COUNTRY PROFILES
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IsraelCapital Currency Population EU status GDP Employment Government type Religions Languages Exports Imports |
COUNTRY PROFILE
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Israel |
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The State of Israel is a small country, about the size of Belgium or the state of New Jersey. Located on the eastern shore of the Mediterranean Sea, Israel is at the crossroads of Europe, Asia and Africa, and maintains important political and economic ties with North America and Europe. It is bordered by Lebanon to the north, Syria and Jordan to the east, Egypt to the south and the Palestinian Authority’s Gaza Strip to the southwest. Although Jersusalem is the capital city, the business and financial centre is in Tel Aviv, which also hosts most international embassies.
Hebrew and Arabic are the two official languages of Israel. English is the principal international language and is taught in nearly every school. English is widely spoken in the business community and in government offices. Although located in the Middle East, Israel is culturally a European country with a secular democratic government and a legal system based on Anglo- American traditions. Since its foundation in 1948, Israel has absorbed 3.2 million new immigrants. Israel leads the Middle East region in gross domestic product, per-capita income, high-tech industry, technology transfer and telecommunications.
Encouraging international investment
The Israeli business scene is heavily based on international commercial activity. The Israeli government makes a strong effort to encourage foreign investment and trade, including generous tax exemptions for new immigrants and foreign investors, including tax holidays of up to 10 years. Israel has a modern banking system, an educated population and laws aimed at attracting foreign investors. It has signed free trade agreements with the US and with the EU.
Technically advanced economy
Israel has a technologically advanced market economy with a highly skilled and well-educated workforce. The United States is Israel’s largest trading partner. A recognized leader in hightech industries, Israel’s investment in research and development is higher than any single OECD country. In fact, after the United States and Canada, Israel has the most companies listed on the NASDAQ. High-technology projects: telecommunications, computer-aided design and manufactures, medical electronics and fibre optics.
Promoting R&D
There is particularly strong support for the R&D sector, with conditional grants amounting to 50% of the approved R&D budget and grants for foreign companies sub-contracting R&D work in Israel. In addition, there are a number of binational funds such as the Israel– US Binational Industrial Research and Development (BIRD) foundation (www. birdf.com) that provide up to 50% of the R&D costs for joint R&D projects. About 60 companies have R&D centres in Israel, including Intel, IBM, Microsoft, Motorola, Cisco Systems, National Semiconductor.
Agriculture
Israel also has a strong agricultural sector. Israel imports substantial quantities of grain, but is largely self-sufficient in other agricultural products, such as citrus, vegetables, and cotton. Beef, poultry and dairy, cut diamonds, hightechnology equipment, and agricultural products (fruits and vegetables) are the leading exports.
Supportive business environment
Israel’s supportive business environment includes:
- A large volume of high-tech and science-based industry;
- Highly educated workforce and multilingual population;
- World-renowned research and educational institutions;
- Worldwide taxation and customs treaties;
- Protection of trademarks, patents and intellectual property of all kinds;
- Comprehensive legal protection of foreign companies;
- State-of-the-art telecommunications;
- A highly advanced banking and financial sector.
Facts in brief
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Israel’s location is in the Middle East, bordering the Mediterranean Sea, between Egypt and Lebanon. Sea of Galilee is an important freshwater source
Its climate is temperate: hot and dry in southern and eastern desert areas
Natural resources include timber, potash, copper ore, natural gas, phosphate rock, magnesium bromide, clays, sand
Agricultural products are citrus, vegetables, cotton, beef, poultry, dairy products
Industries include high-technology projects (including aviation, communications, computer-aided design and manufactures, medical electronics, fiber optics), wood and paper products, potash and phosphates, food, beverages, and tobacco, caustic soda, cement, construction, metals products, chemical products, plastics, diamond cutting, textiles, footwear
Diplomatic representation in the US — Chief of mission: Ambassador Daniel Ayalon
Diplomatic representation from the US — Chief of mission: Ambassador Richard H Jones
Contact Information
Israel-America Chamber
of Commerce and
Industry
35 Shaul Hamelech
Boulevard
Tel Aviv 61333
Israel
Tel: + 972 3695 2341
E-mail: amcham@amcham.co.il
Website: www.amcham.co.il
Useful websites
| www.israelfm.org | Israeli Consulate in New York |
| www.investinisrael.gov.il | Financial and economic advice |
| www.moit.gov.il | Ministry of Industry, Trade and Labor |
| www.export.gov.il/eng | Export & International Co-operation Institute |
| www.goisrael.com | Tourist advice |