5 Reasons the Tel Aviv Stock Exchange Continues to Attract Investors

Evan LibermanEvan's Blog, Invest in Israel, Investing, Israeli stocks

Lately, I’ve been thinking a lot about what makes a stock market truly attractive to investors. With all the ups and downs in the global economy, one market that continues to stand strong is the Tel Aviv Stock Exchange (TASE). If you’re wondering why, let me share my thoughts on what keeps investors coming back.

Israel’s Economy is Tough as Nails – No matter what challenges come its way, Israel’s economy always seems to bounce back. From global recessions to geopolitical tensions, most publicly traded companies in Israel have learned how to adapt, and that’s reflected in the strength of the stock market. Even during war, the Tel Aviv 125 stock index has risen over 50% in just the past 12 months. Half of the index companies rose on average over 114%!

Tech, Tech, and More Tech – If you love investing in innovation, TASE is a gold mine. Israel’s high-tech sector is booming, with world-class companies in cybersecurity, fintech, AI, and biotech. Some of the most exciting Israeli start-ups grow into major players in the public markets, and TASE gives investors a front-row seat. Tel Aviv 125 techology sector companies averaged a return of over 80% in the past 12 months.

More International Investors Are Joining the Party – Over the past decade, foreign direct investment in Israel has grown significantly. Thanks to market reforms and better transparency, it’s easier than ever for international funds to get involved, making the market more liquid and dynamic. International investors are seeking a strong currency for diversification, and Israel is supplying that, with the Shekel appreciating against the US Dollar by 9.3% so far in 2025. TASE equity market cap increased 21% in the first six months of this year alone, with trading volumes increasing 40% in the first half of 2025. Investors around the world generally can open a Shekel-based Israel investment account in less than 30 minutes.

A Mix of Everything – Unlike some stock markets that are dominated by a small number of sectors, TASE has a great mix—finance, energy, real estate, healthcare, fashion, defense, food, chemicals, telecommunication and, of course, tech. That kind of diversification makes it easier to manage risk.

The Government is Pushing for Growth – Recent financial reforms and government incentives have made investing in Israel more appealing. Whether it’s tax benefits, alignment with international trading standards, or improved regulations to encourage competition, policymakers are working to ensure TASE remains competitive.

At the end of the day, investing is about finding strong, forward-thinking markets, and for me, TASE continues to check all the right boxes. If you’re looking for a market that offers resilience, innovation, and growth, the TASE is definitely one to watch!