June Edition 2021

39 2020 proved to be a more fruitful year than for most in Israel. Notwithstanding the impact of the global COVID-19 pandemic, there has been a successful vaccination rollout that has provided some semblance of ‘normality,’ the government shored up its finances, there was a record-breaking year for Israeli start-up companies, and a fast-moving commercial relationship with the United Arab Emirates. With 60% of the adult population in Israel fully vaccinated as of June 2021, the high vaccination rate has led to an easing of restrictions, rendering masks in enclosed spaces unnecessary from mid-June, welcoming tourists from July, and bringing the country to a situation closely resembling ‘normal.’ Like so many other countries, faced with counting the cost of lockdowns, furlough schemes and the pandemic’s effect on multiple industries, the State of Israel made an early and successful play to boost its finances, announcing the raising of USD 5 Billion in three series of bonds o n international markets in April 2020, while there have been plans announced recently to tap international markets for a benchmark-sized sovereign debt offering in 2021, with the timing and size still to be determined. Since the turn of this year, many Israeli businesses are trying hard to turn a corner, investment is climbing, particularly in the high-tech sector, SPAC transactions have boomed, and there were tangible developments in the new relationship with UAE. In fact, th e Bank of Israel ( “BOI”) pointed out that: the high-tech sector’s output grew in 2020 by a solid pace of 5.8%, despite the economic crisis that broke out because of the COVID-19 virus, while fundraising by companies in the sector also increased markedly. According to the BOI, it is high-tech’s ‘notable share in Israel’s economy’ [that] is one of the factors in the ‘moderate adverse economic impact’ of the COVID-19 crisis in Israel, relative to many other advanced economies.High-tech has remained in demand and valuations have soared, and with that, companies are trying to ensure they do not miss out on the boom. Strength of High-Tech meant ’moderate adverse economic impact,’ says Bank of Israel