ISR · snapshot 2026-08-09
Israel
MediumOverall risk score
38.1
Percentile of scored universe
34th
Data coverage
94%
vs Australia (16.1)
+22.0
Category breakdown
Political Stability & Governance
Medium6 indicators · 100% coverage
Economic Resilience
Low6 indicators · 85% coverage
Financial & Currency Risk
Low5 indicators · 100% coverage
Business Environment
High3 indicators · 75% coverage
Security & Crime
Very High4 indicators · 100% coverage
Climate & Social Compliance
Low4 indicators · 100% coverage
Technology & Digital
Low4 indicators · 100% coverage
Cultural Distance
Low9 indicators · 100% coverage · not in overall score
Key risks and considerations
Israel rates Medium for market entry — an overall risk score of 38.1, less risky than 66% of rated economies and 22 points riskier than Australia.
The main risk drivers are no investment-treaty protection with Australia, armed conflict (126.6 battle deaths per 100k/yr) and political instability.
Relative strengths: E-government development sits in the least-risky quarter of rated economies, and sovereign credit risk and inflation both rate Low, the least-risky rating band.
Possible mitigations
- Duty of care for people. DFAT advises against non-essential travel. Review duty-of-care obligations, prefer remote engagement, and use in-country agents rather than travelling staff where possible.
- Political violence. Consider political-violence and political-risk insurance, keep asset footprints light, and maintain an exit/continuity plan with defined triggers.
- Payment fraud. Experts nominate this market as a cybercrime origin (World Cybercrime Index, 2021 survey): verify any change of bank details out-of-band, enforce MFA and dual authorisation on payments, and be sceptical of unsolicited counterparties.
Generated automatically from this snapshot’s indicator data — a starting point for analysis, not advice.
Indicators
| Indicator | Value | Risk score | Rating | Australia | Data source year | Source |
|---|---|---|---|---|---|---|
| Political Stability & Governance | ||||||
| Voice & accountability (WGI) | 62.0 | 40.7 | Medium | |||
| Government effectiveness (WGI) | 74.1 | 15.9 | Low | |||
| Regulatory quality (WGI) | 72.4 | 13.9 | Low | |||
| Rule of law (WGI) | 67.3 | 28.7 | Medium | |||
| Control of corruption (WGI) | 65.1 | 20.5 | Low | |||
| Political stability & absence of violence/terrorism (WGI PV) | 48.2 | 85.7 | Very High | |||
| Economic Resilience | ||||||
| GDP growth (3-yr average, %) | 2.0% (3-yr avg) | 15.0 | Low | |||
| Growth volatility (10-yr std dev, pp) | ±3.0 pp | 41.6 | Medium | |||
| Government net debt (% of GDP) | 67.0 | 45.0 | Medium | |||
| Inflation (CPI %, vs income-group target) | 3.0 | 10.0 | Low | |||
| Current account (3-yr average, % of GDP) | 2.4% (3-yr avg) | 15.0 | Low | |||
| FX reserves (months of import cover) | — | — | Insufficient data | |||
| GDP per capita (PPP, current intl $) | $59,717 | 19.3 | Low | |||
| Financial & Currency Risk | ||||||
| Capital-account openness (Chinn-Ito KAOPEN) | 1.00 | 5.0 | Low | |||
| Currency stability (regime-aware classification) | Floating — normal volatility (8–13%) | 30.0 | Medium | |||
| Sovereign credit risk (OECD country risk classification) | Category 0 / 7 | 2.0 | Low | |||
| FATF listing (grey / black list status) | Not listed | 0.0 | Low | |||
| Double-tax agreement with Australia | In force | 0.0 | Low | |||
| Business Environment | ||||||
| FDI regulatory restrictiveness (OECD FDIRRI) | 0.11 | 54.1 | High | |||
| Logistics performance (World Bank LPI) | 3.6 | 20.3 | Low | |||
| Business readiness (World Bank B-READY pillar average) | — | — | Insufficient data | |||
| Investment protection with Australia in force (BIT or FTA investment chapter) | None in force | 100.0 | Very High | |||
| Security & Crime | ||||||
| Armed-conflict intensity (battle deaths per 100k, 5-yr) | 126.6 | 99.3 | Very High | |||
| Intentional homicide rate (per 100k) | 1.6 | 41.7 | Medium | |||
| Organised crime pervasiveness (GI-TOC criminality score) | 5.1 | 49.7 | Medium | |||
| DFAT Smartraveller advisory level | Level 3 — Reconsider your need to travel | 70.0 | High | |||
| Climate & Social Compliance | ||||||
| Physical climate vulnerability (ND-GAIN vulnerability) | 0.344 | 11.8 | Low | |||
| Disaster risk (INFORM Risk Index) | 3.2 | 42.4 | Medium | |||
| Modern-slavery prevalence (per 1,000) | 3.8 | 29.1 | Medium | |||
| Modern-slavery vulnerability score | 35.4 | 27.2 | Medium | |||
| Technology & Digital | ||||||
| E-government development (UN EGDI) | 0.9 | 11.7 | Low | |||
| Internet users (% of population) | 88.2 | 36.8 | Medium | |||
| Cybercrime origination (World Cybercrime Index) | 2.5 | 30.0 | Medium | |||
| Secure internet servers (per million people) | 12318.7 | 24.9 | Low | |||
Per-indicator ratings are quartile bands of the 0–100 risk score. The Australia column shows the same indicator’s raw value for the Australian baseline in this snapshot.
Cultural distance
GLOBE 2004 societal practices · rated on distance from Australia · not in the overall score
Context — not scored
Unemployment
3.5%
Displayed, never scored: ambiguous for an entrant and unreliable where informal employment dominates. (2025, ILO modelled)
Trade agreement
No Australian FTA in force
Market access is decision-relevant but a benefit, not a risk — kept out of the rating.
Regional advisories
Higher levels apply in some areas (up to Level 4)
DFAT Smartraveller sub-national advice where it exceeds the overall level.
Compare with
A score means little on its own. These economies scored closest to Israel in this snapshot, which is the fastest way to see whether the rating is telling you something specific or something regional.