Israel’s Market Resilience Shines Amid Record Foreign Investment in 2025

Israel’s economy has emerged as an improbable global success story in 2025, with its corporate assets becoming highly coveted on the international stage. Despite international condemnation for its actions in Gaza following the October 7, 2023, attack, the nation’s market fundamentals have attracted unprecedented levels of foreign investment. , a record since such data began being collected in 1998.

This surge in cross-border interest reflects Israel’s entrenched reputation as a global leader in technology and innovation. The average acquisition premium paid—56%—is more than double the global average, indicating strong confidence in the long-term value of Israeli companies. , a cybersecurity leader. Another notable acquisition saw Advent International LP pay a 64% premium to secure Sapiens International Corp., a software company specializing in insurance and financial services.

These transactions highlight Israel’s strength in high-value, . , Israeli businesses continue to outperform global peers in innovation and productivity. The country’s relatively small size—comparable in land area and population to New Jersey—has not hindered its economic ascent. Instead, it has amplified the concentration of applied science and technology-driven growth.

The stock market has mirrored this momentum. Companies listed on the Tel Aviv Stock Exchange 35 Index and a broader cohort of 125 firms have reached all-time highs in November 2025. . dollar since October 2023, . The stronger shekel has lifted valuations and increased the attractiveness of Israeli equities to foreign investors.

In particular, Israeli companies have demonstrated strong . CyberArk, for example, . customers in 2024, , . These figures underscore the international reach and demand for Israeli technology.

The market’s optimism extends to bonds and broader financial instruments. The shekel’s strength has driven its strongest valuation since 2022, even as geopolitical tensions persist. This resilience challenges the narrative that economic activity in Israel has been stifled by international protests and diplomatic tensions.

As 2025 continues to unfold, Israel’s corporate sector appears well-positioned to maintain its momentum. Record investment, strong currency performance, and a pipeline of high-value acquisitions suggest that the nation’s market fundamentals remain robust, despite the broader geopolitical challenges it faces.