Liquidity CEO Ron Daniel says UAE operations remain resilient despite war risks, as Israeli firms expand after Abraham Accords normalization
Following the Abraham Accords, which normalized diplomatic relations between Israel and several Arab countries in 2020, more than 600 Israeli companies have begun operating in the United Arab Emirates (UAE). Among them: Liquidity, an AI-driven fintech direct lender that manages a multi-billion-dollar portfolio.
Liquidity’s largest office is now in Abu Dhabi, and its second largest in Tel Aviv. Liquidity CEO Ron Daniel spoke with Global Finance about the latest regional developments amid US and Israeli strikes on Iran.
Global Finance: How are you handling the situation?
Ron Daniel: Well, I have many people on the ground in the UAE and many people in Tel Aviv. In total, that’s more than half of my employees who are in a war zone right now. We are dealing with the situation daily. We continue business, but in both locations, a lot of work is done from home. Our first concern is the safety of our people. If someone wants to relocate to their home country, or outside the main cities, we finance that, but most of the team has been quite resilient.
From the UAE, only a few of our employees went back to their country of origin. Our office is open in Abu Dhabi, but most of our staff chose to work from home. We empower our staff to make the decisions that are right for them and their families. The company is functioning as normal; it’s a bit of a stressful time, but we hope it will end soon.
GF: Iran targeted the US-Israeli interests in the region. How is that affecting Liquidity?
Daniel: Yes, just before the war started, Iranian hackers published a direct threat through Telegram to Israeli companies. That meant we had to take additional measures. We contracted a private security company to ensure our office is safe and secure. Our employees are also able to contact them directly and receive advice for any security-related concerns. Thankfully, we’ve never had to use it because the Emirate authorities have been doing a good job in providing clear information and strong security.
GF: How have attacks on data centers in Bahrain and the UAE affected your business?
Daniel: The situation actually doesn’t affect our business, because our business is global, with multi-billion-dollar assets under management and capital deployed in over 45 verticals across 35 countries. Our research and development centers in Abu Dhabi are unaffected. I believe the UAE remains a very good location for data centers because it has affordable energy and ample land and I don’t see the security issue as a long-term threat. The UAE have intercepted most of the incoming drones and missiles. The region is, in my opinion, still a very good destination for investment.
GF: A big selling point for the UAE has always been its status as a safe haven for investment. Is that still true?
Daniel: I still think it’s a safe haven. If you look at the world, there really isn’t a 100% safe haven. Some investors have left the region, and I think it’s a mistake. It shows a lack of understanding of this region’s strategic advantage. At Liquidity, we don’t do politics. We do business, and as a business, the UAE has been and will remain a very significant hub for us. It sits between East and West, and geopolitically, they are OK with everyone, which is good for business. The security situation is a bit challenging, of course, but I believe it is temporary and will resolve itself relatively quickly. I chose to be in the UAE back in 2020 because it was a strategic location for us, and the current situation doesn’t change anything for me.
GF: You have been a strong advocate of normalization of relations between Israel and the UAE since 2020 – how do you see things evolving?
Daniel: I believe the region is heading towards a brighter future in the long run. I think, taking the fundamentals into account, it is a place that’s good for business and good for people. Overall, the situation doesn’t affect my feelings about the normalization process.