Israel’s exports rose to a record $164 billion in 2025, the Israel Export Institute said in a report published Friday, as the country’s companies expanded their global footprint despite a grinding war and intensifying international boycott campaigns.
For the first time, services exports including software, research and development and other technology-driven industries surpassed $90 billion, powered by Israel’s high-tech sector and strengthening the country’s position as one of the world’s leading innovation centers.
“During a year in which Israel faced a difficult war, alongside unprecedented hostility toward the country on the international stage, Israeli companies once again proved that innovation, creativity, and Israeli quality are stronger than any challenge,” Avi Balashnikov, chairman of the Israel Export Institute, said in a statement.
“Despite repeated attempts to undermine Israel’s economy, the world continues to seek the technology, expertise, and solutions that come from Israel. These figures are clear evidence that Israeli excellence continues to prevail,” Balashnikov added.
Nili Shalev, CEO of the institute, pointed to artificial intelligence as a key competitive edge. “Israel holds a significant competitive advantage in AI thanks to its exceptional human capital, innovation and entrepreneurial spirit,” she said. “The numbers speak for themselves: Israeli exports continue to grow stronger because they are driven by outstanding companies and extraordinary people.”
The institute’s report credited the continued strength and resilience of Israel’s business sector, with companies expanding their global reach, driving innovation and maintaining competitiveness in international markets despite ongoing challenges. Even amid security pressures, Israeli exporters continued to benefit from strong international demand, with the record figures underscoring global reliance on Israeli technology, expertise and business solutions.
The record comes even as the war with Iran has disrupted global shipping through the Strait of Hormuz and as boycott movements seek to isolate the Jewish state from world markets. The performance contrasts with regional neighbors hit harder by the conflict: Saudi Arabia’s economy contracted 4.8% in the second quarter as the war closed the Strait of Hormuz and crushed oil output.
Looking ahead, exporters are expected to chase growth in emerging markets across Asia, Latin America, Africa and Eastern Europe while harnessing advances in artificial intelligence. The institute warned, however, that Israel must prepare for a more uncertain trade environment shaped by shifting supply chains, evolving global commerce and economic changes affecting international markets. Exporters also face a strengthening shekel that pressures competitiveness and higher logistics costs tied to the regional conflict.
Sources: Algemeiner, Ynetnews, Israel Export Institute
Author: Finance Desk
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