Israel is located on the eastern end of the Mediterranean Sea, and it has one of the most advanced economies in the world. The economy of Israel is characterized by high standards of living, modern infrastructure, and high technology. Its developed economy gives it a beneficial spot in the world economy. Its growth is closely associated with its educated workforce, as research and development in many areas have rejected growth.
When it comes to land, Israel is only a small country. But due to the top industries in Israel, it has become a global player. If you are wondering what businesses have made the country’s economy successful, you’re in the right place. Today, we are giving you a list of the major industries of Israel.
Among the different industries in Israel, technology is growing faster. High-technology industries as a whole, according to the Israel Ministry of Foreign Affairs, are growing at 8% each year, and 4.9% of Israel’s gross domestic product or GDP is spent on high-tech industries. It is the highest among all Organization for Economic Cooperation and Development or OECD countries. In fact, in 2016, high-tech industries in Israel accounted for 70% of the country’s industrial production. Science and technology are the most highly developed and industrialized sectors in the country, which made it a significant part of the economy.
Manufacturing and Mining
Aside from high technology, The Times of Israel also states that the manufacturing and mining sectors of Israel are also robust. Two major exports from a plant in Haifa, which are potassium nitrate and phosphoric acid, along with oil pipelines that run to the Mediterranean Sea, too. Israel has a well-developed manufacturing industry with a large production capacity. It also has a high-tech and well-developed chemical industry that is located in the Ramat Hovav and near the Dead Sea.
The diamond industry in Israel is also an important part of the manufacturing sector. In fact, the country is among the leading centers for diamond polishing and cutting in the world. This industry accounts for 23.2% of all export products. In 2016, cut diamonds were the biggest export product of Israel, which accounted for 12% of the world’s production. The United States is the biggest market for the Israeli diamond, which accounts for 36%, afterward Hong Kong at 28% and 8% for Belgium.
Another one of the vastly developed industries in Israel is agriculture. It is also a major source of export products. The country is a leader in agricultural technologies, and it is also one of the main exporters of fresh produce. If you think of it, most of Israel is desert and unconducive for agriculture. But this did not hinder it from carrying out the activity on a large scale. In fact, according to World Atlas, agriculture accounts for about 2.5% of the total gross domestic product or GDP and 3.6% of the export. In addition to that, Israel was also able to produce 95% of its food requirement back in 2008, even if it only has 3.7% of the total labor force working on the farm.
Israel is also a very popular destination for visitors worldwide. The growth of the tourism industry has helped fuel the economy of Israel. Based on the Ministry of Foreign Affairs, over 3.3 million tourists visited Israel in 2014, which matched the record-setting number from the previous year. In 2014, the tourism industry of Israel brought in over $10 billion. The growth of the tourism industry is not showing any sign of slowing down. Israel has a lot of wonderful places to offer tourists, such as religious and historical sites, museums, and beaches. All of these have played an important role in the growth of the tourism industry.
The developed transportation system in Israel plays an important role in the country’s economic success according to Newsmax. Israel has invested in this sector over the years, and it continues to do so with the goal of growing its capacity to handle the increasing population. The country has three deep-water ports, one is in the Red Sea, and two are in the Mediterranean Sea. These ports give access to the Atlantic and the Indian Ocean.
Air transport has also facilitated the export of high-value goods from all the other parts of the economy. In addition to that, it has also aided in the growth of the high-tech sector. Israel’s highly developed highway system allows it to move easily and competently.
These are the major industries of Israel that led it to its economic success. All of these are the reasons behind the country’s advanced economy.