Israel’s economy is showing strong signs of recovery as global investors pour record sums into local companies. Despite the difficult period after the Hamas attack in October 2023, the country’s assets have become some of the most sought-after in the world. According to data collected by Bloomberg, foreign investors spent about $60 billion to buy more than 85 Israeli firms this year, the highest figure since such data began being compiled in 1998. The average premium reached 56%, which is double the global level. These numbers show how much confidence international buyers have in Israel’s technology and business strength.
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One of the largest deals came from Palo Alto Networks (PANW), which agreed to buy CyberArk Software (CYBR) for about $25 billion. Another came from Advent International, which invested $2.5 billion in Sapiens International (SPNS) at a 64% premium. Together, these moves highlight Israel’s lead in cybersecurity and software, areas that continue to attract strong demand.
Stronger Shekel, Rising Stocks
At the same time, the local market has gained speed. The Tel Aviv 35 Index (MORE.S7) reached record levels this year, while the shekel rose 26% against the dollar since late 2023. That made it the best-performing currency among 31 of the world’s most traded currencies. As the shekel strengthened, investor demand for Israeli bonds grew. The extra yield over U.S. Treasuries dropped below 1%, back to the range seen before the war.
Investors outside Israel also added to their positions. The iShares MSCI Israel ETF (EIS), which tracks local Israeli stocks, raised $194 million in new cash over the past four quarters. That is the highest inflow since the fund started in 2008. Among the biggest buyers were Korea Investment Corp., Corecap Advisors, and Monument Capital Management. Their moves suggest long-term belief in the country’s financial outlook.
Growth Outlook Improves
In the near term, economists expect Israel’s growth to outpace that of developed markets. Forecasts show the country’s gross domestic product may rise 4.3% in 2026 and 3.8% in 2027, more than twice the average of 34 advanced economies. Local companies also remain heavy spenders on research and development, ranking first in R&D as a share of sales among more than 2,000 global peers in Bloomberg’s World Index.
According to analysts at the Tel Aviv Stock Exchange, the current rally still does not reflect the full potential of a stable geopolitical period. If the security situation improves, the country could see higher credit ratings and more inflows from global funds. For now, Israel’s mix of strong innovation, steady exports, and rising investor trust is keeping its markets among the best-performing anywhere.
We used TipRanks’ Comparison Tool to line up some of the notable Israeli companies listed on Wall Street. It’s a great tool to gain an in-depth look at each company and the Israeli space in general.
