Israel’s Economic Power, a matter of National Security: The Link Between Prosperity and Safety
In a recent article for The Jerusalem Post, former Israeli Consul General Ido Aharoni Aronoff reflects on his “professional epiphany” about perceptions of Israel in the U.S. after 9/11. Conducting focus groups targeting affluent, educated non-Jews, Aharoni observed that while participants generally supported Israeli policies, they showed little inclination to engage economically with Israel, either through tourism or investment. This insight—that foreign support does not always translate into economic involvement—aligns with concerns raised by our founder, Brian Friedman, back in 2010 when Israel was reclassified from an emerging to a developed market. At that time, Brian anticipated that foreign investment might decline—a perspective that appears to reflect what Aharoni experienced a decade earlier.
Today, these concerns are particularly relevant for us at Israel Investment Advisors, as we field inquiries from investors wanting a clearer view of Israel’s economic future and resilience. Against this backdrop, the Abraham Accords have illustrated that economic cooperation can foster peace and stability. Israel’s adversaries do not need to embrace it fully; they can choose instead to prosper together rather than perish together.
In his “Call Me Back” podcast, Dan Senor hosted Tal Becker and Scott Galloway in a series titled “One Year Since October 7th.” Becker spoke about the concept of “arrival,” noting that “Judaism has a thing which Yehuda Kurtzer calls the problem of arrival. We never think we’ve arrived… Shimon Peres talks about how one of our greatest exports is dissatisfaction.” This attitude fuels Israel’s resilience and entrepreneurial spirit, driving its achievements and fostering a culture where continuous growth is the norm.
Scott Galloway, deeply impacted by the events of October 7th, discussed his understanding of Israel’s long-term success. “At the end of the day, prosperity and economic growth is the key… Israel has been so successful, it’s arguably the second most successful technology hub in the world… that alchemy of education, risk-taking, capital, and community creates economic prosperity.” He also expressed hope that Saudi Arabia might normalize relations with Israel, motivated by economic opportunity rather than cultural affinity. “They’re sick of getting on planes to come get their AI software in Silicon Valley… If you go to Tel Aviv, you can’t help but feel pretty good about Israel. You just can't help it. So how do we get more people to Israel?”
The views of Aharoni, Becker, and Galloway align with our own and the Arab signatories to the Abraham Accords that a strong economy in Israel and a safe Israel supports a path to peace.
One of my roles at Israel Investment Advisors is to take investors to Israel so they can see with their own eyes its resilient and robust economic opportunities. Investing in Israel, even in a small way, makes an active impact on securing Israel, promoting economic prosperity, and ultimately achieving peace for Israel and the region.
* Ido Aharoni: Global Distinguished Professor of Business at Touro University and a lecturer at the Coller School of Management at Tel Aviv University. He served as Israel’s consul-general in New York from 2010-2016.
* Tal Becker: Senior Fellow and Vice President at the Shalom Hartman Institute, and he was the longtime legal advisor to Israel's foreign ministry
* Scott Galloway: Professor of Marketing at NYU Stern School of Business where he teaches Brand Strategy and Digital Marketing. Host of the Prof G Podcast and the Pivot podcast. Bestselling author of numerous books, including “The Four” & “The Algebra of Happiness.”
Galloway has served on the board of directors of Eddie Bauer, The New York Times Company and the Berkeley School of Business.