Investor beware: Israelis face unique risks in the UAE

The rules are rigged – what's earned in the UAE is likely to stay in the UAE – and the more successful you are, the higher the risk

In the old story from the Arabian Nights, Ali Baba discovers a cave full of stolen treasure which can only be accessed by uttering a magic phrase. One needs the magic phrase to exit the cave as well, but, as the story goes, in the throes of greed and excitement over the treasures, people are prone to forget it, and they end up getting killed by the thieves.

Israelis might want to bear this story in mind as the United Arab Emirates opens up to them with the magic words of the Abraham Accords. From an investor’s point of view, it is indeed a treasure trove of opportunity, immense wealth, and untapped potential. Like the character in the fable, however, many foreign investors become heady with the often-easy success they achieve in Dubai. They forget that they are in a highly dangerous place where exits can abruptly close, and they can find themselves trapped.