In today’s rapidly evolving global economy, the UK’s modern industrial strategy offers a bold vision for growth and a unique opportunity to deepen its economic and technological partnership with Israel.
In the 18th century, Great Britain transformed itself and the world with the Industrial Revolution by focusing on a handful of key sectors: textiles, coal, and steam. This was a historic period during which the pace of change accelerated, driven by technological innovation that led to sweeping impacts on daily life.
The focus on these sectors was no accident; they were identified as engines of progress that would generate jobs, spark invention, and lead to unprecedented economic growth. It was a strategic approach that turned new ideas into widespread prosperity.
Today, the world is entering a new era, more unstable and unpredictable, but it is also a time of developments and exciting possibilities. Technological advances in life sciences, clean energy, and artificial intelligence are profoundly reshaping our economy, with the potential to dramatically improve productivity and quality of life.
The UK continues to be a global leader, built on stability, fairness, and the rule of law, and powered by world-class industries, innovation, and openness to talent and trade. As the pace of global change accelerates and competition intensifies, the UK has a unique opportunity to renew its dynamism and lead in a more complex world.
At the heart of this renewal is the UK’s new modern industrial strategy – a long-term plan to deliver strong, secure, and sustainable economic growth that raises living standards across the country. It aims to lower electricity costs, unlock billions in private finance, streamline regulation, and boost research and development investment.
More importantly, it sets out a clear vision for the future of the UK economy, centered on eight high-growth sectors: clean energy, advanced manufacturing, defense, creative industries, financial services, business and professional services, digital and technology, and life sciences.
These priority sectors reflect the UK’s strengths and its ambition to lead in the industries of the future. Significant investments are being made to advance artificial intelligence, expand clean energy infrastructure, grow the creative economy, and accelerate breakthroughs in deep tech fields like quantum computing and biotechnology.
These efforts are not only designed to drive domestic growth; they also create exciting opportunities for international collaboration. For Israeli innovators and entrepreneurs, whose expertise aligns closely with these sectors, the UK offers a stable, ambitious, and well-funded environment to scale ideas and shape global markets together.
The United Kingdom is proud to be Israel’s fourth-largest trading partner, with bilateral trade and investment continuing to grow. Over the past five years, more than 300 Israeli companies have expanded into the UK, creating around 4,000 jobs and contributing over £906 million in investment. In 2024 alone, Israeli investments added £173m. to the UK economy and created 871 jobs.
This strong economic relationship is mirrored by deepening collaboration in innovation. In 2024, a UK-Israel research program supported joint projects in food-tech, quantum technologies, and AI in drug discovery. The UK-Israel Tech Hub facilitated 80 strategic partnerships and enabled over £5m. in proof-of-concept R&D funding between 2022 and 2025. These efforts have driven tech adoption, business growth, and long-term bilateral value creation.
Health-tech is a standout area and a key sector in the UK’s new industrial strategy. One in eight medicines used in Britain is supplied by Israeli firms, while London exports cars and aircraft engines to Israel, underscoring a strong and mutually beneficial trade relationship.
This new strategy offers Israeli businesses, entrepreneurs, and innovators the long-term stability and confidence they need to invest and grow. It builds on an already robust foundation of economic ties and opens the door to even deeper collaboration. Together, the UK and Israel can shape the future, turning new and bold ideas into shared prosperity.
Just as the Industrial Revolution once reshaped Britain’s future through focus and innovation, today’s strategy offers a thoughtful path forward built on partnership, progress, and shared potential.
The writer is chargé d’affaires at the British Embassy in Israel.