Israeli Economy

Israel is considered one of the most advanced countries in Southwest Asia in economic and industrial development. In 2010, it joined the OECD. The country is ranked 3rd in the region on the World Bank's Ease of Doing Business Index as well as in the World Economic Forum's Global Competitiveness Report. It has the second-largest number of startup companies in the world (after the United States) and the largest number of NASDAQ-listed companies outside North America.
In 2010, Israel ranked 17th among of the world's most economically developed nations, according to IMD's World Competitiveness Yearbook. The Israeli economy was ranked first as the world's most durable economy in the face of crises, and was also ranked first in the rate of research and development center investments. The Bank of Israel was ranked first among central banks for its efficient functioning, up from the 8th place in 2009. Israel was also ranked as the worldwide leader in its supply of skilled manpower. The Bank of Israel holds $78 billion of foreign-exchange reserves.

Despite limited natural resources, intensive development of the agricultural and industrial sectors over the past decades has made Israel largely self-sufficient in food production, apart from grains and beef. Other major imports to Israel, totaling $47.8 billion in 2006, include fossil fuels, raw materials, and military equipment.
Leading exports include electronics, software, computerized systems, communications technology, medical equipment, pharmaceuticals, fruits, chemicals, military technology, and cut diamonds; in 2006, Israeli exports reached $42.86 billion, and by 2010 they had reached $80.5 billion a year. Israel is a leading country in the development of solar energy. Israel is a global leader in water conservation and geothermal energy, and its development of cutting-edge technologies in software, communications and the life sciences have evoked comparisons with Silicon Valley.
The Diamond Exchange complex in Ramat Gan According to the OECD, Israel is also ranked 1st in the world in expenditure on Research and Development (R&D) as a percentage of GDP. Intel and Microsoft built their first overseas research and development centers in Israel, and other high-tech multi-national corporations, such as IBM, Cisco Systems, and Motorola, have opened facilities in the country. In July 2007, U.S. billionaire Warren Buffett's Berkshire Hathaway bought an Israeli company Iscar, its first non-U.S. acquisition, for $4 billion. Since the 1970s, Israel has received military aid from the United States, as well as economic assistance in the form of loan guarantees, which now account for roughly half of Israel's external debt. Israel has one of the lowest external debts in the developed world, and is a net lender in terms of net external debt (the total value of assets vs. liabilities in debt instruments owed abroad), which as of 2011 stood at a surplus of US$58.7 billion.

Source: Wikipedia.com