from the December 2015 issue

Terror Has Little Effect on Economy

The recent wave of terrorism has had little effect on Israel's economy. El Al recently reported a 820 gain in profits reflecting not only lower fuel costs but also a high rate of seat occupancy. Investment funds also are continuing at record rates. Israeli companies that float their shares on stock exchanges find welcome investing demand. In 2014 alone Israeli M&A and IPO exits were valued at $15 billion (an all-time record) and this impressive result has generated much interest from global investors, including China. Because what Israel lacks in size and manufacturing power, it makes up for in the number of startups per capita and technology development and innovation.

What perhaps is notable are the record foreign sales. Elbit Systems, a leading defense contractor, has established a backlog of more than $5 billion. One in every five prescriptions is for a Teva product. Yet the current atmosphere is far from healthy. The government, in an unprecedented move has recommended that citizens carry guns. Yet the country's citizens go about their everyday activities and Tel-Aviv coffee houses continue to be full.

Reprinted from the Israel High-Tech & Investment Report December 2015

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