With bilateral trade between the UK and Israel expected to reach £3 billion by 2015, Israel says UK Trade and Investment (UKTI) is a, “remarkable success story for British exporters.” Israel, an Associate Member of the European Union, with a small population of around 7.5 million people, has developed a strong entrepreneurial spirit, which allows innovative ideas to develop, making the country a “technology powerhouse.”
Israel Leads the World in Patents per Capita
With such a vibrant business culture it should come as no surprise that Israel is in first place in the world in terms of patents per capita and fourth in terms of patents approved. “Add this to its high tech capabilities, and Israel can be seen as the land of opportunity. In traditional trading sectors such as healthcare, transport, agriculture, etc there are many good opportunities for UK business.”
Investment in Israel - Google, Microsoft and Motorola
Israel also has a high number of business start-ups coupled with the added value of a number of the world’s largest companies, Google, Microsoft and Motorola for example, which have their research and development facilities in the country. The Israeli government has also played its part, having overseen the transfer of a number of state owned industries into private ownership.
UKTI has flagged up a number of further positive reasons for UK investment in Israel:
- A free trade agreement between the EU and Israel
- Israel’s commercial law is rooted in English law
- The Israeli business community is familiar with UK business practice.
In addition, there is only a two-hour difference in time zones.
The World Bank View Doing Business in Israel
In the World Bank, Ease of Doing Business Index, Israel is ranked (2011) at number 29 out of 183 countries. Leading the rankings is Singapore with the United Kingdom at number 4, United States at number 5 and Canada number 7.
These rankings are calculated using a number of indicators, which include:
- Starting a Business
- Dealing with Construction Permits
- Registering Property
- Getting Credit
- Protecting Investors
- Paying Taxes
- Trading Across Borders
- Enforcing Contracts
- Closing a Business.
A closer examination of this data clearly indicates that the Israeli government has improvements to make in certain areas, most notably: Dealing with Construction Permits and Registering Property.
This detail, while providing an overview of the current exporting environment in Israel, is only the tip of the iceberg in terms of essential statistical information. The World Bank provides an in-depth analysis of the Israeli economy as does the Organisation for Economic Co-operation and Development (OECD) and the World Trade organisation (WTO) which reminds us that, “Israel, a small country with few natural resources is highly dependent on its foreign trade…”
As part of the package offered by UKTI to British companies a number of sector specific reports are available. They include:
- Healthcare Sector in Israel
- Software Sector in Israel
- Biotechnology Sector in Israel
- Environment Sector in Israel
- Overseas Business Risk - Israel.
Security in Israel
While UKTI paints a generally rosy picture of business opportunities in Israel it also adds a necessary note of caution. It says, “despite the strong underlying economy, the long-term outlook remains heavily dependent on developments in the conflict with the Palestinians and on political and security developments in the region.”
Sources:
World Bank, Ease of Doing Business in Israel, site accessed 6 September 2011
OECD Library, Country Statistical Profile: Israel, site accessed 6 September 2011
UKTI, Doing Business in Israel, site accessed 6 September 2011
