The modern State of Israel is a small country, about the size of Belgium or the state of New Jersey. Located on the eastern shore of the Mediterranean Sea, Israel is at the crossroads of Europe, Asia and Africa, and maintains important political and economic ties with North America. Although located in the Middle East, Israel is culturally a European country with a secular democratic government and a legal system based on Anglo-American traditions.

The Government of the State of Israel and the Government of the Arab Republic of Egypt (hereinafter “the Parties”) noting the 25th Anniversary of the signing of the Peace Agreement between the Parties and desiring to promote economic and trade relations for the benefit of the Parties have agreed to conclude this protocol.

The Israeli business scene is heavily based on international commercial activity, and the government makes a strong effort to encourage foreign investment and trade. While Israeli citizens face a heavy tax burden, the country provides generous tax exemptions and concessions for foreign investors.