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In this page: FDI in Figures | Why You Should Choose to Invest in Israel | Procedures Relative to Foreign Investment | Investment Opportunities


FDI in Figures

The investment system in Israel is liberal and most of the activities are open to private national and foreign investors.  After a marked slowdown in 2009-2010 as an effect of the global economic crisis and especially the difficulties of the American economy (Israeli start-ups are highly dependent on the U.S. conjecture), FDIs recovered since 2011 and have been going stronger since. In 2013, FDI influx rose by 48% compared to 2012. Israel benefits from a number of assets: a strong R&D activity and a high-skilled and multilingual workforce. However,  the country suffers from a particularly unstable geopolitical environment.


Country Comparison For the Protection of Investors

  Israel Middle East & North Africa United States Germany
Index of Transaction Transparency* 7.0 6.0 7.0 5.0
Index of Manager’s Responsibility** 9.0 5.0 9.0 5.0
Index of Shareholders’ Power*** 4.0 9.0 5.0
Index of Investor Protection**** 8.3 5.0 8.3 5.0

Source: Doing Business - Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment 201120122013
FDI Inward Flow (million USD) 10,7669,48111,804
FDI Stock (million USD) 65,01474,40388,179
Performance Index*, Ranking on 181 Economies 33--
Potential Index**, Ranking on 177 Economies 66--
Number of Greenfield Investments*** 392631
FDI Inwards (in % of GFCF****) 23.620.621.2
FDI Stock (in % of GDP) 26.730.930.2

Source: UNCTAD - Last Available Data.

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

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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 2nd 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.

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Procedures Relative to Foreign Investment

Freedom of Establishment
There are no restrictions on foreign investments except in the industry sectors of defense 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 authorization nor registration except if the company wants to gain from certain advantages.

Learn more about Foreign Investment in Israel on, the Directory for International Trade Service Providers.

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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 information of the Ministry of Foreign Affairs

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Learn more about Investing in Israel on, the Directory for International Trade Service Providers.

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Last Updates: December 2014