FDI in figures

Foreign direct investment flow has greatly slowed down in 2008 to reach USD 3.2 billion (as opposed to USD 7.5 billion in 2007). This significant drop can be explained in the context of the global economy and especially the American economy, as Israeli start-ups are very dependent on the situation on the other side of the Atlantic. Despite this, the Israeli economy can be considered as having absorbed the shock, thanks to its pro-active industrial policy and to the country's solid economic foundations. The investment system is liberal and most of the activities are open to private investors, national and foreign .
Israel's appeal is its research and development activities, and a multilingual skilled workforce. Its main weakness is its 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.

Competent organization for the declaration

Requests for specific authorizations

Finding assistance for further information

Investment aid agency

Ministry of Industry and Trade
Israel's Investment Promotion Center

Other useful resources

Business Opportunities of the Ministry of Foreign Affairs