Israel attracts global investors as hi-tech and energy sectors thrive

ON OCTOBER 23, Maryland became the latest state prohibiting business with companies supporting the boycott, divestment and sanctions movement. Nearly half of all American states have now passed legislation or signed executive orders with the same objective. This marks another setback for BDS advocates who have been trying — and failing — to harm Israel economically. Quite the opposite — Israel’s economy is widely recognised as ranking among the best in the world.

An assessment from Standard & Poor’s, issued in August 2017, sums it up. In raising its Israel outlook from “stable” to “positive”, S&P stated: “There is a potential for stronger-than-anticipated general government fiscal performance over the next two years. We expect that Israel’s economic and balance-ofpayments dynamics will stay strong, while security risks remain contained.”

A month later, Moody’s declared: “Israel’s economic growth has outpaced that of other advanced industrial countries over the past decade, driven by its hi-tech export niche and a diversified economic base that now includes its status as an energy exporter.”

Warren Buffett, the world’s most famous investor, is also an enthusiastic advocate for Israel’s economy, as can be seen by the fact he owns Israeli companies and Israel Bonds.

As Prime Minister Netanyahu noted, “Warren is one of the most brilliant and successful investors of our time. He knows a good investment when he sees it. That’s why he invests in Israel.”

The facts speak for themselves. Israel’s GDP in 2016 was $318 billion. Its debtto-GDP ratio — an important indicator of economic wellbeing — decreased to 62.4 per cent between 2007 and 2016, making Israel one of only three countries to successfully reduce debt-toGDP since the onset of the global recession. By comparison, US debt-to-GDP increased by over 47 per cent.

For more than 66 years, the Israel Bonds organisation has been a cornerstone of Israel’s rapid economic development. Since the programme’s inception in 1951, more than $40 billion worth of Israel bonds have been acquired worldwide.

This global network of purchasers includes institutional investors entrusted with the highest level of fiduciary responsibility.

Beyond being securities, Israel Bonds are a direct, personal means of investing in the vast promise and potential of the world’s only Jewish state.

Next April, Israel turns 70, and one way to express pride in seven decades of achievement is through the purchase of Israel Bonds.

Sources: FocusEconomics, Economic Forecasts from the World’s Leading Economists, Israel Economic Outlook, October 31, 2017; Globes Israel’s Business Arena, Israel’s debt-to-GDP ratio falls, January 22, 2017; Government of Israel Ministry of Finance/Office of the Accountant General - Investor Newsletter, October 2017

Israel Maimon is president and CEO of Israel Bonds