- What is the current business climate in your jurisdiction, including major political, economic and/or legal activities on the horizon in your country that could have a big impact on businesses?
Business is booming like in so many parts of the world. Politically, Israel is celebrating one year since the Abraham Accords – peace with the UAE and Bahrain followed by Morocco. This opens up the chance for new regional cooperation. There have already been many transactions with companies in the UAE, and many more are expected. Israel, as the start-up nation, continues to attract a disproportionate amount of foreign investment while many Israeli companies are becoming unicorns. The Tel Aviv Stock Exchange has had a wave of public offerings. We anticipate a continuation of similar activity going forward.
- From what countries do you see the most inbound investment? What about outbound?
The United States continues to have the strongest impact on inbound investments in Israel, though there are also investments from Europe and Asia. In addition, there have been several prominent Chinese investments in the Israeli economy. Investments by other countries in Asia (Japan, Korea) have been smaller but numerous. Regarding outbound investments, real estate has been a traditional field of interest.
- In what industries/sectors are you seeing the most opportunity for foreign investment?
Cybersecurity continues to lead the charts on investments.
- What advantages and pitfalls should others know about doing business in your country?
There are so many fields of business ripe for investments and acquisitions. The legal environment is easy and flexible, with tax benefits for certain physical areas of investment. Certain areas are regulated, but those are industries where investors will expect regulation and will not be subject to negative treatment.
- What is one cultural fact or custom about your country that others should know when doing business there?
The Israeli culture is direct; entrepreneurs are abundant and their innovative spirit means they don't take anything as set in stone. They will negotiate more than expected, but the talent pool will make it all worth it.
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