Personal connections are important to Israelis. It is preferable to be referred to new potential partners by local contacts who can facilitate an introduction. Business partners are expected to visit in market and establish a relationship with their Israeli counterparts.
While the use of an agent or distributor is not legally required (with the exception of some government procurement or sensitive products), partnering with a local representative, who has good industry contacts, proven reliability, technical skills and after-sales service capabilities is important for selling and maintaining a continued presence in Israel. Israeli industry generally prefers to purchase goods through a local agent that will be able to provide warranty and after-sales service.
Due to Israel’s small geographic size (approximately the size of New Jersey), distributors and agents normally have exclusive representation rights across all regions. For more detailed information regarding distribution and sales channels see the Selling U.S. Products and Services chapter.