International Representative Spotlight: Israel
International Representative Spotlight: Israel
Interviewee Name and Title:
Sima Amir, Managing Director
The Georgia Department of Economic Development (GDEcD) has maintained representation in Israel since 1994, and Israel has permanent diplomatic and commercial representation in Georgia through the Consulate General of Israel in Atlanta. In 2019, Georgia exported more than $241 million in goods to Israel. This office is strategically located near Tel Aviv, and is within access to a large portion of the Israeli population.
Where is the office based: Outside Tel Aviv
Who are the team members: I am the only team member, though I occasionally work with other professionals on a case-by-case basis.
How did you enter the world of exporting/trade and how long have you been working in this field?
I’ve been working in the areas of business development, investment promotion, international trade development, and many other similar activities for more than 30 years, including the technological and scientific cooperation between Israeli companies and the US and European companies.
Prior to my current role as Georgia’s representative to Israel, I worked for over 25 years with the Manufacturers Association of Israel, which is the representative body of all industrial companies in Israel who account for more than 80% of industrial production in the country. During my work at the Manufacturers Association, I served as the Director for International Business Development. I’m proud to be very well connected with local manufacturers, non-governmental organizations, and government ministries, and I cooperate with them often in my work. My strong connections play a large role in helping Georgia companies promote their exports and business relations here in Israel.
What typical services do you provide for Georgia exporters interested in your market?
In general, we connect Georgia businesses and suppliers with Israeli buyers, distributors, partners, and expose Georgia companies to business opportunities. We primarily provide information and insight regarding the Israeli market to help Georgia businesses strategize and achieve their export goals. For instance, we perform market research for companies interested in exploring business opportunities in Israel. We’ll look at the specific product or service and its potential in the Israeli market. We also can answer specific questions from Georgia companies regarding the Israeli market. Should a Georgia company need help identifying potential customers or partners, we can do research and outreach to identify leads.
Sometimes companies require information on regulations and how to resolve challenges that they’re facing with their businesses here, and we can assist with those issues. Also, if a company visits Israel and participates in events, we can arrange meetings with Israeli businesses which can be instrumental in finding partners.
What do you consider the biggest challenge(s) to exporters interested in Israel? What is the greatest opportunity?
The main market consideration, given that Israel is a small but very mature market, is that GA companies may face competition from local and international competitors. We do also have challenges surrounding political stability and tensions in the Middle East. Sometimes this frightens our overseas partners, but the government is working to make Israel a more desirable location for foreign companies, and there is no reason to worry.
Another thing to consider is Israeli regulations. Import regulations and responsibilities sometimes involve multiple government ministries, and it’s not always easy to meet all the criteria. The regulation system is sometimes different from that of the US and Europe. For instance, we do have regulations mandating that most food and beverage products be certifiably kosher. Also, most regulations are written only in Hebrew, so being able to understand them and translate them is important.
Another challenge is transportation. Shipping by sea to Israel takes approximately 30 days, including land transportation, which affects supply time and cost. The Georgia Port Authority in Savannah offers 3 direct weekly container shipments to Israel. However, shipping to Israel by air may be cheaper due to the high capacity of flights.
Despite the challenges, we also have great opportunities. Even though Israel is a relatively small country of only 9 million people, there are tremendous opportunities for companies in GA. The US-Israel Free Trade Agreement that has existed since 1985 plays a big role in those opportunities, as it eliminates duties on goods exported from the US to Israel that meet the Rules of Origin requirements.
Israel has a strong economy and a high population growth, and Israel is expected to continuing growing rapidly. The Israeli currency (New Shekel) is a strong currency, and therefore Israelis have a strong purchasing power. The Israel market is growing, strong, and sustainable. US companies have an excellent opportunity to sell military and defense products in Israel. In addition, food and agricultural products are important sectors for Israel. Georgia is well known by these sectors domestically, and there are lots of great opportunities to sell things like gluten free foods, organic foods, pecans, dry fruits, food sauces, seasonings, papers products, and more. Due to its focus on research and development, Israel is a hub for technology and innovation and is a very open-minded market. This provides a great opportunity for Georgia’s tech companies to come to Israel and offer innovative and advanced products and technologies to Israeli companies, which are things we are always looking for.
Finally, we import a wide variety of products from Georgia, including civilian aircraft and parts, paper, tractors, motor vehicles, and food sauces and seasonings. So there are opportunities in many industries.
Are there any trends, be it in policy, culture, or consumption habits that exporters should be aware of when considering the market?
In terms of consumption habits, trade is really driven by consumer demands, and is often more consequential than policy. The demand for organic and gluten free foods is growing rapidly in Israel, and that should be considered.
What advice do you have for companies looking to start exporting to your market?
Don’t be offended when working with Israeli business people; Israelis are known to be direct and to the point. They will tell you exactly how they feel and what they think, and they speak quickly and loudly. Companies also need to understand that patience is key and timing is important. Israelis are quick and impatient, and they expect to receive a reply to emails as soon as possible. It’s important to keep in mind that if an Israeli company does not get an answer quickly, they will turn to other import sources.
Culturally, Israeli business culture is relatively informal, and the business attire is more casual than in the US. It’s not unusual for ties and jackets to be left behind in Israeli business meetings. Partnering locally is also very important. I would always suggest to work with a local importer. They can guide you and walk you through the process; and since you both have the same interests it is beneficial for you to work with a local partner. In my experience, GA companies who physically visited Israel and met potential partners face-to-face were more successful than others.
What has been your biggest export achievement?
One good example is with a client in Georgia, a minority-owned business, with a breakthrough invention for neutralization and destruction of explosives. This company first visited Israel in 2018, and has visited and met with many Israeli companies since then. The company provides solutions for the remediation of soil and groundwater, as well as the decontamination of buildings and equipment that have been contaminated by chemicals in explosives. Since Israel has had military conflict, we often have harmful chemicals in the ground that need to be cleaned. As a result of years of work, the company recently received a contract to decontaminate equipment and buildings, so now they’re exporting technology and products to Israel. This is important because there are over 900 buildings that need to be decontaminated and to convert the land into residential spaces. This project took years, but now this Georgia company is selling into Israel which is exciting!
What made the most impression on you when you visited Georgia?
I never had the chance to visit Georgia before working with the Georgia Department of Economic Development (GDEcD), so working with GDEcD has given me a nice opportunity to visit. In my first visit, I was so impressed by Atlanta. The buildings and nature around the city are beautiful and I just loved it! I’ve also visited Savannah a few times, and I am in love with the city; it’s such a beautiful place. I was especially impressed by the Port of Savannah. It’s great to see how well the port is working, and the sheer volume of containers in the port was incredible. I was also very surprised by the number of Israelis who choose to live and work in Atlanta. There are so many Israelis who live and work in Atlanta and it’s very impressive!
What do you enjoy most about representing Georgia in Israel?
I like the people. Israelis are very friendly and warm people, so it makes me happy that Georgia has a similar culture. I’m looking forward to visiting Georgia again soon!
What do you think would most surprise Georgians to learn of Israel?
Most companies I work with are surprised at how small Israel is geographically and demographically compared to what they might imagine or see in the media. In the meetings I have with Georgia companies, many of them were surprised to hear how significant imports are to Israel’s economy given its size, as well as how open-minded Israeli companies are to innovative products.
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Are you a Georgia business looking for help growing your international sales? Find out how Georgia’s International Trade Team can help at www.Georgia.org/Trade.