Three vectors are quietly converging, uncovering an opportunity to reshape the finance landscape in the Middle East and the future of Israel. The Iran war has exposed cracks in the UAE’s image as a stable regional finance hub; the Israeli hedge fund industry is an untapped innovation gold mine that is only 30% globally invested; and Israel is expecting up to one million people to immigrate in the coming years, a significant number of which will 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, and to elevate the Israeli finance industry to become the engine of Israel’s next economic boom.

Seizing the Opportunity

If the Israeli government focuses its efforts now on bolstering the Israeli hedge fund ecosystem, it can help stimulate growth that will attract foreign investors and institutions and create the opportunities for talented investment professionals looking to relocate from abroad. A large hedge fund industry can also influence Israel’s lagging banking system for the better.

For starters, the government should pass tax reforms........

© The Times of Israel (Blogs)