Story perspectives

Israel Ranks 83rd, Index Climbs 51% as Shekel Strengthens

7/14/2026

Summary

Story summary

Israel ranked 83rd of 85 in the Wharton School’s “Openness to Business” category, signaling challenges for foreign investors.
The TA-125 Index posted a 51% gain in 2025, outpacing the S&P 500, Nasdaq and Nikkei, as foreign institutional investors added $2.3 billion to Israeli equities in the first three quarters, raising total holdings to $19.2 billion.
The shekel strengthened from 3.65 to below 3.20 per dollar by year-end 2025, reflecting confidence in the economy.

History

Historical Context

After the United States and Israel signed their first free-trade pact on 22 April 1985, tariffs were eliminated stepwise, completing in 1995. The agreement opened technology markets, prompting roughly 2,500 U.S. firms to operate in Israel and employ about 72,000 workers. This early integration fuels the significantly strong capital inflows seen today.

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Story summary

Israel ranked 83rd of 85 in the Wharton School’s “Openness to Business” category, signaling challenges for foreign investors.
The TA-125 Index posted a 51% gain in 2025, outpacing the S&P 500, Nasdaq and Nikkei, as foreign institutional investors added $2.3 billion to Israeli equities in the first three quarters, raising total holdings to $19.2 billion.
The shekel strengthened from 3.65 to below 3.20 per dollar by year-end 2025, reflecting confidence in the economy.

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