President & CEO, Bank Leumi
Bank Leumi CEO: ‘Those to invest now in Israel will enjoy significant returns’
🇮🇱💼 At the 2025 Jerusalem Post NY Conference, Bank Leumi CEO Hanan Friedman called Israel “an excellent investment option,” highlighting its resilience, rising GDP, and booming stock market even after a challenging year.
About Hanan Friedman
At the 2025 Jerusalem Post NY Conference, Hanan Friedman described Israel as “an excellent investment option,” citing the country’s rising GDP and stock market performance. He stated that “anyone who will invest in Israel, particularly in companies that are adopting advanced technologies, will enjoy substantial returns.” Friedman noted that “despite forecasts of negative growth published by credit rating agencies at the beginning of the war, Israel’s economy is actually growing — even in 2024 during a massive war the GDP grew 1%.” He attributed the economy’s resilience to the financial system, saying “from the beginning of the war, Bank of Israel successfully implemented its monetary policy.” Friedman also spoke about Bank Leumi’s community support, stating that “Bank Leumi alone invested in the Israeli community from the beginning of the war over half a billion shekels.” He emphasized themes of unity and resilience, saying “the unity of the Israeli society and the unique ties between diaspora Jewish and the state of Israel is the guarantee for overcoming the challenges.” Friedman concluded his remarks with a prayer for the return of hostages held by Hamas in Gaza.
Transcript (19 segments)
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Hanan Friedman0:01
Good morning and shalom to you all. It's my pleasure to open this important conference here in New York, the capital of the global economy for many years and maybe under Trump administration even more. I would like to thank Mr. Elia, publisher of the Jerusalem Post Group, for the invitation and for the opportunity to speak here today, and of course all the great people from the Jerusalem Post that made it happen.
Last year while standing on this very stage I said that now is the time to invest in Israel. I emphasized that is not only a matter of Zionist values but mainly due to the business opportunity derived from the expected high growth of the Israel economy the day after the war. So yes, we're still not the day after the war but the figures speak for themselves.
By the way, I met after I gave my speech last year a manager of a large family office and he asked me again and again, are you sure this is the right time? I told him definitely yes. I met him here in New York in March, two months ago, and he shared with me that after our meeting outside the conference he bought a large package of shares of Bank Leumi and he did 68% return on this investment. This is the figures.
So here we are today one year later and despite the pessimistic forecasts of the rating agencies for negative growth of the Israeli GDP in 2024, the actual growth was positive. Bank of Israel forecast for 2025 and 2026 is for much higher GDP growth of the Israel economy than the OECD average. The governor of Bank Israel shared with you yesterday night his optimistic view regarding the Israeli economy despite everything.
From the beginning of the war, Bank of Israel successfully implemented its monetary policy. The policy served as a great role in the impressive performance of the Israel economy in the last two years. This should give the investors the confidence to return and even increase their investments in the Israeli economy. And again, not just for Zionist considerations. The figures speak for themselves.
In the last year, the main index of TA, the Israeli stock exchange, increased over two times the increase of S&P 500. Over two times. TA raised by 44% while S&P 500 increased by just 20%. For those who are unfamiliar with the resilience of the Israelis, it looks like a miracle. The truth is that the Israel economy is performing better than other economic economies during and after all major crisis. This was the case post-COVID and this was the case post every large crisis worldwide.
Even today and perhaps even more than before, Israel remains fertile ground for investments opportunities in a variety of sectors and due to several reasons that I will elaborate. Israel's population is expected to grow by 1.9% annually. This is the case in the last years and this is the case for the coming at least two decades.
This growth alone requires significant acceleration in the large-scale infrastructure projects. The estimated investment in just in transportation projects for the coming years exceeds 100 billion shekels. Israel has an ongoing shortage of tens of thousands of housing units. The current shortage together with the continuing growth of the population creates strong market for residential projects that will serve as growth engine for the economy in the years to come.
And of course, the Israeli high-tech continues to serve as the powerful engine of the Israeli economy. The level of innovation and quality of new startups that are emerging nowadays is higher than ever. Israeli defense experts recorded its best ever results in 2024 despite the war, over 50 billion shekels of export. This figure will rise in the coming years in light of the geopolitical developments worldwide and mainly in Europe.
Together with the potential growth in the sectors I just mentioned, Israel also serves as and has several core strengths that enable its economy to remain resilient despite the many challenges it faces. One of the most significant strengths of the Israel economy is its financial system.
The governor elaborated regarding that yesterday night, so I will not elaborate. The Israeli banking sector is stable and demonstrates its resilience even in times of crisis. Moreover, Israeli banks are among the most efficient in the world, partially due to the rapid adoption of advanced technology.
The efficiency ratio among Israeli banks cannot be seen in most banks in the world and I believe that none of the banks in the world has efficiency ratio like some of the banks in Israel has. This is indeed an issue of national pride. This is not only a business advantage of the Israel economy but also an ability to quickly adapt business activities to the changing reality.
And again the governor of Bank of Israel spoke yesterday about his decision not to cancel the business day on the 8th of October. This is thanks to that he knew that the Israeli banking sector will adapt all the challenges and will be able to run the business day.
Another fundamental strength of the Israeli economies is the great banking innovation. The Israeli high-tech industry actually serves as a role model for many years. I am certain that all of us are here today take great pride in the young determined Israelis while developing technologies that will propel Israel to the new heights in the coming years.
In fact, the current war has only accelerated this trend. I meet many young Israelis who have returned from the battlefields. They returned with inspiring initiatives and ideas. Today they are founding new companies and are building the infrastructure for the future Israel, the growth of the Israeli economy.
Ladies and gentlemen, all the examples I have just mentioned paint a clear picture of how Israel's economy will continue to grow much faster in the years to come. The obvious conclusion in my view is that Israel is an excellent investment option. It was true last year and it's true now more than ever. In a world of volatility, the Israel economy is a kind of safe haven.
Thanks to Israel's unique indicators and thanks to the Israeli capability that combines resilience together with flexibility and the quick response, I believe that anyone who will invest in Israel, particularly in companies that are adopting advanced technologies, will enjoy substantial returns.
The Israeli DNA is defined by the ability to adapt quickly and wisely to the changing reality. The growth of Israeli economy despite the various threats is rooted in that same unique Israeli code. It also stems from the outstanding support of the Jewish people around the world, especially the American Jewish community in the difficult months in the beginning of the war. No other country in the world has been blessed with such a committed unique support and it helped a lot.
So for conclusion, to invest in Israel is also to invest in this remarkable and unique DNA. An additional aspect of the Israeli DNA is our unwavering commitment and concern to the safety of Jewish people wherever they are. Today, as 58 of our brothers and sisters are still being held captive by Hamas terrorists in Gaza, we all pray for the safe and swift return back to their families. Thank you. I wish you all a productive conference.