The Tel Aviv skyline at night. Photo: Gilad Avidan via Wikimedia Commons.

Israel’s export sector defied wartime pressures and growing efforts to isolate the Jewish state from global markets in 2025, surging to an unprecedented $164 billion – reinforcing the resilience of one of the world’s most innovation-driven economies.

According to a new report released by the Israel Export Institute, the organization responsible for promoting and supporting Israeli exporters, Israeli companies continued to expand their global presence in 2025 despite a challenging security environment and growing international efforts to delegitimize the country.

The report pointed to the continued strength and resilience of Israel’s business sector, with companies expanding their global reach, driving innovation, and maintaining their competitiveness in international markets despite ongoing challenges.

“During a year in which Israel faced a difficult war, alongside unprecedented hostility toward the country on the international stage, Israeli companies once again proved that innovation, creativity, and Israeli quality are stronger than any challenge,” Avi Balashnikov, chairman of the Israel Export Institute, said in a statement.

“Despite repeated attempts to undermine Israel’s economy, the world continues to seek the technology, expertise, and solutions that come from Israel. These figures are clear evidence that Israeli excellence continues to prevail,” he continued.

For the first time, the report found that services exports — including software, research and development, and other technology-driven industries — surpassed $90 billion, driven largely by Israel’s high-tech sector, strengthening the country’s position as one of the world’s leading innovation centers.

Even amid ongoing security challenges and political pressure, Israeli exports continued to benefit from strong international demand, with the record figures underscoring the global reliance on Israeli technology, expertise, and business solutions.

Looking ahead, Israel’s export sector is expected to pursue new growth opportunities by expanding into emerging markets across Asia, Latin America, Africa, and Eastern Europe, while harnessing advances in artificial intelligence to strengthen its global competitiveness.

“Israel holds a significant competitive advantage in AI thanks to its exceptional human capital, innovation and entrepreneurial spirit,” Nili Shalev, CEO of the Israel Export Institute, said in a statement. “The numbers speak for themselves: Israeli exports continue to grow stronger because they are driven by outstanding companies and extraordinary people.”

Even as Israeli markets continue to expand globally, the Israel Export Institute warned that the country must prepare for a more uncertain trade environment, shaped by shifting supply chains, evolving global commerce, and economic changes affecting international markets.