A war-proof economy? Tech multinationals stay. Defense stocks rally. New fortified hospitals launch.
Re: December 29, 2025 in Israel - and what it all means for investors at home and abroad.
Real data shows expansion, but ‘connective tissue’ may fray
Israel’s real economy is picking up speed, posting a 4% rise in total revenue across all sectors between August and October, according to new data from the Central Bureau of Statistics. The growth isn’t just software driven - traditional industry, mining, and quarrying grew 5.4%, while wholesale and retail trade surged 8%.
The data signals the Israeli consumer remains active and supply chains are moving. Older economic sectors are carrying their weight alongside tech.
Multinationals persist in Israeli landscape
Data from the Israel Advanced Technology Industries (IATI) reveals that 21% of global tech giants actually expanded their Israeli operations during the war, while another 57% maintained steady operations. Apple, NVIDIA, Google, and Meta leadership confirmed at a recent forum that nearly four out of five multinational tech firms ignored geopolitical noise and kept driving their development in Israel forward.
These deep R&D centers matter a lot - they employ 23% of Israel’s entire tech workforce and drive 80% of all M&A activity. However, over half of these companies reported a sharp spike in Israeli employees requesting relocation packages. Executives also warned that the “connective tissue” with global headquarters is fraying as senior management from Silicon Valley has effectively stopped visiting Israel.
High-tech’s ‘half-open’ door - Haredi women participate, but wages remain low
A long-running Bank of Israel study (2009-2023) reveals mixed results on diversity in Israeli high-tech. Haredi women increased their sector presence to 5.5%, nearly matching their population share, largely through non-academic “practical engineering” tracks in seminaries. However, without full academic degrees, their earning potential remains capped at significantly lower wages than industry averages.
Meanwhile, Haredi men remain largely absent from the industry due to a lack of core curriculum studies (math and English) during primary and secondary education.
War-ready healthcare: Leumit & Meuhedet launch the Medica network
This January, a new Israeli private hospital network, Medica Network, will begin operations. The Leumit and Meuhedet HMOs created this new chain by merging four medical centers across central and northern Israel: Medica Tel Aviv, Raphael, Elisha, and RMC.
The network is defined by its war-ready infrastructure, featuring operating rooms that meet strict fortification standards to ensure full functionality during attacks. This resilience was proven during the Iranian missile strikes and Operation Rising Lion, when the network rapidly transferred urgent surgeries to fortified complexes.
Elbit’s monster year: stock up 90% on defense boom
Elbit Systems (TASE: ESLT) is closing 2025 with a 90% stock surge, climbing over 20% in the last month alone. Its market cap now stands at ~₪85.8B, reflecting massive demand for defense technologies domestically and globally.
Q3 financials validated investor optimism by delivering double-digit growth in sales and profits while the company’s order backlog hit an all-time high of $25.2 billion. CEO Bezhalel Machlis said,
“These results reflect the significant contracts the company has secured... against the backdrop of ongoing global conflicts and the increase in defense budgets.”
TASE snapshot for Monday, Dec. 29, 2025
TA-35 Index (TASE:TA35): 🟢 +0.23%
TA-90 (TASE:TA90): 🟢 +0.04%
TA-125 (TASE:TA125): 🟢 +0.18%
That’s our Monday here in Israel 🎉
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Disclaimer: This brief is for informational purposes only and does not constitute investment advice. All data current as of publication date.