Global Shift

Tel Aviv’s robust startup culture lures international tourists and businesses.

- BRANDON SCHULTZ

WITH CITIES OLD ENOUGH to appear in the Bible and ancient ports connected to classical myths, Israel is a storied land that doesn’t often inspire thoughts of modernity and progress, but its second-largest city should. Though not the capital, Tel Aviv (officially, Tel Aviv-Yafo) is Israel’s economic hub, and its dominance in the technological and creative industries drives traffic to the city in droves. It’s the No. 1 destination for immigration in Israel and has been for the past five years.

A decade ago, Tel Aviv’s economy remained effectively local, primarily serving the Israeli market. As ancient as the sands and seas may be, Israel itself was just barely 60 years old at the time: a young nation with scarce resources and relative instability on the world stage — not at all an ideal environment for most established businesses. It was and remains a startup nation, with a climate better suited to startup companies, especially in the booming tech sector.