Sunday, September 27th | 9 Tishri 5781

Subscribe
September 9, 2020 8:38 am

Israel’s Hapoalim Expects UAE Bank Ties to Follow Normalization

avatar by Reuters and Algemeiner Staff

A woman uses an automated teller machine (ATM), outside a Bank Hapoalim branch in Tel Aviv, Israel, May 30, 2013. Photo: Reuters / Nir Elias / File.

Israel’s largest lender Bank Hapoalim expects to start working with banks in the United Arab Emirates once the two Middle East states sign a normalization agreement, its chief executive said on Wednesday.

The UAE and Israel are due to sign the agreement, brokered by the United States, on Sept. 15 at a ceremony held by US President Donald Trump.

The three sides have talked up the economic opportunities that normalization would bring and several business cooperation agreements have already been signed.

Hapoalim CEO Dov Kotler said a correspondent banking relationship facilitating direct money transfers between the countries would help develop trade and business ties.

Related coverage

September 27, 2020 9:49 am
0

Israelis Brace for Stringent Holiday Lockdown as Daily Tally of Corona Cases Exceeds 7,500

JNS.org - Israelis braced for a strict nationwide lockdown imposed by the government on Friday in an attempt to curb...

“I believe that after the governments sign the agreement next week we will be able to work with the banking system here,” he told Reuters during a visit to the UAE.

In correspondent banking, a bank with no branch or network in a given country will typically channel payments there through a local bank that acts on its behalf.

Kotler is leading an Israeli business delegation on a two-day visit to the UAE as the two countries develop bilateral economic relations.

“We are here to build trust before talking business. In order to build trust, I believe we have to meet face to face and that is what we are doing,” he said.

Israel and the UAE on Aug. 13 agreed to normalize relations, making the UAE the first Gulf country and the third Arab state to do so when a final accord is signed.

Kotler said he believed Hapoalim would establish relationships with the three largest lenders in the UAE, though declined to name the banks.

The UAE’s largest lender First Abu Dhabi Bank has said it would open discussions with Hapoalim and Bank Leumi, another Israeli bank.

Bank Leumi is to lead a delegation to the UAE on Sept. 14.

Emirates BND, Dubai’s largest bank, declined to comment on the visit of Hapoalim this week.

Share this Story: Share On Facebook Share On Twitter

Let your voice be heard!

Join the Algemeiner

Algemeiner.com

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.