Israel Germany | Business Guide | 2026

cooperation is intended to promote economic and social prosperity in both countries, and that scientific ties have functioned as a long-term “bridge of trust.” Within the broader European context, Germany is also regarded as Israel’s leading partner in European Union research programs in which Israel has participated since the mid- 1990 s, underscoring the continuity and depth of this research partnership. Trade and investment: a central European partnership Germany is one of Israel’s most important economic partners within the European Union. Bilateral trade is significant and stable, with annual economic relations estimated at more than € 8 billion as of the end of 2025 . Beyond the numbers, the partnership reflects complementary strengths. For Israeli companies, Germany offers a large and sophisticated market, advanced manufacturing industries, a business culture that emphasizes quality, standards, and structured processes, and access to broader European markets. For German companies, Israel contributes rapid innovation capabilities, research-based solutions, and practical experience in deploying technologies in fields such as cybersecurity, smart industry, digital health, agritech, and climate tech. Governments as economic actors: intergovernmental cooperation In 2008 , Israel and Germany launched their first intergovernmental consultations, creating a framework designed to deepen the unique relationship through coordinated initiatives, memoranda of understanding, and broad-based cooperation. Subsequent rounds over the following decade included joint declarations addressing civil, scientific, and technological collaboration. In recent years, official cooperation has continued despite the emergence of a more complex regional and global environment. Notable examples include a cooperation agreement between Israel’s Ministry of Energy and Infrastructure and the relevant German federal ministry in November 2024 , as well as an official update in December 2025 regarding strengthened cooperation in cybersecurity between Israel’s National Cyber Directorate and German government bodies. These developments reflect ongoing institutional collaboration in core strategic areas. The potential for the next decade The coming decade is expected to involve deep structural adjustments in the German economy. These include the transition to clean energy and smart electricity systems, the expansion of smart industry and digital supply chains, advanced automation, industrial cybersecurity, and the broad integration of artificial intelligence into manufacturing, logistics, and infrastructuremanagement. For Israel, this presents a clear opportunity not only to supply technology but also to contribute problem-solving approaches, rapid pilot programs, and collaborativemodels that connect between research institutions, startups, and industrial partners. At the same time, Germany offers Israeli companies the ability to transform innovation into stable, large-scale products, supported by engineering expertise, regulatory experience, established standards, and manufacturing capacity. The combination of Israeli speed and flexibility with German precision, regulation, and scale represents a natural basis for high-value cooperation with both technological and commercial impact. Conclusion: from legacy to focused opportunity Six decades after the establishment of diplomatic relations, Israel and Germany maintain an economic partnership built on institutions, joint research frameworks, governmental mechanisms, business communities, and substantial trade flows. Official data indicate high and stable volumes, while the institutional architecture reflects depth and continuity. Looking ahead, the central challenge is how to translate this strong foundation into focused initiatives: joint industrial projects, applied research collaborations, infrastructure pilots, and the positioning of Israeli innovation as a complementary and strategic component in the transformation of Germany’s core economic sectors. 41