Israel

Investing

FDI in figures

Foreign investments in Israel represent 10 billion in 2007 against 14 billion in 2006 and 5 billion in 2005. The investment system is liberal and most of the activities are open to private national and foreign investors.

Foreign Direct Investment	2004	2005	2006
FDI of inward flow (millions USD)	2,040	4,792	14,301
FDI inward stock (millions USD)	n.c.	n.c.	47,469.0
Performance Index*, world ranking	88	69	42
Potential Index**, world ranking	26	26	n.c.
Number of Greenfield investments	17	24	35
FDI inwards (in % of GFCF)	9.9	22.5	58.9
FDI stock (in % of GDP)	n.c.	n.c.	33.8

Source: UNCTAD, World Investment Report

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.

Why you should choose Israel

Strong points

Israel is a country which invests the most in the world in research and development (4.8% of the GDP). The country has a highly qualified manpower, particularly in engineering. The country is placed 2nd in world ranking concerning availability of risk-capital. The government provides necessary support to the entrepreneurs.

Weak points

Corporate tax is relatively high. The State of Israel has a hugh public debt. Manpower costs are higher than Asian or East European countries.

Government measures to motivate or restrict FDI

Foreign investments are given incentives in Israel through the recently revised law encouraging investment. The new law differs from the first by the addition of a program of financial incentives.

Pour plus d’informations, consulter le site de l'Agence de promotion des investissements (Invest in Israel).

Bilateral investment conventions signed by Israel

Israel has signed bilateral agreements with 37 countries.
To see the list of the countriesclick here.
To view the agreements, click here.

Administrative 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