Unprecedented Economic Boom: Germany and Israel Break Records in 2024 – with a Focus on Security Cooperation
A special report by Ofir Angel, an Israeli-German business consultant
2024 marks an exceptional year for the economic cooperation between Germany and Israel, particularly on security. Despite global challenges, the business relationship between the two countries is flourishing and reaching new heights, highlighting the enormous potential inherent in the Israeli market for German companies and the vital role that German-Israeli business consultants like AUREN can play in ensuring their success.
Notable Deals and Leading Trends
- Venture Capital Investments: Germany has solidified its position as a leading investor in Israeli venture capital. German funds such as Target Global and DTCP have invested significant sums in groundbreaking Israeli artificial intelligence, cybersecurity, and fintech startups.
- Strategic Partnerships: German and Israeli companies are collaborating on developing innovative technologies. For example, the German pharmaceutical company Merck KGaA signed an agreement with the Israeli biotechnology company Quris to develop new drugs using artificial intelligence.
- Mergers and Acquisitions: In 2024, German companies have made several significant acquisitions of Israeli companies. For example, the German software company SAP acquired the Israeli startup Gigya, which specializes in digital identity management.
- Significant Security Deals:
- Sale of the “Arrow 3” Air Defense System: Germany signed a deal to purchase the Israeli “Arrow 3” air defense system, estimated at around 3 billion euros. This is the most significant security deal in Israel’s history and highlights Germany’s recognition of Israeli technological capabilities in the security field.
- Cybersecurity Cooperation: Germany and the European Union have increased their cooperation with Israel in cybersecurity, including joint exercises and information sharing, to address growing threats in cyberspace.
Key Sectors of Activity
- Technology: The technology sector continues to lead the cooperation between Germany and Israel, including advanced security technologies.
- Industry: Israeli companies pioneering in Industry 4.0, including security applications, are attracting investments and partnerships with leading German companies.
- Cleantech: Germany is showing great interest in Israeli cleantech technologies, particularly those related to renewable energy and water.
- Security: Security cooperation between Germany and Israel has strengthened significantly, with significant deals and increased intelligence and technological collaboration.
The Advantage of Local Support
Expanding into the Israeli market, especially in the security sector, offers many opportunities for German companies and unique challenges. Understanding the local business and security culture, navigating the regulatory system, and establishing a regional network are critical factors for success. This is where the advantage of a German-Israeli multinational consulting company like AUREN comes into play.
AUREN: Your Partner for Success in Israel
AUREN, with extensive experience in supporting German companies in the Israeli market, offers a range of services that support all stages of expansion. We understand the specific needs of German companies and provide customized solutions to ensure business success in Israel, considering the unique sensitivities and requirements of the defense, cyber, and high-tech sectors.
I urge German companies interested in exploring the business potential in Israel, particularly in the security sector, to contact AUREN. We are committed to helping you achieve your business goals in Israel.
Don’t miss this opportunity! Contact AUREN today.
Chairman of AUREN Israel
“Business generator” and expert in geo-strategic consulting for international companies
