mayor came to Israel at an especially fraught time of protests and met with Israeli Prime Minister Benjamin Netanyahu as well as several activists from the protest movement. Adams stressed that he met people with differing viewpoints and did not take a side on the government’s efforts to reform the judicial system. “I listened. I didn’t weigh in,” he said.

He was more outspoken when it came to Israeli foodtech. Adams is almost completely vegan for health reasons and he spoke from personal interest with executives of the Israeli food tech companies that came to Netanyahu’s office in Jerusalem to display their wares. Adams tasted vegan honey made by Bee-IO Ltd., lab-grown cultured steak made by Aleph Farms Ltd. and an assortment of other vegetarian meat substitutes.

“We were able to see a production of honey that does not need bees at all,” Adams said after he and Netanyahu slurped samples with wooden dippers. “It was good-tasting honey.”

Hundreds of Israeli startups have offices in New York City and the country ranks second to China in the number of its companies that trade on the Nasdaq. More than 200 founders and executives from Israeli firms met the mayor at a rooftop cocktail party in Tel Aviv.

“Don’t stop believing, Israel,” Adams told the crowd. “That is the potent secret weapon. All of you who are start-ups, you believed in something. The original start-ups were your parents and grandparents, they believed in something. Israel is a unicorn because of them. Don’t abandon what they built.”

Michael Granoff, managing partner of venture capital firm Maniv Mobility, reminded Adams at the party that he had recently cut the ribbon when Revel Rideshare, one of Granoff’s portfolio companies, opened a fast-charge facility for its electric vehicles in New York.

“I was impressed with his understanding of how much interaction there is between the tech communities in Israel and New York and how much potential there is for more,” Granoff told The Circuit.

Jerusalem Deputy Mayor Fleur Hassan-Nahoum, who escorted Adams around Israel’s capital, told The Circuit that he was looking to create new partnerships between the two cities. Adams visited Jerusalem Mayor Moshe Lion’s office before roaming around the Machane Yehuda market and drinking beer at a pub. Several tourists from New York recognized the mayor and asked for selfies.

“He was excited to get more acquainted with the innovation ecosystem in Israel,” Hassan-Nahoum said. “He was especially interested in personal security, smart transport solutions and sustainability innovation.”

Adams, who is a practicing Christian and Black, also met with leaders of Israel’s Jewish, Christian and Muslim communities at an event sponsored by the Combat Anti-Semitism Movement.

“His understanding of the complexity of Israel is very unique,” Sacha Roytman Dratwa, the nonprofit organization’s CEO, told The Circuit. “He understands the struggle of a minority, from his own background and his personal story. He is fighting to protect the multifaith community in New York.”

ABU DHABI, United Arab Emirates – At $157 for a round-trip ticket, Wizz Air’s three-hour flights between Abu Dhabi and Tel Aviv last April were less than half the cost of FlyDubai, El Al and other competitors.

Passengers, however, were crammed into some of the narrowest seats in the industry, flights were habitually late and extra charges piled up for luggage, food and legroom. In February, Wizz Air was rated the U.K.’s worst airline by a consumer organization in terms of boarding, cabin environment and seat comfort.

The Budapest-based carrier’s executives acknowledge the shortcomings and say they’re trying to improve on-time schedules and customer service. At the same time, they suggest that passengers know what they’re getting with the airline’s “ultra low-cost” model – similar to RyanAir, easyJet and Spirit Airlines – and business has never been better.

“I’m actually not too worried about how we are performing,” Johan Eidhagen, managing director of Wizz Air’s Abu Dhabi-based Mideast division, told The Circuit. “But I do understand that, of course, a lot of skepticism comes around being low-cost, of how you can achieve [better service]. And that’s the challenge.”

The airline, which was established as a Hungarian company in 2003, flies to 54 countries and operates 183 aircraft. Its lead investor is Indigo Partners, a Phoenix, Ariz.-based private equity firm that also owns controlling stakes in the U.S. carrier, Frontier Airlines, and Chile’s JetSmart. 

Over the last few years, Wizz has increased flights to the Gulf, particularly the UAE and Saudi Arabia. The airline said in March that it plans to increase its fleet to 200 aircraft this year and 500 by 2030. The Mideast subsidiary, Wizz Air Abu Dhabi, is a joint venture between Wizz Air Holdings and ADQ, a government-owned Abu Dhabi investment company, which owns 51% of the airline. Eidhagen is a Swedish native who joined Wizz Air as a marketing executive in 2015 and previously worked for Nokia.

In July, the U.K’s Civil Aviation Authority said it had received hundreds of complaints about Wizz Air’s failure to reimburse passengers after flight cancellations and delays. It said the airline committed to complying with reimbursement regulations.

Alannah Travers, a communications specialist in the U.K., said she still hasn’t been reimbursed for a  flight she booked and then canceled to the Canary Islands in 2019. Getting any response from the airline’s telephone switchboard required more than an hour on hold. “Technically, I’ve never flown with them, but [the airline has] terrible customer service,” Travers said. Nadine Knotzer, an art gallery owner in Dubai, said high fees for luggage and seat selection on a London to Vienna flight made Wizz Air’s prices more expensive than she expected from a budget airline. “There is nothing cheap about this,” she said.

On the other hand, Salwa Azzam, a magazine editor in Dubai, said she found flying with Wizz Air delightful. “The team on board was incredibly friendly and attentive,” she said. “What surprised me the most was how affordable the tickets were without compromising on the quality of the flight.”

Eidhagen said Wizz Air’s priorities are passenger safety, low prices and on-time performance. “If we can deliver those three most important things,” he said, “then I think we have a strong and good airline.”

TEL AVIV, Israel – SolarEdge Technologies, one of Israel’s largest companies trading on the Nasdaq, is forming a joint renewable energy venture with a business group in Saudi Arabia amid White House efforts to broker a normalization pact between the two countries.

The new company created by SolarEdge and Ajlan & Bros Holding will be based in the Saudi capital of Riyadh and work to accelerate the adoption of solar power in the kingdom, the two partners said in a July 31 statement. SolarEdge, an S&P 500 company that maintains headquarters in both Herzliya, Israel, and Milpitas, Calif., produces solar inverters, which manage photovoltaic cells to make renewable energy more efficient. Ajlan is the majority shareholder.

The announcement came more than a year after the Saudi and Israeli companies signed a cooperation agreement that provided little detail of what the alliance would entail. It was one of 13 deals between Saudi and U.S. companies that were announced while U.S. President Joseph Biden visited Saudi Arabia in July 2022.

Zvi Lando, SolarEdge’s Israeli CEO, said in the statement that his company was “honored to partner with Ajlan & Bros. Holding and to support Saudi Arabia’s journey towards Vision 2030” – referring to a document outlining the kingdom’s efforts to wean the economy off oil and develop industries ranging from finance and tourism to sports and entertainment.

“SolarEdge is committed to driving the clean energy transition on a global scale, exemplified by this JV which will provide local enterprises in Saudi Arabia with the support they need to rapidly transition away from fossil fuels to clean solar energy and meet their aggressive renewable energy goals,” Lando said. The statement was released from the company’s California office and did not refer to its Israeli roots.

Israel and Saudi Arabia do not have diplomatic relations and their citizens are generally barred from each other’s territory unless they have second passports issued by other countries. The conditions are similar to those in the United Arab Emirates and Bahrain before the two Gulf states signed the U.S.-brokered Abraham Accords in 2020, establishing formal ties with Israel. Several Israeli companies have managed to operate in Saudi Arabia through subsidiaries registered in other countries.

Biden, who has repeatedly said he would like to facilitate an agreement between Israel and Saudi Arabia that would normalize relations between the two countries, sent senior aides to Riyadh last month to discuss a possible deal. Israeli Prime Minister Benjamin Netanyahu has said a Saudi normalization agreement is one of his greatest diplomatic priorities. Saudi Crown Prince Mohammed bin Salman, the kingdom’s prime minister, has said he would like to establish closer relations, but Israel would have to make significant gestures to the Palestinians before an agreement is reached.

SolarEdge is one of the largest of the close to 90 Israeli companies that trade on Wall Street. Its shares have fallen 38% this year and were last trading at $176.35, giving the company a market value of about $10 billion.

TEL AVIV, Israel – Over the past 16 years, Gil Horsky has been developing global strategies for selling Oreo cookies and Pepsi-Cola.

Now he’s using his experience at Mondelez International and PepsiCo, two of the world’s largest snack-food manufacturers, to build a venture capital fund focused on healthy eating, desert farming and sustainable methods for feeding the earth’s population.

Horsky, 47, and his partner, Esther Barak-Landes, announced last week that they raised $50 million for their new Tel Aviv-based fund, Flora Ventures, and expect to attract another $30 million.

The fund will invest in so-called agrifood companies, Horsky said, with backing from the Harel Group, Israel’s fourth-largest insurer; Haifa Group, a maker of fertilizers and plant nutrition products; and Sadot Kibbutzim, a cooperative marketing organization representing 185 kibbutz farms. Flora is also in discussions with possible investors from Arab countries in the Gulf, he said.

“We specifically invest in companies that are in the agrifood value chain, always touching one of two parallel universes, either human health or planetary health,” Horsky told The Circuit.

“On the human health side, we’re looking at companies in areas such as sugar reduction, functional ingredients and food as medicine,” he said. “On the planetary health side, we’re interested in… sustainable packaging. regenerative agriculture…. and the whole movement of food security – how do we grow more with less and how are we more efficient with our water usage.”

Flora plans to invest $1 million to $4 million in promising startups, Horsky said. The fund recently made its first investment in Arrakis Bio, which is developing technology for the animal-free production of collagen – the primary component of skin, muscles, bones, tendons and ligaments – and gelatin, the basis for many food products.

After working as a marketing executive for the biscuit and chocolate divisions at Chicago-based Mondelez, the $100 billion snack food giant that owns Nabisco and Cadbury, Horsky was named senior director of the company’s venture arm, SnackFutures. It was there that he made an investment for Mondelez in Israel’s Torr FoodTech and focused on agricultural innovation.

Barak-Landes, an Israeli lawyer and veteran VC investor, was co-founder of Nielsen Innovate, the business incubator and investment arm of the New York company known for its media audience surveys.

“The downturn in the economy actually makes it a very good time to invest,” Horsky said. “The valuations are good so that you can really build great companies and we’ve seen in history that when there are tough economic conditions, that’s actually when you have the best vintages of startups pumping up the best performance for VCs.”

Horsky said Israel’s expertise in desert agriculture has attracted attention from investors in the Gulf, where the arid climate has made food security and farming technology a government priority, and led to a series of meetings on the possibility of investing with Flora.

TEL AVIV, Israel – An investment group led by Abu Dhabi’s government-owned ADQ fund called off a proposed deal to buy control of Phoenix Holdings, Israel’s biggest insurer, citing regulatory issues.

In a report to the Tel Aviv Stock Exchange early Sunday, Phoenix said the draft agreement it filed with the ADQ consortium in December was terminated. The deal was one of the largest between companies in the United Arab Emirates and Israel since the two countries normalized relations almost three years ago under the U.S.-backed Abraham Accords.

“The parties have come to a mutual understanding regarding termination of the term sheet… in light of the potential regulatory limitations that would have arisen from the acquisition of the controlling stake by the consortium resulting in potential restrictions for several members of the consortium to undertake additional material investments in Israel,” the Phoenix statement said.

ADQ, the third-largest Abu Dhabi sovereign wealth fund with close to $160 billion in assets under management, offered as much as $675 million for a stake of 25-30% in Phoenix in negotiations with the Israeli company’s controlling U.S. shareholders, Centerbridge Partners and Gallatin Point Capital.

The UAE and Israel signed a free-trade agreement last year that the two countries predict will generate $10 billion in annual bilateral economic activity by 2026. Mubadala, another Abu Dhabi sovereign wealth fund, bought a 22% stake in an offshore Israeli natural gas field two years ago for $1.1 billion.

Abu Dhabi’s G42, a government-owned defense and technology company, launched joint firm last month with Viola Ventures, Israel’s largest private investor in tech firms, aiming to provide computer engineers and other skilled employees to businesses around the world.

While the Abraham Accords, which also included Bahrain, Morocco and Sudan, generated excitement for a new era of Middle East trade – bringing some half a million Israelis to visit the UAE for tourism and exploration of business opportunities – some of the enthusiasm has cooled.

UAE officials have said they are committed for the long term to normalization with Israel, even as the government has publicly criticized Israel’s handling of clashes with the Palestinians. Most recently, the UAE condemned the entry of Israeli forces into Jenin last month, the biggest West Bank military operation in 20 years, in which 12 Palestinians and an Israeli were killed.