Rabat – Since Morocco and Israel re-established ties in December 2020, advancing diplomatic and economic relations between the two countries has taken an innovative turn, with a renewed focus on technological collaboration.
The recent strides made to strengthen the ties between these two nations have found a compelling advocate in Israeli entrepreneur Erel Margalit, Founder and Executive Chairman of venture capital firm Jerusalem Venture Partners (JVP) and Margalit Startup City.
With a commitment to fostering cross-border partnerships and a visionary approach to global innovation, Margalit spoke with Morocco World News to highlight the potential that lies within the blossoming relationship.
He notably spoke about the summit that JVP recently held in Jerusalem between Moroccan and Israeli entrepreneurs.
Titled “From Jerusalem to Casablanca,” the event served as a catalyst for cross-cultural connections and the reinforcement of bilateral ties between the two countries, especially in the tech sector.
Margalit shared his motivations and visions for this endeavor, which he said promises to reshape the Mediterranean’s innovation landscape.
His inspiration for hosting the summit stemmed from the profound encounters he had during his visits to Morocco. He spoke passionately about meeting not only ministers and industry leaders but also the younger generation of Moroccan entrepreneurs.
Morocco, a gateway to Africa
Margalit was especially “impressed by the entrepreneurial spirit” he witnessed at the technology park in Casablanca, where he encountered the woman in charge of managing the park. He captured this sentiment with a memorable quote, “One of the most moving things in Morocco is not only meeting ministers and important people and heads of companies, but the younger people.”
Moroccan startups stood out to Margalit as entities looking beyond their national borders. He observed that many startups were positioning themselves not just as Moroccan enterprises but as gateways to Africa.
This resonated deeply with his belief in the transformative power of innovation and collaboration, exemplified by Moroccan entrepreneurs looking to connect to different African countries, such as Nigeria and Kenya.
The Israeli entrepreneur highlighted his admiration for their foresight, stating, “I was very impressed. So when there was a chance to host entrepreneurs from Morocco, to me, it was a great chance, especially women entrepreneurs.”
Margalit’s affinity for innovation goes beyond business, as it is rooted in connecting different communities. He underlined how Jerusalem, with its blend of Jewish and Arab populations, inspired his company’s endeavors. Jerusalem became a microcosm of his aspirations to bridge divides.
“For us, Jerusalem is a diverse city … it’s a city that has both Jews and Arabs. It’s a city where innovation for us was not only about business, but it was also about connecting the different parts of the city,” he said.
The cultural and historical ties between Israel and Morocco underscored Margalit’s commitment to collaboration, as he highlighted the importance of cultural foundations when building business relationships.
New chapter for Mediterranean region
The Mediterranean connection became a focal point, serving as the bedrock for bilateral innovation. Margalit shared his perspective on this connection, saying, “In Israel, there are so many people from Morocco, people who view Morocco as the main place which they came from … It’s very important when you build a business relationship that it’s a foundation of culture.”
He articulated a broader perspective on the changing dynamics in the Middle East, particularly concerning business collaborations, noting the shift from diplomatic relationships to substantive business engagements.
He emphasized that collaborations extended beyond Israel and Morocco, encompassing nations across the Mediterranean and the Middle East. Yet, he highlighted Morocco as a “great gateway to the region.”
Margalit believed that the shared cultural history between the two countries provided a unique foundation for collaborative dialogue that could transcend political barriers. “So I see Israel and Morocco leading because of the cultural connection, leading the dialogue, which is a cultural but also a business dialogue,” he said.
The Israeli entrepreneur emphasized that young people across the Mediterranean are eagerly awaiting opportunities for collaboration, new projects, and meaningful employment.
He underscored that education and ambition were abundant, yet often underutilized due to a lack of opportunities. “The region needs a new chapter… Young people are waiting for cooperation, new ideas, new projects, they want jobs, they want to make a living, they are educated and sometimes they get an education and they don’t work in a job which can use all their talents,” he explained.
A Morocco-based center of excellence?
Margalit’s vision for fostering collaboration is grounded in the concept of centers of excellence. Focused on various themes such as food tech, ag tech, and cyber, they serve as hubs for cooperation among different companies.
These centers, including the AI & Media Center in Jerusalem, the Cyber Center in Beer Sheva, and the Digital Health Center in Haifa, harness the region’s assets to bring together an ecosystem of startups, universities, corporations, and government entities.
His unique approach integrates businesses with policy-making entities and governmental bodies, creating a win-win scenario. He emphasized, “I think that the best way to go is win-win… you create a sort of a bridge between a group of companies.”
He explained the importance of leading by example and showcasing the grand potential of companies and sectors.
Margalit’s embrace of the transformative potential of dialogue was not just theoretical; it was rooted in action, he indicated. He spoke about taking a cohort of companies during his travels, bridging connections between various entities.
“I think that when you don’t have to work alone as a company, you can work with a group of people that are cooperating… That’s some of my roles … I travel with 10 or 20 companies, and so people are finding different connections,” he explained.
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Margalit’s approach extends beyond Israel’s borders, with the establishment of the International Cyber-ClimateTech Center in New York in 2019. The center houses over 38 scaling companies in diverse sectors, including Fintech, Insurtech, Cyber, AI, and Healthcare IT.
In this respect, Margalit discussed the potential expansion of centers of excellence into Morocco, envisioning them as collaborative spaces that would unite entrepreneurs from both countries.
“We, JVP and Margarita Startup City, hope to create a center of excellence in a beautiful place in Rabat or in Casablanca where there’s cooperation between young entrepreneurs on both sides,” he said.
He illustrated his point with examples of thriving partnerships in fintech, Insurtech, and other sectors between Israel and Morocco. His emphasis on practicality and examples illustrated his belief in leading by action.
In addition, Margalit saw opportunities beyond traditional tech sectors, including healthcare and medicine. He recognized the strides made by Morocco in delivering high-level medical services to the community, a realm where Israeli expertise could also make a significant impact.
