UK launches program to draw Israeli tech startups into British market

The British Embassy in Israel has launched ScaIL UK, a program designed to attract and support Israeli tech startups to establish themselves in the British market.

The UK’s Department for Business and Trade (DBT) announced the initiative, which focuses on eight key growth sectors: clean energy, advanced manufacturing, defense, creative industries, financial services, business and professional services, digital and technology, and life sciences. By deepening ties with the Israeli tech ecosystem, London aims to reinforce Great Britain’s position as a leading global innovation nation.

Ceri Morgan, London’s Trade Commissioner for Europe and Israel, explained the benefits for Israeli startups to join the innovation program.

“We’re connecting Israeli scaleups to a $1.2 trillion tech economy, Europe’s largest and third in the world, with world-class infrastructure, rule of law and a clear industrial strategy designed to boost investment and make the UK the best place to do business,” Morgan stated.

British Ambassador to Israel Simon Walters emphasized additional benefits for Israeli tech companies to enter the British market.

“Through ScaIL UK, we are giving companies the tools and confidence to make long-term investment decisions, leveraging benefits such as the G7’s lowest corporation tax, generous R&D incentives and a global outlook from day one,” Walters explained.

“This program strengthens the already deep economic ties between UK and Israeli companies and opens new horizons for innovation and collaboration.”

The solid diplomatic ties between London and Jerusalem became somewhat strained over the past two years due to political disagreements during the Gaza War. While condemning the Hamas Oct. 7 atrocities and supporting Israel’s right to self-defense, the British government has simultaneously criticized Israel's military operations in Gaza.

Despite the diplomatic tensions, Great Britain has maintained strong economic ties with Israel and especially the Israeli tech industry.

“The UK is not pulling back from its relationships with Israel as a place to do business with, as a center for research, and as a center for tech innovation,” the British ambassador Walters said in August. At the time, the Jerusalem Post revealed that the UK is “Israel’s fourth-largest trading partner globally.”

In 2024, total bilateral trade between Israel and the UK reached nearly $7 billion and the UK and Israel established a fund for joint tech research projects.

“The UK and Israel have built a strong relationship on science and technology; the launch of the first UK-Israel bilateral research call marks a significant milestone, elevating the already fruitful collaboration between our research communities,” Walters said.

At the time, Eshchar Ben-Shitrit, founder of the Israeli foodtech startup, Redefine Meat, explained the advantages of Israeli startups entering the British market: “Operating in the UK as one of our initial global markets was a strategic decision, leveraging the country’s supportive environment, leadership in sustainability and innovation, and its well-developed retail sector.”