At the 2024 Jerusalem Post Miami Summit, an engaging Catalyst Panel convened to discuss the Israeli economy’s resilience amidst historic challenges and its promising trajectory toward recovery. Hosted by Dana Somberg, board member of Catalyst Investors' Club, the panel featured Edouard Cukierman, Chairman and CEO of Catalyst Investors’ Club; David Kunin, a veteran investor; Hagit Argov, Chief Financial Officer at Bank Leumi; and Zalman Duchman, Executive Director at Colel Chabad. The conversation underscored the tenacity of the Israeli economy, with a particular spotlight on Hagit Argov, whose insights set the tone for the discussion.
Opening the session, Hagit Argov delivered an overview of the Israeli economy’s journey through unprecedented turmoil. “The prolonged war has brought immense challenges,” she said, “but has also highlighted the resilience of the Israeli economy and its people.”
Argov also mentioned Bank Leumi’s efforts to support its customers during the war: “We are proud to have initiated relief programs for the benefit of our customers, alongside several social projects to assist communities that were most affected by the war”.
Reflecting on the aftermath of a conflict that had been lasting 14 months, Argov detailed how Israel’s economic framework adapted and persevered: “During the war, we have seen the flexibility demonstrated by businesses in Israel, and how they were quick to adapt to the dramatic changes. Even small and medium businesses, which are at the core of our economy, were able to recover and continued to operate almost as usual”, she said.
Argov added that Israeli high-tech continues to be a main growth engine: “Data regarding the last quarter shows an impressive recuperation of the high-tech sector. We’ve seen a 30% increase in capital funding compared to the same quarter last year. High-tech exports remain stable. Even during difficult times, the sector has proven once again that it remains one of the most robust anchors of our economy”.
Argov’s remarks were optimistic as she recounted the financial sector’s contributions during the war. “Despite the hardships, the Israeli population continues to grow at a fast pace, and this a is a natural growth engine for the economy”, said Argov, “The natural increase in population leads to an increase in private consumption, more demand for housing, and a higher investment in national infrastructures like transport, energy and water purification. In addition, rebuilding after the war is due to substantially contribute to the acceleration and growth of the economy in the upcoming years.
Another interesting figure shows that there is a rise in demand for housing in southern Israel, even in areas that were severely hurt during the war. This is a sign of the resilience of Israeli society, which continues to look forward even during the most challenging times”, Argov highlighted.
Chairman and CEO Cukierman provided insights into how Catalyst Investors' Club addresses the challenges of Israeli high-tech companies. “Since the war began, there’s been a substantial drop in investments,” he noted. “In 2021, the venture industry invested $25 billion in Israeli tech; today, that figure has fallen below $9 billion.”
To combat this, Cukierman tols the panel about the creation of a platform hosting videos of 300 leading technology companies, allowing private investors to co-invest with venture funds. “This initiative ensures Israeli startups can access the funding they need without waiting for international investors to return.
Kunin followed by pointing out the immense potential of Israeli startups. “Israel has as many startups as all of Europe combined,” Kunin remarked. “Investing in Israel is not only financially rewarding but also deeply meaningful. The country’s innovation ecosystem—from great scientists to visionary venture capitalists—is unparalleled, second only to Silicon Valley.”
Kunin encouraged the audience to consider allocating part of their portfolios to Israeli ventures, emphasizing that despite the conflict, “there’s no time like now to invest in Israel. The science is amazing, and the ecosystem will continue to thrive.”
Bringing a unique perspective on blending business and philanthropy, Duchman added: “There is no way to do business without charity.” He shared the inspiring history of Colel Chabad, Israel’s oldest charity, and its innovative approaches to providing aid—from crowdfunding in the early 1800s to distributing modern welfare cards today. Reflecting on the aftermath of October 7, Duchman highlighted the importance of rapid response to crises, noting that “innovation in charity must match innovation in business.”
The panel concluded with a call to action, urging attendees to invest in Israel's thriving innovation ecosystem. Kunin and Cukierman shed light on the country's resilience, cutting-edge technologies, and unique opportunities, such as advancements in laser defense systems and medical technologies. They emphasized the long-term financial and social benefits of supporting Israel's economic recovery and technological growth.