Français
Español
English
Portuguese
A Bloomberg review found that foreign buyers committed roughly $60 billion to acquire more than 85 Israeli companies — the highest level of foreign acquisition ever recorded in the country.
By Shula Rosen
Israel’s financial performance in 2025 continues to defy expectations, even as the country navigates a year shaped by war, political strain, and global uncertainty.
Instead of retreating, international investors expanded their presence. A Bloomberg review found that foreign buyers committed roughly $60 billion to acquire more than 85 Israeli companies — the highest level of foreign acquisition ever recorded in the country.
Market indicators reflected the same momentum. The TA-35 climbed to an all-time high, overseas funds increased their exposure by hundreds of millions of dollars, and the shekel surged 26% against the US dollar, outperforming every other freely traded currency.
On paper, Israel is one of the strongest financial markets in the world. The capital market outperformed major US benchmarks, the tech sector remained globally competitive, and the currency proved unusually resilient during wartime volatility.
With a population of about 10 million — one of the youngest demographics in the Western world — the country benefits from a growing labor force and a $580 billion nominal GDP.
GDP per capita stands at roughly $58,000, emphasizing long-term gains driven heavily by high-tech industries. Over the past two years, roughly $12 billion has flowed into Israeli technology firms, reinforcing their central role in economic expansion.
Productivity in tech continues to rise, and strong leadership in banking, insurance, and retail has supported stability across the financial system.
Combined with attractive valuations on the Tel Aviv Stock Exchange, these factors helped propel TASE performance ahead of leading US indices. Investors have interpreted these signals as evidence of durability, prompting continued capital inflows despite broader regional instability.
At the same time, policymakers face an increasingly complicated interest-rate landscape. Real interest rates around 2% suggest room for reductions in the coming years — a shift that could lift long-term bonds, ease household costs, and help restore momentum to private investment.
The shekel’s steadiness throughout months of conflict reflects deeper structural strengths: strong export industries, reliable foreign-currency inflows, and global demand for Israeli innovation.
Yet these indicators point back to the same tension shaping Israel’s outlook. Its financial economy is thriving, dynamic, and globally integrated — while its physical economy, marked by infrastructure delays, high costs, and uneven productivity outside the tech sector, continues to lag behind.
Do You Love Israel? Make a Donation - Show Your Support!
Donate to vital charities that help protect Israeli citizens and inspire millions around the world to support Israel too!
Now more than ever, Israel needs your help to fight and win the war -- including on the battlefield of public opinion.
Antisemitism, anti-Israel bias and boycotts are out of control. Israel's enemies are inciting terror and violence against innocent Israelis and Jews around the world. Help us fight back!
