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Israel only emerges when great Britain releases it or by modding. It is a small country that is either surrounded by French and British territory or other released nations.
Israel starts off with the most basic technology, it's best to try to buy production licenses from the soviet union or if you're feeling ironic, Germany.
There appears to be only two alliance options for Israel as they are surrounded by the Allies; you should focus on joining either the Commitern or the Axis, or even going it alone. If you do so, you can easily take the middle east from the allies' grasp and control the world crude oil.
If you are playing as Israel (most likely) Jordan, Lebanon, Syria Palestine, and Egypt are out there as well. It is recommended that you take Syria, Jordan, and Palestine immediately, as their armies are weaker then yours. Lebanon and Egypt can easily take you down if you haven't invested more in your military. If you join the allies or axis, you an your allies can make short work of surrounding nations and claim more land.
Gaming the System
You can take most of the surrounding areas with the first two divisions that you start with fairly easily.
|Major Powers||France · Germany · Italy · Japan · United Kingdom · United States of America · Soviet Union|
|Regional Powers||Argentina · Australia · Belgium · Brazil · Bulgaria · Czechoslovakia · Guangxi Clique · Hungary · Manchukuo · Nationalist China · Nationalist Spain · Netherlands · Poland · Republican Spain · Romania · Sweden · Turkey · Yugoslavia|
|Minor Powers||Austria · Canada · Chile · Colombia · Denmark · Finland · Greece · Ireland · Mexico · Norway · Peru · Portugal · Shanxi · South Africa · Switzerland|
|Micro Powers||Afghanistan · Albania · Bhutan · Bolivia · Communist China · Costa Rica · Cuba · Dominican Republic · Ecuador · El Salvador · Estonia · Ethiopia · Guatemala · Haiti · Honduras · Iraq · Latvia · Liberia · Lithuania · Luxembourg · Mongolia · Nepal · New Zealand · Nicaragua · Oman · Panama · Paraguay · Persia · Philippines · Saudi Arabia · Siam · Sinkiang · Tannu Tuva · Tibet · Uruguay · Venezuela · Xibei San Ma · Yemen · Yunnan|