A New Day Dawns: Israel’s Economic Spring

Joy comes in the morning – and for Israel, the morning light is beginning to shine again.

After the dust of a 12-day war with Iran settled, something remarkable began to stir. Tel Aviv’s share indexes soared to all-time highs. The shekel climbed to a two-year peak. And in conversations from Jerusalem cafés to Dubai Expo halls, you could hear it: a cautious but growing optimism.

I recently visited Dubai, a city that has become almost a second home. As always, my heart lifted when I spotted Israelis enjoying theme parks, browsing shopping malls, and snapping photos at the Expo. This is not just travel – it is testimony. The Abraham Accords are real, living bridges of peace and progress. And the presence of Israeli tech companies at international expos is just one example of how this alliance is shaping the future.

Today, there is a sense that a “peace dividend” is within reach – something Israelis have dreamed of for decades. Even after enduring devastating missile attacks and months of uncertainty, the people of Israel are once again turning adversity into opportunity. It is what they do. It is who they are.

Resilience and renewal.

Despite the war’s toll – billions in damages, dozens of lives lost, and entire industries briefly paused – 95% of factories stayed open. Exporters kept their promises. Restaurants, gyms, and shops reopened. Life, somehow, pressed forward. It echoed the spirit I felt in Tel Aviv, Haifa, Rehovot, and Rishon LeZion – still standing tall in the aftermath of October 7, united in quiet defiance.

Israel’s tech sector – the jewel of its economy – is booming again. In just the first half of 2025, Israeli startups raised over $9 billion, a staggering 54% increase from late 2024. Artificial intelligence, cybersecurity, biotech – these are not just industries; they are Israel’s gifts to the world. This is what innovating the future of Israel looks like.

And it is not just business leaders who are hopeful. Investors, too, are betting on Israel’s comeback. Its risk premium has dropped sharply. Market confidence is returning. And yes – interest rate cuts are on the horizon.

Of course, challenges remain. The war disrupted lives. Iran’s missiles struck oil refineries and shuttered gas fields. Businesses lost revenue, tourism slowed, and the labour market felt the strain of reserve call-ups. But through it all, something greater held firm: Israel’s unbreakable spirit.

As one economist put it, “We are removing an existential threat.” And that removal has opened a window of opportunity not just for recovery, but for regional transformation.

Demonstrating Israel’s global leadership in innovation and technology at the recent International Expo in Dubai (Photo credit: Yours truly)

Enter the Abraham Accords – again.

Since 2020, Israel has normalised relations with the UAE, Bahrain, and Morocco. Now, whispers are growing louder: Could Saudi Arabia and even Syria be next?

It is early, yes. But hopeful. With Iran’s network of proxies weakened, and its nuclear ambitions derailed, the Middle East is beginning to reset. Countries long hesitant to engage with Israel may now find reason – and space – to come to the table.

This would be more than diplomatic progress. It would be historic. Imagine Israeli entrepreneurs collaborating with Syrian engineers. Imagine Saudi investors funding joint solar projects in the Negev. Imagine direct flights from Tel Aviv to Damascus. Unthinkable? Perhaps. But so was the Abraham Accords, once.

Hope has returned. And hope is powerful.

Even on the home front, signs of healing are emerging. Gym memberships have surged as Israelis seek to reclaim normalcy. Restaurants, like Mojo’s in Jerusalem, are reopening with determination. Factory managers are hiring again. Schools are bustling. And families are returning to favourite hiking spots, beaches, and holy sites.

This is what resilience looks like.

This is what renewal feels like.

And behind the scenes, the wheels of economic leadership are turning. With the shekel stabilizing and growth expected to rebound in 2026, Israel’s economic recovery is not a question of if – but when. Strategic planning is underway to address long-term challenges such as cost of living and workforce inclusion, even as innovation continues to lift the nation above adversity.

Yes, the scars of war remain. But so does the will to build. To connect. To dream. And to extend a hand – both in peace and in partnership.

So here is to the future. A future powered by courage and collaboration. A future born from the very heart of a people who do not just survive – they thrive.

And perhaps most beautifully of all, it is a future that unites what the world needs most: resilience, renewal, and the boldness to innovate not only for Israel, but for all humanity.

Yes, for Israel, joy truly comes in the morning. And once again, the first light is beginning to break through.