Israel and Canada have built a strong trade relationship, driven by the Canada-Israel Free Trade Agreement (CIFTA). Initially signed in 1997 and modernized in 2019, CIFTA has significantly reduced tariffs, allowing businesses in both countries to expand their markets. Bilateral trade between Israel and Canada exceeded $1.6 billion in 2020, with key sectors including technology, defense, and manufacturing.
Canada has become an attractive destination for Israeli companies looking to expand, particularly in fintech, cybersecurity, and artificial intelligence. Investments from Israel have fueled growth in Canadian startups, while Canadian companies continue to seek innovation partnerships in Israel’s thriving tech ecosystem. Even industries like online gaming have benefited from these connections, with Israeli firms contributing software and payment solutions to platforms operating in the casino Canada market.
Technological innovation and collaboration
Israel is known for its technology sector, often called the “startup nation,” and Canada has increasingly looked to Israel as a key partner in innovation. The Canada-Israel Industrial Research and Development Foundation (CIIRDF) has been a critical driver in this area, funding projects that bring together Canadian and Israeli businesses to develop cutting-edge technologies.
One area where collaboration has grown is artificial intelligence. Canadian AI research, particularly in Toronto and Montreal, aligns well with Israeli advancements in machine learning and automation. Cybersecurity is another priority, with both countries facing growing digital threats. Joint ventures between Canadian and Israeli firms focus on developing next-generation security solutions for financial institutions, government agencies, and critical infrastructure.
The energy sector has also seen increased cooperation, with the Canada-Israel Energy Science and Technology Fund supporting initiatives in clean energy, smart grid technology, and water desalination. These projects are designed to address global sustainability challenges while fostering business opportunities between the two nations.
The biotechnology and pharmaceutical sectors have also benefited from Canada-Israel partnerships. Canadian pharmaceutical companies have been working with Israeli biotech firms to advance treatments for neurodegenerative diseases, cancer, and genetic disorders. These partnerships not only contribute to medical innovation but also strengthen the commercial reach of both countries in the global life sciences industry.
Gaming industry connections
The gaming industry, including video games and online gambling, is another area where Israel and Canada share business interests. Israel has a strong presence in mobile and social gaming, with companies like Playtika and Plarium making a global impact. Canadian gaming companies, such as Behaviour Interactive and Digital Extremes, have collaborated with Israeli developers on game design, AI integration, and monetization strategies.
Online gambling is also a major focus. Israeli firms provide payment processing, fraud prevention, and player retention solutions for Canadian casino operators. Marketing and affiliate networks based in Israel have helped boost the presence of gaming platforms targeting Canadian players, contributing to increased competition and innovation in the market. The integration of blockchain technology and cryptocurrency in gaming transactions has also emerged as an area of mutual interest, with Israeli fintech expertise aiding Canadian gaming operators in developing secure, decentralized payment options.
Esports is another field experiencing growth in both countries, with professional gaming tournaments and streaming platforms attracting significant investments. Israel’s strength in esports technology and analytics complements Canada’s thriving esports industry, creating opportunities for cross-border partnerships in sponsorships, broadcasting, and player development programs.
As both countries continue to invest in gaming technology, opportunities for collaboration are expected to grow. With the global gaming industry projected to surpass $200 billion in the coming years, partnerships between Canada and Israel will play a role in shaping its future. The growing adoption of augmented and virtual reality in gaming further strengthens this relationship as Israeli tech firms develop immersive experiences that Canadian studios are incorporating into their gaming portfolios.
A growing alliance and it will go beyond that
The partnership between Israel and Canada continues to expand, driven by shared interests in trade, technology, and gaming. With strong government support, increasing investment, and a focus on innovation, both countries are well-positioned to benefit from deeper economic and technological ties. As markets evolve, collaboration between Canadian and Israeli businesses will likely open new opportunities in these and other industries.
This article was written in cooperation with Dama N.V