The legal reform in Israel
Without getting into politics or the nature of the reform, I tend to think that its effect on the Israeli economy in the medium to long term will be good. I am basing some of my opinions on the ‘Aprofim Law’. ‘Aprofim verdict’.
In my opinion, this is the highlight of legal ‘fouls’ that harm Israel, and therefore there are quite a few businesses that choose to sign deals outside the country’s borders.
The Aprofim ruling (Aprofim rule) was given by Supreme Court Judge Aharon Barak, according to which the interpretation of an agreement is not according to what is written in it, but in a purposeful interpretation according to the subjective intent of the parties.
In ‘normal’ words – what I sign in the contract/agreement is not binding and the judge will determine what the parties really wanted.
It is clear to everyone that doing business in such an environment is bad for any country.
The articles in the media about attracting investments, a petition by economists, the protest of high-tech people as well as the protest of the foreign investment companies that publish or do not publish all kinds of good or less good references about the legal reform – are nothing but a leaf blowing in the wind.
When the media is in a political position, whether on the left or on the right, and publishes analyzes from a position and half-data – this scares the public, who rushes to sell stocks and bonds.
Those who stand on the opposite side and buy shares cheaply are professional investors, institutional investors and foreign companies and investment funds operating in Israel.
So if you support the reform or against it – when you come to examine the investment portfolio – try to neutralize your opinion about it and of course try to neutralize your political opinion.
It is not easy – but necessary in the field of investments – where every day there is an event that affects and creates positive or negative shocks.
The Israeli economy is very strong with strong growth engines and excellent human capital.