Dear Friends,

You will recall that I first wrote to you shortly after my arrival in Israel last year. UK/Israel Trade and Investment links were strong and I was looking forward to the challenge of building on the solid base of collaboration which we have formed between our two extraordinary countries. I know that many of you shared my enthusiasm - I appreciated your feedback and encouragement, which have been tremendously helpful.

Since then, and following a plethora of activity - including a recent visit by the UK Prime Minister and his Minister for Trade (the first visit in over 10 years) together with a high level business delegation - I am delighted that UK trade and investment with Israel has gone from strength to strength.

UKTI Tel Aviv is particularly focused on the Life Sciences, Healthcare, Financial Services and Aviation Sectors in Israel. We have much in common - while Israeli innovation in the field of Life Sciences and Healthcare is becoming recognised around the world, we can now boast that the UK's biotechnology sector is the largest in Europe and second globally only to the USA. And it is easy to see why. One of the main reasons is its great maturity and strong product pipeline. UK companies now account for 40 per cent of biotechnology products in the pipeline by European public companies. Moreover, 45 per cent of new biotechnology drugs in late-stage clinical trials (Phase III) in Europe are from the UK. The UK is now home to several of the largest specialised biotechnology investment funds.  These companies raise more funds than any other European country.

Furthermore, in order to promote UK cooperation with Israel in the Life Science and Healthcare sectors, we are hosting a UK Life Science 60/60 seminar later this year. This event will celebrate the joint 60th anniversaries of Britain's National Health Service and the establishment of the State of Israel. We expect to welcome a large UK delegation, who will participate in the seminar and visit companies and organisations of interest during their stay here.

The UK’s Financial Services sector also continues to perform beyond expectations. More Israeli companies are choosing to raise funds in the London capital markets and the UK remains both the leading global financial services centre and the single most internationally focused financial marketplace in the world. London in particular offers an unrivalled concentration of capital and capabilities that allows more and more overseas financial institutions and investors to choose to do business in, and with the UK than any other country. London of course is the historical home of banking and investment, backed by strong regional centres of international expertise across the UK. I know that it is determined to maintain its position as the world's number one financial centre.

Britain is deeply committed to bi-lateral financial cooperation with Israel. We were delighted when the Lord Mayor of London chose to visit Israel for his first overseas visit of 2008, and following hot on his heels came the Governor of the Bank of England.  Both visits were a great success and helped to strengthen ties with between the Israeli and UK financial communities.

Last year we welcomed the first Thomsonfly aircraft to Tel Aviv and this year they were joined by BMI. I wish both these new companies, and of course BA who have been flying to and from Israel for many years, every success. Budget tickets to and from the UK are now available to us all and this helps to focus attention on Israel as both a super tourist destination and a country keen to open its skies to free and fair competition. In addition, I am aware that two new budget airlines have shown interest in the Israeli market and I look forward to welcoming them to Tel Aviv in the future.

Israeli companies continue to consider investing in UK. We in UKTI have assisted a number of Israeli companies who have chosen to set up a subsidiary or main facility in the UK market. It never fails to surprise me how creative and innovative Israeli businesspeople can be in ensuring that they receive the best possible financial and administrative assistance from the UK’s professional network of Regional Development Agencies. The messages I receive from Israeli companies are the same, time after time - the UK presents a buoyant market for Israeli goods and services and provides an ideal base for further expansion into European and global markets. Long may it continue!

I’ll wrap-up this message with a very sincere acknowledgement of the huge amount of support and cooperation that we receive from individuals and organisations in Israel and UK. The Israel-British Chamber of Commerce and its sister Chamber in the UK, together with the British-Israel Business Council, deserve particular mention. And I know that our close work relationships with our Trade and Finance colleagues at the Israeli Embassy in London and in the Ministries here in Israel have done much to further our mutual goals.

Yours,

Richard Salt
Director, Trade & Investment
British Embassy, Tel Aviv, Israel