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Exporting from the UK to Israel: A market guide

Overview

Israel is a highly developed, western-orientated market whose business practice is similar to much of Western Europe. UK exports to Israel have grown steadily and many British companies have a major presence in the market.

Trade statistics

£3.3 billion total UK exports to Israel for the four quarters to the end of Q1 2024

(Source: ONS UK total trade: all countries, seasonally adjusted
Last updated: July 2024)

42nd largest UK export market

(Source: ONS UK total trade: all countries, seasonally adjusted
Last updated: July 2024)

0.4% of total UK exports for the four quarters to the end of Q1 2024

(Source: ONS UK total trade: all countries, seasonally adjusted
Last updated: July 2024)

Strong economic performance

Israel’s economic performance is strong in terms of GDP growth, low inflation, and falling unemployment. The Israeli economy is stable, mature and supported by an efficient public sector.

Research and development

Israel has an excellent reputation for innovation and invention and is a world centre for research and development. There are opportunities for UK companies to pursue collaboration agreements with Israeli tech companies. Sectors of particular interest are software, electronics, biotech, healthcare, and telecommunications.

Top five UK goods exported to Israel , in the four quarters to the end of Q2 2024

Goods Value (£ million )
Mechanical power generators (intermediate) 287.8
Medicinal & pharmaceutical products 154.0
Mineral manufactures 63.0
Scientific instruments (capital) 55.5
Miscellaneous electrical goods (intermediate) 55.1

Source: ONS Trade in goods: country-by-commodity exports
Last updated: September 2024
Download the latest trade and investment factsheet for Israel.

Top five UK services exported to Israel , in the four quarters to the end of Q1 2024

Service Value (£ million )
Other Business Services 448.0
Travel 356.0
Financial 301.0
Insurance and Pension 226.0
Telecommunications, computer and information services 188.0

Source: ONS UK trade in services: service type by partner country, non-seasonally adjusted
Last updated: July 2024
Download the latest trade and investment factsheet for Israel.

Israel: at a glance

Economic growth

6.5%

Actual figure (IMF, 2022)
The UK is 4.1% (IMF, 2022, actual figure)

GDP per capita

$54,337

Actual figure (IMF, 2022)
The UK is $45,461 (IMF, 2022, projected figure)

Currency

Shekel

Business language

Hebrew, English

Time zone

GMT +2

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Opportunities for exporters

There are opportunities for UK companies across a broad range of industries. Our trade advisers in Israel have identified particular opportunities for UK businesses in the following sectors

Check for trade barriers

Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. Check for any issues that may impact your business when exporting.

See current trade barriers

See resolved trade barriers

Check duties and customs

Find information on how to export goods from the UK. View the duties, rules, restrictions, and the documents you need for your products.

See current duties and customs procedures

Doing business in Israel

Preparing to export

Taxation

The UK and Israel have signed a double taxation agreement, meaning the same income is not taxed twice.

VAT

If you’re registered for VAT in the UK, it may be possible to zero-rate the goods you export to Israel, provided certain conditions are met.

VAT in Israel is currently charged at 17%. It is based on the duty paid value plus any other taxes and charges applied to imports.

For more information on taxes please consult the Israel Tax Authority.

Regulations

The Standards Institution of Israel has responsibility for standards, testing and certification.

Labelling

Israel has strict marking and labelling requirements. Exporters should speak to their Israeli importer before shipping any product intended for the local market.

All imports into Israel must have a label indicating:

  • country of origin
  • name and address of the producer
  • name and address of the Israeli importer
  • contents
  • weight or volume in metric units

All labelling must be in Hebrew. English can also be used as long as the letters are no larger than the Hebrew.

Trade barriers

Check for any reported barriers to trading with Israel.

Report any trade barriers that are affecting your business so we can help fix them.

Operating in Israel

Business culture

The business environment and style will seem familiar to UK companies. Dress codes may seem more informal and personal relationships sometimes play a greater role.

Israel is a mature market in many sectors, and UK companies will face significant local and international competition.

Intellectual property

Intellectual property (IP) rights are territorial. Rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.

The Intellectual Property Office’s International IP Service provides practical information to help you protect, manage and enforce your IP abroad. Further support can be accessed through the service’s network of IP attachés. Based in key UK export markets, they provide guidance to British businesses on local IP matters.

Payment terms

Payment terms are generally by agreement, but methods usually include the options of credit (often for a well-established relationship), cash against documents or letters of credit.

Using agents and distributors

British companies should appoint a local agent or distributor, rather than attempt to sell direct. Israel is geographically small with short distances between the main population centres. One agent is usually able to cover the whole market.

Protective security

The political and security environment can be tense because of the geopolitical neighbourhood.

However, in general Israel is considered a safe place to do business and foreign business people are warmly welcomed.

If you have any concerns, read the Foreign and Commonwealth Office's travel advice for Israel.

Next steps

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