blog

26 September 2018

ALL EYES ON TEL AVIV

trade tel aviv

With a resilient economy, a rapidly growing tech industry and an increasingly favourable regulatory climate, opportunities for investment in Israel have never been better.

Tel Aviv, in particular, is fast becoming a hub for financial institutions, start-ups, tech firms and other innovative industries – presenting an attractive option for those interested in international trade.

Low unemployment, ample natural gas reserves, sustained economic growth over nearly two decades, steady population growth and legislative changes have been the key driving factors in Israel’s thriving tech industry, and experts believe these same factors are spurring growth in the financial sector as well.

Tel Aviv is clearly a city on the rise, a vibrant hub for fintech start-ups, international banks, asset management firms and major financial institutions

Hedge funds, fintech start-ups and high-volume trading centers have been expanding operations in Israel for several years, while business relations between London and other European cities and Tel Aviv are the strongest they’ve been in decades.

For financial institutions, Tel Aviv has become a global leader and a significant base of operations in the region. A government initiative designed to encourage financial sector investments and several smaller-scale local campaigns have been largely successful in drawing new business to the city.

Major international banks, including Citigroup and Barclays, have established research and development centers and many more are currently exploring opportunities in Tel Aviv.

The city’s reputation for innovation and success in designing solutions for the fintech industry have also attracted international financial firms like UBS, HSBC and PwC, while a number of Israeli banks and fintechs and financial start-ups are earning worldwide recognition for their products and services.

As Amir Goldman of Susquehanna Growth Equity said, Tel Aviv is well on its way to becoming a major financial hub:

“There’s a lot of knowledge transfer, with technology and financial-markets people coming to Israel. It’s slow but sure.”

Most recently, we announced an expansion of our low-latency trading network, providing a direct link for trade between London and Tel Aviv. The network link connects international traders to the Tel Aviv Stock Exchange (TASE), facilitating faster trades without costly infrastructure investment.

According to officials, the newly expanded network will provide a much-needed gateway for foreign investors to access the region’s growing economic presence.

We announced an expansion of our low-latency trading network, providing a direct link for trade between London and Tel Aviv

For their part, officials at TASE say our partnership will play into a wider strategy meant to encourage foreign investors to initiate trade on the Exchange, thereby increasing trade volume and improving asset liquidity.

The steady and consistent growth of Israel’s economy is an attractive draw for foreign investors. Tel Aviv is clearly a city on the rise, a vibrant hub for fintech start-ups, international banks, asset management firms and major financial institutions.

As business opportunities proliferate and they enter into more trade, Tel Aviv will become even more important for international investors.

Interested in connectivity between London and Tel Aviv?