When it comes to investments, a great place to look is in the Middle East, in a place we all know as Israel. While it comes with it's risks, being a target of the terrorist nations and seemingly constant wars that surround them, investing in Israel looks to be a wise choice both now and in the future.
When it comes to the percentage of Gross National Product (GDP), Israel is ranked number one in the world for investment of research and development, as well as venture capital. Per capita, they also have more engineers and scientists than any other country. Israel also now has the highest rate of patent registration. Advanced degrees are held by an astounding one of every eight people in Israel. The nation is also known as a world leader in software communications as well as alternative energy, medical, and agricultural technology.
Israeli debt and currency ratings were upgraded by Standard and Poor in 2007 due to a four year period of improved fiscal consolidation, economic growth, and gathering of external assets. Even through the month long war with Hezbollah in 2006, Israel's economy continued to grow, and has continued it's growth at a rate of about 5 percent each year. Their stock indexes have also risen around 380 percent since 2003.
Foreign investments reached over 20 billion dollars in 2006, with Warren Buffet's Berkshire Hathaway alone investing 4 billion dollars for an 80 percent share in Iscar, which is a cutting tools manufacturer. Buffet sees the investment potential here, despite the risk of danger from opposing Middle Eastern neighbors, and has plans on investing even more in Israel in the future.
The record levels of investors have come after Israel rebounded from high inflation and unemployment levels, which were present less than a decade ago. The country is now viewed as a developed market with an ever increasing ability to yield profitable returns. This is helped by a government who protects patents, trademarks, and intellectual property. Due to all of these factors, Israel now has more companies listed on the New York Stock Exchange and NASDAQ than any other foreign country other than Canada.
Another factor in their listings on these major stock markets is the fact that Israel has the highest rate of start-up companies in the entire world. Development of new technologies has made Israel's lack of natural resources a virtual non-factor when it comes to investing. Technology such as Motorola's cell phone and the Pentium-4 microprocessor are just two examples of things developed in Israel that are used by Americans every day.
With all of these things taken into consideration, it is no mystery as to why anyone would want to invest in Israel. There has been no indication that things won't continue to evolve here, meaning greater investment opportunities for the future. If there were any doubts before, there are certainly not many now. Investing in Israel appears to be a wise choice, and will likely remain one for years to come.
About the American Israeli Shared Values Fund:
The American-Israeli Shared Values Capital Appreciation Fund is the no-load mutual fund founded on the desire to support the State of Israel and provide long-term capital appreciation to investors. To learn more about the fund’s performance and investment approach, please visit their web site: www.amerisraelfund.com
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