Economy of Israel in the context of "Silicon Valley"

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⭐ Core Definition: Economy of Israel

The economy of Israel is a highly developed free-market economy. The prosperity of Israel's advanced economy allows the country to have a sophisticated welfare state, a powerful modern military said to possess a nuclear-weapons capability with a full nuclear triad, modern infrastructure equivalent to developed countries, and a high-technology sector competitively on par with Silicon Valley. It has the second-largest number of startup companies in the world after the United States, and the third-largest number of NASDAQ-listed companies after the U.S. and China. American companies, such as Intel, Microsoft, and Apple, built their first overseas research and development facilities in Israel. More than 400 high-tech multi-national corporations, such as IBM, Google, Hewlett-Packard, Cisco Systems, Facebook and Motorola have opened R&D centers throughout the country. As of 2025, the IMF estimated Israel has the 25th largest economy in the world by nominal GDP, and one of the biggest economies in the Middle East.[1]

The country's major economic sectors are high-technology and industrial manufacturing. The Israeli diamond industry is one of the world's centers for diamond cutting and polishing, amounting to 21% of all exports in 2017. As the country is relatively poor in natural resources, it consequently depends on imports of petroleum, raw materials, wheat, motor vehicles, uncut diamonds and production inputs. Nonetheless, the country's nearly total reliance on energy imports may change in the future as recent discoveries of natural gas reserves off its coast and the Israeli solar energy industry have taken a leading role in Israel's energy sector.

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Economy of Israel in the context of Israel

Israel, officially the State of Israel, is a country in the Southern Levant region of West Asia. It borders Lebanon to the north, Syria to the northeast, Jordan to the east and Egypt to the southwest. Israel occupies the Palestinian territories of the West Bank in the east and the Gaza Strip in the southwest, as well as the Syrian Golan Heights in the northeast. Israel's western coast lies on the Mediterranean Sea, the southern tip reaches the Red Sea, and the east includes the Earth's lowest point near the Dead Sea. Jerusalem is the government seat and proclaimed capital, while Tel Aviv is Israel's largest urban area and economic centre.

The Land of Israel is synonymous with Palestine or the Holy Land. In antiquity it was home to the Canaanites and later the kingdoms of Israel and Judah. Its location at a continental crossroads brought demographic shifts under various empires. Nineteenth-century European antisemitism fuelled the Zionist movement for a Jewish homeland. Britain endorsed this goal in the 1917 Balfour Declaration and ruled Mandatory Palestine from 1920. Jewish immigration and British policies intensified Arab-Jewish tensions, and the 1947 United Nations (UN) Partition Plan led to a civil war.

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Economy of Israel in the context of Tel Aviv

Tel Aviv, officially Tel Aviv-Yafo, and also known as Tel Aviv-Jaffa, is the most populous city in the Gush Dan metropolitan area of Israel. Located on the Israeli Mediterranean coastline and with a population of 495,230, it is the economic and technological center of the country and a global high-tech hub. If East Jerusalem is considered part of Israel, Tel Aviv is the country's second-most-populous city, after Jerusalem; if not, Tel Aviv is the most populous city, ahead of West Jerusalem.

Tel Aviv is governed by the Tel Aviv-Yafo Municipality, headed by Mayor Ron Huldai, and is home to most of Israel's foreign embassies. It is a beta+ world city and is ranked 53rd in the 2022 Global Financial Centres Index. Tel Aviv has the third- or fourth-largest economy and the largest economy per capita in the Middle East. Tel Aviv is ranked the 4th top global startup ecosystem hub. The city currently has the highest cost of living in the world. Tel Aviv receives over 2.5 million international visitors annually. Tel Aviv is home to Tel Aviv University, the largest university in the country with more than 30,000 students.

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Economy of Israel in the context of Gush Dan

Gush Dan (Hebrew: גּוּשׁ דָּן, lit.'Dan bloc') or Tel Aviv metropolitan area is a major conurbation along Israel's Mediterranean coast. The term is commonly used by government bodies and the public, though its exact boundaries vary. It ranges from combining Tel Aviv with cities that form an urban continuum with it, to the entire areas from both the Tel Aviv District and the Central District, or sometimes the whole Metropolitan Area of Tel Aviv, which includes a small part of the Southern District as well. Gush Dan is the largest conurbation and metropolitan area in Israel and the center of Israel's financial and High technology sector. In 2021 the metropolitan area has an estimated population of 4,156,900 residents, 89% of whom were Israeli Jews.

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Economy of Israel in the context of Tourism in Israel

Tourism in Israel is a major economic sector and a significant source of national income. Israel offers a plethora of historical and religious sites, beach resorts, natural sites, archaeological tourism, heritage tourism, adventure tourism, and ecotourism. For practical reasons, this article also covers tourism in the West Bank and the Golan Heights, since it is closely interconnected with the mass tourism in Israel. In 2019, Israel saw a record 4.55 million tourist arrivals, with tourism contributing NIS 20 billion to the national economy in 2017.

Jerusalem is a central destination for tourists, home to sites such as the Western Wall, the Church of the Holy Sepulchre, and the Dome of the Rock. The city also offers numerous cultural and historical attractions, including the Israel Museum and Yad Vashem. Tel Aviv is renowned for its lively nightlife, cultural festivals, and Mediterranean beaches, and the "White City" district, appealing to both local and international visitors. Other notable attractions include the Dead Sea, famous for its high salinity and therapeutic benefits, Haifa and its Baháʼí Gardens, and archaeological sites like Masada, Beit She'an and Caesarea. The Negev Desert offers natural tourism opportunities at locations such as Ramon Crater and Timna Valley, with activities including hiking, camel trekking, and stargazing, while Eilat's Coral Beach Nature Reserve, located in the Red Sea, attracts diving enthusiasts. The Galilee provides a variety of activities such as boating, cycling, and bird watching, alongside its religious sites. Israel has the highest number of museums per capita in the world with over 200 museums.

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Economy of Israel in the context of Israel Central Bureau of Statistics

The Israel Central Bureau of Statistics (Hebrew: הלשכה המרכזית לסטטיסטיקה, HaLishka HaMerkazit LiStatistika; Arabic: دائرة الإحصاء المركزية الإسرائيلية), abbreviated CBS, is an Israeli government office established in 1949 to carry out research and publish statistical data on all aspects of Israeli life, including population, society, economy, industry, education, and physical infrastructure.

The CBS is headquartered in the Givat Shaul neighborhood of Jerusalem, with another branch in Tel Aviv.

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Economy of Israel in the context of Start-up Nation

Start-up Nation: The Story of Israel's Economic Miracle is a 2009 book by Dan Senor and Saul Singer about the economy of Israel. It examines how Israel was able to reach such economic growth that "at the start of 2009, some 63 Israeli companies were listed on the NASDAQ, more than those of any other foreign country."

In 2010, Start-up Nation was ranked fifth on the business bestseller list of The New York Times. It also reached The Wall Street Journal bestseller list.

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