Israel is a small country with a small economy, surrounded by hostile neighbours and facing constant geopolitical uncertainties. Some might think that investing in Israel seems to be an irrational business decision. Nevertheless, Israel is a prime destination for a wide range of investors. A strong combination off innovation and entrepreneurial drive continues to attract to Israel the world’s leading technological companies, venture funds, private equity funds and, more recently “crowd funding” investors, all of whom are looking for the idea, the development, the product that is ahead of the field, either for strategic reasons of simply for a financial return.
The Israeli business milieu has always been extremely cosmopolitan, business professionals are highly qualified, the courts are well-regarded and impartial. The Israeli workforce is educated and skilled. So, despite the apparent disadvantages, Israel continues to attract substantial foreign investment.
We asked EJ long-time member Gilad Berman, Founding Partner at GB Law Office in Tel Aviv and Chair of the ITTI (Int. Trade, Transport & Insurance Law) Practice Group to update us on the situation of his country today. This born & bread Israeli holds an impressive collection of diplomas (LLB degree from Cardiff, LLM degree from Bar Ilan University and an MBA from Israel's College of Management & City University of New York), he regularly lectures in two universities and serves as a Judge in the Israel’s Appeal Tribunal of Ethics of the Bar Association.
“The current situation in Israel is stable. Although the stock market is quite dry, we do not see any change in foreign investments. As per litigation, there is a growth in the number of cases as opposed to last year. Real estate market is still high and we do not anticipate any change in the near future. We remain optimistic as to the political situation - as always - with the hope that stability will give rise to more investments and business activities in Israel, which, has a lot to offer.”
According to a recent PWC report, Microsoft, Apple, Facebook and Google have all made recent acquisitions in Israel, highlighting Israel as a focal point of technological development for these global giants. At the same time we are beginning to see more local technology companies making their own acquisitions within Israel. The fact that Israeli companies are looking to grow through local acquisitions is an indication that not all high-tech entrepreneurs are looking for an early “exit”, and reflects a greater maturity in the Israeli high-tech sector. This trend is boosted in part by the growing ability of the more mature Israeli hi-tech companies to raise capital both privately and in public markets.
Would you recommend to any lawyer “setting up shop” in Israel ?
“In the light of the huge number of lawyers in Israel - over 60,000, the profession is highly competitive. So “buckle up” and be prepared to work hard, and to fully accommodate the needs of your clients. Further expertise and skills e.g. economy, psychology and knowing additional languages, might be an advantage. But at the end of the day this is the best profession. Isn't it?”.
Can you give us examples of interesting cases you've recently handled ?
“Just recently, we have received a very important decision by Israel's Supreme Court regarding the effect of foreign litigation in Liechtenstein on the alleged application of the Act of Limitation and Doctrine of Laches over a 13M dispute in Israel. The Supreme Court overruled the High Court's decision by ruling that the Plaintiffs have lacked the Legal Power to initiate legal proceedings in Israel as long as the dispute abroad continued, hence rejecting the argument based on the Act of Limitation, allowing our client to proceed with the claim in Israel. Additional important cases involved double insurance disputes; Interpretation of L/C in int'l contracts; The liability of Port Authority in transport disputes.”
Do you often handle EJ case referrals form our network ?
“Yes we do and we provide legal advice to colleague members and their clients for all legal matters concerning Israel, but above all we have met true friends which we cherish and enjoy meeting during the Eurojuris events and beyond.”
Last question for you Gilad, why did you become a lawyer ?
“Well, no other profession allows you to argue both ways…”
