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Rédaction Ecomnews Med
Friday 7 February 2020 Last update on Friday, February 7, 2020 At 5:10 PM

Japanese investments surged in Israel in 2019 with 53 new investment deals valued at some $ 815 million.

In 2019, Japanese investments in Israel surged with 53 new investment deals valued at some $ 815 million, according to data released by Harel-Hertz Investment House. Data showed that the number of deals nearly doubled compared to the previous year, which is the largest number of investments in terms of deals since 2001.

Israel as a hunting ground for Japanese companies

Japan is the world’s third-largest economy and is home to some of the largest automotive and manufacturing firms. These companies are looking for technology solutions around the world, and Israel has become an ideal hunting ground for them. Michel Siboni, the CEO of Harel insurance company said in a statement that “The entry of a Japanese corporation into investments in Israeli hi-tech sectors creates a vast potential for Israeli start-ups and entrepreneurs.”

Overall, it has to be noted that 233 investment deals and over $ 7.2 billion were invested by Japanese firms in Israel, since the year 2000. Indeed, more and more money from Japan has been fuelling the ambitions of Israeli entrepreneurs and Japanese investors have become increasingly active in Israel. Toyota is one of the Japanese firms that has recently announced its intention to look for talents and technology in Israel and the Japanese company Toshiba Corp. opened an innovation outpost in Tel Aviv in order to scout for local cybersecurity technologies.

Japanese investment in information technologies  

The 53 investment deals in 2019 were made by 34 companies, of which 24 were first-timers in Israel. Most of these investments have been in the field of information technologies, fin-tech and automotive sectors. Data showed that some of the top Japanese investors are the Japanese multinational conglomerate SoftBank Group, with 15 investments totalling some $ 1.1 billion; and Hitachi and telecommunications firm Nippon Telegraph and Telephone, with 10 deals each totalling $ 36.3 million and $ 36 million respectively.

Furthermore, Israel and Japan said that they would promote partnerships in cybersecurity fields and cooperate in developing digital health technologies. To do so, the two nations signed in January a total of six agreements, including a memorandum of understanding on cooperation in digital health.