The post ILTV Interview: Investing in Israel – Opportunity & Resilience in Uncertain Times appeared first on Wise Money Israel.

The Israeli shekel has become an increasingly important part of the investment case for Israel. As the currency has appreciated, foreign investors have gained a clearer signal of confidence in Israel’s economy, capital markets, and long-term resilience. For investors seeking international diversification, exposure to Israeli assets now offers not only access to a dynamic market, but also the potential benefit of currency strength.

What Is Driving the Strengthening of the Israeli Shekel?

Over the past 12 months, the Israeli shekel has strengthened sharply, rising to levels not seen in decades. The Israeli currency broke a 32-year high as it moved below the 3 shekels per U.S. dollar mark last week. The shekel has gained roughly 68% against the U.S. dollar since mid-2002.

In just the past 12 months, local currency gained 24% against the USD, outpacing almost all major currencies and signaling a marked shift in market sentiment. Among major freely traded currencies, a 20%+ appreciation in a single year is highly unusual — placing the shekel among the strongest global performers in recent history.

This appreciation reflects a combination of improving geopolitical expectations, resilient economic performance, and supportive global conditions. Recent developments in the Middle East and a decline in Israel’s risk premium have played a central role in shifting investor sentiment, encouraging renewed capital inflows into local markets.

At the same time, the domestic economy has continued to perform, led by its technology sector and supported by steady capital inflows from abroad. Israel’s high-tech industry remains a key driver of foreign currency earnings, while continued startup fundraising and investment activity have helped anchor the shekel’s strength. Even during periods of heightened uncertainty, the economy has demonstrated an ability to absorb shocks without major structural damage.

External factors have also contributed. The broader weakening of the U.S. dollar, alongside the recovery in global equity markets, has reinforced the shekel’s appreciation, particularly through institutional investment flows and hedging activity. Taken together, these forces point to a currency move driven by both domestic fundamentals and global dynamics, rather than a short-term fluctuation.

Back to top

Why a Strong Shekel Matters for Foreign Investors

A strong shekel signals growing confidence in Israel’s economic and financial system, even against a complex geopolitical backdrop. Currency appreciation typically reflects capital inflows, reduced risk perception, and expectations of future stability, all of which are central considerations for international investors.

For those allocating capital, currency direction has a direct impact on both risk and return. A strengthening shekel reduces the likelihood that exchange-rate movements will erode gains, while also suggesting that local assets are benefiting from sustained demand. This can make the Israeli capital market more attractive relative to peers, particularly in periods when global investors are seeking resilient and differentiated exposure.

There is also a behavioral dimension. Strong currency performance tends to attract attention from institutional investors tracking relative market strength. As capital reallocates toward outperforming markets, the shekel’s appreciation can reinforce its own momentum, further strengthening the investment case.

Back to top

How a Strong Shekel Supports Israeli Market Performance

The relationship between currency strength and market performance is often mutually reinforcing. In Israel, the appreciation of the shekel has coincided with gains in the local equity market, pointing to a broader improvement in investor sentiment.

As equity markets rise, they tend to attract additional foreign capital, which in turn supports the currency. This dynamic has been particularly visible in Israel over the past 12 months, with the local equity market (TA-35) delivering gains of around 77% alongside a 24% appreciation in the shekel against the USD. Combined together, the TA-35 delivered a118% gain in USD-terms.

This creates a feedback loop in which stronger markets and a stronger currency reinforce one another. For foreign investors, this alignment can enhance both entry conditions and potential returns.

Institutional investment strategies further amplify this dynamic. Global funds reallocating toward markets demonstrating relative strength can increase exposure to Israeli assets, adding momentum to both market performance and currency appreciation. In such an environment, the shekel becomes both a reflection of investor confidence and a driver of broader market momentum.

Also, the strengthening of the shekel is good news for many Israelis. The strengthening of the shekel is leading to price reductions in retail chains, airline tickets, and overseas shopping, and supports Israeli consumers by lowering inflation. This is fueling Israeli consumption as the war begins to wane.

Israeli importers and retail chains benefit significantly from the strengthening shekel. Expenses are in cheaper foreign currency and revenues are in strong shekels.

One example of this dynamic can be seen in the Israeli stock Neto Malinda, a food importer our firm currently holds. Although the company does not officially disclose FX impact, estimates suggest that every 1% strengthening of the shekel adds about 17 million shekels to its bottom line.

Start Your Currency Diversification Plan Today

IMPORTANT DISCLOSURES & RISK INFORMATION

This content is provided for educational and informational purposes only and does not constitute investment advice, a solicitation, or an offer to buy or sell any securities. Investing in international markets, including the Israeli stock market, involves material risks, including but not limited to currency risk and the potential loss of principal. Wise Money Israel does not guarantee any specific outcome, return, or profit. Individuals should consult with a qualified financial advisor, tax professional, and/or legal counsel before making any investment decisions. Diversification does not necessarily ensure a profit or protect against loss. © 2026 Wise Money Israel. All rights reserved.

The post Why a strong shekel is attracting foreign investors to Israel’s capital market appeared first on Wise Money Israel.

For faith-driven investors, managing money is never just about returns. It is a declaration of values, a stewardship of blessing, and an expression of covenant faith.

Biblically responsible investing (BRI) asks one foundational question: Is my portfolio honoring God?

This guide outlines one approach to building a faith-based portfolio that aligns with Scripture, and discusses how investing in Israel’s flourising stock market may be considered within a broader truly biblical investment framework.

Wise Money Israel, an Israel-based SEC-registered investment advisory firm, provides specialized guidance and serves as your guide at every step, bridging the gap between biblical conviction and market expertise.

What Is Biblically Responsible Investing?

Quick Answer:

Biblically responsible investing, also known as BRI, is a values-based investment strategy that aligns a portfolio with Christian or Jewish scriptural principles. It combines negative screening (excluding immoral industries) with positive screening (actively investing in areas that reflect God’s purposes, such as aligning with Israel). BRI treats financial stewardship as an act of faith, not just a financial decision.

Biblically responsible investing goes far beyond simply removing “sin stocks” from a portfolio. It is a proactive, purpose-driven discipline that asks: Where is God at work in the world, and can my capital follow?

While traditional BRI screens exclude companies involved in abortion, pornography, gambling, or predatory lending, a fully developed biblical portfolio also intentionally invests in companies and markets aligned with human flourishing, innovation, and God’s redemptive purposes.

For millions of Christian and Jewish investors, that conviction leads directly to Israel, the Land at the center of Scripture’s great promises.

Why Israel Is the Cornerstone of Biblical Investing in 2026

Israel’s modern economic rise is one of the most compelling stories in global finance. From a nation established against all odds, Israel has grown into a world-leading innovation hub - the “Startup Nation,” - driving breakthroughs in technology, agriculture, renewable energy, healthcare, and infrastructure.

But for the biblically minded investor, Israel’s significance runs even deeper. Scripture describes the restoration of Israel as one of the defining movements of the end times. Investing in Israel is participating in that restoration; tangibly, financially, and faithfully.

The Financial Case for Investing in Israel’s Stock Market

• Tel Aviv 35 Index outperformance: Israel’s flagship stock benchmark has outperformed America’s S&P 500 over various periods (the last 1, 2, 5, 10, 20 and 25-year periods in dollar terms), illustrating the historical performance of the Israeli market relative to U.S. benchmarks during these periods. Of course, past performance is not a guarantee of future results, market conditions vary significantly and there could be periods where Israeli’s stock benchmark does not beat the S&P 500.
• Shekel appreciation: International investors should be aware that fluctuations in the USD/ILS exchange rate will impact total returns, providing the potential for either currency gains or losses in addition to market performance. The Israeli shekel has appreciated against major currencies (almost 60% over the USD in the past 24 years), this presents international investors potential currency gain or loss in addition to market returns.
• NASDAQ leadership: For those seeking to concentrate on the tech sector, Israel has more NASDAQ-listed companies per capita than any country outside the United States, a measure of its tech-driven growth.
• Diversification opportunity: Based on historical data from 2010–2025, Israeli equities have shown different performance cycles than U.S. markets. This may offer an opportunity for portfolio diversification alongside faith-based alignment.

The Biblical Case for Investing in Israel

• Genesis 12:3: God’s covenant promise to bless those who bless Israel is foundational to the biblical investing thesis for many faith-driven investors.
• Psalm 122:6: “Pray for the peace of Jerusalem.” Investing in Israel’s economic health is a tangible expression of solidarity with the Jewish people and land.
• Prophetic restoration: From Isaiah to Ezekiel, Scripture foretells Israel’s rebuilding. Faith-based investors increasingly see Israeli market participation as alignment with that prophetic narrative.

How to Build a Biblically Responsible Portfolio: 6 Steps

The following steps reflect WMI’s framework for building a faith-based investment portfolio that integrates biblical principles with sound financial strategy and Israel’s market at the core.

Step 1: Define Your Biblical Values and Financial Goals

Every biblically responsible portfolio begins not with market data, but with conviction. Before selecting a single investment, clarity on your values determines everything that follows.

Key questions for faith-based investors to answer first:

• Which industries or business practices conflict with my biblical convictions?
• Do I feel called to actively support Israel and the Jewish people financially?
• What is my investment time horizon, income need, and risk tolerance?
• Am I seeking growth, income, preservation of wealth, or a balanced combination?

At Wise Money Israel (WMI), every client relationship begins with these questions. Your convictions shape your portfolio, not the other way around.

Step 2: Screen Out Investments That Conflict with Your Faith

Negative screening removes investments that violate biblical standards. Most investors are surprised to discover how many conventional index funds contain holdings in industries that contradict their faith.

Common biblical exclusion screens include:

• Abortion and abortifacient pharmaceutical companies
• Pornography and adult entertainment producers
• Gambling operators and predatory lenders
• Companies that actively undermine religious liberty or traditional family values
• Businesses with significant ties to nations openly hostile to Israel

WMI advisors conduct thorough market audits, identifying these conflicts and choosing holdings to ensure your investments reflect your faith, not contradict it.

Step 3: Pursue Positive Impact, Invest Where God Is Moving

The most powerful dimension of biblically responsible investing is its forward-looking, positive focus. This is where Israel’s stock and bond market becomes a central opportunity for faith-driven investors.

Israel’s ongoing economic rebuilding efforts provide current opportunities for faith-driven investors to consider as part of a long-term allocation strategy.                      

Growing Israeli sectors aligned with biblical values:

• Technology & Cybersecurity: Israel’s “Startup Nation” innovation is a global leader in AI, cybersecurity and many other world-leading technologies.
• Renewable Energy: Solar energy and water desalination technology that reflects stewardship of God’s creation.
• Agriculture: Israeli expertise in making the desert bloom, a literal fulfillment of Isaiah 35:1, is producing global food security solutions.
• Infrastructure & Tourism: Transportation, housing, and tourism projects supporting Israel’s ongoing economic initiatives.

Because WMI is headquartered in Israel, we provide on-the-ground market intelligence. We know these sectors, the companies within them, and the opportunities that are emerging right now.

Step 4: Diversify Wisely Within Your Biblical Framework

Biblical wisdom affirms the importance of diversification. Ecclesiastes 11:2 counsels: “Divide your portion to seven, or even to eight.” This ancient principle maps directly onto modern portfolio theory.

A balanced biblically responsible portfolio may include:

• Israeli equities across multiple sectors (technology, food production, energy, etc.)
• Biblically screened Israeli stocks in Israel and abroad meeting faith-based criteria
• Fixed-income instruments from companies that meet faith-based criteria

WMI advisors construct allocations tailored to each client’s unique goals, risk profile, and faith convictions, ensuring both financial integrity and biblical alignment.

Step 5: Partner with a Faith-Driven, Israel-Based Advisor

Proverbs 11:14 reminds us: “In an abundance of counselors there is safety.” Choosing the right advisor may be the most consequential step in building a biblically responsible portfolio, especially when your strategy centers on the Israeli market.

Most advisors who claim expertise in biblical investing may never have set foot in Israel. Wise Money Israel is different.

Why Wise Money Israel?

Most investment advisors talk about Israel from a distance. WMI lives it.

• Israel-based team with firsthand market access and on-the-ground insight
• Faith-driven approach that integrates biblical principles into every investment decision
• Extensive experience navigating the Tel Aviv Stock Exchange for international investors

When you work with WMI, you are not simply hiring a financial advisor. You are partnering with a team that believes what you believe, stands where you stand, and sees Israel’s potential through the same lens of faith.

Step 6: Monitor, Review, and Stay Aligned Over Time

Building a biblically responsible portfolio is an ongoing commitment, not a one-time decision. Markets evolve, companies change their practices, and your own life circumstances shift. Regular portfolio reviews ensure continued alignment between your investments and your values.

WMI’s ongoing advisory support includes:

• Regular performance updates on Israeli market sectors and the Tel Aviv indices
• Updating your Israeli portfolio when holdings fall out of alignment with your biblical screening criteria
• Educational resources on Israel’s economic developments and market movements
• As Israel’s market evolves, WMI provides strategic rebalancing to keep your portfolio aligned with your goals

Frequently Asked Questions About Biblical Investing and Israel

These questions reflect what investors most frequently ask when exploring biblically responsible investing and Israel’s stock market.

What does the Bible say about investing?

The Bible consistently affirms wise financial stewardship. Proverbs 13:11 teaches that “whoever gathers money little by little makes it grow.” Ecclesiastes 11:2 counsels diversification. Matthew 25 (the Parable of the Talents) teaches that God expects us to grow what He has entrusted to us actively. Biblical investing applies these principles to modern portfolio management.

How do I start investing in the Israeli stock market?

The most effective way for international investors to access Israel’s stock and bond market is through a trusted Israel-based advisor like Wise Money Israel. WMI provides direct accefss to Tel Aviv Stock Exchange opportunities, sector-specific guidance, and Israel-based expertise that helps investors navigate the market with confidence and biblical conviction.

Why should Christians invest in Israel?

Christians who take Genesis 12:3 seriously - God’s promise to bless those who bless Israel - see investing in Israel’s economy as a natural extension of that covenant commitment. Beyond the biblical rationale, Israel’s technology-driven economy has produced notable market performance, making it both a biblical and financially compelling choice.

Is it safe to invest in Israel right now?

All markets have volatility.

Israel’s economy has historically maintained functionality during periods of conflict. While this historical trend exists, prospective investors must carefully consider that regional instability poses unique and significant risks to capital preservation and that past economic performance during conflict is not a guarantee of future stability.

Israel’s economy has maintained positive growth, even during periods of conflict. For example, Israel’s GDP averaged 1.9% between 2023-2025, and its economy did not go into recession during the seven-front war. That growth rate is in line with other OECD nations that were not at war during this timeframe (OECD average: 1.6%). Of course, historical resilience is not a guarantee of future stability.

For example, the Tel Aviv 35 Index has historically delivered strong long-term performance over many periods of time, as discussed above. Index performance is shown for illustrative purposes only, and indices are unmanaged and cannot be invested in directly.

For many investors, a managed account of diversified individual Israeli stocks may be an effective way to seek exposure to Israeli market dynamics while adhering to specific biblical criteria using WMI’s on-the-ground market intelligence.

What is the difference between ESG investing and biblical investing?

ESG (Environmental, Social, Governance) investing applies secular progressive criteria to portfolio selection. Biblical investing applies scriptural principles, which may align with some ESG screens but diverge on others. For example, biblical investors often specifically support Israel’s economy, a commitment that ESG frameworks do not address. BRI is grounded in faith conviction, not political ideology.

What sectors in Israel are best for faith-based investors?

Israel’s leading sectors for biblically aligned investors include technology and cybersecurity, renewable energy and water technology, precision agriculture, and infrastructure development. All of these contribute to human flourishing and align with values around stewardship and restoration. WMI provides specific sector guidance based on each client’s goals.

Can I invest in Israel through Wise Money Israel if I live in the United States?

Yes. WMI serves investors from 34 nations, including those based in the United States, providing access to Israeli market opportunities typically unavailable through domestic brokerages. As an Israel-based firm, licensed by the Israel Securities Authority and registered with the U.S. Securities and Exchange Commission (SEC), WMI offers the on-the-ground expertise and direct market access that international investors need to participate effectively in Israel’s economy.

Your Portfolio Can Be Both Profitable and Purposeful

The world’s financial markets offer many paths but only one invites you to invest in the fulfillment of biblical prophecy while seeking to meet your long-term financial objectives through the Israeli market. A biblically responsible portfolio anchored in Israel is not just an investment strategy. It is an act of faith.

Whether you are beginning your faith-based investing journey or seeking to add an Israel allocation to a global investment strategy, Wise Money Israel is ready to walk alongside you as your trusted fiduciary advisor on the ground in Israel and in your corner every step of the way.

Ready to Start Your Biblical Investing Journey?

Connect with Wise Money Israel today to explore how to build a portfolio that honors your faith, supports Israel, and pursues a strategy centered on your investment objectives.

Start Your Biblical Investing Journey Today

IMPORTANT DISCLOSURES & RISK INFORMATION

This content is provided for educational and informational purposes only and does not constitute investment advice, a solicitation, or an offer to buy or sell any securities. Investing in international markets, including the Israeli stock market, involves material risks, including but not limited to regulatory differences. All investment opportunities carry risk, including the potential loss of principal. Wise Money Israel does not guarantee any specific outcome, return, or profit. References to biblical principles and scriptures are provided for contextual and motivational purposes and do not constitute financial, legal, or tax advice. Individuals should consult with a qualified financial advisor, tax professional, and/or legal counsel before making any investment decisions. Diversification does not ensure a profit or protect against loss. © 2026 Wise Money Israel. All rights reserved.

The post Building a Biblically Responsible Portfolio: A Step-by-Step Guide to an Israel-Centered Faith-Based Investing appeared first on Wise Money Israel.

For faith-driven investors seeking to align their portfolios with biblical principles while pursuing disciplined, long-term investment outcomes, Israel offers a unique opportunity. Investing in Israeli companies allows participation in innovation, rebuilding, and stewardship in the land central to biblical history—while remaining mindful of market risk.

Even as Israel faced a seven front war, its stock market surged over the past two years (over 111% growth, or 150% in USD-terms).

Disclosure: of course index performance doesn’t represent the performance of any client account nor guarantee future results. USD-terms index comparisons, TA-125 vs. S&P 500: 1-year: 81% vs 18%, 5-year: 138% vs 82%, 10-year: 298% vs 259%. Indices are unmanaged, do not reflect the deduction of fees, expenses, or taxes, and that an investor cannot invest directly in an index. Investing involves risk, including the loss of principal. Exchange rate fluctuations can significantly reduce or eliminate investment returns for U.S. dollar-based investors. Index performance does not include the reinvestment of dividends unless otherwise stated. Past performance does not guarantee future success.

As we start 2026, understanding the key economic themes influencing Israel’s recovery—and working with advisors who understand these dynamics from within Israel—becomes essential for informed investment decision-making.

Despite recent challenges, Israel’s economy has demonstrated resilience across multiple economic cycles. Independent rating agencies have indicated expectations for gradual stabilization and recovery, reinforcing the importance of thoughtful, long-term positioning rather than short-term speculation. Standard and Poor’s (S&P) recently revised Israel’s credit outlook to stable, and affirmed its A- rating, expecting a 5% GDP growth rate in 2026 (U.S. at 2%).

A High-Level View of Key Growth Themes in Israel

Rather than focusing on forecasts or predictions, many investors consider structural themes shaping Israel’s economy as it rebuilds:

• Technology and innovation
• Renewable energy and environmental solutions
• Infrastructure, housing, and national development

These themes reflect areas where Israel has demonstrated long-standing expertise and where rebuilding efforts may create sustained economic activity over time.

Key Economic Themes in Israel’s Rebuilding Economy

 This discussion is thematic and educational in nature and does not constitute investment advice or a guarantee of future results.

1. Technology and High-Tech: Israel’s Innovation Ecosystem

Israel’s reputation as the “Startup Nation” reflects decades of investment in education, research, and technological problem-solving. Even during periods of geopolitical stress, Israel’s technology sector has remained deeply integrated into global markets.

Key areas of innovation include:

• Artificial intelligence applications across healthcare, security, and business systems
• Cybersecurity solutions addressing growing global digital risks
• Life sciences and biotechnology focused on improving quality of life
• Financial technology aimed at efficiency and accessibility

For biblical-minded investors, this sector reflects the application of creativity, wisdom, and human ingenuity to real-world challenges. As stability improves, continued research and development activity is expected to remain a meaningful contributor to Israel’s economy.

Advisors based in Israel are often able to assess these companies within their local business, regulatory, and cultural context—an important consideration when investing in international markets.

2. Renewable Energy and Environmental Technologies: Stewardship in Practice

The ancient principle of resource stewardship finds modern expression in Israel’s focus on renewable energy, water technology, and environmental innovation. Israel’s geographic conditions and resource constraints have driven decades of advancement in areas such as solar energy, desalination, and precision agriculture.

Examples of long-term environmental themes include:

• Solar power development and related infrastructure
• Water treatment, reuse, and efficiency technologies
• Energy storage and grid resilience solutions
• Agricultural water management and sustainability

Over the past six decades, Israel has emerged as a global leader in water technologies, pioneering innovations such as drip irrigation (which is now in used in over 100 countries), large-scale desalination, wastewater recycling (85%-90%, highest in the world), smart water networks, and desert agriculture. Driven by scarcity, Israel transformed necessity into expertise, exporting water solutions that are now used worldwide. These advances have influenced agriculture, urban infrastructure, and sustainability practices across multiple continents.

These areas support both economic development and responsible resource management. Investors interested in aligning capital with stewardship values may find this theme particularly compelling, while remaining aware that environmental and clean-tech investments can involve regulatory and technological risks.

3. Infrastructure and National Development: Building for the Future

Over the past two years, Israel’s north and south have borne the brunt of prolonged conflict, making rebuilding a national priority rather than a cyclical phase. Periods of rebuilding often involve significant investment in infrastructure, housing, transportation, and essential services. In Israel, these efforts play a critical role in economic normalization, employment, and long-term growth.

Infrastructure-related themes include:

• Transportation and logistics modernization
• Housing development and urban renewal
• Energy and utility systems
• Public-private partnerships supporting national development

From a biblical perspective, the rebuilding of Israeli communities in the Land reflects enduring principles of restoration. From an investment standpoint, exposure to infrastructure related activity can also contribute  diversification benefits within a broader portfolio.

Biblical Principles and Disciplined Investing

Biblical investing in Israel is not about speculation or certainty—it is about aligning capital with values while exercising prudence and humility.

Key principles often considered by faith-driven investors include:

• Stewardship and accountability
• Long-term thinking rather than short-term reaction
• Ethical conduct and respect for human dignity
• Diversification and risk awareness

Working with advisors who understand both financial markets and biblical values can help investors integrate faith considerations into a disciplined investment framework.

Working With Israel-Based Investment Advisors

Investing internationally involves currency exposure, geopolitical considerations, regulatory differences, and market complexity. Investment advisors who live and work in Israel bring local perspective that can complement global investment experience.

Such licensed advisor can help investors:

• Understand Israeli market structure and regulation
• Evaluate opportunities within broader portfolios
• Navigate periods of uncertainty with long-term discipline
• Maintain alignment between financial goals and personal values

Wise Money Israel offers investment management services grounded in direct familiarity with Israeli markets, language, and business culture, serving clients who value thoughtful, faith aligned investing informed by local insight. For those seeing to explore this approach further, a free introductory consultation is available through our website.

Wise Money Israel provides investment management services with on-the-ground Israeli market knowledge and language, serving clients who value thoughtful, faith-aligned investing.

Conclusion: Positioning Thoughtfully as Israel Rebuilds

As Israel continues its path of recovery and rebuilding, themes such as technology, environmental innovation, and infrastructure are likely to remain central to its economic development.

Investing in Israel is not simply a tactical financial decision—it is a long-term commitment that benefits from patience, discernment, and trusted guidance. By partnering with experienced, Israel-based advisors, investors can pursue their financial objectives while honoring biblical principles.

Schedule a Free Consultation

The post Biblical Investing in Israel: 3 Growth Themes Shaping the Israeli Stock Market as Israel Rebuilds in 2026 appeared first on Wise Money Israel.

The shift in sentiment accelerated as geopolitical risk began to ease. Following military operations in the north against Hezbollah and a brief but intense conflict with Iran, markets started to price in a lower risk premium. That reassessment coincided with firmer economic signals, including renewed growth, rising foreign investment, and a strong recovery in equity prices.

Deal activity played a central role. A landmark natural gas export agreement with Egypt – the largest in Israel’s history – committed the supply of roughly 130 billion cubic metres of gas through 2040 in a deal valued at about $35 billion, underscoring the scale of prospective foreign-currency inflows and reinforcing Israel’s position as a regional energy supplier. Alongside energy, defense exports expanded sharply. Strong battlefield performance translated into a growing pipeline of procurement orders – from major contractors to smaller specialist firms – creating steady demand for shekels.

Technology exits amplified the effect. The announced acquisition of Israeli cyber company Armis by ServiceNow in a cash deal valued at roughly $7.75 billion – one of the largest technology exits in Israel in recent years – bolstered the currency even before funds had entered the country. Market participants treated the announcement itself as a signal of confidence in Israel’s high-tech sector and its ability to generate large-scale US dollar inflows. Such deals tend to trigger anticipatory positioning by investors and institutions, reinforcing the shekel’s strength through expectations of future currency conversions, employee payouts, and reinvestment flows. In this sense, sentiment and signalling proved nearly as powerful as the capital movements themselv

Capital flows from institutional investors provided an additional tailwind. Gains in global equities prompted Israeli companies with foreign exposure to trim US dollar positions as part of routine hedging adjustments, supporting the Israeli shekel. The resulting rise in asset values helped sustain this pattern, embedding it in currency markets.

Currency strength did not emerge in isolation, and Israel’s equity market reflected the same shift in sentiment. The Tel Aviv Stock Exchange closed 2025 with gains of 51.6%, following a 28.4% rise the previous year, even amid prolonged security tensions. The gains were led by technology, defence, energy and financial stocks – sectors closely aligned with the forces supporting the shekel.

A stronger Israeli currency helped contain import costs in an economy that remains heavily dependent on foreign goods. With Israel importing close to $92 billion worth of goods in 2024, the shekel’s appreciation eased price pressures across energy, food, and manufactured inputs, while improving balance-sheet conditions for domestically focused companies. In the meantime, international investors, encouraged by calmer security conditions improved macro signals, increased exposure to Israeli assets. The rally underscored a broader point: the shekel’s strength was not an abstract monetary development, but the byproduct of sustained capital inflows interacting with a trade-intensive economy.

For households, however, the most immediate effect of a stronger shekel was felt in prices. Currency appreciation helped moderate import costs, contributing to a 0.5% decline in the consumer price index in November. Annual inflation stabilised at 2.4% placing it squarely within the Bank of Israel’s target range of 1% to 3%. At a time when many economies continued to struggle with persistent price pressures, the Israeli shekel acted as a disinflationary force.

Israeli policymakers, however, remained cautious. While goods inflation eased, services inflation – less sensitive to exchange-rate movements – remained elevated. A tight labor market, characterized by low unemployment and high job vacancies, continued to exert upward pressure on wages. Fiscal uncertainty added to the caution, as budget discussions pointed to a widening deficit.

Against this backdrop, the Bank of Israel maintained a cautious stance. After cutting interest rates by 0.25% in November, the central bank signalled no urgency to move further, despite market speculation. Policymakers stressed that exchange-rate strength was only one consideration, alongside growth, labor-market conditions, fiscal discipline, and security risks.

That restraint reflects the trade-offs inherent in a stronger currency. Exporters face margin pressure, and a sustained rally can test competitiveness. Even so, economists argue that Israel’s export base – centred on high-value technology, defense, and energy – has so far shown sufficient resilience to withstand a stronger shekel.

Taken together, the shekel’s appreciation of 14.3% in 2025 against the US dollar captured a change in how markets priced Israel’s economic and geopolitical outlook. Improved security conditions, large-scale export activity, capital inflows and a resilient corporate sector combined to support the currency at a time when policy remained deliberately cautious. Whether the strength proves durable will depend less on exchange-rate policy than on the balance between growth, fiscal discipline and regional stability. For now, the shekel stands as a signal of renewed confidence, moderated by the constraints and risks that continue to influence Israel’s economy.

Schedule a Free Consultation

The post The Shekel’s Comeback: How Currency Strength Reshaped Israel’s Markets and Inflation in 2025 appeared first on Wise Money Israel.

Nvidia’s multi-billion-shekel investment is neither symbolic nor incidental. With the ability to deploy capital almost anywhere in the world, Nvidia chose to place long-lived, mission-critical AI infrastructure in Israel—signaling confidence in the country’s technological depth and long-term reliability.

👉 Continue to the full article

The post Nvidia’s ‘Second Home’: Why the AI Giant Is Doubling Down on Israel appeared first on Wise Money Israel.

To understand where Israel is today, one must see how its past cultivated many of its present strengths. From its very early days, Israel made heavy investments in education, science, and defense. The famous Unit 8200 (the intelligence corps’ signals unit) trained many of the people who later left government service to found tech firms. Those roots in military R&D are not some odd byproduct of necessity – they shaped a culture of rapid prototyping, of solving hard problems under pressure, and of intense collaboration. These are precisely the qualities investors seek in frontier markets. As Jonathan Medved’s OurCrowd shows, even relatively young investment platforms in Israel tap into that reservoir of domestic talent in science, engineering, cybersecurity, AI – areas where global growth is high.

Over the decades Israel has transformed. No longer only a defensive frontier, it has become “Startup Nation” because every new wave of crises has been matched by waves of new enterprise. In the late 1990s and early 2000s, Israel’s high-tech sector was already expanding rapidly, becoming a key driver of the economy. The Shoresh Institution’s research confirms that high-tech’s share of GDP nearly doubled from 9% in 1995 to over 17% by 2000, then remained relatively stable through the following decade, with renewed returning after 2018.

Today, investors see beyond metaphor, they actually see numbers. Foreign direct investment (FDI) has been growing over the past decade. Even during times of conflict – yes, even war – investment into Israeli tech has shown surprising resilience. In the first six months of 2025, Israeli startups raised about $9.3 billion in private capital across 365 funding rounds, up 54% from the second half of 2024. What changed in composition matters: more large rounds in mature companies, more emphasis on cybersecurity, fintech, enterprise software. These are bets not on hope, but on proven capacity.

If the past built the foundation, the present is testing it under real weight. The war that broke out in October 2023 posed many risks – geopolitical, operational, human. Some international investors hesitated. Some companies saw business disruption. Yet many others leaned in, recognizing that the long-term story of Israel is not about war alone, but about deep technology, export orientation, government support, and global partnerships. The Israel Innovation Authority, the emphasis on export accounts, the trade surpluses in certain sectors even amid conflict – all of this signals that the economy has more than one pillar.

Sources: Bank of Israel, IVC Data and Insights, Central Bureau of Statistics, CapIQ as of July 7, 2025. (1) 2024A Full Year Numbers. Central Bureau of Statistics as of December 31, 2024 . (2) Bank of Israel’s Research Department Staff Forecast Report (July 7, 2025). (3) As of May 31, 2025.

Let me share a story of two investor archetypes (without naming names) that illustrates how past and future collide. First, there’s the global institutional investor – let’s say it is a sovereign wealth fund – that came into Israel years ago, drawn by highly skilled engineers and access to defense-technology start-ups. Over time that investor saw healthcare start-ups, AI firms, quantum research, and agro-tech. They stayed through turbulence because the tailwinds of innovation were strong, and because they believed Israel’s institutions – its universities, its venture ecosystem – would continue to deliver. Then there’s the founder-investor, someone who served in the IDF, left with connections, a mindset of solving mission-critical problems, then built a company that got acquired by a tech giant. That person then reinvests in new start-ups, mentors, builds incubators. That loop – founder to re-investor to founder again – is part of what powers the bridge between past and future. It is not mythical; it is visible in firms like Jerusalem Venture Partners, in OurCrowd, in many smaller players. Corner Ventures+3Wikipedia+3Wikipedia+3

Looking ahead, what should potential investors watch for – and what makes Israel not just interesting, but potentially exceptional?

First, deep tech. Israel now has over 1,500 Deep Tech companies, and since 2019 those companies have attracted over $28 billion in investments. Fields like photonics, quantum computing, digital health, advanced manufacturing, food-tech – all are growing rapidly from strength. Second, cybersecurity remains a core asset. In periods of relative calm or conflict, demand for cybersecurity and related tech only increases. Israeli firms are globally competitive there. Third, mature rounds are becoming more important – less speculation, more scaling. Investors are increasingly backing companies beyond seed stages, betting on traction and revenue as well as on the promise of what might yet be.

Yet, challenges remain, and no bridge is without its gaps. Geopolitical risk is real. Investor sentiment is fragile; legal or regulatory changes can carry outsized weight in perception. Infrastructure and cost pressures (real estate, talent competition, international liability etc.) are growing. And while many companies export, Israel is relatively small, which means scaling globally is not optional but essential. Also, the macro picture – fiscal deficits, war-driven expenditures, debt burden – ask for caution.

What Israel offers, if one leans in, is something uncommon: a place where past lessons in survival, innovation, academic strength, and problem-solving under constraint combine with a future orientation that seeks not merely growth but global leadership in next-generation challenges. It is a kind of “investor’s dialectic” where you carry forward history’s tools but always ask: what next?

For many, the lure is that bridge itself. The reliability of past performance gives credibility; the uncertainties ahead bring opportunity. To stand on that bridge is to acknowledge risk and reward together–not to choose between them. If you understand both Israel’s scars and its ambitions, you start not with fear, but with curiosity. And sometimes, that is what leads to the best investments.

Schedule a Free Consultation

The post Israel – A Bridge Between Past and Future in Investments appeared first on Wise Money Israel.

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!

The post 5 Reasons the Tel Aviv Stock Exchange Continues to Attract Investors appeared first on Wise Money Israel.

The post Israel – A Financially Blessed Nation appeared first on Wise Money Israel.

From billion-dollar bond sales to breakthroughs in tech, defense, and AI — global demand keeps growing.

👉 Subscribe to discover why investors see Israel not as a risk, but as a frontier.

The post How Do International Investors View Israel appeared first on Wise Money Israel.