Investing in Israel in 2026
Middle East & North Africa
74
Score
Moderate Investment Destination
Growing economy with manageable risks - suitable for diversified portfolios
Israel earns an investment score of 74/100, placing it in the moderate category for global investors. Growing economy with manageable risks - suitable for diversified portfolios. The country's standout dimensions are business climate (82/100) and economic health (78/100), with overall GDP of $525B and per-capita output of $55,540. Growth is running at 2.0% with 4.5% of GDP arriving as foreign direct investment. Inflation is contained at 3.5%. The sovereign holds a NR credit rating, generally considered speculative-grade with elevated default risk. Investment opportunities cluster around Technology (sector score 92/100, currently growing), which represents 14% of GDP. Trade openness sits at 58% of GDP, a useful proxy for how integrated Israel is with the global economy.
How Israel's investment score has evolved over time
Technology
14% of GDP, growing
Defense & Cyber
5% of GDP, growing
Pharmaceuticals
3% of GDP, stable
Diamond Industry
4% of GDP, declining
World Bank Governance Indicators (-2.5 to +2.5, higher is better)
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Is Israel a safe country to invest in?
Israel carries a moderate risk rating with an overall investment score of 74/100. Growing economy with manageable risks - suitable for diversified portfolios. Sub-scores: economic health 78/100, political stability 55/100, business climate 82/100, financial strength 72/100, growth potential 72/100.
What is Israel's sovereign credit rating?
Israel holds a credit rating of NR, reflecting its ability to meet sovereign debt obligations. Credit ratings are a key signal of macro-financial health and a prerequisite many institutional investors require before allocating capital.
What are the strongest sectors for investment in Israel?
The top investment sectors in Israel are Technology, Defense & Cyber, Pharmaceuticals. Technology leads with a sector score of 92/100 and represents 14% of GDP. Its current trend is growing.
What is Israel's GDP growth rate?
Israel's most recent GDP growth was 2.0%, with total GDP of $525B and GDP per capita of $55,540. Inflation is running at 3.5% and the current account balance is 3.8% of GDP.
How does Israel score on governance and rule of law?
On the World Bank Governance Indicators (scale -2.5 to +2.5, higher is better), Israel scores: political stability -1.1, rule of law 0.9, corruption control 0.9, and regulatory quality 1.2.
Can foreigners invest in Israel?
Most industries in Israel are open to foreign direct investment, though specific sectors may require a local partner, government approval, or special licensing. Consult a qualified local advisor for restrictions that apply to your sector.
What is foreign direct investment (FDI) like in Israel?
Foreign Direct Investment in Israel runs at 4.5% of GDP, while the trade openness ratio (exports + imports as a share of GDP) stands at 58%. These figures show how integrated Israel is with the global economy and how welcoming it has been to international capital.
What is the public debt level in Israel?
Israel's government debt stands at 63% of GDP. This is within range for advanced economies but worth monitoring.