Israel
Entering the Market in Israel
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Israel Entering The Market
Formed in 1948, Israel is a comparative youngster on the world stage. Although the Middle Eastern Jewish state has had a somewhat contentious time since its conception (to put it mildly), its resolute people have built a successful economy and Tel Aviv is a buzzing and modern city that recently celebrated its 50th Anniversary. The home of Jerusalem and Galilee, despite its rich history, Israel is not a place that is satisfied with just languishing in its past. With an insatiable appetite for technology and scientific advancement, its eyes are firmly focused on its future. Arguably one of the most westernized economic structures in the Middle East, Israel is the UKs third biggest export market.
Why Expand to Israel?
With Israeli business law based on the British system and no language barriers, Israel is a place where UK businesses are openly welcomed, with goods receiving a warm reception. Although quite a small country, the Israeli economy is successful and has seen growth in excess of 5% over the last three years. Israel is known for its relationship with high tech industries, even earning itself the nickname of Silicon Wadi on account the presence of blue chip companies in its economy. With an open and liberal FDI (Foreign Direct Investment) regime, incentives such as tax breaks, setting up a business in Israel can be a highly profitable move. The country also enjoys a free trade relationship with the EU.
Business Opportunities
Science and Technology - With Israel investing a whopping 4.6% of its GDP in R&D (Research and Development), a commitment to technology has seen it emerge as tenth in the world for venture capital investment, illustrating the pioneering nature of Israeli enterprise. The state has attracted names such as Intel and IBM to its high tech economy and is building a strong reputation in the field. The GDP budget and the fact that 50% of Israels exports are now in the technology sector, indicates the importance that the Israelis place on this market. Israel also boasts a highly educated and talented workforce in this sector.
Life Services and Healthcare - As with technology, Israel is committed to developing its pioneering healthcare and life services industry. With companies such as GE Healthcare attracted by the governments commitment to growing the sector and the high caliber of its workforce, Israel offers a cost effective way of pursuing cutting edge development.
Challenges Foreign Companies Face
Security is still an everyday consideration for Israelis. With the state having been involved in four wars since 1948 and subjected to terrorist attacks, suitable precautions need to be taken and there is a strong security presence throughout the country. There are also small social differences which businesses should be aware of when setting up a business in Israel, such as the Israelis relaxed attitude to timekeeping.
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