In its latest review, international credit rating agency Fitch has maintained Israel’s credit rating at A with a negative outlook, citing economic resilience alongside persistent fiscal and political challenges. This decision follows a downgrade in August 2024, reflecting concerns over rising debt, security risks, and domestic governance instability.

Fitch’s statement highlighted Israel’s diversified economy, strong financial position, and robust high-tech sector as key stabilizing factors. However, the agency pointed to high public debt, ongoing security threats, and political instability as challenges to Israel’s economic outlook.

“The negative outlook reflects the increase in public debt, domestic governance and political challenges, and uncertainties surrounding the conflict in Gaza,” Fitch stated.

Fitch reported a decrease in Israel’s government deficit, which fell to 5.7% of GDP in 2025, down from 6.8% in 2024, due to increased revenues and lower defense spending. However, the agency warned that the approved 2025 budget underestimates the financial impact of the ongoing war in Gaza, forecasting a higher-than-expected deficit of 4.9% of GDP.

Looking ahead, Fitch projects Israel’s economic growth at 3% in 2025 and 3.6% in 2026, anticipating a decline in military mobilization and a boost in investor confidence as large-scale military activity diminishes. The high-tech sector, which demonstrated resilience in 2024, is expected to continue driving growth.

Fitch also expressed concerns about political and governance risks, warning that recent judicial reforms could weaken Israel’s institutional framework. “A reform of the judicial system recently approved by the Knesset, which expands political control over judicial appointments, could undermine checks and balances,” the agency noted. Growing public divisions over governance policies were also highlighted as a risk factor.

Fitch’s analysis suggests that Israel will remain significantly involved in Gaza in the medium term and anticipates renewed conflict, including air and ground operations. However, the agency expects reduced military mobilization compared to 2023, lessening the war’s economic strain.

On a broader regional scale, Fitch acknowledged that Israel’s military actions in 2024 weakened Iranian-backed militias and bolstered its strategic position. While localized security flare-ups may persist, tensions with Hezbollah are expected to remain contained, and Syria’s instability poses fewer short-term risks to Israel.

While maintaining Israel’s rating, Fitch’s continued negative outlook leaves open the possibility of a downgrade in future evaluations. Analysts speculate that, had it not been for recent security escalations and internal political disputes, Fitch might have upgraded Israel’s rating outlook from negative to stable.

This rating decision follows a physical visit by Fitch analysts to Israel, marking the first in-person assessment by a credit agency since the war began. The two other leading rating agencies, S&P and Moody’s, have yet to release their latest evaluations, with Moody’s skipping the current review round and S&P expected to announce its decision next month.

For now, Israel remains rated A by Fitch and S&P, while Moody’s places the country two notches lower at Baa1, underscoring ongoing financial and geopolitical uncertainty.

Main photo: The Fitch Rating logo at their offices in London. Reuters/Reinhard Krause

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Almost no one saw it coming. As the Iron Sword War erupted, so did dire economic predictions. With high interest rates, persistent inflation, and a somber national mood, analysts foresaw a crisis. The shekel depreciated, bond yields soared, and Israel’s stock market plunged. Yet, despite these challenges, 2024 proved to be a record-breaking year for many Israeli companies, with sectors across the economy reporting unprecedented profits.

Financial statements from 2024 reveal a surprising trend: Israeli businesses not only weathered the war but thrived. As Mizrahi Tefahot Bank CEO Moshe Lari observed, “We are seeing records in revenue, profitability, yield, and dividend distribution across banking, insurance, retail, and real estate. It’s as if we’ve normalized the chaos.”

A key factor behind this resilience was the state’s injection of NIS 20 billion into the economy, with 75% funneled into consumer spending. According to the Bank of Israel, private consumption grew by 5.4% at the end of 2024 compared to pre-war levels. Despite expectations of economic stagnation, tax revenues exceeded forecasts, reaching over NIS 455 billion.

Food retailers saw operating profits soar by 58%, reaching NIS 1.9 billion, fueled by price hikes and increased domestic spending. “People stayed in Israel longer and bought more,” noted industry expert Uri Bartov. The disruptions in global supply chains allowed local manufacturers to capitalize on limited imports, further driving profits. Fashion retailers also saw a surge, with sales at leading brands jumping 15%. Consumers, unable to travel abroad, redirected spending to local brands. Castro led the industry with a 19% sales increase, and its stock price soared by over 150%.

The insurance industry doubled its profits, reaching NIS 6.4 billion across Israel’s five largest firms. Concerns about war-related claims were offset by state compensation programs and stock market gains. “The low unemployment rate and the market’s overall rise supported insurance profits,” explained Lior Yochafez, Deputy CEO of Menora Mivtachim.

Israeli banks thrived amid high interest rates, collectively earning NIS 30 billion—up 17% from the previous year. “The interest rate environment remained elevated due to war-related risks, benefiting banks through high credit spreads,” said Clal Insurance’s Uri Bartov. Bank stocks surged by over 40% in 2024, contributing to record highs in the Tel Aviv Stock Exchange. With Israelis spending more domestically, credit card transactions soared to NIS 563 billion, a 12% increase. Generous government grants and flexible payment plans encouraged higher credit usage, driving profits for Isracard, Cal, and Max.

Despite labor shortages and extended construction timelines, Israel’s real estate sector flourished. Sales of new apartments surged by 144%, supported by aggressive 20/80 financing deals. “The housing market always finds a way to recover and grow stronger,” noted Sigma-Clarity’s Yair Shani. However, recent regulatory measures limiting contractor financing may temper future growth. With international travel curtailed, Israeli shopping malls saw increased foot traffic and spending. Revenue for Azrieli, Melisron, and Big increased by 13%, driven by a shift in consumer behavior. “Malls gained from Israelis staying put and redirecting entertainment budgets locally,” noted investment analyst Yaniv Pagot.

While parts of the economy faced difficulties, the largest and most influential corporations thrived. The war led to increased government spending, supply chain disruptions that favored domestic producers, and shifts in consumer behavior that boosted demand for local goods and services. The unexpected outcome of 2024 has demonstrated the resilience of Israel’s economic infrastructure and its ability to adapt in times of national crisis.

Image credit: Freepik

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The Israeli shekel fell sharply against major currencies today, reaching a five-month low of 3.7 shekels per U.S. dollar. Against the euro, the shekel also depreciated by approximately 0.5%, now standing at 4 shekels per euro. This marks a 2.7% decline against the dollar since the start of the month, reversing the gains seen during the previous ceasefire period and the diplomatic arrangement with Lebanon.

Market analysts attribute the shekel’s recent weakness primarily to domestic political and security concerns. The collapse of the ceasefire with Hamas and the resumption of intense fighting have heightened uncertainty in Israel’s economy. This has led to a rise in the country’s risk premium, discouraging foreign investment and weakening the shekel.

Political instability has also played a role. The government’s decision to dismiss Shin Bet chief Ronen Bar, followed by a High Court ruling that temporarily froze the move, has fuelled tensions within Israel’s leadership. The political friction adds to investor anxiety, further pressuring the local currency.

Rafi Ghozlan, chief economist at IBI Investment House, noted that Israel’s market is shifting from a period of ceasefire and potential normalization with Saudi Arabia to renewed military action and legal uncertainties. “The combination of war and legal reform concerns, along with global market declines, is driving the shekel’s weakness,” he explained.

The key question now is whether this trend will persist or if the shekel will stabilize. Over the past year, the currency has fluctuated within a 3.60–3.80 shekel-per-dollar range. Ghozlan suggests that under the current circumstances, the shekel could move toward the weaker end of this spectrum. Therefore, unless geopolitical tensions ease or external economic factors shift in Israel’s favour, the shekel may continue facing downward pressure in the coming weeks.

Image credit: Freepik

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In a week marked by a record-breaking $32 billion acquisition of Israeli cybersecurity firm Wiz by Google, the insurtech sector also saw significant movement with German insurance giant Munich Re acquiring Israeli-founded startup Next Insurance for $2.6 billion. This acquisition follows a tumultuous period for Next Insurance, which saw its valuation drop significantly from a peak of $4 billion in 2021 to $2.5 billion in late 2023.

Founded in 2016 by entrepreneurs Guy Goldstein, Alon Khoury, and Nissim Tapiro, Next Insurance specializes in digital insurance solutions tailored for small and medium-sized businesses in the United States. The company utilizes artificial intelligence and machine learning to streamline underwriting and policy approvals, offering coverage across 1,300 different insurance categories. With over 500,000 active customers, Next Insurance has positioned itself as a key player in the digital transformation of the insurance industry.

The acquisition marks a near-complete takeover by Munich Re, which has been investing in Next Insurance since 2017. Prior to the deal, the German reinsurer held a 29% stake in the company. Munich Re and its subsidiary, Argo, will acquire the remaining shares for $1.84 billion from existing investors. According to reports, Argo is expected to generate substantial net profits in the medium term as a result of the transaction.

Despite the acquisition’s positive outlook for Munich Re, not all investors fared equally well. Investors from the company’s 2021 funding round, including Battery Ventures and Israeli fund FinTLV, had backed Next Insurance at a $4 billion valuation. While the current sale represents a modest increase from its late 2023 valuation, it still reflects a 35% decline from its peak. However, sources indicate that 2021 investors had structured protections to minimize potential losses from valuation declines.

The deal also highlights the role of strategic investors in shaping Next Insurance’s trajectory. Previous backers included notable venture capital firms such as Zeev Ventures, Group 11, TLV Partners, and Redpoint, alongside large Israeli institutional investors like Bank Hapoalim, Migdal, and Psagot. Additionally, insurance giants Allianz X and Allstate played a strategic role in expanding Next Insurance’s market reach, particularly in real estate and auto insurance.

CEO and co-founder Guy Goldstein hailed the acquisition as a milestone for the company. “This transaction will accelerate our mission to provide an easy, efficient, and personalized insurance experience for small business owners. With the strength and expertise of ERGO and Munich Re, we will continue leading the small business insurance revolution in the U.S.,” Goldstein stated in a press release.

Image credit: The logo of reinsurance company Munich Re Group at their headquarters in Munich, Germany. REUTERS/Andreas Gebert

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Newly uncovered documents seized by the Israel Defence Forces (IDF) in Gaza during the ongoing war with Hamas shed light on the extensive preparations the militant group undertook leading up to the October 7 attack. These documents, some of which were used in internal intelligence investigations by the IDF’s Military Intelligence Directorate and the Israel Security Agency (Shin Bet), provide a detailed account of the communications between Hamas’ leadership in Gaza, its overseas branches, and Hezbollah and Iran.

According to intelligence analyses, as early as 2021, Hamas intensified its outreach to Iran, seeking financial and strategic support for a large-scale offensive aimed at delivering what it described as a decisive blow to Israel. In the two years preceding the war, discussions among members of the so-called “radical axis” revolved around orchestrating a coordinated multi-front assault. While this plan ultimately did not materialize in full, Hamas’ attack on October 7 caught Israeli intelligence off guard, highlighting a severe lapse in threat assessment.

Excerpt from Hamas document titled “The Movement’s Strategy 2013-2017,” undated. (The Meir Amit Intelligence and Terrorism Information Center)

Last week, a comprehensive analysis of these captured documents was published by the Intelligence Heritage and Commemoration Center, a research institute working closely with Israel’s intelligence community. The report was authored by Dr. Uri Rost, a researcher and lecturer at Sapir College.

Rost’s findings suggest that since its founding in 1987, Hamas has consistently viewed Israel’s existence as illegitimate. However, until recent years, the group saw Israel’s destruction as a long-term objective rather than an immediate goal. Following the 2021 Guardian of the Walls operation, Hamas leadership began to believe that Israel’s downfall was within reach, marking a significant shift in strategy. This shift was evident in both public statements by Hamas officials and private communications documented in the seized files.

Image credit: www.internationalaffairs.org.au

One of the most striking revelations in the documents is Hamas’ coordination with Iran and Hezbollah. The group’s leader in Gaza, Yahya Sinwar, reportedly considered Israel’s destruction a viable short-term goal, reinforced by the belief that Israel was strategically weak. This perspective was echoed in secret exchanges between Hamas and its allies, including Iranian and Hezbollah officials, who debated the feasibility of a full-scale regional war.

Iran and Hezbollah’s Role in the Planning

The documents confirm that Hamas’ leadership held extensive discussions with Iranian and Hezbollah officials regarding a coordinated attack on Israel. In June 2021, senior Hamas officials sent a letter to Esmail Qaani, commander of Iran’s Quds Force, requesting $500 million in funding over two years to prepare for what they termed a “liberation war” against Israel. The letter, which was also addressed to Iran’s Supreme Leader Ali Khamenei, stated that Israel was weaker than perceived and could be eradicated with sufficient external support.

By July 2022, Hamas’ external leadership in Qatar intensified coordination efforts. Sinwar reportedly sent an urgent letter to Hamas’ political chief Ismail Haniyeh, urging him to travel to Iran to advance plans for a military buildup in southern Lebanon. Later, in a secret meeting with Hezbollah leader Hassan Nasrallah, Hamas leaders presented three potential attack scenarios. The preferred strategy was a joint assault by Hamas and Hezbollah, ideally launched during Jewish holidays when tensions in Jerusalem were typically high.

The documents align with public statements made by Hamas and its allies in the years leading up to the October 7 onslaught. In a September 2021 conference in Gaza titled “Promise of the Hereafter – Post-Liberation Palestine,” Palestinian factions openly discussed their plan for ruling all of Israel’s territory “from the river to the sea.” Hezbollah leader Hassan Nasrallah echoed similar sentiments in May 2023, claiming that Israel’s home front was “weak, fragile, anxious, always ready to pack up and leave.”

In mid-2023, a Hamas delegation, led by Haniyeh and senior commander Saleh al-Arouri, visited Iran to discuss military coordination. Iranian officials reportedly expressed their view that the “removal of Israel from the map” was now a tangible possibility. Leading up to October 7, Hamas continued to refine its strategy. In April 2023, Sinwar told Hamas political bureau member Muhammad Nasser that the previous conflicts with Israel had been “a walk in the park” compared to the planned attack, which would “shatter the enemy into fragments.”

Rost’s analysis concludes that the October 7 assault was not merely an isolated terror operation but the culmination of years of planning based on a fundamental shift in Hamas’ strategic thinking. The group, along with its Iranian and Hezbollah backers, increasingly viewed Israel’s destruction as a realistic goal rather than distant rhetoric. However, the heavy losses Hamas has suffered in the ensuing Israeli counteroffensive may have forced it to reassess this ambition – for now.

As of early 2025, the IDF has continued its military campaign against Hamas in Gaza. However, reports suggest that Hamas is rebuilding, with over 25,000 Hamas fighters and 5,000 from Palestinian Islamic Jihad still armed. The ceasefire that had temporarily halted hostilities ended, as Prime Minister Benjamin Netanyahu vowed a forceful response to Hamas’s refusal to release Israeli hostages.

Main article image: Gaza, October 7. Hani Alshaer/Anadolu Agency via Reuters Conne

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The Israeli government has launched a large-scale air offensive against Hamas in the Gaza Strip following repeated refusals by the terror group to release Israeli hostages. The decision was announced overnight by Prime Minister Benjamin Netanyahu and Defence Minister Israel Katz, who stated that Hamas had rejected all proposals mediated by U.S. envoy Steve Witkoff and other intermediaries.

The Israeli Air Force commenced a series of targeted strikes against Hamas positions across Gaza, marking the most extensive aerial assault on the group since the conclusion of last year’s ground manoeuvre. Military sources indicate that the operation, meticulously planned in secrecy, aims to neutralize high-ranking Hamas leaders, weapons storage facilities, and underground tunnel networks.

The new Chief of Staff Eyal Zamir is commanding the operation together with Shin Bet Director Ronen Bar from the Kirya military headquarters in Tel Aviv. According to security officials, the offensive will continue for as long as necessary and may expand beyond aerial strikes if deemed appropriate.

Prime Minister Netanyahu, citing the urgency of the situation, has been granted permission to postpone his scheduled testimony in his ongoing corruption trial, as the air campaign takes precedence.

The White House has confirmed that it was informed in advance of Israel’s military action. White House spokesperson Caroline Levitt stated that former President Donald Trump warned, “Hamas, the Houthis, and Iran will face severe consequences for their actions against Israel and the United States.”

Meanwhile, Hamas has condemned the Israeli offensive, accusing Netanyahu’s government of “renewing aggression against defenceless civilians in Gaza.” The group further warned that the cancellation of the ceasefire agreement endangers Israeli hostages held in the enclave. Palestinian sources report over 200 fatalities in Gaza, including several high-ranking Hamas officials, among them Mahmoud Abu Watfa, the head of Hamas’s Interior Ministry.

With the renewed hostilities, the IDF Home Front Command has adjusted security measures in border communities, restricting educational activities in areas near Gaza while maintaining regular activity levels in western Negev and Lachish regions.

Defense Minister Katz emphasized that military pressure will continue until all Israeli hostages are freed and all strategic war objectives are achieved. “If Hamas does not release the hostages, the gates of hell will open in Gaza,” he warned.

As the conflict escalates, Israel braces for potential retaliatory attacks, while diplomatic channels remain strained amid growing concerns over regional stability.

Main image credit: On the right, Shin Bet chief Ronen Bar, Chief of Staff Eyal Zamir, and Air Force commander Tomer Bar, in Kirya headquarters. ( Photo: IDF Spokesperson )

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Nearly three years after its debut on the Canadian Stock Exchange, Israeli foodtech company Beyond Oil is experiencing a remarkable stock surge. The company, which initially struggled with fluctuating stock prices, saw its shares drop to a low of 0.5 Canadian dollars. However, since the beginning of 2025, Beyond Oil’s stock has skyrocketed by 186%, significantly outperforming broader market indices such as Canada’s S&P/TSX (which has seen zero growth) and the U.S. Russell 2000, which has declined by 8.3%.

Founded in 2018 and headquartered in Kibbutz Yifat, Beyond Oil is led by co-founder and CEO Yehonatan Or. The company has developed an innovative technology aimed at addressing the health risks associated with reusing frying oil. By maintaining optimal oil quality throughout the frying process, Beyond Oil’s solution reduces costs by up to 50% while simultaneously lowering customer complaints and minimizing carbon footprints.

Beyond Oil’s recent success is attributed in part to its aggressive geographic expansion. The company has entered several key markets, including the U.S., Mexico, Australia, South Africa, India, and the Philippines. A significant milestone was reached at the start of 2025 when Beyond Oil signed a U.S. distribution agreement with Latitude, securing purchase commitments worth $8.3 million for the year.

Further boosting investor confidence, Beyond Oil recently announced a $10.5 million Canadian dollar investment (approximately 26.6 million shekels) from Clal Financial Management. As part of the deal, Beyond Oil issued 3 million stock units to Clal at a price of 3.498 Canadian dollars per unit, with additional options that, if exercised, could bring in another $21 million CAD.

Following this latest investment, Beyond Oil’s market capitalization has reached approximately 276 million Canadian dollars (roughly 700 million shekels). The company has also hinted at plans to upgrade to a more senior stock exchange in Canada or the U.S. within the next six months, a move that could further enhance its market position.

Beyond Oil has gained attention in the U.S. due to the involvement of its president, Laurel Eastman, a former senior advisor to President Donald Trump. Eastman has publicly committed to advocating for regulations that would make Beyond Oil’s technology a mandatory standard in restaurants, schools, and military sites across the U.S.

Image credit: Foodtech. (Photo: Shutterstock)

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After an abrupt end to negotiations last July, Google and Wiz are back at the negotiating table. According to a recent report from The Wall Street Journal, the tech giant is once again in talks to acquire the Israeli cybersecurity company – this time with an offer valued at $30 billion. If finalized, this would mark Google’s largest acquisition ever and the second-largest in Israel’s history, trailing only Intel’s $14.7 billion purchase of Mobileye in 2017.

Assaf Rappaport and his dog. (Credit: Nathaniel Tobias)

The previous round of negotiations reportedly collapsed when Wiz turned down a $23 billion acquisition offer from Google. Assaf Rapaport, Wiz’s CEO, explained at a TechCrunch conference that the company had opted to pursue an IPO instead, believing in its potential to surpass a $100 billion valuation. However, industry insiders suggest that regulatory concerns may have played a significant role in Wiz’s hesitation.

At the time, the regulatory landscape was heavily influenced by the Biden administration and the leadership of Lina Khan at the U.S. Federal Trade Commission (FTC). The FTC had been closely scrutinizing big tech mergers, leading to prolonged approval processes and, in some cases, outright cancellations. The failed acquisition of Israeli automotive chipmaker Autotalks by Qualcomm and the delayed Run:ai acquisition exemplified the regulatory roadblocks companies were facing. Wiz may have feared that tying itself to Google could result in a long, uncertain wait for regulatory approval, potentially harming its brand and business momentum.

Fast forward eight months, and the landscape has shifted. With the new Trump administration in place, Google appears more optimistic about its chances of securing regulatory approval. Trump replaced Lina Khan with Andrew Ferguson, a known hawkish voice on antitrust issues, but one who may take a more business-friendly approach than his predecessor.

Beyond the financial magnitude of the deal, Google’s renewed pursuit of Wiz signals its strategic intent to strengthen its position in the cybersecurity sector. While Google dominates in search and cloud computing, it lags behind competitors like Microsoft in cybersecurity services. Acquiring Wiz could provide Google with a critical edge, enhancing its enterprise security offerings and bolstering its presence in a market projected to grow exponentially in the coming years.

For Wiz, a Google acquisition could provide vast resources to scale its operations globally and accelerate product innovation. However, there remains the question of whether Wiz will ultimately accept the offer or once again pursue an independent path toward an IPO. The decision will likely hinge on an assessment of market conditions, regulatory risk, and long-term growth potential.

Main image credit: Founders of Wiz from left to right: VP Product Yinon Costica, CEO Assaf Rappaport, CTO Ami Luttwak, and VP R&D Roy Reznik. (Avishag Shaar-Yashuv)

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Next Vision Stabilized Systems (NXSN.TA), a leading Israeli tech firm, saw a prominent English hedge fund acquire a 2.5% stake in the company for NIS 192 million. Israeli insurance giant Clal has also joined the deal, snapping up additional shares valued at NIS 40 million, boosting its existing 6.4% holding, currently worth around NIS 493 million.

This development materialised via sale that involved several key figures offloading portions of their stakes. An early investor in Next Vision Yosef Sandler parted with shares worth NIS 44.3 million, reducing his ownership to 8.6%. Chairman Chen Golan sold NIS 55 million worth, lowering his stake to 5.7%, while VP of Technology Boris Kipnis offloaded NIS 40 million in shares. Director Nachman Benshaya sold shares valued at NIS 39.3 million, and CEO Michael Grossman cashed out NIS 50 million worth of stock. Despite the sales, a senior company source emphasized that the move was not premeditated but rather a response to strong external interest.

“We didn’t plan this sale,” the source told reporters. “A foreign investor approached us with a serious offer, and given the growing attention we’ve seen from such players, we couldn’t say no. It escalated quickly, and we had to find willing sellers to meet the demand.” The source underscored Next Vision’s strategy of welcoming significant investors who can add value, noting, “When a foreign player wants in, it’s a positive signal for the market and our shareholders.”

Next Vision, based in Raanana, has been a standout performer since its 2021 IPO, boasting a staggering 1,770% surge in its stock price. The company, which specializes in stabilized day and night cameras for drones and other vehicles, now commands a market value of NIS 7.7 billion – putting it within striking distance of the Tel Aviv 35 index. With the next index update looming in April, analysts see a strong chance for inclusion if its momentum holds.

The company’s recent financials further fuel its success story. In 2024, Next Vision reported a 121% revenue leap to $115 million, exceeding its sales target, while net profit soared 2.4 times to $66 million – representing 57.7% of revenue. A $33.2 million dividend was also announced, reflecting confidence in its cash flow. The ongoing war in Europe has been a key driver, with nearly 60% of last year’s sales tied to the region. Adding to its momentum, Next Vision recently secured a $30 million order spanning three years, building on a $101 million order backlog reported earlier this month.

Looking ahead, the company has set an ambitious 2025 revenue goal of $160 million, a 39% increase over 2024.

The transaction comes amid broader market trends, with the shekel weakening against the dollar since January, making Israeli stocks potentially more attractive to foreign buyers. Next Vision’s ability to draw international capital underscores its appeal in a competitive global tech landscape. As one of the most successful IPOs from the 2021 wave, the company continues to ride high on the back of an increase in military spending due to dramatic changes in geopolitics in recent years.

Main photo: Co-Founder and CEO Chen Golan (Credit: Orel Cohen).

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The Tel Aviv Stock Exchange (TASE) ended 2024 on a high note, reporting a 22% increase in net profit, reaching 101.4 million shekels. This growth was driven by rising revenues from information distribution, connectivity services, and clearing operations. Overall, the exchange’s revenues grew by 12% year-over-year, totalling 438 million shekels.

A major factor behind this increase was a sharp rise in revenues from information distribution and connectivity services, which grew by 24% to 23.1 million shekels. This was largely due to higher demand for the exchange’s indices and adjustments to usage fees. Clearing services also saw significant growth, with revenues climbing 25% to 26 million shekels, following expanded services for exchange members and regulatory updates for off-exchange transactions. Trading commissions increased by 5%, generating 43 million shekels, while company registration and annual listing fees rose 11% to 22.3 million shekels.

Image credit: TASE in Tel Aviv (Reuters)

The strong momentum continued into the fourth quarter, where revenues increased by 14% compared to the same period in 2023, reaching 115 million shekels. Net profit for the quarter followed the full-year trend, rising 22% to 25 million shekels.

In January 2024, TASE took a significant step by repurchasing 4.6 million of its shares, representing 4.8% of total share capital, from the hedge fund Manikay Partners for 202 million shekels. To fund the transaction, the exchange secured a 130 million shekel loan, repaid a previous 100 million shekel loan, and distributed dividends through a subsidiary.

With increasing market activity, expanding services, and a growing demand for financial data, the Tel Aviv Stock Exchange appears well-positioned for continued profitability in the near term.

Image credit: Freepik

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