Mind the Tech London 2024"It’s not just about surviving the war; it’s about moving the economy forward"
Mind the Tech London 2024
"It’s not just about surviving the war; it’s about moving the economy forward"
Liat Shuv, Head of Corporate Banking at Bank Leumi, spoke at Mind the Tech London 2024, on the topic of "Growth, innovate, deliver: Charting the strength of Israel's economy."
Liat Shuv - Mind the Tech London
(Alex Kolomoyski)
"Take a look at this picture behind me," said Liat Shuv, Head of Corporate Banking at Bank Leumi at Mind the Tech London 2024.
"I’m sure many of you are wondering what this place is, and more importantly, what it has to do with my talk today. Well, this is the Teva Naot factory in Kibbutz Neot Mordechai. Teva Naot isn’t just any company—it’s an iconic brand in Israel. It has been making shoes since before Israel became a state and is loved by people all over the world.
"But like every Israeli company, and especially companies based near our borders, it has faced many challenges since October 7th. Many of the factory employees are evacuated from their homes. Many can’t get to work at all. Many others, or their partners, serve in the reserves, making the daily routine extremely challenging. And if this is not hard enough, during working hours there are also constant sirens and rocket attacks.
"Despite all of this, 50% of the workforce shows up every day, and the factory continues to produce shoes, at a rate of about 1 million pairs a year - about 60% of them for export. This factory is just one example of Israel’s national and economic resilience.
"It’s not just about surviving the war; it’s about moving the economy forward with internal motivation and constant dedication. The reality is that businesses across Israel are facing similar challenges in different degrees.
"The war has had a large impact on our economy—evacuations from the north and the south and a sharp drop in economic and business activity. But, our ability to adapt, our unique brilliance, and our endless determination give us hope to overcome the current challenges as well.
"In the corporate division of Bank Leumi, which I lead, we work with the largest businesses in every industry. With this view of Israel's economy, we can anticipate where the country’s economic-growth will develop. And from this perspective, we are confident that we will overcome the present challenges thanks to our inherent, unique qualities, and with the help of the three major pillars we see leading Israeli growth: Our tech industry, new infrastructure and growth projects, and residential construction.
"Startup Nation: Israel’s tech sector has long been a major example of its resilience. Even during this war, with almost 30,000 tech employees serving in reserves, the sector is pushing forward. In the first half of 2024, Israeli startups raised impressive funding. Our startup innovations continue to make waves in the U.S. and in the European markets. Tech companies worldwide have experienced a tough couple of years with rising interest rates. During this time, Israeli companies have been through a process to improve efficiency, pivot their business and adapt to the global economy of 2024 - a process that has prepared them for whatever comes next.
"These brave and bold decisions display the kind of grit and creativity we expect from Israeli businesses. It shows us what we can expect as they get over the current challenges as well.
"Necessity for Development: Another factor of our resilience is simply… necessity.
"Israel’s population-growth is very high–at about 2% a year, which is four times the OECD average. This means we must constantly develop our infrastructure.
"The infrastructure projects that are promoted today, such as transportation, renewable energy and water treatment drive economic-growth.
"In this context, it’s worth noting that the European Investment Bank, (EIB) and Bank Leumi signed an agreement of 750 million euros, to promote sustainable and green development. This is proof of our international partners’ interest in Israel’s success, in spite of the war.
"The infrastructure projects continue to develop. We can see this in the continuity of existing projects and in the shared goals of the state, the entrepreneurs, and the funding institutions.
"Together these days, as always, we are bringing these projects to life and then, working to reach completion.
"Recovery and Growth: Lastly, because of the constant and quick rise in Israel’s population, the demand for housing always exceeds the supply, including in the south.
"This is why we see that construction of new housing projects, across the country hasn’t stopped during the war, even in areas near the border, that require extensive recovery efforts.
"To achieve this, financial institutions, including Bank Leumi, are helping maintain stable growth and construction to meet these housing needs.
"We expect to see huge growth in reconstruction and housing, all over the country.
"Thanks to these 3 pillars that I just mentioned and thanks to the inspiring people and communities in all the sectors in Israel… like the people of the Teva Naot factory in the north - I’m confident, that despite the effects of the war, and all the challenges we are facing.
"We will emerge stronger, and Israel will prevail."
Watch her full speech in the video above.
