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 service.
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.