Развитие хедж-фондов может стать новым экономическим драйвером для Израиля

An opportunity in plain sight could ensure a prosperous future for the State of Israel and reshape the fiscal landscape of the Middle East. It is illustrated by these two facts: - The Israeli hedge-fund industry is an untapped gold mine of talent that is only 30% globally invested. - Israel expects up to a million people to make aliyah in the coming years, a significant number of whom may come from leading financial institutions. The convergence of these factors presents Israel with a window to establish itself as a world-class center for asset management and investment innovation. A strong Israeli finance ecosystem has the potential not only to seal the cracks exposed by a wounded high-tech industry, but to become the engine of Israel’s next economic boom, securing its future for generations to come. Once elected, the incoming Israeli government should focus its efforts on stimulating growth in the hedge-fund industry. In practice, this means taking steps to attract foreign investors and institutions, as well as create opportunities for talented investment professionals looking to relocate from abroad. A large and active hedge-fund industry can also influence Israel’s banking system for the better. If the government doesn’t answer the call to action, Israelis, as they often do, will. For starters, the government should pass the tax reforms recently proposed by the Israeli Tax Authority. These reforms would change the tax treatment of profits generated by Israeli limited partnerships engaged in fund management from income to capital gains, significantly reducing the tax burden to a percentage comparable to developed markets. Next, the government should formulate a long-term plan for Israel as a global hub of investment management. The Tel Aviv Stock Exchange has taken an important step by shifting its trading days to Monday through Friday (from Sunday through Thursday). The government should create a regulatory environment that is attractive to the global finance industry, both investors and investment professionals, and competitive for Israeli-managed hedge funds. Currently, the regulation of Israeli-managed hedge funds is fractured across various statutes. Some key gaps include the fact that regulations only target how Israeli-managed funds are marketed, not how they operate. The accredited investor standards for marketing to investors are significantly higher than in most countries. There are no mandatory disclosure, prospectus or operational standards. These flaws blunt Israel’s competitive edge. A non-cohesive regulatory scheme deters international investors and hedge-fund managers looking to establish a presence in Israel. The lack of foreign investors in Israeli-managed hedge funds (only 12% of current investors are foreign) demonstrates this. Israel should follow the lead of the Abu Dhabi General Markets (ADGM) free economic zone, which since its inception in 2013 has established itself as a premier hub for asset management. Assets under management in the ADGM rose 36% in 2025. At the heart of its success is a regulatory framework that adopts the direct application of English common law, which affords transparency, stability and legal certainty for asset managers looking to establish a presence in the Middle East. Why not Israel as well? It is not far-fetched to believe that Israel, a progeny of the English common law system, can adopt a similar system to support the growth of its nascent financial services sector. True, Israel cannot compete with the ADGM’s 0% corporate tax rate. However, Israel has one thing that no other country has: It is the only Jewish homeland. This brings us back to the opportunity at hand. As Israel continues to prove its resilience during times of war and finance professionals consider aliyah, the Israeli government should work toward strengthening and expanding its finance ecosystem. By passing necessary tax reforms and discreet legislative fixes in the near term, the government can level the playing field for Israeli-managed funds and contribute to their growth. More importantly, the government should be formulating a vision for Israel as a leading ecosystem for the finance industry at large by providing the proper regulatory environment. This is not only an economic opportunity but a strategic imperative. A strong Israeli hedge-fund industry will promote a more vibrant Israeli capital market by investing across borders and asset classes, improving market efficiency and contributing to liquidity. A vibrant capital market will promote greater financial independence, and ultimately, a more secure and sovereign democracy. If the government doesn’t answer the call to action, Israelis, as they often do, will. The potential is real. Initiatives are currently underway to unlock Israel’s talents as a leader in investment management. Anyone who cares about Israel must understand the imperative of a developed finance industry for an economically secure Israel. A strong hedge-fund ecosystem can prove to be the catalyst for the growth needed to realize that vision.