Britain stands to gain significantly from enhanced trade with a robust economic partner, according to Danny Kessler, chair of UK Israel Business. Kessler points to Israel's projected 5% economic growth in 2026, as forecasted by Moody's, as a crucial factor benefiting British jobs, national security, and even public health.
Israel's economic resilience is underscored by its 3.1% growth in 2025, with inflation easing to 1.8%. This performance has positioned Israel as the world's 25th largest economy, a notable achievement given its population size and regional instability. The Tel Aviv Stock Exchange's consistent strong performance further signals global business confidence in Israel's long-term economic prospects.
Kessler emphasizes that many everyday technologies used in the UK originate from Israel, including navigation software like Waze, leak detection systems for water companies, advanced medical diagnostic tools, and fintech encryption for online banking. The National Health Service (NHS) relies on Israel for approximately one in seven generic prescription drugs, resulting in significant cost savings.
Bilateral Trade and Investment
The UK's Department for Business and Trade has reported that Israel has become one of the top eight European countries for foreign direct investment into Britain. Despite a challenging global investment climate, Israeli firms are reportedly continuing to invest in the UK, a trend Kessler attributes partly to the UK's regulatory clarity, sector expertise, and access to capital. Bilateral trade currently stands at £6 billion annually.
Kessler argues that a free trade agreement between the UK and Israel is the most effective way to secure and expand this mutually beneficial relationship. He notes that Israel's technological sector, contributing around 20% of its GDP, is a significant driver of its economic success. In 2025, Israeli tech companies raised $15.6 billion in private funding, surpassing the UK despite Israel's much smaller population.
Kessler criticizes what he describes as a "hardline anti-Israel minority" and "performative anti-Israel gestures," suggesting that such actions are economically self-defeating and detrimental to British workers. He advocates for prioritizing British economic interests and learning from Israel's model of innovation and economic development. The expansion of peace agreements between Israel and its Arab and Gulf neighbors also presents new business opportunities that could further bolster bilateral trade.