Israel is a small market and mature in many sectors. Consequently, U.S. companies will face local and international competition. Israel’s strong commercial ties with Europe have led Israel to adopt European Union (EU) technical standards – over U.S.-standards – in some industries. This has created obstacles for U.S. companies that have been doing business in Israel for many years and for new-to-market companies.

While there are substantial opportunities related to large infrastructure projects across many sectors, many of these projects are based on a public-private partnership financing model. It is often challenging for U.S. small and medium-sized enterprises to allocate the initial capital required for this type of project.

U.S. Export Control regulations for re-exports of controlled items are perceived as a challenge by Israeli manufacturers.

The security environment may worsen from time to time due to the geopolitical situation in the region.

The business environment and style will seem familiar to Americans, though dress may seem more informal and personal relationships play a greater role.