4 Reasons Why Israeli Stock Market is the Most Lucrative Investment Option
Israel has often been ignored as a great country for investment, especially on the background of powerful global environment surge to upcoming markets and recently emerged economies. However, Israel provides the “best of both worlds” in many ways. The stock market in Israel (שוק ההון בישראל) has discerned itself among both upcoming as well as developed equity markets. According to experts, there are four reasons why the Israeli markets are the most convincing investment opportunity of today.
1. Israeli Businesses – Global Leaders
Today, Israeli businesses have become global leaders and Israeli stocks have shown an outstanding performance. There is a diverse array of companies in the Israeli stocks including several industry leaders. Till the first half of 2012, Israel’s performance was low, but since the latter half of 2012 its performance started becoming outstanding in both developed as well as emerging equities and it outperformed the US by quite a wide margin. During the last ten years, Israel has significantly internationalized its economy as well as capital market. Israeli companies are leaders in markets like the US, Russia, Brazil and China, while famous American firms like Intel, IBM, Gamble, Cisco and many others have invested heavily in Israel.
2. Israel’s Unmatched Entrepreneurship and Competitiveness
Israeli companies are highly enterprising and competitive, and leading in technological innovation in all fields like biotech, agro-tech and high-tech. The venture capital market of Israel is one of the most prominent examples of its competitiveness. Israel is one of world’s smallest countries, but it receives the third largest amount of venture capital investment from around the world and so, is on the top position for startup companies per capita.
3. Unfailing Macro-economic Management
Israel has taken one more major steps in its strategic changes. Over the last twenty years, it has moved away from its socialist role and has demonstrated a powerful macro-economic management unfailingly. It surpassed most major economies in the world during the financial crisis of 2008-09. The economy of this country grew consistently.
4. Recognition as a Developed Market
Three events have made Israel the greatest candidate for investment:
- Upgrading as a developed market as recognized by FTSE and MSCI, the global standard providers
- OECD membership
- Discoveries in energy resources
Especially its accomplishment of status of developed market has made Israel a lucrative target for international investment.
All in all, Israeli stock market should be considered by investors for its potential of growth and diversification. The country has weathered many storms of economic volatility and war, and has delivered vigorous growth and sturdy returns in the long run.
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