Companies, countries, and individuals who are interested in
doing business abroad are looking more and more towards Israel.
This has not occurred by accident. Israel has devised and
implemented national policies to make it a world leader in
technology and innovation. The result is a nation friendly to
business investment. With the right business and legal
guidance, investors are discovering tremendous potential in this
small but sophisticated country.
Israel's Economic Performance
In the last 10 years, Israel's economy has grown
100 percent – more than that of the United States or any
other developed nation. This includes a remarkable 13
consecutive years of growth. Further, the International
Monetary Fund predicts the country will grow another 3
percent on 2017. This does not mean that the economy in
Israel cannot contract, but over time conditions have pointed
consistently upward for economic development.
Similarly, Israel has fostered a workforce highly trained
in technology. Compulsory service in the
Israel Defense Force steers the brightest young scientific minds
into tech training. The top intelligence units in the IDF are
known as the best school for entrepreneurship, naturally driving
the graduates to leverage their experience and establish successful
startup and high-tech companies, upon finishing their military
An Ecosystem of Innovation
Despite its size, Israel ranks high on the list of the best
countries for doing business. This ranking emerges
particularly as a result of Israel's focus on innovation and start-up business growth. The infusion of
venture capital funding has further built up its capabilities, with
foreign investments rising about 30 percent per year. The
result is a nation honed to push ahead of the pace the rest of the
world sets for scientific development.
Israel's Regulatory Environment
Before you can do business in Israel, you need to take the time
to understand the local culture and business environment. Recent
changes have made Israel more complicated in areas like
taxation and obtaining permits. In many ways, this is a natural
by-product of its success; as national economies grow, it is
necessary for regulation to become more sophisticated. Israel
is experiencing and navigating growing pains, and while its
government adapts, its regulatory environment for business
will involve some flux.
Originally published November 7, 2016
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