For years, Israel-UK business relations were successfully growing and built on trade, innovation, investment and trust.
This has been tested like never before during the last few years. The continuing war in the Middle East, the painful debate surrounding it, and the troubling rise in antisemitism in the UK, have made the environment more challenging for businesses on both sides.
Pressure is visible at various levels. Co-op announced last year that it would stop sourcing products from Israel, and we at the Israel Britain Chamber of Commerce & Innovation (IBCC) know that Israeli food exporters have confronted some order cancellations. We also saw the cancellation of a major prospective investment in advanced technology for vague reasons. Israeli cultural activity in the UK has also faced cancellations or disruption, following boycott pressure and security concerns. Needless to say, these examples do not represent all of Britain, and reasons may vary, but they do explain Israeli concerns.
It was therefore enormously encouraging that the British Chambers of Commerce and the Confederation of British Industry coordinated an open letter last week, supported by more than 40 leading UK business organisations, to stand unequivocally against antisemitism. This is a significant intervention and reflects the shared values which have underwritten decades of bilateral trade.
Despite the challenging backdrop and the UK Government’s regrettable decision to suspend negotiations for an upgraded UK-Israel Free Trade Agreement, this time last year, trade has resiliently weathered the last two years. Bilateral trade was valued at £6.2 billion in the four quarters to the end of Q2 2025, including £3.6 billion of UK exports to Israel and £2.6 billion of UK imports from Israel.
This matters a great deal. Thousands of British jobs depend on it. Our shared national security and prosperity depend on it.
Crucially, Israeli companies still see the UK as a natural market: sophisticated, international and very much open to innovation. The UK offers capital, legal certainty, financial services, global networks, great universities and a sophisticated business environment.
For the UK, Israel offers strengths in cyber, artificial intelligence, agri-tech, engineering, as well as biology and digital health. Israel’s economic outlook is also remarkably strong. The OECD has projected that Israel’s economy will grow by 4.9% in 2026 and its stock exchange has been one of the the best performing markets in the world this year, a clear sign of the confidence that global business has in Israel long-term.
Many friends of Israel in the UK including investors, professionals, academics, entrepreneurs, and community leaders, continue to believe deeply in the relationship. Some are now more cautious about saying so publicly, but a serious constituency in Britain understands cooperation with Israel is a two-way strategic interest.
Efforts to generate further business never wavered during these times. The IBCC has led and hosted bilateral events and delegations. Shortly after the suspension of FTA negotiations, Lord Ian Austin, the UK’s trade envoy to Israel, visited the country to explore the generation of further opportunities, meeting with the IBCC Board and business leaders, together with the UK Ambassador to Israel, Simon Walters.
How do we go forward from here? We must keep doing this positive and forward-thinking work. The responsibility is shared. Israeli businesses should continue choosing the UK market, and must be prepared, locally sensitive and clear about the value they bring. UK partners must reciprocate, and judge companies and co-operations by their innovation, integrity and professionalism, not by intimidation or slogans from anti-Israel activists.
The UK-Israel business bridge has proven itself to be a strong one and must be used to continue growth, innovation and keep doors open. Strong relationships are proven when serious people keep building, and it’s all about the people.
Anita Leviant is the President of Israel Britain Chamber of Commerce & Innovation (IBCC). She is the co-founder of the Israel and International Centre of Arbitration and Dispute Resolution
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