Despite current hick-ups, the Israeli economy remains a strong bet for the long term. As I have mentioned before, there will be significant financial and structural benefits from the discovery of commercial gas reserves, the new membership of the OECD, and joining the highest level of the MSCI share index.

Today, I came across 3 separate articles, which put all this into focus. First, there was a report showing how Israel’s exports for the period January – June 2010 have been on the move up. Significantly, Israel has capitalised on the growth of emerging economies.

For example, trade with India has more than doubled. When you also factor in the China element, Asia now comprises 20% of Israel’s export market, not bad considering that most of the Middle East refuses to trade with the Holy Land (officially).

Then I noticed a comment on Fox News, which suggested that Obama’s economic policy is floundering. Well, maybe no surprise there as this network is not known as a supporter of the Democrats. The twist came, when the analyst observed that: –

• Since 2007, Israel has experienced a mild recession, while America’s has been deep. 
• Enterprise and its result — innovation — drive Israel’s economy, but are in reverse under Obama.
• Under Netanyahu, Israel embraces success and exceptionalism. But Obama fails “The Israel Test.”

Put this together with an analysis from Investopedia, part of the Forbes group. 

With 65 public companies listed on the Nasdaq, Israel has exploded to be a major international entrepreneurial and technological center. Unlike other nations which heavily depend on foreign direct investment as a means of job creation and growth, Israeli entrepreneurship has driven the small start-up nation to house some of the most respected technical institutes and major public companies in the world.

Empty words? Lockheed Martin and Morgan Stanley have both announced that they are considering major investment schemes in Israel.