Overview of best prospect sectors, major infrastructure projects, significant government procurements and business opportunities.
Israel has a strong economy, led by an export-oriented high-tech sector and a spirit of innovation that continues to attract interest from U.S. companies looking for investment, acquisition and partnership opportunities. The market is primed for imports from U.S. manufacturers of high-end equipment with technology advantages over competition and for U.S. components that can be integrated into Israeli systems, either for domestic use or for re-export.
In 2020, Israel imported $ 70.1 billion worth of merchandise from the world. The top five Israel imports from the world were: boilers, machinery and parts (13.3%); electric machinery, sound equipment, TV equipment and parts (12.1%); vehicles, except railway or tramway, and parts (8.3%); mineral fuels and oils (7.9%); and pearls and precious stones (6.2%).
U.S. exports of merchandise to Israel in 2020 accounted for 16.7% of Israel’s total imports of merchandise from the world. The top five U.S. exports to Israel in 2020 included: miscellaneous manufactured commodities (23.9%); computer & electronic products (14.7%); transportation equipment (14.1%); chemicals (10.5%); and machinery, except electrical (8.1%).
Services represent a significant portion of Israel’s total foreign trade. In 2019, Israel imports of services totaled $32.2 billion, representing 29% of total trade in goods & services. The leading service imports to Israel from the world are transportation services ($8 billion), travel services ($8.1 billion), miscellaneous business services ($3.5 billion); advertising, market research and public opinion polling ($1.8 billion); and computer and related services ($1.8 billion). Lastly, the current scope of infrastructure investment in Israel is lower than comparable countries around the world. To address this gap, the Israeli government is currently planning large scale infrastructure projects across almost all industries, and publishes annually the Infrastructure for Growth workplan, a national infrastructure strategy consolidating all projects valued at more than 100 million shekels (~$30 million) that are either in progress, budgeted or approved by the government. In 2020, the workplan included 233 projects, valued at ~$67 billion in total, across many industries including: electricity infrastructure, renewable energy, water, transportation, design and construction, and more. A significant portion of the projects will be implemented via a public-private partnership model.