With several high-profile, multi-billion dollar acquisitions this year, Israel’s high-tech scene continues to command the spotlight in the global business landscape. Israeli startups raised a record $3.2bn in H1 2018 - a 27% increase y-o-y. Indeed, some of the world’s largest multinational corporations (MNCs) and venture capital groups have long been drawn to the ‘start-up nation’, investing in R&D, accelerators, and incubators across the country, which often give birth to stand-out companies in such fields as cybersecurity, AI, drones and semiconductors. However, as we shift from the 4th industrial revolution - the digital revolution - into the 5th - the case can be made that Israel’s tech-enabled solutions to global demographic challenges - such as food security, water scarcity, healthcare, transportation, and clean energy - may take centre stage. And as the country looks to grow its non-tech economy, there may be corollary long-term investment opportunities for sovereign and institutional investors, asset managers, private equity, and companies which might have overlooked Israel due to geopolitical concerns.
Cornering the globe is a publication of PwC’s Geopolitical Investing practice, and is intended to highlight key issues our clients should be considering as they think about expanding into global markets. At the Macro level, long-term economic and demographic trends indicate an abundance of opportunities to profit and expand in emerging markets. However, the risks of doing business in these regions - such as exchange rate volatility, political uncertainty, meeting the skills gap, and shifts in tax and regulation - often hamper decision-making, forcing companies to react to events, rather than prepare for change, and capitalize on potential dislocations. By critically assessing key geopolitical issues that impact our clients, we provide insight into the ways in which companies can build capabilities to weather political and economic change in their foreign operations. Our Geopolitical Investing team combines rigorous insight into the key macroeconomic and geopolitical issues facing business leaders today, with deep industry and sector expertise, helping companies to strategically allocate capital to grow specific business units or assets in markets around the world.