"Israel must turn the positive momentum into long-term, sustainable growth"

“Before I begin, I would like to show you two numbers. In my view, these two numbers represent the key to Israel’s future growth,” said Liat Shuv, head of corporate banking at Bank Leumi, opening her speech at the Mind the Tech Berlin 2025 conference, organized by Calcalist and Bank Leumi.

First, Shuv highlighted “508 billion Shekels - is the expected investment in the next decade in infrastructure, transportation, energy, and real estate projects across Israel.

“And 270 - is the number of projects planned in these fields in the next ten years.

“These numbers tell a story of opportunity and resilience.”

Shuv explained that in her “day-to-day work, I meet with business leaders in Israel’s economy, entrepreneurs, investors, credit-rating-agencies, and others.

“During these meetings, there is one question that comes-up again and again: What will it take for Israel to ensure sustainable, long-term growth in the post-war-era?”

She emphasized infrastructure as “one of the most critical growth engines for Israel’s economy, after the war.

“But there are several other significant growth engines - like high-tech, defense industries, real estate and others that can push our economy forward.”

She reiterated: “Our economy has weathered the toughest storm in our history. But, our economy is strong and will continue to grow - even with ongoing conflict.

“In fact, according to the OECD report of April 2025, Israel’s economy showed remarkable resilience after October 7th and during the war. This is thanks to a strong fiscal position, a careful monetary policy, and a robust financial system.”

Shuv presented a graph illustrating the Israeli capital market: “Take a look at this market graph, here we can see the “economic miracle”

“Despite fighting on seven fronts, the markets went up. And not just up - The Tel Aviv 125 index increased by 72%, even outperforming the S&P 500. This is a clear sign that both local and international investors have confidence in Israel.

“The meaning is simple: Israel is in a positive momentum!

“The key question is - how do we turn this momentum into long-term, sustainable growth?”

She detailed the engines that will drive the economy: “I already mentioned the infrastructure. This sector is a cornerstone of growth.

“It is critical for rebuilding after the war, for advancing renewable energy, and for improving mobility of citizens to workplaces by smart and fast transportation systems.

“Each one of these projects creates hundreds of jobs. They also include cooperation with sub-contractors, which are mostly small businesses.

“Together with this, real estate development and construction continue to play a central-part in the growth of the Israeli economy.

“Population growth and demands for new housing, support a strong and ongoing demand for real estate. Even during a period of crisis and war, the roots of real estate remain stable.”

Turning to the defense industries, she noted: “But more than that, Israel has additional pillars that proved to be significant in the last two years, such as the defense industry.

“Despite the negative sentiment towards Israel, in recent years defense industry companies have signed deals and international collaborations in high volumes.

“In 2024, defense contracts reached an all-time high of nearly $15 billion, despite the war.

“The demand for Israeli security and defense technology is growing - and not only in the traditional defense industry. In recent years, many defense-tech-startups have emerged.

“These start-ups combine innovation and advanced cyber with AI technologies.”

Regarding high-tech, Shuv said: “I'm sure here it's common knowledge that the tech sector remains one of Israel’s most important growth engines and Israeli entrepreneurs continue to show resilience.

“According to recent data, the amount expected to be raised by Israeli tech companies in 2025 is even higher than last year and much higher than 2023.

“At the same time, we see great opportunities in the field of AI - not only in tech companies, but across the entire economy.

“I am confident that we will see more collaborations between AI start-ups and traditional industries. And of course, AI will become more deeply integrated into the banking system.

“I can think of many fields in banking - including in the Corporate Division which I lead - where AI can be implemented…. And we at Leumi are already on it.

“This is not less than a revolution - and I am sure it will happen even sooner than we expect.

“I believe that thanks to: our Israeli determination, our strong economy, our national need to rebuild and grow, and our outstanding global leadership in technology and defense, we can, and we will transform the positive momentum into a clear vision of sustainable-growth in the coming years.”