For the Tel Aviv Stock Exchange (TASE), 2014 was a year of change. A new management team was brought in, led by the experienced Yossi Beinart. The institution moved premises. And for all the upheaval, the main TA-25 Index managed a 10% shift upwards.

TASE has seen some heady days since the turn of the century. Despite great geopolitical uncertainty, for a decade it outperformed most other emerging markets. It has joined the elite group of international stock markets. It is clearly a main generator of new financial growth for the Israeli economy.

However, the outcome for 2015 is looking confused. The Ha’aretz newspaper listed at least four reason why investors are holding back. These include economic uncertainty due to weak fiscal policy, key sectors failing to perform and the continuing quandary of too much money chasing too few quality stocks.

In parallel, the set up of TASE is raising questions. Using stats from Ernst & Young, the “Calcalist” newspaper compared TASE to 9 other similar exchanges, such as Sao Paolo, Toronto and Johannesburg.  Bottom line, while the average EBITDA – profits before financial items and taxes – was around 50% for the table, TASE came in with a mere 20%.

The key explanation for the gap lies with government regulation. It is cumbersome, creates paperwork and results in hidden expenses for all. In other words, those civil servants who are supposed to be encouraging foreign investors to visit Tel Aviv are ensuring that they go elsewhere.

Is there hope round the corner? Yes, there are signs that American financiers are looking to Israeli capital to finance growth in the real estate markets. It must be stated that the significant change will have to wait for after the elections of March 17th. The hope is that the new government will have the courage to initiate the necessary reforms, finally.