Israel - Country Commercial Guide
Market Challenges

Learn about barriers to market entry and local requirements, i.e., things to be aware of when entering the market for this country.

Last published date: 2021-09-09

Israel is a small market and mature in many sectors. Consequently, U.S. companies will face significant local and international competition. Additionally, Israel’s strong commercial ties with Europe have led Israel to adopt European Union (EU) technical standards – over international standards – in some industries. This has created obstacles both for U.S. companies that have been doing business in Israel for many years and for new-to-market companies. 

While there are substantial opportunities related to large infrastructure projects across many sectors, many of these projects are based on a public-private partnership financing model. It is often challenging for U.S. small and medium-sized enterprises to allocate the initial capital required for this type of project.

U.S. Export Control regulations for re-exports are perceived as a challenge by Israeli manufacturers.

The security environment may escalate from time to time due to the geopolitical situation in the region.