Israel gets its money primarily from a diversified, highly developed economy featuring a strong high-technology sector, industrial manufacturing, and exports. Key revenue sources include:
- A robust high-tech industry, with many multinational companies developing research and development centers in Israel and a large startup ecosystem.
- Industrial manufacturing including electronics, chemicals, medical equipment, and diamond cutting and polishing, which constitute significant export revenue.
- Exports that are heavily weighted toward high-tech, pharmaceuticals, and defense technology products, with major trading partners including the European Union, United States, China, and India.
- Substantial financial support and military aid from the United States, which includes grants under the Foreign Military Financing program. This aid supports Israel’s defense budget and military equipment procurement.
- Investment and trade relationships, notably with the European Union, which is Israel's largest trading partner and investor, providing essential goods, machinery, and resources that sustain the economy.
- Additional sources include natural gas reserves discovered offshore, tourism, and a well-developed services sector.
Overall, Israel’s income is driven by a mix of domestic economic activities, foreign trade, direct foreign investment, and significant U.S. military and economic aid, enabling it to maintain a sophisticated economy despite limited natural resources.