ISRAEL

Gas can fuel the economy, but domestic and regional uncertainties pose risks

BB1

LOW RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

The country risk assessments are your North Star metrics to make the right decision for your business and understand the risks in international trade. We have always the best solution for your needs

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GDP USD395.099bn (World ranking 31, World Bank 2019)
Population 9.053mn (World ranking 96, World Bank 2019)
Form of state Parliamentory Democracy
Head of government Benyamin NETANYAHOU
Next elections On or before May 2023, legislative
  • Entrenched democratic system, including peace¬ful transfers of power and effective rule of law
  • Strong military
  • U.S. political and economic support
  • Classification in MSCI indices as developed market economy with high incomes and robust long-term economic growth
  • Low unemployment rate and increasing wages
  • Strong scientific environment with a flourishing High Tech industry and the world’s highest ratio of R&D expenditure to GDP
  • Regional instability and conflicts contributing to security concerns, growth constraints and limits to the effectiveness of economic policy
  • Frequent turmoil within coalition governments
  • Economic dependence on the U.S., the main export destination. Close links with that country include grants and aid that can be revoked
  • High short-term external debt

Trade structure by destination/origin

(% of total)

Exports Rank Imports
United States 27,5%
1
16,8% United States
United Kingdom 8,5%
2
13,4% China
China 8,1%
3
7,2% Turkey
Hong Kong, China 5,1%
4
6,3% Russia
Netherlands 3,7%
5
6,3% Germany

Trade structure by product

(% of total)

Exports Rank Imports
Pearls, precious stones, precious metals 20,13%
1
12,35% Machinery and mechanical appliances
Electrical machinery, apparatus and appliances, n.e.s. 13,72%
2
12,15% Mineral fuels, mineral oils and related products
Optical, measuring, precision, medical instruments 9,38%
3
10,63% Electrical machinery, apparatus and appliances, n.e.s.
Machinery and mechanical appliances 8,57%
4
9,15% Motor vehicles
Organic chemicals 7,39%
5
6,65% Pearls, precious stones, precious metals
Payments in Israel are normally transpire within 60 to 90 days between domestic companies, though these numbers are much lower when dealing with foreign companies.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

A recent reform in Israeli courts allows for speedy proceedings and execution activities for lawsuits up to NIS 75,000 (EUR 18,000).Despite this, significant delays, costs and difficulties must be expected when taking legal action, especially in cross-border disputes.

Various insolvency proceedings are available, although in practice the chances of collecting debt when the debtor has become insolvent remains poor.

Contact

Euler Hermes

Economic Research Team

research@eulerhermes.com

Manfred Stamer

Senior Economist for Emerging Europe and the Middle East   

manfred.stamer@eulerhermes.com

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