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	Score	Rank
Standards Compliance Index	48.33 out of 100	34
Business Indicator Index	8.98 out of 12	38

Israel

Business Indicators

With an overall score of 8.98/12, Israel is progressing toward standard on the economic, legal, and political indicators that make up our Business Index. Israel is a market-based mixed economy. In 2004, government consumption equaled 29.2 percent of GDP, and 1.49 percent of government revenues came from state-owned enterprises and government ownership of property. Israel encourages foreign investment. Few restrictions limit foreign investors outside of the defense industry, and the government provides export and tax incentives for both foreign and domestic investment. However, tax rates are incredibly high. Property rights protection laws are established and enforced. Although Israel maintains a stable domestic environment, political instability arising from the ongoing Palestinian conflict deters foreign investment. Corruption is of no concern to investors, as reflected in Israel's ranking of 34th out of 163 countries in Transparency International's 2006 Corruption Perceptions Index.

Business Indicators

Forex Regulations - Capital Controls

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