Israel: Investing

FDI in Figures

The investment system in Israel is liberal and most of the activities are open to private national and foreign investors.  According to a report of the Bank of Israel, the flow of foreign direct investment (FDI) into Israel totaled USD 3.7 billion in 2009, which means a decrease of more than 50% in two years, and they have remained weak in 2010. This strong decline can be explained by the context of the global economy and most of all, the American economy because Israeli start-ups depend very much on the situation of the other side of the Atlantic. Nevertheless, Israel benefits from these assets: a strong R&D activity and a high-skilled and multilingual workforce. However,  the country suffers from a particularly unstable geopolitical environment.

Why You Should Choose to Invest in Israel

Strong Points

Israel is the country which invests the most  in research and development (4.8% of the GDP) in the world. The country has a highly qualified manpower, particularly in engineering. The country is ranked 2^nd place in world, with regard to availability of venture capital. The government provides the necessary support to entrepreneurs.

Weak Points

Corporate tax is relatively high. The State of Israel has a significant public debt. Manpower costs are higher than Asian or East European countries. Lastly, Israel suffers from great geopolitical instability due to the political environment of the region.

Government Measures to Motivate or Restrict FDI

Foreign investment incentives, to encourage investment in Israel, are given through the recently revised law. The new law differs from the first one by the addition of a financial incentives plan.
For further information consult Invest in Israel.

Bilateral Investment Conventions Signed By Israel

Israel has signed bilateral agreements with 37 countries.
To see the list of the countries click here.
To view the agreements, click here.

Procedures Relative to Foreign Investment

Freedom of Establishment

There are no restrictions on foreign investments except in the industry sectors of defence and telecommunications.

Acquisition of Holdings

Any settlement concerning mergers and acquisitions or takeovers which differ from these that Israelis should follow .

Obligation to Declare

Investment in Israel in neither subjected to authorisation nor registration except if the company wants to gain from certain advantages.

Investment Opportunities

Investment Aid Agency

Ministry of Industry and Trade
Israel's Investment Promotion Center

Tenders, Projects and Public Procurement

Israeli Government, Tenders
Tenders Info, Tenders in Israel
DgMarket, Tenders Worldwide

Other Useful Resources

Business Opportunities of the Ministry of Foreign Affairs

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