Why Is Israel's Economy Strong?:
Despite obvious potential for volatility, Israel’s economy attracts strong Foreign Direct Investment (FDI) thanks to steps the government and central bank have taken to increase investor confidence. These include: lowering the public debt, signaling the market when the central bank decides to raise interest rates, and successfully stemming inflation.
In addition, Israel has an educated labor force, government incentives for foreign investors, and a high level of R&D investment in technologically innovative startups.