Israel the “Startup Nation,” has long cultivated values of entrepreneurship and resilience as a nation. Home to over 2,000 startups founded in the last decade alone and with the highest R&D expenditure as share of GDP worldwide in 2022, the country attracts hundreds of global corporations.
With the horrific attacks on Oct. 7 and the ongoing war, Israel’s robust economy is more important than ever to maintaining their standing as one of the premier nations for developing new technologies. Israel has proven its economic durability in the face of adversity before. After the 2014 Operation “Protective Edge” in Gaza, the Tel Aviv Stock Exchange bounced back, ending the year up over 12%. This resilience comes from the agility and global connectivity of Israeli industry.
Israel’s economy has remained strong through many world events or conflicts throughout their history. In 2020, during the Covid-19 pandemic, Israel saw a 2.2% decrease in its’ real GDP, but quickly rebounded in 2021, with a growth of 7.1%. This war with Hamas will be no different, and the economy will be even stronger afterwards.
In 2021, Israel’s service exports surpassed the export of goods highlighting the shift from an exporter of goods to a provider of key services. The majority of Israeli companies, especially those in tech, are accustomed to remote work, and meeting new challenges. Whether it be in medical technologies or the continuous cybersecurity advances that companies have produced out of both necessity and forward thinking, the innovators who embody Israeli adaptability are steadfast in maintaining their pre-war output.
With this in mind, the Israeli government has fast-tracked NIS100 million or about $27.27 million to keep Israeli tech companies and production on schedule and without interruption. In addition to the investment from the Israel Innovation Authority, there will be a matching investment from a combination of private investors and is expected to exceed NIS200 million. With this investment, the country remains committed to forming new partnerships.
The Israel Economic Mission to the South-Midwest, based in Texas, and working also in Wisconsin, helps to facilitate a business relationship between the two countries, and bring new advances in technology to a market that is ready for these innovations. We remain devoted to creating these partnerships that stand both the test of time and are ready to work with those who are wishing to be introduced to innovative Israeli tech companies.
At this time, more than ever, we are grateful for the continued support of not only Americans everywhere but the Jewish community across our country.
Israel returning to form will rely also on the bridges between global Jewish communities and Israeli business. Whether through purchasing Israeli innovations, investing in startups, or advocating for trade partnerships, everyday people have power to uplift Israel’s economy.
The online platform https://c-catalogue.israel-expo.co.il/expo makes it easier than ever to buy Israeli products and tech directly from Israel, supplying means to endure during this crisis. As Israel withstands another challenge, the global Jewish community must rally to help uplift Israel’s economy.
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Writer Orna Avraham is an economic attaché with the Israel Economic Mission to the South-Midwest, part of the State of Israel’s Ministry of Economy & Industry.