Tel Aviv – Business Hub of Israel
Tel Aviv is much more than just party and long sandy beaches. The city, called the “miniature Los Angeles” by The Economist is also the business hub of Israel and the centre of high-tech industry and scientific research. By the late 1990s, Tel Aviv established itself as one of the world’s most technologically advanced cities and grew ever since. The metropolitan area including the satellite cities came to be referred to as the Silicon Wadi which is second in influence after the famous Silicon Valley in California. The area of the Silicon Wadi technically covers a much larger area but the majority of high-tech industries are concentrated in the heart of Tel Aviv.
As the Israel’s centre of high-tech and scientific research, Tel Aviv attracted many companies, banks, venture capital funds, consulting companies and other establishments from elsewhere of Israel as well as abroad. The core of Tel Aviv’s economy is high-tech, scientific research, venture capital and financial services. Industry in the city is dominated by food industry and chemical processing, while the increasing number of tourists who are attracted by Tel Aviv’s cultural attractions, beaches and vibrant night life made the city the retail and wholesale retail centre as well as boosted the local economy and small business.
Tel Aviv is also home to the Israel Export Institute and Israel’s only stock exchange – Tel Aviv Stock Exchange or TASE which lists over 600 companies, more than 1,200 mutual funds, 60 governmental bonds, 500 corporate bonds and about 180 exchange-traded funds. Since the Dual Listing Law allows dual listing, many Israeli companies that are listed on TASE can also be found on one or multiple foreign stock exchange markets including the London Stock Exchange.
Tel Aviv is the driving force of Israel’s post-industrial economy which bases on high-tech and globally oriented companies. Firms that operate from Tel Aviv create about 13% of all jobs in Israel, while nearly one half of all jobs in Israel’s financial and banking sectors are found here. As a result, the city is not only attracting a large number of Israeli and international firms but it is also attracting many Israelis who are looking for employment and business opportunities. The real estate market in Tel Aviv remained virtually intact by the global economic crisis and the city population continues to grow. By 2025, the population in Tel Aviv is expected to reach 450,000 despite the fact that the second-largest economy in the Middle East is the most expensive city in Israel. However, the monthly income of Tel Avivians is about 14% higher from income of other Israelis.