Overseas investors are flocking to Israel to take advantage of the high-tech boom occurring there but there are many other reasons to invest in the country. Israel has been described as the second Silicon Valley, borne out by the established presence of numerous multinational IT companies, such as Microsoft and Intel.

The quality of Israel’s human resources is unmatched. It has 135 scientists and technicians per 100,000 workers, more than any other developed country. Overall, 20% of the population have university degrees, ranking third in the industrialised world behind the US and the Netherlands, with 12% of the population holding advanced degrees. Israel’s cutting-edge industries include agrotechnology, biotechnology, computer-aided education, data communications and data security.

Investor-friendly features of the country include: a firmly entrenched parliamentary democracy; active capital markets; a strong banking system; a robust venture capital sector; relaxed currency regulations; comprehensive protection of trademarks, patents and other intellectual property; and free trade agreements with the US, the EU, Turkey, Canada, Czech Republic, Hungary, Poland, Slovenia and other EFTA nations.

The government offers generous concessions. These include significant government funding for R&D projects, grants for foreign investment in fixed assets, and tax holidays of up to 10 years.

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