Israel Country Profile

Israel General Information

Capital: Jerusalem

Language: Hebrew (official), Arabic (special status under Israeli law), English (most commonly used foreign language)

Religion: Jewish 74.3%, Muslim 17.8%, Christian 1.9%, Druze 1.6%, other 4.4% (2018 est.)

Currency: Israeli Shekel

Cryptocurrency: As technology adoption in Israel is fast, a lot of the population is actively using cryptocurrencies to trade, invest in ICOs and purchase goods and services. 

Cryptocurrency is not considered to be under the legal definition of currency and is taxed like a taxable asset. Miners and traders of cryptocurrencies are treated as businesses and are a part of those taxing regulations.

GMT: (+) 2

The State of Israel was declared in 1948, after Britain withdrew from its mandate of Palestine. The division of the former British Mandate of Palestine and the creation of the State of Israel in the years after the end of the Second World War was the culmination of the Zionist movement, whose aim was a homeland for Jews hitherto scattered all over the world. It has been locked in conflict with the Palestinians and its Arab neighbours over ownership of land considered holy by many Jews, Christians and Muslims since its creation. 

About Israel

The State of Israel is a Levantine nation located in the Middle East bordering Egypt, the Gaza Strip, Lebanon, Syria, Jordan and the West Bank. Israel has an estimated population of 8.29 million people, including the populations of the Golan Heights and East Jerusalem.

The population is largely concentrated around Tel Aviv, the largest city with 3.61 million inhabitants, and the Sea of Galilee. Jerusalem acts as the proclaimed capital of Israel and has a population of 839,000.

Hebrew is the official state language, although Arabic is spoken officially by the Arab minority and English is also widely used. Around 75% of the population are ethnically Jewish, whilst the non-Jewish minority are predominantly ethnically Arab. Judaism is the majority religion, but there is a large Muslim minority and smaller religious minorities including Christians and Druze.[1]

The country risk and business climate rating are both viewed as being low risk, owing to stable business environment and relatively advanced economy. Nevertheless, there are several security threats Israel faces.

Corruption does not pose a major obstacle to doing business or investing in the Israeli economy; Corruption is not institutionalised in any sector and the judiciary is widely viewed as efficient and independent. This is reflected in Transparency International’s 2017 Corruption Index which ranked Israel 32 of 180. Corrupt practices may still occur, however, particularly when dealing with public procurement.[2]

Israel’s GDP, excluding the West Bank, is US$348.01 billion and despite unsteady real GDP growth over the past fifteen years, it is forecast to stabilise at roughly 3% annually over 2018-2022.[3]

The official currency is the Israeli New Shekel. 

Israel is parliamentary democracy. The executive branch is formed by the president, currently Reuven Rivlin, who is the chief of state and the prime minister who is the head of government. This position is currently held by Benjamin Netanyahu. The President is elected by the Knesset for a seven-year term, with the next election scheduled for 2021, whilst the prime minister is usually the leader of the largest party who is tasked with forming a government following legislative elections.

The Presidency is ceremonial, and executive power rests with the prime minister. The unicameral 120-seat Knesset forms the legislative branch of government. Members serve a four-year term and are elected directly in a single nationwide constituency by proportional representation. 

References

[1] https://www.cia.gov/library/publications/the-world-factbook/geos/is.html.

[2] https://www.business-anti-corruption.com/country-profiles/israel; https://www.transparency.org/news/feature/corruption_perceptions_index_2017.  

[3] http://www.imf.org/external/datamapper/NGDPD@WEO/ISR; http://www.imf.org/external/datamapper/NGDP_RPCH@WEO/ISR.