Israel’s Political-Security Cabinet has decided to form an advisory committee headed by the Finance Ministry to probe the scope of national security vis-à-vis foreign investors in Israel.

Following a request from the United States to discuss China’s investment in Israel, the Political-Security Cabinet held a discussion on the matter, following extensive work to probe the matter by the National Security Council, the Finance Minister and the National Council of Economics.

The decision was made to establish an advisory committee headed by the Ministry of Finance to examine national security aspects in the process of approving foreign investment.

Taking part in the committee will be senior representatives of the Ministries of Finance and Defense as well as the National Security Council and the National Economic Council. The committee will consult with the relevant security and economic entities. Referral to the committee will be done voluntarily by regulators. Transactions that do not require government approval will not be discussed by the committee. Arrangements towards the establishment of the committee will be completed within 45 days.

The agreed processes will properly balance the need to encourage foreign investment in Israel and ensure continued economic prosperity and national security considerations.

The committee will assist regulators to incorporate national security considerations into the process of approving foreign investment in the areas of finance, communications, infrastructure, transport and energy. The reference will be formulated under the security obligations of the State of Israel, with a central emphasis on relevant economic aspects.

In doing so, Israel joins many countries, including the United States, Canada, the United Kingdom, Germany and Australia which have formulated processes for improving the oversight of foreign investment for national security reasons. Regulators will be able to contact the committee from January 1, 2020. The cabinet will convene again within six months to review the way the committee works to make adjustments if necessary.

(YWN Israel Desk – Jerusalem)