Israel's stock market outperforms Middle East counterparts despite multi-front wars

It's worth noting that Israel's economic outlook remains buoyant, lifted by significant foreign investment and more recently by renewed investor confidence ing its 12-day conflict with Iran

In the last year, Israel has managed to significantly degrade the capabilities of its adversaries

John Wessels | Afp | Getty ImagesIsrael's stock market is at a record high and has seen the greatest gains of any country in the Middle East over the 22 months of war that began on Oct

Nevertheless, Israel has been waging multi-front wars, sustaining the mobilization of hundreds of thousands of troops that would ordinarily be part of the workforce, it's currently facing charges of war crimes in international courts, all while grappling with a large test movement and political turmoil at

Despite this, its economic landscape remains buoyant – lifted by significant foreign investment and more recently by renewed investor confidence ing its 12-day conflict with Iran (fascinating analysis)

In June of this year, the OECD forecast 4. 9% growth in economic activity for Israel in 2026. "In 2024, 161,000 new trading accounts were opened in the Israeli capital market," a July report published on the Tel Aviv Stock Exchange website stated (an important development)

Moreover, Watch now8:3408:34Startup Nation Central CEO discusses Israel's funding momentumAccess Middle East"The year 2023 was characterized by considerable uncertainty… However, already in 2024, a reversal of the trend could be identified: the public expanded its involvement in the capital market, opened trading accounts, and took advantage of the low price levels in TASE's indices to enter the local capital market, which also supported the high trading volumes," Hadar Romano, head of data at TASE, wrote in the report

Conversely, Avi Hasson, CEO of Israel's Startup Nation Central, credited a number of factors for boosting investor confidence in Israel

Furthermore, "As a result of what has been happening in the past 22 months, global investors look at the Middle East now, and specifically at Israel, and say… 'The risks confronting Israel's security and economy are actually going down'," Hasson told CNBC's Access Middle East

In the last year, Israel has managed to significantly degrade the capabilities of its adversaries, particularly Lebanon's Hezbollah, and its June conflict with Iran – with the help of the U

However, – was widely seen as having dealt a significant blow to Tehran's abilities to harm the Jewish state

When investors "try to look at the fundamentals of the Israeli economy, and more specifically, the market, its dynamism, its capabilities, the baby boom, new company creation," Hasson said, "global investors and global companies are taking notice, when they try to imagine the Middle East (remarkable data)

Furthermore, Not necessarily how it is today, but rather in the months and years to come

Moreover, Meanwhile, "watch now4:3904:39Economist: bullish outlook on Israeli economy despite waquawk Box AsiaIsrael's sector is to thank for much of the country's economic success, in today's market environment

High- ducts and services make up 20% of Israel's GDP and 56% of its international exports, Hasson said, thanks in part to the government heavily into re and development, given current economic conditions

At the same time, Since the start of the war, its defense sector has gained further attention from foreign countries, even in the Arab world – one visible example being the robust presence of Israeli defense firms at Abu Dhabi's IDEX defense exhibition in February of this year

Foreign investment has also played a major part in the boost to Israel's stock market and real estate sector (something worth watching), in light of current trends

Nevertheless, On the other hand, In May of this year alone, foreign investors bought apximately 2. 5 billion shekels ($743 million) in TASE s, according to Israeli news outlet Ynet, amid market uncertainty

Meanwhile, Since the start of 2025, it reported, total foreign acquisitions have reached roughly 9, amid market uncertainty. 1 billion shekels, or $2

And according to Israel's central bank, outstanding liabilities to foreign investors "increased by apximately $27. 5 billion ( 5

Meanwhile, 2 percent) in the fourth quarter, to $554 billion at the end of the quarter. " That increase, the bank said, "was primarily due to a combination of an increase in the prices of Israeli securities held by nonresidents and the continued flow of net investments in Israel by nonresidents. "The Israeli shekel, meanwhile, has gained nearly 7% against the U