Israel Germany | Business Guide | 2026

T he economic relationship between Israel and Germany has evolved significantly over the past six decades, demonstrating resilience, cooperation, and mutual benefit. Since its formal establishment in 1965 , this partnership has steadily expanded and today encompasses a broad range of sectors, creating a solid framework for collaboration. Trade between the two countries has grown substantially since the 1960 s. Germany is one of Israel’s leading trading partners in Europe, with Israeli exports including technology, pharmaceuticals, and agricultural products. In recent years, bilateral trade has reached billions of euros annually, reflecting the growing interdependence between the two economies. German companies have also increased their investments in Israel, particularly in high-tech sectors such as cybersecurity, biotechnology, and clean energy. Israeli startups benefit fromGerman venture capital, which supports innovation and technological development. Cooperation in research and development has expanded as well, with numerous joint projects between universities and research institutions in both countries. Programs such as the German-Israeli Fund for Scientific Research and Development encourage bilateral collaboration in science and technology. German investments as a driver of growth in Israel’s high-tech sector German investments have played a significant role in strengthening Israel’s high-tech sector and enhancing its global standing. Venture capital funds from Germany have increased their activity in Israel, providing essential funding that enables startups to scale and bring new technologies to market. German companies frequently partner with Israeli firms through joint ventures that combine Israeli innovation with German engineering expertise. These collaborations support technological advancement in areas such as cybersecurity, artificial intelligence, fintech, and other emergingfields. In addition, German investments provide Israeli technology companies with improved access to European markets. Looking ahead: a partnership with future potential As both countries face future challenges, their continued commitment to cooperation is expected to generate positive outcomes and strengthen their positions in the global economy. Investments often include joint research and development activities, supporting technology transfer and institutional cooperation. Looking at the overall trajectory of Israel–Germany relations, the future appears promising. Ongoing cooperation in technology, investment, and sustainability will remain essential in shaping a prosperous economic landscape for both countries. The Israel–Germany Chamber of Commerce and Industry has been a central actor in promoting and strengthening economic relations between the two countries and is expected to continue playing a significant role in the years ahead. The Israeli Federation of Bi-National Chambers of Commerce and Industry congratulates the Israel– Germany Chamber of Commerce on its excellent work and congratulates both countries on 60 years of diplomatic relations. Dan Catarivas Israel and Germany: Growth, Innovation and Resilience Ongoing cooperation in technology, investment and sustainability will be essential in shaping a prosperous economic landscape for both countries | Dan Catarivas The author is the President of the Israeli Federation of Bi-National Chambers of Commerce and Industry Israel-Germany > Business Guide > Celebrating 60 years of diplomatic relations > 2026 42 > More information > Deepening the Partnership