Israeli investment in Texas continues to grow as companies seek efficient entry into the U.S. market, access to large-scale customers, and the ability to scale operations beyond Israel’s smaller domestic economy. This Texas-Israel economic relationship is increasingly driven by technology, cybersecurity, aerospace, and energy innovation. Today, the Israeli investment in Texas continues to expand as companies seek access to U.S. markets, scalable operations, and a business-friendly environment.
With Texas ranking as the #1 destination for foreign direct investment in the U.S. for two decades straight, the Lone Star State offers Israeli companies a proven pathway for entering and growing in North America.
Compared to traditional U.S. entry markets like New York or California, Texas offers lower operating costs, more available space for growth, and fewer regulatory constraints—key advantages for Israeli companies scaling internationally.
Israeli companies are drawn to Texas for one core reason: it enables faster, more efficient expansion into the U.S. market.
Israel is known globally for its innovation economy, producing startups and high-growth companies across sectors such as cybersecurity, aerospace, semiconductors, and energy technology. As these companies expand beyond Israel’s relatively small domestic market, many look for locations that provide access to larger customer bases without sacrificing agility.
Texas offers that opportunity through its central location, extensive infrastructure network, and business-friendly environment. Companies expanding from Israel can serve customers across North America while building long-term operations in one of the nation’s fastest-growing economies.
Companies exploring foreign investment opportunities in Texas benefit from a state that prioritizes execution speed, reasonable regulations, and access to global trade routes.
Israel is known globally for its innovation economy, producing startups and high-growth companies across sectors such as cybersecurity, aerospace, semiconductors, and energy technology. As these companies expand beyond Israel’s relatively small domestic market, many look for locations that provide access to larger customer bases without sacrificing agility.
Texas offers that opportunity through its central location, extensive infrastructure network, and business-friendly environment. Companies expanding from Israel can serve customers across North America while building long-term operations in one of the nation’s fastest-growing economies.
As the #1 global exporter in the U.S. and the #1 state for foreign direct investment, Texas continues to prove its reputation as a leader in the global economy.
Israeli companies continue to Go Big in Texas, strengthening the partnership between these two regions.
Examples of Israeli companies operating in Texas include Alon USA Energy, Alon Refining, Elbit Systems of America and NICE. Shared industries between Israel and Texas include aerospace & aviation, energy, financial services, information technology, manufacturing and petrochemical. Cumulative foreign direct investment from January 2011 – December 2023 included 33 projects, with $2,687 million in capital investment and 4,957 jobs created by 27 companies.
In January 2020, Governor Greg Abbott traveled to Israel for an economic development mission with the Governor’s Office of Economic Development and Tourism and Texas Economic Development Corporation. Governor Abbott’s meetings with Israeli leaders included discussions about the advancement of cyber security, energy, tech and robotics sectors in Texas. Following a meeting with Israeli Prime Minister Benjamin Netanyahu, Governor Abbott said, “The unwavering bond between Texas and Israel is marked by our shared commitment to freedom and economic opportunity.”
The economic partnership between these two regions continues to thrive, as evidenced by their shared industries and yearly increase in trade numbers.
Texas exports to Israel in 2023 totaled $845 million, including the following commodities: industrial machinery, plastics, electric machinery, aircraft, spacecraft, parts and technical instruments. Texas imports from Israel in 2023 totaled $2,230 million, including the following commodities: aircraft, spacecraft, parts, electric machinery, technical instruments, tools, cutlery and industrial machinery.
Texas port districts that have active trade with Israel include Dallas-Fort Worth, El Paso, Houston, Laredo and Port Arthur. Direct flights to/from Tel Aviv will be offered at Dallas Fort Worth International (DFW) beginning in September 2020.
Beyond their strong trade relationship, Texas and Israel share a culture of innovation, entrepreneurship, and business growth. Israel is widely known for its startup ecosystem and leadership in sectors such as cybersecurity, aerospace, and advanced technology, while Texas has become a hub for entrepreneurs, venture-backed companies, and innovation-driven industries. Cities such as Austin, Dallas, and Houston offer business environments that align closely with Israeli strengths, helping companies move from startup to scale while building long-term operations in the U.S.
For example, the Texas-Israel Alliance is a non-profit organization dedicated to expanding economic ties between Texas and Israel. The organization cultivates and leverages opportunities that bring shared prosperity to both regions. Furthermore, organizations like Shalom Austin celebrate the Jewish heritage of residents in regions across Texas. Shalom Austin aims to enhance the quality of Jewish life in the greater Austin area through philanthropy, education, social service, culture and spirituality.
The annual Dallas Kosher Chili Cook-Off is a beloved event in the Dallas Jewish community, featuring world-class chili, games, food, music, and information on Jewish life and organizations in the greater Dallas community. The cook-off is a huge annual event that brings the Dallas Jewish community together for a day of fun, food and camaraderie. It is the oldest continuous Kosher Chili Cook-Off event in the world.
The economic relationship between Texas and Israel is well established and growing fast.
In 2024, total trade between Texas and Israel reached approximately $4 billion, reflecting a strong and active partnership. Over the past decade, Israeli companies have also completed 34 investment projects in Texas, contributing $3.2 billion in capital investment and creating more than 4,200 jobs.
Today, Israeli companies in Texas operate across sectors such as aerospace, energy, cybersecurity, and advanced manufacturing. Companies like Elbit Systems and NICE demonstrate how Israeli firms can successfully scale operations in Texas while serving both domestic and global markets.
Recent actions, such as Texas doubling its investment in Israeli bonds to $280 million, per the Texas Comptroller, further highlight the strength and long-term commitment of this relationship.
Texas offers strong alignment with Israel’s leading industries, making it an ideal location for expansion in sectors like:
These industries are supported by diverse Texas business sectors, allowing Israeli companies doing business in Texas to easily integrate into established supply chains and customer networks.
Texas business incentives are designed to support foreign-owned companies at different stages of growth and are often tied to job creation, capital investment, and long-term operational commitments. For Israeli companies known for innovation in cybersecurity, aerospace, semiconductors, and emerging technologies, these programs can help support U.S. expansion strategies, whether establishing a regional headquarters, growing an engineering team, or scaling commercial operations.
In addition to incentives, companies benefit from a predictable Texas business climate that supports long-term investment and growth in one of the nation’s largest and most dynamic markets.
Israeli companies exploring specific guidance on site selection, incentives, and expansion planning Texas can connect with
The Texas Economic Development Corporation (TxEDC) for a direct connection to The Office of the Governor’s Texas Economic Development & Tourism Office.
To explore how you can be among the companies moving from Israel to Texas and connect with the appropriate resources, contact TxEDC.
Companies typically begin by establishing a U.S. entity, selecting a location aligned with their industry, and building partnerships for hiring, infrastructure, and market entry. Early coordination with state and regional partners helps streamline the process.
Texas offers a competitive tax structure, including no state personal income tax, which can reduce overall operating costs compared to other major U.S. markets.
Texas consistently ranks as a top destination for foreign direct investment due to its scale, workforce, infrastructure, and pro-business policies, making it a leading choice for companies looking to invest in Texas from Israel.
Israeli companies expand to Texas to access larger U.S. markets, scale operations, and connect with industry ecosystems that align with their strengths in technology, cybersecurity, aerospace, energy, and advanced manufacturing. Texas also offers a skilled workforce, robust infrastructure, and a business environment that supports long-term growth.
