Israel as a financial center

Israel as a financial center

In this era of global trade, Israel's economy competes with many other economies in a very increasing manner. Israel's position as one of the few countries in the Middle East which has and uses western infrastructure  such as communication, transportation and legal systems, allows it a window of opportunity to create a platform for its capital market which will allow it to absorb foreign investments.

In 2008 IEP coordinated a research regarding all the regulatory changes necessary to turn Israel to a "Financial Center” that will offer legal and financial management services for companies from the Far East and Eastern Europe and connectivity services between these companies  to financial centers worldwide (such as London and New - York).

Realization of this goal depends on achieving a number of objectives the first of which is to increase the competitiveness of the Israeli capital market in relation to foreign markets. This can be done, by removing barriers facing both citizens and foreigners who are interested in investing in Israeli funds.

Our recommendations were to change taxation, corporate and financial regulation in order to create incentives for financial intermediaries to locate their operations in Israel and to promote competition in the local market. Details of the recommendations and required amendments appear in this paper.

During the past four years some of the recommendations were adopted by legislators.