Israel’s economy shows flexibility with foreign investment recovery in the ongoing war

Israel’s economy Take a big blow After Hamas attacks on October 7, but with the start of 2025, the country appears great flexibility. While Israel is wrestling with challenges on the International Trade Front, most notably the suspension of commercial talks with the United Kingdom, the private sector remains flexible.

Foreign investments, which decreased by 68 % in the wake of direct attack, are now recovering, indicating the renewal of confidence in the market and a strong bounce in Israeli stocks.

In the months that followed the attack, foreign investors retreated, according to Globes, with a sharp way, with Securities flows of up to 9 billion yuan (About 2.4 billion dollars) by the end of 2023. Tel Aviv was influenced, when TA-35 decreased by nearly 8 % on the first trading days, according to the Israel newspaper. Shekel also scored his weakest point for more than a decade, as it decreased to $ 4.08 per US dollar as a fear of prolonged instability.

Israel returns to the United Kingdom due to suspended commercial talks, and rejects “external pressure”

However, the Bank of Israel entered strongly, selling $ 8 billion in foreign reserves, which helped the stability of the currency by November 2023. The Israel market began to show signs of eradication by the beginning of 2024. By early 2025, foreign investment began to decline.

Juan Deljado-Shira, who participated in Hamilton Lane, the largest investor in the world’s private market, said that despite the unrest resulting from the war, the basic growth of Israeli companies remained intact, said Juan Deljado-Shira, who participated in Hamilton Lyn, the largest investor in the private market in the world. Companies were able to adapt quickly, use external sources and transfer teams around them, and are linked to Israel’s strong communication with global capital markets. ”

In an interview with Fox Business in Jerusalem Post Conference In New York this week, Delgado-Moreira explained why his company chose to double investments in Israel. Hamilton Lane has invested $ 1.25 billion in Israeli investment capital and private stock funds in the past twenty years, with nearly $ 250 million since October 7. “The country is not a war zone,” said Deljado Moreira. “I was there through sirens, and I went to the south, and life continues. It is a place for opportunities, not a disaster area.”

“Investing in private markets gives us timing control, and when others are hesitant, we can intervene at low prices and long -term returns,” he added. “

Hamilton Lin, who is investing regularly in private markets, focused on major sectors such as AI, cyber security and defense technologies, Where is Israel? He has always been a global leader. “We believe that Israel is the most attractive investment market in the world,” Deljado Moreira told the conference.

Despite the uncertainty, Limour Baker, the administrative director of Hamilton Lane, explained how the company benefited from the recession.

She said: “In December 2023, a very large secondary deal was closed in the gaming sector that gave liquidity to investors. We were fast and ethical, and we resulted.”

Global markets are preparing to influence the high tensions of the Middle East

But Israeli businessmen are also strategically considering how to help investments strengthen Israel’s position in the global arena. One of the main examples, presented at the post Jerusalem conference, is the Lobito Corridor project – a $ 1 billion development initiative led by Haim Taib, founder of the Mitrlli Group, in partnership with the sovereign wealth fund in Angola.

The project aims to transform Lubo Corridor in Africa– Until the Angola Port in Labbito through the Democratic Republic of the Congo and to Zambia – on a critical commercial path for the basic minerals of global industries.

In an interview with Fox Business, TAIB stressed that the project is not only related to economic growth, but about Israel plays a major role in connecting continents. “The role of Israel is very important,” Tayeb said. “We can bring innovation, resources, and America has the financial strength to develop these opportunities.”

Dr. Armando Manuel, head of the sovereign wealth fund in Angola, stressed the decisive role of the corridor in reshaping global metal supply chains. “China is currently dominating critical minerals,” he said. “But Lopito Corridor will present an alternative way to supply minerals with America and Europe.” Manuel also praised the support of the United States government in help Form the future of the corridorAnd put it as a major element in global trade.

“Everyone understands that the donation and AIDS model does not work at all. This is not what we are looking for as a African,” Moyangoa Moyangoa, General Manager of the National Pensions in Zambia (NAPSA), told Fox Business.

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“I hope this initiative will lead to an expansion of Ibrahim’s agreements. What we need now is to bring the Kingdom of Saudi Arabia to Ibrahim’s agreements, to the Department of Peace in the Middle East. Then all countries surrounding the region will join. After that, all Muslim countries in Africa will also join.