Israel

ISRAEL Snapshot:

• Israel or as it is sometimes referred to the new Silicon Valley is one of the high-tech innovation centers of the world. The 13% of the GDP comes from the high-tech industry and over 300 multinational company established R&I centers in Israel.
• Following the pandemic induced downturn in 2020 the real GDP growth reached 8.19% in 2021. (IMF).
• The share of services in the total Israeli export is 47% according to data from 2020. Business Services has 38% share in the total export. With this Israel ranks third in similar statistics of OECD countries.
• In 2022 Israeli adopted a renewable energy roadmap that aims to realize 40% share of renewables in the total power supply by 2030.
• By 2030 solar energy shell increase by 20 gigawatts with cc. 5.5 gigawatts of storage power.
• Israel is a signatory to the WTO Agreement on Government Procurement 2012. Government entities and state-owned companies procure goods or services through tendering. However, there are several domestic regulations that provide advantages for local suppliers such as the “Preference for Israeli Products” and the “Mandatory Industrial Cooperation” regulations.
• “Mandatory Industrial Cooperation” is part of the international tender documents with value exceeding $5,000,000 and it requires offset agreements from foreign suppliers with 35% or 20% for WTO GPA signatory countries, or at least 50% of the contract value, in the civil or security fields, respectively. Industrial cooperation can include local subcontracting, procurement of Israeli goods/services, cooperation in R&D, technology transfer, investment or assistance for an Israeli industrialist or exporter abroad.

Why Israel?

• Israel is a young and dynamic population with strong entrepreneurial mindset.
• The innovation and entrepreneurship driven economy provides highly profitable business opportunities. With the population of 9.2 million and cc. 9000 start-ups Israel has the highest concentration of leading businesses.
• Israeli companies attract significant investment, cc. (US$8.3 million in 2019) out which 70% comes from foreign investors.
• The Israeli workforce is highly skilled and educated. In Israel 50% of people between the age of 25 and 69 completed higher education that is well beyond the OECD average of 38%.