Foreign Investment in Israel

The Israeli economy is successful largely due to its ability to draw foreign investment. In 2006, inward direct investment reached $14.2 billion. The World Economic Forum's Global Competitiveness Index for 2009-2010 ranked Israel in 27th place place overall worldwide, 3rd place for quality of scientific research institutions, 4th place for patenting per capita, 14th place for acess to venture capital, and 17th place for education expenditure, and 7th place for life expectancy. 

 

Many Israeli companies have become world leaders in their fields, including Check Point Software, Comverse Technology, Elbit Systems and Teva Pharmaceuticals. Technologies such as voice-over-Internet protocol and instant messaging were developed in Israel. A host of multinational technology firms have established research and development centers or manufacturing facilities in Israel. These include Intel, Google, Microsoft, Toshiba and Sun Microsystems. Other companies, such as Lucent, Cisco, Ericsson, Siemens, Hewlett-Packard and 3-Com also maintain a local presence via equity investments in Israeli companies.

Free Trade Agreements

Israel is integrated into the global economy by way of free trade agreements with the NAFTA countries (United States, Canada, Mexico), the European Union, EFTA-The European Free Trade Association, Jordan, and Turkey. Israel also cooperates with Egypt and Jordan through Qualified Industrial Zone Agreements.