2021: Doing Business in Israel

Our Firm

1. What distinguishes your firm from others in your market?

Since its foundation almost 50 years ago, Herzog Fox & Neeman has strived for professional excellence, and has provided cutting-edge advice that accompanies our clients on the path to success. Sharing our clients’ global perspective, ambitions, and commitment to the highest standards, we are seen as trusted advisors on a wide variety of legal issues across all industries and sectors. Consequently, our domestic and international expertise has been recognized by all of the major legal guides that have awarded us more Tier 1 rankings than any other law firm in Israel.

Not only do clients have access to the brightest legal minds in the profession, but our lawyers’ knowledge of local markets and understanding of global business is rooted in practical business experience. Our law firm – the country’s most diverse – has more than 50 lawyers who are native English speakers from the U.S., U.K. and Australia, hold foreign licenses or have studied or worked abroad. In keeping with the firm’s global perspective, the majority of Herzog’s business is conducted in English but our team’s languages also include German, French, Chinese, Japanese, Russian, Korean, Portuguese and Arabic.

Furthermore, Herzog is ahead of the curve in meeting new challenges posed by technological advances and disruptive emerging industries, developing specialist practice areas, shaping them, driving them forward, and delivering the results clients expect, often in unchartered territory. In recognition of the booming Israeli technology community in the Bay Area, Herzog has built strong ties to the Silicon Valley Community. This provides Herzog with a direct, real-time line of communication between our Tel Aviv office and the wider Silicon Valley community.

2. What words describe the culture of your firm?

Global, precedent, creative.

3. How does your firm participate in Corporate Social Responsibility (CSR) and/or Environmental, Social and Governance (ESG) initiatives?

Herzog is involved in multiple initiatives to increase and enhance the diversity of our employees– including establishing a Diversity Committee (holding workshops and events, changing policies, celebrating holidays of minorities, sending out newsletters, working on targeted recruitment, and more), collaborating with Zionism 2000, participating in The Co-Impact Initiative sponsored by Beit HaNassi (the presidential residence) to increase the recruitment of minorities –in particular the Arab community in Israel into the Israeli business community.

We are also involved in initiatives for other issues, such as sponsoring Makers for Heroes (helping those with disabilities), as well as participating in the "Adopt a Company" project by Globes (assisting companies that took a hit during the pandemic), in "Shotafut" (a unique training program for female lawyers by Codex and SUPERSONAS) and in "The Israeli Young Females Week" (empowering young girls). In addition, we continuously encourage our employees to volunteer at numerous charities throughout the year, including ELEM (assisting youth and poverty), "Someone to Run With" (reducing homelessness), Ruach Tova (numerous causes), and Pitchon Lev and Social Delivery (assisting lower-income communities).

Additionally, we are members of The International Association of Jewish Lawyers and (IJL) Jurists, where our partners are on the board – Meir Linzen is President, Daniel Reisner is Vice President, and Alan Sacks and Itzhak Shragay are Board Members. Furthermore, our lawyers provide pro bono services in numerous fields to assist those who cannot afford legal services, such as Shilla Ezra, a victim of human trafficking from Hungry to Israel.

4. Are there any new and exciting initiatives, practice areas or industry focuses in your firm?

Some of our new initiatives include the two companies – Herzog Strategic, which offers strategic consulting in technology, innovation, and cybersecurity, and Cytactic, which provides cyber crisis management and readiness services.

Among a number of our new sector-oriented departments, the first of their kind in Israel, are Cryptocurrency, Crisis Management, Fintech, Urban Renewal, Impact Investment, Insurance Tech, and more.

Doing Business in Israel

1. What is the current business climate in your jurisdiction, including major political, economic and/or legal activities on the horizon in your country that could have a big impact on businesses?

Business is booming like in so many parts of the world. Politically, Israel is celebrating one year since the Abraham Accords – peace with the UAE and Bahrain followed by Morocco. This opens up the chance for new regional cooperation. There have already been many transactions with companies in the UAE, and many more are expected. Israel, as the start-up nation, continues to attract a disproportionate amount of foreign investment while many Israeli companies are becoming unicorns. The Tel Aviv Stock Exchange has had a wave of public offerings. We anticipate a continuation of similar activity going forward.

2. From what countries do you see the most inbound investment? What about outbound?

    The United States continues to have the strongest impact on inbound investments in Israel, though there are also investments from Europe and Asia. In addition, there have been several prominent Chinese investments in the Israeli economy. Investments by other countries in Asia (Japan, Korea) have been smaller but numerous. Regarding outbound investments, real estate has been a traditional field of interest.

    3. In what industries/sectors are you seeing the most opportunity for foreign investment?

      Cybersecurity continues to lead the charts on investments.

      4. What advantages and pitfalls should others know about doing business in your country?

        There are so many fields of business ripe for investments and acquisitions. The legal environment is easy and flexible, with tax benefits for certain physical areas of investment. Certain areas are regulated, but those are industries where investors will expect regulation and will not be subject to negative treatment.

        5. What is one cultural fact or custom about your country that others should know when doing business there?

          The Israeli culture is direct; entrepreneurs are abundant and their innovative spirit means they don't take anything as set in stone. They will negotiate more than expected, but the talent pool will make it all worth it.