Israel – election blues & hightech highs
Israel’s election is over. It appears that Netanyahu will form the next government. That will take place, only after all the pathetic customary coalition negotiations unveil themselves over several weeks. And in the meantime, the country has to endure troubled relations with America, the fallout from the disgraceful electoral language towards the non-Jewish population and the repercussions of the divisive language used during the campaign.
There are few saints amongst these maneuverings. Yet quietly in the background, Israeli society has shown some remarkable resoluteness, at least in one specific sphere. The economy, especially the high-tech sector, is doing very well.
I am not just talking about the Tel Aviv stock market, which continues to record new highs. Just consider this random set of news items.
- Facebook looks set to expand its R&D office in Tel Aviv.
- Similarly, Apple, following the visit of CEO Tim Cook to the Holy Land, is due to open an 800 person facility in Herzylia.
- “Taurus Asset Finance, a U.K.-based financier, is launching a fund that will enable retail investors to invest in start-up technology companies in Israel and the United Kingdom.”
- The value of exits in 2015 up to early March alone had already passed the US$1 billion mark.
- Military exports remain strong.
Now, let us not get too carried away. The new Finance Minister, whoever that may be and whenever he is appointed, has a host of challenges ahead of him. Officially, the country has yet to pass a budget for the year. And due to the stupidities of the country’s political system, core elements of the plan may be rejected by the Finance Committee of the Kenesset. The rising cost of basic commodities, the bubble in the housing market, restrictive practices by unions and conglomerates, and more – they all require solutions.
And yet? What the country seems to be demonstrating is its resilience to the incompetence of the political elite. Away from the headlines, in line with the tradition of being a start up nation, many Israelis are just trying to get on with it, and even succeeding.
0 comments