Ambassador’s message for the New Year

The three years since the Hamas attack of October 7, 2023 have been extraordinarily difficult for Israel, and for Jewish communities worldwide facing a rise in antisemitism unlike anything in living memory. As the Day of Atonement approaches, it is worth taking stock of the achievements and positive developments over the past year.

Israel has risen from the worst attack on Jews since the Holocaust, and prevailed. The enemies bent on our destruction have been significantly weakened.

Hamas’s leadership has been decapitated, its military capacity in Gaza diminished, and a security zone now protects the communities of the Gaza envelope. It no longer poses the threat it did before.

In Lebanon, Israel executed one of its most sophisticated attacks, the pager assault, taking out thousands of Hezbollah militants in one strike. Infamous leader Nasrallah, who preached about the end of Israel, scoffed at Israel’s weakness and compared Israel to a spider’s web, has been taken out. The bulk of their rocket stockpiles have been destroyed. Those achievements paved the way for the election of a Lebanese president who is not an instrument of Tehran, and who is engaging in peace talks. Israel and Lebanon are united in our call for Hezbollah to disarm.

The existential threats emanating from Iran have been set back years. A regime that was weeks away from a nuclear weapon is now years away. The majority of its ballistic missile production and stockpiles have been decimated. Its supreme leader and senior command have been removed. The foundation for a regime change has been laid.

In Syria, we are cautiously optimistic. The weakening of the Hezbollah by Israel has facilitated new leadership in Damascus. Although the leader has a difficult background, he does not support the evil axis of Iran, and the smuggling of weapons from Damascus to Beirut has been ceased. He signals openness to renewed security arrangements. We will judge the new regime by its conduct: minorities protected, Iran and its proxies kept out, security guaranteed on Israel’s northern border, and Syrian soil never again used to attack Israel.

Matters are not perfect and may never be. But imminent threats have been lifted.

Through all of the conflict, the economy has held. Israel’s record over the past 18 months tells you something the daily headlines do not.

Despite all the challengers facing Israel, including the ongoing war situation, Israel’s GDP per capita has grown by 33.5 per cent over the past two years. Last year, foreign investors put $US26.2 billion ($36.8 billion) into Israel, a 78 per cent increase on 2024, while foreign direct investment into OECD countries fell around six per cent.

Israel finished eighth among OECD economies for inward investment and third as a share of GDP. The first quarter of this year brought $US14.1 billion ($19.8 billion), our strongest quarter on record. Investors are betting that Israeli companies will be worth considerably more in a decade than they are today.

Israel’s economic growth is among the highest in the developed world. Inflation has eased below two per cent, the Bank of Israel has begun cutting rates, unemployment sits at 2.6 per cent, and the Tel Aviv exchange has traded at record highs. The IMF expects Israel to outgrow every G7 economy this year.

Israeli defence exports reached $US19.2 billion ($27 billion) last year, a fifth consecutive record. Asia and the Pacific accounted for approximately 40 per cent of that total, with sales into the region nearly doubling.

None of this has been easy. Defence spending runs at about six per cent of GDP, the deficit is elevated, and hundreds of thousands of reservists have been called from their workplaces, many more than once. Israeli society demonstrated a rare resilience. Despite the fact that civilians had to rush to bomb shelters multiple times a day, and despite the fact they had to send their close ones to battle fronts, the Israeli people have displayed understanding and unity.

Israel’s diplomacy has also moved at an incredible pace, nowhere more visibly than in this part of the world. Israel opened an embassy in Suva, 30 years after our previous mission in Fiji closed. We signed agreements on national security cooperation and diplomatic training the same day. Fiji opened its own embassy in Jerusalem, following Papua New Guinea. This month Nauru became the ninth country to establish its embassy in our capital, and Israeli doctors, medical equipment and water purification plants on the island will follow.

In Latin America, there have been tremendous transformations. Bolivia has restored full diplomatic relations after 16 years. Colombia restored relations in August and has committed to an embassy in Jerusalem. Argentina launched the Isaac Accords with Israel in April, a framework for trade, technology and counter-terrorism cooperation, and has undertaken to move its embassy to Jerusalem. Guatemala and Paraguay are already there.

Which brings me to Australia. Israel is one of the largest sources of foreign listings on the Australian Securities Exchange and has more than $5.5 billion invested here, most of it in innovation. Australian investment in Israel exceeds $1.7 billion. Approximately 150 Israeli companies work in Australia. There is tremendous potential.

While our enemies spread hatred and negativity, let us focus on positive developments and achievements.

Shana tova.

His Excellency Dr Hillel Newman is Israel’s ambassador to Australia.