Doing Business in Israel

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Tel Aviv is a vibrant city very conducive as a business centre. English is the language of business, the infrastructure is fully up to European standards (ie fully digitised phones etc), and most business meetings take place in the Tel Aviv environs, a maximum of half an hour taxi drive away. Other business centres are Haifa (heavy industry), one hour by train or car from Tel Aviv and the capital Jerusalem (High Tec, pharmaceuticals and government agencies) also an hour by car or express bus.

TRADING PROFILE

Israel, with some 6.2 million people, will export an astonishing $30 billion with the High Tec sector, telecommunications, Chemicals and machinery dominating. Diamonds where Israel has 25% of the world market, also features strongly. A traditional area, agricultural products, now accounts for less than 3% of trade. To achieve this high level of exports, Israel imports yearly nearly $35 billion of goods. Europe accounts for 35% of bilateral trade, USA 30% and the Far East 20%.

Although the shekel is a strong currency based on a basket of currencies (63% US dollar 32% Euro and Stirling, 5% others) most deals are quoted in dollars. Payment is invariably by confirmed letter of credit to begin with and then on account for more established customers. There is little call for export credit guarantees in this stable market.

BUSINESS CULTURE

Culturally new business visitors will find this Eastern Mediterranean market more akin to a European lifestyle especially in relation to the role of women, where discrimination legislation is firmly in place. Tel Aviv is hot and humid in the summer months and temperate in winter. The time Zone is two hours ahead of GMT for most of the year.

Where Israel differs in style from Europe is in its very informal dress code and relaxed interpersonal relations. (Even a visit to the Governor of the Bank of Israel can be in short sleeve at times!). Most business visitors do bring suits and the men ties but they are invariably discarded after the first few meetings. Business meeting can be disconcertingly informal, often with no fixed agenda or minutes taken (unless you are with their very ubiquitous lawyers). Vociferous phone, or mobile phone calls and other people coming in at a crucial moment will often interrupt your meeting. Nevertheless the openness and willingness to do business is evident in the enthusiastic manner in which visitors are received.

Quality is paramount in Israel's purchasing policy and a detailed technical knowledge of products on offer is essential if a sale is to be secured.

Some twenty percent of Israelis are observant Jews usually signified by the wearing of head covering (scull cap). This will necessitate some sensitivity in business entertaining. Kosher food customs prohibits the mixing of meat and milk foods. Visitors will find that in all tourist and business hotels there is a dairy restaurant and a separate meat menu restaurant (you can't have a milk coffee after your steak). Restaurants throughout Israel offer other pitfalls as the majority of them are not 'Kosher'. It is always advisable to check with your Israeli counterpart whether the restaurant of your choice, which might even serve shellfish or non- kosher meat forbidden to religious Jews, will suit your guests before booking.

Other religious sensibilities to be taken into account are that many Israelis won't answer the phone or travel on Saturdays (the Sabbath). In fact the weekend in recent years is now Friday until after dusk on Saturday. Sunday is a normal working day. You may find that some religious women (signalled by their modest dress) may not wish to shake hands with the opposite sex. In these circumstances it is sensitive to wait until they proffer a hand to you.

If your product is of good quality, competitively priced and of good design it would be rare if an exporter returns from Israel without establishing a business relationship.

Peter Style OBE was a former Executive Director British Overseas Trade Group for Israel. Following a 30 year career in Marks & Spencer, Peter was asked to head a DTI sponsored QUANGO responsible for promoting British trade relations with Israel. With a house and family in both London and Jerusalem, a background in Jewish communal leadership and a four year spell as Chairman of the London Boroughs Chamber of Commerce, he has a unique insight into the Israel economy and how it interacts with that of Britain. He was awarded the OBE in 1994 for 'services to export'.