The Media Line: Texas Moves To Open Jerusalem Trade Office, Framing Israel Ties as Economic—and Regional—Strategy 

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Texas Moves To Open Jerusalem Trade Office, Framing Israel Ties as Economic—and Regional—Strategy 

The establishment of a trade office in Jerusalem highlights the already strong and growing partnership between ‘the two Lone Star states’ 

By Addie J. Davis/The Media Line 

The Texas Legislature, in late June, passed a resolution backing a Texas Trade and Investment Office in Jerusalem. Lawmakers positioned the outpost as a hub not only for Israel but also for countries tied to Israel through peace treaties and the Abraham Accords. 

The measure uses distinctly political language—calling Jerusalem “the eternal, undivided capital of the State of Israel.” State leaders and business advocates, however, frame the move primarily as an economic play to deepen trade, technology, and investment ties. 

Texas currently maintains state-run trade offices in Mexico and Taiwan under the Governor’s Economic Development and Tourism Office. Jerusalem would be the third such office and the first in the Middle East, extending Texas’ footprint beyond North America and East Asia. 

Glenn Hamer, president and CEO of the Texas Association of Business, told The Media Line he believes the office will boost commerce between the two government entities, which already share a long history of partnership. Trade between Israel and Texas stands at about $4 billion, he said, adding that the figure could double within five years. 

Hamer said the initiative is driven by economic benefits and received nearly unanimous bipartisan support, even though the resolution’s capital language carries clear political implications. Going back at least to the governorship of George W. Bush, he said the relationship has been strong for years, and that Governor Greg Abbott is arguably the strongest supporter of Israel among US governors. 

“Coordination of economic development activities makes it easier to do business in Texas,” Hamer said. He pointed to shared values and a commitment to innovation between “the two Lone Star states.” 

Anat Ben Yosef, director of the Southern Region of the BIRD Foundation, told The Media Line that Texas’ economic and cultural advantages make it an appealing entry point into the US market. “The state’s low taxes, supportive regulatory environment, and active efforts to attract foreign direct investment create a fertile ground for business growth,” she said. 

Ben Yosef explained that the BIRD Foundation is a binational program supporting joint US-Israel technology ventures. She said the strongest collaborations are in artificial intelligence, cybersecurity, robotics, and cloud computing. “For the Southern Region, the foundation established its headquarters in Texas, recognizing the state’s importance in the US innovation landscape,” she said. She added that Texans and Israelis share an entrepreneurial mindset focused on innovation, resilience, and problem-solving. 

“As Texas is increasingly cast as a competitor to Silicon Valley, Israeli tech expertise could push that goal forward,” Ben Yosef said. “Texas has steadily grown its reputation as a major technology hub, and Israeli companies have been an important driver of this trend.” 

Hamer acknowledged that Silicon Valley still holds a large lead but argued that a partnership with Israel will “supercharge” Texas. He noted that Texas ranks as the eighth-largest economy in the world, with a GDP of roughly $2.7 trillion. “Economically, all the momentum is in Texas,” he said. “Within 15 years, Texas will pass California both in terms of population and GDP, so the future is Texas.” 

He stressed the goal of keeping Texas on the front line of AI. “We’re doing everything possible to make sure that we’re going to be the most—continue to be the most desirable state to scale up in the age of AI,” he said. “For AI, the two big inputs are semiconductors and energy,” he added. “Texas is number one in exporting semiconductors. … Texas is far and away the energy capital of the country.” 

“In the age of AI,” he said, “Texas must strengthen ties with leading nations in startups and technology.” He also tied the move to US-China competition: “Whichever country wins the AI race is going to be the dominant economic and military superpower for our lifetimes.” 

“In the Middle East, you have the UAE and Saudi Arabia each basically committing to a trillion dollars’ worth of investment in AI-related activity connected to the United States,” Hamer said. He argued the Jerusalem office can help Texas plug into that capital and deal flow. 

Tal Shmueli, partner and COO of Texas Venture Partners (TVP) and executive director of the nonprofit Texas-Israel Alliance, said TVP’s goal is to persuade founders to build their startups in Texas. “In the wake of October 7, we concluded philanthropy alone would not suffice,” he told The Media Line. “TVP was created as a venture capital fund investing in defense-tech startups—both a regenerative tool and an investment vehicle to support the economy.” 

“Texas has seen an exodus of Israelis moving into it,” Shmueli said, citing COVID-era openness and business continuity. “This was further exacerbated by October 7, when the coast became hostile to Jews and Israelis,” he said. “It’s the best business environment in the world. People don’t hate Jews here.” 

Shmueli, an Israeli American, acknowledged New York and California as traditional choices but said they are not ideal for many startups. “Texas, with its universities, with its labs, with its policy, its overwhelming Israel support from the governor’s office, there just isn’t another place quite like that anywhere in the world,” he said. 

TVP’s aim is to create a circular ecosystem: invest in Israeli startups, help them establish US operations in Texas, and feed local economic development. “So far, we’ve invested in about 10 companies, with six firms completing our Department of Defense readiness program,” Shmueli said. “When the fund launched, it met an acute need; now there’s a proliferation of defense-related funds in Israel,” he said. “Our intention going forward is, yes, we’re all Zionists… but we’re not going to do exclusively Israel.” 

Amid intensifying US-China rivalry, Shmueli said the fund aims to back the interests of the US and the West. “We want to equip our allies with the best technologies and give them access to the best entrepreneurs,” he said. 

Corporate relocations have reinforced Texas’ pitch. Hewlett Packard Enterprise moved its headquarters from Silicon Valley to the Houston area in 2020 while retaining a substantial footprint in California. Adam Bauer, senior director of global communications at HPE, told The Media Line the move followed business needs, cost opportunities, and employee preferences about the future of work. He said Houston was already HPE’s largest US employment hub and “a great place to do business.” 

HPE also maintains significant operations in Israel. The company employs about 500 people there and has acquired Israeli firms Zerto and Axis Security, which “played a critical role in enhancing [HPE’s] portfolio,” Bauer said. “Israel’s drive for new innovation makes it a true standout for the creation of global technology advancement,” he added. HPE has leaned on the Israeli startup community to enrich products and talent. 

Much of the Texas-Israel trade involves the defense sector, Hamer said. Elbit Systems of America is headquartered in Fort Worth, and many Israeli firms have established significant Texas operations. Texas has also expanded its cybersecurity posture. In June 2025, the state created the Texas Cyber Command, described as the largest state-based cybersecurity department in the US. 

Water is another area of cooperation. IDE Technologies, an Israeli desalination and water-treatment company, has brought expertise to Texas as population and industry growth stress supplies. “Both Israel and Texas face water challenges, sitting roughly on the same latitude,” said Mark Ellison, IDE’s regional sales director for Texas. He told The Media Line that Texas’ water laws and scale differ from Israel’s, but the cultures share “big thinkers” and an entrepreneurial spirit. 

“We’re not here because there are a lot of subsidies here. We’re here because there’s water demand here,” Ellison said. “IDE is working with communities across the state to make sure there’s enough water for all the Texans we’ve got.” He said IDE hopes to develop Gulf Coast projects similar to its seawater desalination work in Israel and to expand brackish-groundwater desalination. “A lot of technology is being developed here in Texas that can be, I’ll call it, married with Israeli technology,” he said. 

He pointed to reuse, recycling, and cleaning water from the oil and gas industries as examples. He added that merging water technologies could benefit the US and other countries with similar challenges. With the Abraham Accords, IDE also operates in the United Arab Emirates. Ellison said the company hopes to expand and deepen relationships in the region. 

“In Texas, not only large firms like IDE are active; a startup community also stands to benefit from a Jerusalem trade office,” he said. “There’s a vibrant startup technology community in both Texas and Israel, and this new office and the connections that exist will help those companies partner up, improve their technology.” 

Ben Yosef said BIRD-funded projects already show Texas-Israel partnerships in energy innovation, cybersecurity, and large-scale commercialization. She said BIRD’s Texas base reflects the state’s growing role as a scaling center for deep-tech domains like energy and critical infrastructure. 

Hamer said the Jerusalem trade office is intended as a launching pad for deeper ties with friendly regional states, including Jordan, Egypt, and the UAE, with possible openings to Saudi Arabia. The resolution tasks the office with serving not only Israel but also “countries that are a part of the Abraham Accords or have a signed peace treaty with Israel.” 

“It’ll improve our security because what it’s going to do is it’s going to further cement the benefits of the Abraham Accords,” Hamer said. He said it could help bring Saudi Arabia into some version of the framework in the next few years. The Texas Association of Business also intends to sign an agreement with a chamber in the UAE. 

Hamer hopes the new office will increase demand for nonstop flights between Texas and Israel, which COVID previously derailed. He noted that Texas has one of the strongest anti-BDS laws and said the number of companies unwilling to do business with Israel amounts to a “rounding error.” 

He emphasized the economic benefits of the office and the broader friendship between the US and Israel, along with Israelis’ appreciation for the US. “In our view, that’s also something that should be recognized and rewarded,” Hamer said. He argued that results in AI, water, cybersecurity, defense, energy, and semiconductors will determine whether the office’s symbolism becomes a durable platform. 

Across the US, efforts are accelerating to strengthen ties with Israel. Many states already maintain dedicated trade representatives and Israel-focused chambers, including a Colorado-Israel Chamber of Commerce established in 2024. For Texas, whose values and business culture often align with those of Israel, the Jerusalem trade office is the next step in an already strong partnership. The practical test now is funding, staffing, and coordination through the Governor’s Economic Development and Tourism Office—and whether early deals emerge to validate the bet. 

Addie J. Davis is a recent graduate of the University of North Texas and an intern in The Media Line’s Press and Policy Student Program.