The inventory alternate of Israel exceeds the Center East regardless of a number of entrance wars

A rocket will be intercepted by Tel Aviv on June 20, 2025 after an Iran fired a fresh volley of rockets.

John Wessels | AFP | Getty pictures

The Israel stock market has a record high and in the 22 months of the war that started on October 7, 2023, has made the largest profits of a country in the Middle East.

Israel carried out multi -colored wars and has the mobilization of hundreds of thousands of troops, which would normally be part of the workforce, against the accusations for war crimes against international courts, while at home they deal with great protest movement and political twist. Nevertheless, his economic landscape remains lively and lifted by considerable foreign investments and recently through the trust of the investor after his 12-day conflict with Iran.

Initially, the Tel Aviv exchange in October Hamas attack and the declaration of war of Israel by up to 23% and crossed in the first quarter of 2024 and crossed in the first quarter of 2024. From July 17, the tense rose by over 200% compared to October 2023.

The country's GDP in the last quarter of 2023 shrank almost 20%after a deep contraction of private consumption and the investments triggered by the war. Nevertheless, the entire year ended with modest growth of 2% and another GDP growth of 1% in 2024, which was mainly driven by government expenditure. In June of this year, OECD predicts growth of the economic activity of 4.9% for Israel in 2026.

“In 2024, around 161,000 new trading accounts were opened on the Israeli capital market,” says a report published on the Tel Aviv Stock Exchange website in July. This number represents a triple jump in the number of open accounts compared to 2023.

The report added that another 87,000 new trading accounts were opened in the first half of 2025, of which around 33,000 were in investment houses.

“The year 2023 was characterized by considerable uncertainty. However, a reversal of the trend was determined in 2024: the public expanded its participation in the capital market and used trading accounts and used the low price levels in Tases to take part in the local capital market.

Avi Hasson, CEO of the Israel's Startup Nation Central, has attributed a number of factors to strengthen trust in Israel in Israel.

“As a result of what has happened in the past 22 months, the global investors look at the Middle East now and especially in Israel and say … 'The risks that are confronted with the certainty and economy of Israel are actually falling,” Hasson told CNBCS Access.

Last year, Israel managed to significantly affect the abilities of its opponents, especially the Hezbollah of Lebanon, and the June conflict with Iran – with the help of the USA – was widely seen as an important blow to Tehran's skills to harm the Jewish state.

When investors “try to create the basics of the Israeli economy and in particular the tech market, its dynamics, the skills, the baby boom, of the new company,” said Hasson:

The Tech sector Israel should thank a large part of the country's economic success. High -tech products and services account for 20% of GDP Israel and 56% of its international exports, said Hasson, partly thanks to the government, which is investing heavily in research and development.

Since the beginning of the war, his defense sector has attracted further attention from abroad in the Arab world – a visible example is the robust presence of Israeli defense companies at Abu Dhabis Idex defense exhibition in February this year.

Foreign investments also played an important role in the thrust of the Israel stock market and real estate sector.

In May this year alone, according to Israeli News Outlet Ynet, foreign investors bought about 2.5 billion shekel (743 million US dollars) in tases shares. Since the beginning of 2025, it has been reported that foreign acquisitions have reached around 9.1 billion shekel or 2.7 billion US dollars.

And according to the Israel Central Bank, the outstanding liabilities for foreign investors “rose to around $ 27.5 billion (about 5.2 percent) in the fourth quarter, around 554 billion dollars at the end of the quarter.” This increase, said the bank, “primarily due to a combination of an increase in the prices of Israeli securities that are held by non -resident, and the continued flow of net investments in Israel by non -residents.”

According to Amy Kaufman, director of investor relations at Israel Investment Advisors, the drivers for the main growth of Israel and his strong savings frame remain.

“High savings rates, especially through the robust pension system of Israel, have steadily supported the local market. This domestic foundation was crucial for maintaining market stability, especially in times of increased geopolitical risk,” she told CNBC.

“Foreign inflows serve as an important addition,” said Kaufman, “but the main drivers for growth are the economic reforms of Israel, the improved security environment and the continued commitment of the local capital.”

According to the Israel Iran conflict in June in June, the Israeli Shekel increased by almost $ 7% compared to the US dollar, while S&P Global Market Intelligence falls into the target rate of the central bank in the third quarter of 2025 and is probably paving the way for the further monetary lounger.