Israel is a nation often in the news but seldom for its potential as an investment.
Israel is a tiny country but a powerhouse for investing opportunities, particularly in the tech sector. Brian Mumbert joins us today to examine Israel in a different light.
Brian Mumbert is Vice President and Regional Sales Executive at Timothy Plan, an underwriter of Faith & Finance.
Is It Safe to Invest in Israel?
Despite frequent headlines about conflict in the Middle East, Israel stands out as a remarkably resilient nation with an entrepreneurial spirit.
Israelis have a low view of debt culturally. In fact, at one point, the government even sent out piggy banks to every citizen to encourage savings and wise stewardship. That mindset—combined with a tech-forward economy—creates strong fundamentals that appeal to values-based investors.
Understandably, some investors may wonder about the safety of investing in a country with frequent regional conflict. Israel is regulated just like the U.S. They have their own stock exchange—the Tel Aviv Stock Exchange—and the top 125 companies are listed on the Tel Aviv 125 index.
Even during times of war, Israel’s economy continues to operate. Brian compared it to the U.S. during World War II: while volatility occurred, the Dow still gained over 50% from 1939 to 1945.
A Developed Economy with Room to Grow
Israel graduated from the emerging markets category to a developed economy in 2009. While this was a major step forward, it ironically resulted in less attention from global investors, since many international funds tend to favor larger developed economies like Japan or those in Europe.
Still, the fundamentals are strong. Israel’s unemployment and inflation rates remain low, and the U.S. continues to be a committed ally.
Israel has earned the nickname “Startup Nation” for good reason. Its high-tech sector employs 12% of the workforce and generates 20% of the country’s GDP.
Many Israeli companies don’t become household names because giants like Apple, Google, and Amazon acquire them. Notable examples include:
- Mobileye—A leader in automotive safety tech.
- Waze—The crowd-sourced navigation app developed to navigate Jerusalem’s winding roads.
- Cherry Tomatoes—Yes, even innovations in agriculture like drip irrigation and cherry tomatoes can be traced back to Israeli ingenuity.
The government’s support of tech innovation has made Israel the third-largest tech hub globally by capital raised—just behind Silicon Valley and New York.
While tech leads the way, Israel’s financial sector is also strong due to the cultural avoidance of debt. This contrasts sharply with many Western nations. Innovations in agriculture (like drip irrigation) and strong export activity also contribute to Isr