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Prior to the Abrahamic Accords, official relations between Israel and its partners in the UAE, Morocco, Bahrain and Sudan were minimal or non-existent. Official trade between Israel and Morocco was very low. Ditto for the trade flows which were almost zero. To further boost them, businesspeople are increasing their number of business meetings.
The electrocardiogram of trade and investments, between Morocco and Israel, records more and more beats. This is evidenced by the current establishment in Morocco of one of the Israeli world leaders in telemedicine. However, it is not only tourism and crafts to boost between Morocco and Israel. Many other sectors deserve to be further highlighted in order to develop trade and diversify flows on the Rabat-Tel Aviv axis.
“Our goal is to capitalize on the enormous commercial potential that abounds in both countries. Several sectors need to be boosted: digital health and medical equipment, water technologies, agro-technology and agri-food, communication and financial technologies, chemicals, tourism, infrastructure, automotive, textiles, aerospace and renewable and green energies ”, underlines Noa Partuk, head of the Israeli Ministry of Economy and Industry, in charge of the Middle East and Africa region, on Tuesday October 26, during the webinar on business and investment opportunities in Israel, hosted by CGEM and the Israeli Employers and Business Organization (IEBO).
Objective: to present the commercial and investment potential available to Moroccan companies in Israel. The conference confirms the interest of Moroccan economic operators, of all sizes and sectors, in strengthening business relations between the two countries. It must be said that trade flows between the two countries were almost zero at the start of 2021, with a flat electrocardiogram. By way of illustration, aircraft and related parts, which represent the bulk of Moroccan product exports to Israel (68%), amounted to only US $ 8.2 million, or MAD 75.2 million, which is very weak. The parties are unanimous: all the conditions are in place to raise the economic and trade relations between Morocco and Israel to the rank of a solid, lasting partnership that brings shared growth.
Considering the cultural proximity between the two countries, the complementarities and similarities between the two economies, as well as the transformation that they have undergone in recent years, there are many opportunities to be seized. “Beyond the bilateral, Moroccan-Israeli economic cooperation can be part of a multilateral approach, in order to enter together new markets where each of our countries is present and competitive,” says Steve O’hana, President of the Council of Morocco-Israel affairs. To achieve these ambitions, CGEM and IEBO signed a strategic partnership agreement last March, marking the creation of the Morocco-Israel Business Council. This body aims to be a support platform and concrete support for the success of investment projects and joint ventures.
What you need to know to do business
Following the presentation of business opportunities in Israel, Moroccan operators have expressed great interest in the possible reopening of specialized fairs, especially those relating to the fields of medical equipment, and medical laboratories. On the subject, the organizers invite Moroccan operators to get in touch with the Israeli embassy in Rabat. “Since we are in the post-Covid period, trade shows are starting to pick up.
From November 1, Israel will be more open to tourists ”. Ditto for the opportunities for contacts with Israeli legal and advisory offices. Regarding customs duties, the organizers explain that “since there is no free trade agreement between the two countries for the moment, the duties applied to products imported from and others are standard ”. Asked what to expect from the agreements to be signed between the two countries, Noa Partuk, head of the Israeli Ministry of Economy and Industry in charge of the Middle East and Africa region, indicates that the two parties “work together for an agreement”. Will there be tax agreements to avoid, in particular, double taxation? “This will certainly be part of the agreements which are being prepared”, reply the organizers.
Understanding Israeli corporate culture
Going to conquer in a country where you do not master the culture, and often not the language, in order to do business, requires cultural knowledge but also professional practices that cannot only go through an interpreter. Hence the importance of having a clear idea of the corporate culture of the target country. According to a country profile on business practices published by the BNP Paribas group, “the corporate culture in Israel is diverse. However, Israelis are generally straightforward, assertive, motivated and ambitious… The management style in the country is mostly collaborative. Hierarchies are defined but not always strictly respected ”.
For his part, Noa Partuk points out that Israelis are “enthusiastic and welcoming, informal in the sense that everyone is seen as part of the family, creative and sophisticated. They also like to think outside the box, are engaged, direct and open ”. Our designs are always imbued with our own culture and the Moroccan investor must integrate these parameters to overcome his prejudices and understand his Israeli interlocutor. In the business world, nothing can be improvised and every businessman must, above all, set aside preconceived ideas. The small downside was the presentation, on the Israeli side, of the old map of Morocco making a demarcation with Western Sahara. Mistake that the Israelis promised to correct. For their part, the integration of this parameter will also contribute to a better knowledge of the Moroccan part.
Modeste Kouamé / ECO Inspirations
