In the wake of profound geopolitical upheaval, Israel’s economy has demonstrated a remarkable capacity for swift recovery and adaptation. Following the significant challenges posed by the October 7 events, the nation’s financial landscape, particularly its robust private sector, has shown surprising strength, attracting renewed confidence from global investors despite ongoing international trade complexities, such as the suspension of discussions with the U.K.
Economic Resilience Amidst Adversity
The immediate aftermath of the October 7 attacks saw foreign investments in Israel plummet by 68%. Securities outflows reached approximately ₪9 billion ($2.4 billion) by the end of 2023, and the Tel Aviv Stock Exchange (TASE) experienced a nearly 8% drop in its benchmark TA-35 index during initial trading days. The Israeli shekel also reached its weakest point in over a decade, trading at ₪4.08 per US dollar as uncertainty gripped the markets.
However, the Bank of Israel intervened decisively, selling $8 billion in foreign reserves, which significantly contributed to stabilizing the currency by November 2023. By early 2024, the market began showing clear signs of recovery, with foreign investment inflows steadily returning by early 2025, signaling a strong rebound in Israeli equities and renewed market confidence.
Global Investors See Opportunity
Leading global private market investors are observing and actively participating in Israel’s economic rebound. Juan Delgado-Moreira, Co-CEO of Hamilton Lane, the world’s largest private market investor, notes that despite war-induced disruptions, the fundamental growth trajectory of Israeli companies remained intact. Companies adapted quickly, leveraging Israel’s strong ties with global capital markets.
Hamilton Lane exemplifies this confidence, having invested $1.25 billion in Israeli venture capital and private equity funds over the past two decades, with a notable commitment of nearly $250 million since October 7th. Delgado-Moreira emphasized, “The country is not a war zone; it’s a place of opportunities, not a disaster zone.” He highlighted the strategic advantage of investing in private markets during hesitant periods, which allows for favorable entry points and long-term returns. He predicts a 20-30% increase in existing Israeli investments as capital returns.
Hamilton Lane’s focus remains on sectors where Israel holds a global leadership position, including AI, cybersecurity, and defense technologies. Delgado-Moreira stated, “We believe Israel is the most attractive high-tech investment market in the world.” Limor Beker, Managing Director at Hamilton Lane, further illustrated their proactive approach, citing a successful secondary deal in the gaming sector in December 2023, which provided liquidity to investors by capitalizing on market downturns.
Strategic Partnerships: The Lobito Corridor
Beyond domestic recovery, Israeli business leaders are pursuing strategic international projects to enhance Israel’s global standing. A prominent example is the $1 billion Lobito Corridor project, a development initiative spearheaded by Haim Taib, founder of Mitrelli Group, in collaboration with Angola’s Sovereign Wealth Fund.
This ambitious project aims to transform the Lobito Corridor in Africa—spanning from Angola’s Port of Lobito through the Democratic Republic of Congo into Zambia—into a vital trade artery for minerals critical to global industries. Taib underlined Israel’s crucial role, stating, “We can bring innovation, Africa has the resources, and America has the financial strength to develop these opportunities.”
Dr. Armando Manuel, Chairman of Angola’s Sovereign Wealth Fund, emphasized the corridor’s significance in diversifying global mineral supply chains, offering an alternative route for critical minerals to America and Europe, countering current market concentrations. The initiative has also received support from the U.S. government, positioning it as a key element in global trade infrastructure.
Muyangwa Muyangwa, Director General of Zambia’s National Pension Scheme Authority (NAPSA), echoed the sentiment that Africa seeks investment over traditional aid, recognizing the continent’s 1.2 billion-person market as ripe for institutional investor-led infrastructure development.
A Vision for Intercontinental Connectivity
This economic vision extends beyond trade routes. Haim Taib articulates a broader aspiration: for such initiatives to catalyze an expansion of regional peace efforts, including the Abraham Accords. He envisions Saudi Arabia joining, followed by other countries in the Middle East and Muslim nations across Africa. This scenario positions Israel as a pivotal link connecting America, Africa, and the Middle East, underscoring its evolving and critical role on the global stage through economic collaboration and innovation.
David Thompson earned his MBA from the Wharton School and spent five years managing multi-million-dollar portfolios at a leading asset management firm. He now applies that hands-on investment expertise to his writing, offering practical strategies on portfolio diversification, risk management, and long-term wealth building.