After Davos: Should Israeli Investors Look East?

As the rules-based order fractures, Southeast Asia offers Israeli investors growth, stability, and genuine welcome (mostly!).

At Davos last week, Canadian Prime Minister Mark Carney delivered a quasi-eulogy for the world order that has underpinned international investment for decades. “The rules-based order is fading,” he declared. “The strong can do what they can, and the weak must suffer what they must.”

French President Macron was blunter still, warning of “a shift towards a world without rules, where international law is trampled underfoot and where the only law that seems to matter is that of the strongest.”

For Israeli investors long accustomed to parking capital in London, New York, or Berlin, these aren’t abstract pronouncements. They’re a signal. The geopolitical ground beneath traditional Western markets is shifting.

The question isn’t whether to diversify. It’s where. The trade between Israel and it’s new allies in the Middle East such as the UAE is already booming, but looking further East, the opportunities and possibilities are even more pronounced.

While Western leaders fret about fracturing alliances, Southeast Asia is quietly getting on with business. ASEAN economies are growing faster than global averages. The region has mastered the art of neutrality in great power competition. And crucially for Israeli investors, several nations offer something increasingly rare: genuine welcome…mostly!

The numbers tell part of the story. Israel-Singapore trade volume reached $3.8 billion in 2022, underpinned by decades of security cooperation and a bilateral R&D foundation that has funded over 170 joint projects. Vietnam signed a free trade agreement with Israel in 2023, the first such deal Vietnam has concluded with any Middle Eastern country. The Philippines and Israel agreed last year to explore their own FTA, with bilateral trade already at $400 million annually.

But perhaps the most remarkable signal came not from a trade ministry, but from a podium at the United Nations.

The “Shalom” Moment

In September 2025, Indonesian President Prabowo Subianto stood before the UN General Assembly and said something no leader of the world’s largest Muslim-majority nation had ever said publicly: “We must also recognize and guarantee the safety and security of Israel. Only then can we have real peace.”

He closed his speech with greetings in Arabic, Sanskrit, and, to audible gasps, Hebrew: “Shalom.”

Israeli officials admitted they were “surprised.” They shouldn’t have been. Behind the scenes, Israel-Indonesia trade has quietly exceeded $500 million annually, routed through third-party channels to maintain Jakarta’s official non-recognition stance. Indonesian palm oil, footwear, and textiles flow to Israel. Israeli chemicals and machinery flow back. Everyone knows. Nobody talks about it.

What’s changed is the incentive structure. Indonesia desperately wants OECD membership, which requires unanimous approval from all 38 current members, including Israel. Prabowo, a pragmatist military man, has calculated that symbolic gestures toward Tel Aviv are worth the domestic political cost if they unlock Indonesia’s path to the developed-economy club.

Indonesia’s diplomatic thaw signals something broader: a region increasingly comfortable doing business with Israel, even when domestic politics suggest otherwise. My own personal experiences with Indonesians has made me confident that when it comes down to it, the vast majority of Indonesian’s just want to get on with business and their lives and don’t intrinsically have any horse in a race regarding a conflict thousands of miles away.

As for the Philippines – here’s a statistic that should surprise every Israeli investor: according to ADL’s Global 100 survey, the Philippines has one of the lowest rates of antisemitic attitudes on Earth, just 3%. Only Laos scored lower. Compare that to France, the UK, or Germany.

The Philippines also offers practical advantages. Foreigners can own condominium units outright, up to 40% of any building’s total units. Manila and Cebu deliver rental yields that London and Tel Aviv investors can only dream of. The legal system, while imperfect, operates in English and follows common law principles.

Trade Secretary Cristina Roque announced last year that both countries would explore a formal FTA. Israeli Economy Minister Nir Barkat responded: “There’s no doubt in my mind that we’re doing good for both countries. It will translate to more business.”

Vietnam’s free trade agreement with Israel, signed in 2023, makes it the only Southeast Asian nation with such a deal in place. The relationship goes deeper than commerce. Vietnam has purchased substantial defense technology from Israel, particularly as Russian supplies became unreliable.

For property, foreigners can hold 50-year leasehold interests in condominiums and apartments. Ho Chi Minh City and Da Nang have seen strong appreciation, driven by manufacturing relocations from China and a booming domestic middle class. ADL surveys show only 6% antisemitic attitudes, roughly on par with the Netherlands.

With well-established Chabad houses and kosher restaurants in Bangkok, Chiang Mai, Phuket, and elsewhere, Thailand has long been a comfortable destination for Israeli travelers and retirees. Antisemitism rates sit at 13%, low by global standards.

Moreover, foreigners can own freehold condominiums but not land directly. Workarounds exist through Thai corporate structures or long-term leases, but these require careful legal structuring. Bangkok offers solid rental yields. Resort areas like Phuket and Koh Samui appeal to lifestyle buyers seeking holiday homes with income potential.

Finally, Cambodia – the smallest and riskiest market, it nonetheless offers unique advantages: a dollarized economy, freehold condominium ownership for foreigners, and entry points far below regional peers. Phnom Penh has a small but established Israeli business community and an 8-storey Chabad! Due diligence requirements are higher here, but so are potential returns for those with appropriate risk tolerance.

Southeast Asian property investment isn’t without hazards. Currency fluctuations can erase gains when converting back to shekels or dollars. Title verification, particularly in Cambodia and the Philippines, requires local legal expertise. Developer track records vary wildly. Managing rental properties from Tel Aviv is challenging without reliable local partners.

Most critically, exit planning matters. Liquidity varies dramatically across markets. Singapore condos trade actively. Cambodian units may take years to sell. Structure your investment timeline accordingly.

The world that Carney eulogized at Davos, one of predictable rules, stable alliances, and American-guaranteed order, may indeed be fading. For Israeli investors, this creates both risk and opportunity.

The risk is obvious: traditional Western markets face uncertainty from trade wars, political polarization, and a fraying transatlantic relationship.

The opportunity is less discussed: a stable region of 700 million people, growing faster  than anywhere else on Earth, with improving ties to Israel and, in several cases, remarkably low barriers to residency and trade opportunities.

Southeast Asia won’t replace London or New York in Israeli investment portfolios. But as a diversification play, as a hedge against Western volatility, and increasingly as a primary growth market, it deserves serious attention.

The rules-based order may be rupturing. But for those willing to look beyond traditional horizons, new rules are being written. And in Southeast Asia, those rules are increasingly favorable to Israeli capital.