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Tuesday, 24 February 2026

Israel's high-tech investment boom is fuelled by genocide

Comment: It's nothing new. Israel has always been obsessed with technology that kills, be it germ, chemical, atomic or psychological warfare. 

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Farah Choucair | Middle East Eye

Brutal technology field-tested on Palestinians has helped to propel the state's economy to the top of global performance charts

Late last year, the Economist published an article titled “Which economy did best in 2025?” The annual ranking of 36 mostly rich countries, conducted for the fifth year in a row, aimed to pinpoint the “economy of the year”. 

The Economist compiled data on five indicators: inflation, GDP, jobs, stock market performance, and “inflation breadth”, measuring the share of product categories with an annual price increase of more than two percent.

Countries were ranked on each measure, creating an “overall score of economic success” in 2025. To my surprise, Israel ranked third, after Portugal and Ireland. 

Two main indicators have driven this “economic success”. Israel’s economy recorded a GDP growth rate of 3.5 percent, surpassing the global average of around 3.2 percent. More surprisingly, its stock market soared, with share prices growing by 53 percent over the previous year - outperforming the world’s major stock markets.

Although Israel has been waging war on Gaza for more than two years now, such figures typically reflect a strong economy, with companies reporting solid earnings and growth, and domestic and foreign investors expressing their confidence in the country.

According to a Times of Israel report, foreign investors “flocked to Israeli markets to buy shares starting in mid-2024 after a sell-off at the outbreak of the war in 2023”. 

Citing data from the Tel Aviv Stock Exchange, the report noted that as of last September, “the value of holdings by foreign financial institutions in Tel Aviv stocks, excluding dual-listed stocks, reached a historic record of $19.2 billion, more than double the figure before the outbreak of war”.  

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