Israel Economy

From an agricultural state to an industrialized country

Israel is a highly developed industrial state. While it was still a state shaped by agriculture when it was founded in 1948 – i.e. an agricultural state – the country soon developed into a modern industrial country. Today only a few people work in agriculture, most of them work in the service industry.

What is produced and processed in Israel?

Electrical goods, biomedical items and chemicals are among the industrial products that Israel makes. The diamond industry is also important. Rough diamonds are processed in Israel so that they can then be traded. Israel is also a leader in software development. Then there are the important areas of telecommunications and the solar industry. Israel leads the way in the scientific research that precedes the development and manufacture of many products. Not to forget the arms industry: Israel is one of the countries that export the most arms worldwide.

In the centers such as Tel Aviv, Haifa or Jerusalem, companies have set up shop that do business worldwide. There are also many small businesses in the countryside.

Yet even though Israel is a highly developed state, 20 out of 100 people live below the poverty line. Another problem in the country is its water poverty. 70 percent of the drinking water comes from seawater desalination plants.

Few natural resources

Gas is one of the natural resources that Israel extracts. Here one is working on the expansion of further gas fields, especially on or in the Mediterranean Sea. Otherwise Israel is poor in raw materials and has to import a lot into the country. On the map you can see the position of the gas fields within the red border.

The main trading partners for Israel are the United States, Great Britain, Turkey and China. Israel has been a member of the OECD since 2010 and has the highest standard of living in the Middle East.

The services are leading

Only a small part of the population of Israel work in agriculture. Machines are used here and so not so many people are needed for field work, for example. The main agricultural products are cereals and citrus fruits such as lemons and oranges, which are exported. If you buy lemons in the supermarket, chances are they come from Israel.

A lot of people work for the state, it’s called the public service. 33 out of 100 people in Israel alone are employed here. A lot of people also work in Israel in the non-state service sector. This includes tourism as well as trade and finance. Unemployment is low.

People from all over the world visit Israel

Tourism is an important source of income for Israel. Millions of people visit the small country the size of Hesse every year. There are not only beautiful beaches here, but also many historically important places. The old towns of Jerusalem, Nazareth or Bethlehem keep pulling people under their spell.

Israel is also known and very popular as a diving destination. There are 68 national parks and 190 nature reserves alone in the country, so that nature lovers and hikers will also get their money’s worth. Israel is also home to most of the world’s museums. However, this is then converted to the population.

Rich, poor country

As a country located in Middle East according to localbusinessexplorer, Israel is not a poor country. While it has few natural resources and most of the people work in the service industry, Israel’s economy is growing. So should people be fine? But unfortunately that is not the case. 25 out of 100 people are poor despite the wealth of the country, they live below the poverty line. But who exactly is poor in Israel?

Two groups are poor

Two larger groups can be distinguished: On the one hand, there are the Israeli Arabs, i.e. the non-Jewish inhabitants of the country, who are also Israelis, but do not live the Jewish faith.

And on the other hand the orthodox – i.e. the very strict – Jews. Religion sometimes forbids them to work and they usually have a lot of children. And having a lot of children often means families are at great risk of being poor because so many people have to be fed.

This applies to the Arab as well as to the Jewish-Orthodox population group. In both groups, children and the elderly are particularly affected by poverty.

Israel Economy