Israel climbs to eighth globally for UK investment
New government figures show Israeli companies launched 16 investment projects in Britain during 2025/26, placing Israel ahead of every G7 nation on a per-capita basis
Israel has strengthened its position as one of the UK’s leading sources of direct foreign investment, climbing to eighth place globally for investment projects on a per-capita basis, according to new government figures.
Data published by the Department for Business and Trade (DBT) shows Israeli companies were behind 16 foreign direct investment (FDI) projects in the UK during the 2025/26 financial year – ahead of every G7 economy on a per capita basis.
The latest figures continue a steady upward trend, with Israel rising from 12th place two years ago to ninth last year and now eighth globally. They also highlight the UK’s continued appeal to Israeli businesses expanding internationally, particularly across technology and other innovation-led sectors.
Many of the investments are concentrated in industries where Israel has built a global reputation, including artificial intelligence, cybersecurity, fintech, life sciences and clean technology.
The UK’s 10-year Industrial Strategy also identifies digital technologies, life sciences, advanced manufacturing, clean energy and financial services as priority growth sectors, creating further opportunities for collaboration between the two countries.
Out of the 16 Israeli investment projects recorded during the year, 14 were supported by the Department for Business and Trade team at the British Embassy in Israel.
Although the number of projects was lower than in previous years, investment activity is increasingly focused on larger, higher-value opportunities, reflecting broader global trends in foreign direct investment.
Danny Kessler, chair of UK Israel Business, said: “Israel’s growing investment in the UK underlines the strategic depth of our trade relationship with the Jewish State. Thousands of British jobs, our national security and the health of the British public all depend on it.
“The UK brings world-class innovation to this partnership; Israel brings world-leading technology, especially in the field of AI. The resilience of our bilateral trade is cause for celebration and the strongest possible argument for securing a free trade agreement. Two democracies, bound by shared values, building shared security and prosperity.”
The figures come as the UK and Israel continue negotiations on an upgraded free trade agreement aimed at deepening cooperation in areas including technology, digital trade and innovation.
For Britain, attracting investment remains central to its economic growth strategy, while for Israel the latest ranking reinforces its growing influence as a source of high-value, innovation-led investment into the UK.
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