Iddo Moed: Alberta and Israel show that smart, forward-looking industrial policy can pay off
Photo by Adrian Wyld/The Canadian Press files
By Iddo Moed, Special to Financial Post
Published Jul 03, 2025
At first glance, Alberta and Israel, separated by more than 10,000 kilometres, appear to be worlds apart. The glacier-fed lakes and snow-capped peaks of the Rockies stand in stark contrast to Israel’s arid deserts and the salty waters of the Dead Sea.
Yet last July, as I walked the Calgary Stampede fairgrounds and made my way through a whirlwind of BBQs, I felt something I hadn’t during my two years in Ottawa — I felt at home.
In so many ways, Albertans remind me of Israelis — their informal style, generous hospitality, pioneering energy and most of all, their ability to think outside the box. It’s also this shared character — resilient, innovative and entrepreneurial — that I believe needs to be harnessed to not only drive economic partnerships between Albertans and Israelis, but between Israel and all of Canada.
No doubt, geography plays a big role in Alberta’s success. Alberta sits on the world’s fourth-largest oil reserves, vast natural gas fields, and is a leading agricultural producer. Israel, while not as resource-rich despite being known as the Land of Milk and Honey, has recently become a net exporter of natural gas and ranks fifth globally in potash production.
But without our ingenuity, our natural resources would have no value.
Israel is proof that geography is not destiny. With two-thirds of its land covered by desert and a chronic shortage of water, it had every reason to fail. But instead, Israelis turned adversity into advantage. From pioneering drip irrigation that transformed global agriculture to leading the world in wastewater recycling, Israel has succeeded because of innovation. Known as the “Startup Nation,” it made the desert bloom — and today, the high-tech sector is responsible for more than half of Israel’s exports.
Similarly, as Premier Danielle Smith has said, “Alberta’s unmatched culture of entrepreneurship, freedom, and innovation has made (the province) into one of the greatest economic success stories in the world.” Albertans also haven’t let geography define their future. I was fascinated to recently learn about the development of the oil sands — how the economic potential would never have been realized if scientists did not find innovative solutions through steam technology to extract the bitumen.
Like Israel, whose success is rooted in forward-looking government leadership, Alberta’s oil sands story proves the power of smart industrial policy. It was a pivotal decision by Premier Peter Lougheed to establish the Alberta Oil Sands Technology and Research Authority that helped unlock the province’s vast potential. A $100-million public investment ultimately generated nearly $1 trillion in economic returns.
But our past success is no guarantee of future wins. Today, Israelis face constant threats in a tough neighbourhood, and while Canadians may not have the same existential dangers, you are not immune to shifting global forces.
That’s why deepening our partnership matters. Building on the momentum of the modernized Canada–Israel Free Trade Agreement, we have a chance to strengthen our economic ties in meaningful ways. Alberta, with its complementary sectors, is a natural place to start:
- Energy: Israeli innovators already have a proven track record in Alberta. A 2014 agreement with the Canadian Oil Sands Innovation Alliance (now Pathways Alliance) led to real advances in tailings cleanup and water efficiency. That successful collaboration offers a strong foundation for future joint efforts in energy, especially clean-tech and sustainability.
- Cybersecurity: Israel’s booming cybersecurity sector accounts for over 40 per cent of U.S. private cybersecurity funding. Meanwhile, Alberta’s Security Management for Critical Infrastructure Regulation, which requires critical facilities to meet certain cybersecurity standards, creates an opportunity for greater demand in global cyber expertise — including Israeli — to protect what matters most to Albertans.
- Artificial Intelligence: Edmonton is home to the Alberta Machine Intelligence Institute (Amii), a key driver of AI talent and commercialization for over 20 years. At the same time, Israel has emerged as a powerhouse in the global AI scene, with AI startups making up nearly 30 per cent of its tech ecosystem. Linking these two innovation hubs could accelerate growth for both.
The key question isn’t what sectors to focus on. It’s how to most effectively harness our shared strengths. Answering this lies in what has already worked best for both Alberta and Israel: smart, forward-looking industrial policy.
Encouragingly, progress is already underway.
In June 2023, Invest Alberta, the Calgary Chamber of Commerce, the Federation of Israeli Chambers of Commerce, and the Israel-Canada Chamber of Commerce signed an agreement to establish an Israel-Alberta Centre of Excellence. Unfortunately, the tragic events of October 7 and their aftermath have stalled momentum. But Stampede week offers the perfect opportunity for renewal. We will be bringing several Israeli startups to Calgary to showcase cutting-edge expertise across sectors.
My hope is the Israel-Alberta Centre of Excellence will serve as a blueprint for future collaborations with other provinces. Whether it’s advanced manufacturing in Ontario or agricultural technology in Saskatchewan, we must identify and leverage the unique strengths of each region. By aligning our complementary capabilities, we can build powerful partnerships that drive innovation, economic growth and shared prosperity.
Ultimately, these regional successes can be supported by the federal government as Canada seeks to both diversify its trade and elevate productivity through innovation. Now is the time to connect and pool our resources by drawing on our most powerful common ground — our people.
Iddo Moed is Ambassador of Israel to Canada