Israel’s arid economy, and a drizzle of hope.
The only question is, why didn’t we do this earlier?UAE Minister of Economy Abdulla bin Touq al Marri
A few days on from the dramatic pace accords in Washington, and parts of the Israeli government are still trying to reap the benefits of the agreements with UAE and Bahrain, with maybe others to follow. After all, there is precious little else to celebrate.
The list of woes is long, but they start from the fact that the domestic Covid-19 stats look awful and get worse daily. The infection rate is on the rise. 24 hours after the new lockdown (which is not a lockdown) measures were announced, nearly 42,000 unfortunates joined the ranks of the unemployed. Rows of shops in town centres lie disused. Government financial support is full of words, but few understand how to implement the announcements.
There is a theory that the hightech sector will act as a knight in shining armour and save the economy. Yes, money is still being raised. As I walk past the Intel fab in Jerusalem, I can see every day a major piece of building. And also in the Holy City, the JVP Media Quarter was relaunched as ‘Margalit Startup City’, intended that it will grow into a worldwide innovation quarter for startups, multinationals, and investors.
However, I place my hopes on the Gulf States wanting to send their petrodollars to the Holy Land.
- The hotel and property corp Al Habtoor is to open offices in Tel Aviv.
- A number of joint investment funds between the two countries are already being penned.
- A Dubai-based group is already considering making a bid for the ownership of the Port of Haifa
- And so the list goes on.
My point is as follows. Although it will not be immediate, this is new trade and money. The effects will soon slip into the Israeli economy and assumedly down to the ‘ man on the street’. Something for the central planners to hope for as their own ideas run out of steam in the most pathetic of manners.