In a pressing call to action, Ittai Ben-Zeev, the CEO of the Tel Aviv Stock Exchange, voiced a significant concern at the annual Flotations Conference of the Association of Publicly Traded Companies, highlighting a critical issue facing the Israeli economy.
Ben-Zeev articulated that the Israeli government, albeit unintentionally, fosters an environment that encourages citizens to invest their capital abroad rather than within the nation's borders. This trend, according to him, undermines the potential for domestic investment and growth, posing a stark question: "Will that be good for people here? Absolutely not." He urged the country's leadership to embrace and support local entrepreneurs and investors, suggesting that a strategic approach akin to a company's five-year business plan could significantly bolster the Israeli economy.
Addressing misconceptions about the accessibility of the capital market, Ben-Zeev pointed out its inclusivity, noting that the pensions of Israeli citizens are tied to it. He warned of the long-term consequences of neglecting domestic investment, cautioning that Israel could face a stark decline in wealth, transitioning from a prosperous nation to one challenged by economic difficulties. The imperative for reform in 2024 was underscored, with Ben-Zeev advocating for a culture of trial and innovation, emphasizing the importance of embracing failure as a step towards progress.
Earlier today, I met with Jack Lew, The U.S. Ambassador to Israel. We discussed promoting Israel's accession to the International Energy Agency (IEA), increasing joint research and development investments, and advancing regional initiatives.
โ ืืื ืืื | Eli Cohen (@elicoh1) February 26, 2024
The United States is our greatestโฆ pic.twitter.com/D3YqcKZIgt
Ben-Zeev also directed a message towards public companies in Israel, critiquing their practices that hinder liquidity and marketability within the Israeli capital market. He identified a lack of engagement with international investors, due to insufficient reporting in English and inadequate investment in investor relations, as key issues. The Tel Aviv Stock Exchange has initiated reforms aimed at enhancing liquidity, recognizing its critical role in reducing capital raising costs and attracting foreign investment. Ben-Zeev stressed the mutual benefits of a thriving stock exchange for the economy, companies, and the broader community, viewing the current socio-political challenges and regulatory changes as a unique opportunity for growth.
Ilan Flato, CEO of the Association of Publicly Traded Companies, also contributed to the discourse, warning against excessive increases in the defense budget. Drawing parallels with the aftermath of the Yom Kippur War, Flato highlighted the dire economic consequences of fiscal irresponsibility, advocating for a balanced approach that safeguards welfare and promotes economic stability.
Tel Aviv Stock Exchange rose today. Tel Aviv 35 Index up 0.90%. Tel Aviv 125 Index up 0.86%. BlueTech Global Index up 0.27%. More at https://t.co/EhTZYzeSed
โ Israel Headline News (@IsraelHeadline) March 2, 2024
Together, these insights from Ben-Zeev and Flato paint a picture of a pivotal moment for Israel's economic future. They call for strategic, inclusive financial planning and reforms that not only prevent capital flight but also fortify the nation's economic foundation, ensuring prosperity and stability for future generations.
