Ruchir Sharma, Chairman of Rockefeller International, published a comprehensive article this past Monday in the Financial Times, analyzing the unusual surge in the Israeli stock market against the backdrop of the war with Iran. According to him, while most experts feared a widening regional conflict, “the stock market continued to signal that the conflict would soon end, with Israel emerging victorious both militarily and economically.”
An 80% Recovery
Sharma noted that the Tel Aviv Stock Exchange has recovered by about 80% since the October 7 attacks – an unprecedented figure worldwide during this period. “Despite international criticism of Israel over its military operations from Gaza to Iran, a wave of foreign buying fueled the rally in its stock market,” he said. According to him, the markets are sending a clear message: Israel is not only militarily strong but also a technological economic powerhouse – and the only country in the region to have reached developed-market status.
An Advanced Capital Market
Sharma emphasized that Israel is the only country in the Middle East to have crossed two rare milestones: it has been classified as a developed economy by the International Monetary Fund and recognized as an advanced capital market by MSCI – the world’s most prestigious financial classification. “Out of approximately 200 countries, only about 40 are defined as developed economies, and even fewer achieve advanced financial-market status,” he wrote.
Income Per Capita Has Tripled
“While in most countries in the region income per capita has stagnated for decades, in Israel it has almost tripled since 2000 – the result of a technology-driven economy, not oil,” Sharma said. This transformation, he explained, was driven by deep economic reforms, consistent investment in human capital, and the integration of innovation across all sectors – from productivity growth to technology exports that are propelling the economy forward.
In conclusion, Sharma wrote: “Markets are not guided by emotion – they identify reality. And in their view, Israel is clearly the Middle East’s economic winner.”
