Why should you consider Israel as your next destination for growing your business?
Economies have been badly affected by the pandemic – stock markets were seen crashing, unemployment rates were rising and COVID-19 cases were spiking. Israel’s gross domestic product (GDP) contracted by 2.5% in 2020 but still did much better than the other developed countries. The economy in the European Union (EU) declined by 6.6%, by 3.5% in the US and by 5.5% on average in OECD countries.
One of the main reasons for Israel’s survival is due to the country’s strong R&D sector and a highly-skilled and multilingual workforce. The nation’s tech economy continues to prosper, even as work-from-home has become the default. Although its small size and short history might suggest otherwise, do not underestimate the potential Israel has for you as an employer.
With a strong and growing economy, the country is a leading exporter of technology and pharmaceuticals, with over 6,700 start-ups and the most NASDAQ-listed companies in the world outside of North America and China.
According to the 2021 Bloomberg Innovation Index, Israel has been ranked 7th among the most innovative countries in the world. Tel-Aviv metropolitan area, Israel’s principal tech hub, may look more like Silicon Valley than even the Silicon Valley itself – retaining and attracting foreign direct investments from all over the world.
Some of the benefits of investing in Israel include:
1. A Strong Start-up Ecosystem:
Israel is well known for its start-up companies and strong venture capital industry, with many investors comparing it to Silicon Valley.
2. An Effective Central Bank:
Many economies lose steam when central banks fail to act properly, but Israel has one of the best-rated central banks in the world.
Some of the Major Sectors At A Glance:
One-third of the world’s cybersecurity unicorns are in Israel. Israeli cybersecurity companies posted 70% growth in funding in 2020, collecting a record $2.9 billion in 100 transactions, according to the Israel National Cyber Directorate. Moreover, Investments in Israeli cybersecurity firms accounted for 31% of all global investments in the sector last year, second only to the U.S.
2.High-Tech and Semiconductors
The country has a vibrant start-up ecosystem with Tel-Aviv ranked 6th worldwide in 2019. It is home to over 800 innovative companies, launching more than 250 new companies each year.
Furthermore, Israeli High-Tech companies export advanced services worth several billion USD annually; and the Israeli semiconductor industry is a uniquely innovative sector, with over 150 design centers and hundreds of creative companies, developing and designing the future of the most advanced products in the global arena.
Israel is one of the diamond world’s leading centers — a hub for both trade and manufacture of polished diamonds. The diamond industry contributes approximately $800 million annually to Israel’s balance of payments. Furthermore, Israel is the foremost polished diamond supplier to the US market, which is considered the largest diamond consumption market in the world – approximately 50% of diamonds purchased in the US in dollar terms come from Israel.
As outlined above, Israel is highly lucrative and a great space to invest in. Accompanied by A creative, skilled, and ambitious workforce- The country remains attractive to many foreign investors.