Trade between Israel and Australia was officially valued at $1.2 billion in 2016. Many of the Israeli companies operating in Australia provide IT services, including many companies in cyber security. The real value of this trade relationship has been estimated at $2 billion, as service exports are not included in the data, and a significant amount of trade is carried out through third parties.
Despite geographical distance, Australia and Israel maintain a close economic relationship. We share concerns and interests with regards to cyber security and agricultural technologies, to name a few. These are reflected in the economic agreements between Australia and Israel, which include agreements for cooperation with Victoria and New South Wales, as well as a federal R&D agreement. An Air Services Agreement and a Technological Innovation Cooperation Agreement were signed during Prime Minister Netanyahu’s state visit to Australia in February 2017. A Working Holiday Agreement was finalised in June 2016 and will deepen ties between our nations for the business leaders of tomorrow.
Like Australia, Israel has considerable areas of arid land, making reliable and adequate water supplies a significant concern. Israel has consistently been at the forefront of water management and conservation over the last 70 years, developing innovative technologies which benefit arid communities around the world. Israel has the highest crop output per water unit in the world, having learned to use and reuse every drop to make the desert bloom.
“Whether it was the elaborate water system of Herod’s fortress on Masada or the desalination plant at Ashkelon, whether it was the ancient streets of old Jerusalem or the boardrooms of Tel Aviv … throughout its history the greatest natural resource of Israel has been the brilliance and the enterprise of its people.”
- The Hon Malcolm Turnbull MP, Prime Minister of Australia, Speaking in Sydney, February 2017
Israel and Australia share a strong and growing economic relationship. The Australian government opened a ‘Landing Pad’ in Tel Aviv, encouraging and supporting innovation from Australian companies. Israel is a thriving ‘start up nation’, and Tel Aviv gives young companies a uniquely startup-friendly environment in which to grow.
Over 30 business delegations visited Israel in 2016, including delegations of major Australian companies exploring how they can make use of Israeli technological innovations. Israel’s innovation ecosystem means these visits can give companies the opportunity to explore a huge range of institutions, with some visiting existing startups, established companies, incubators, and accelerators, while others focus on venture capital, etechnology transfer offices, universities and research institutes, and government offices. The options are endless!
Many choose to attend an exhibition or conference in their sector, with public and private sector groups travelling from across the globe to attend Cyber Week in Israel every year.
Already, 16 Israeli companies have joined the Australian Stock Exchange. Israel is now in the top six among foreign countries with companies on the Australian Stock Exchange. Strong results from these pioneers have even more Israeli companies considering listing, as our economic relationship continues to grow and prosper.
In 2015, Australians had invested $250 million in Israeli companies and today there are hundreds of Australians investing in Israeli companies and funds.
The Commonwealth Bank of Australia became the first bank in the world to sign a multinational agreement when it reached a joint R&D agreement with the Innovation Authority in Israel, and is now among many leading companies sending representatives to examine investments in Israel. Telstra even has a permanent economic attaché dedicated to helping them locate Israeli technologies, which recently led to a $13 million investment in an Israeli company at the forefront of mobile device security.