Sooner or later, Israel must consider the “day after” from an economic perspective and leverage its battlefield achievements into economic collaborations that will solidify its status in the Middle East, as well as globally.
Although Israel lacks vast natural resources, its renowned Jewish ingenuity and thriving hi-tech industry are in tremendous demand worldwide.
Israel can take a step forward and become a central hub for regional communication infrastructure, linking the region to the rest of the world and establishing a critical strategic asset for itself.
For several years, and with the growing reliance on artificial intelligence and digital communications, subsea and terrestrial cables have served as the backbone of global data flow between continents, forming the essential infrastructure for commerce, security, and intelligence.
As a technological powerhouse in the Middle East, Israel cannot afford to lag behind in this domain. Promoting subsea and terrestrial communication cables is a top economic, geopolitical, and security priority.
The subsea cable industry is one of the most critical infrastructures of the global digital economy. Over 95% of global Internet traffic flows through subsea cables rather than satellites, as is commonly assumed.
Unique opportunity for Israel
Israel has a unique opportunity to position itself as a key connectivity hub between Europe, Asia, and the Middle East by encouraging investment in new cable infrastructure. For Israel, this presents a dual benefit, both domestically and internationally.
Domestically, Israeli technology companies rely on fast and reliable connections to international markets. Enhancing communication infrastructure will enable these companies to expand their operations and attract global investors and entrepreneurs. Moreover, establishing new cables could lower Internet costs and boost competition in the local telecommunications market.
To achieve this, the government must adopt supportive regulations and remove bureaucratic obstacles that prolong the approval and construction processes for subsea and terrestrial cables. A fast-track, transparent investment framework must be established while ensuring secure routing that strengthens Israel’s credibility as a regional digital gateway.
Simultaneously, the government should incentivize private investments through tailored packages, including grants, tax benefits, and competitive financing arrangements. Ensuring a stable and affordable energy supply for these projects will also be a major advantage, especially given the energy-intensive nature of modern communication infrastructure.
Combining these measures will position Israel as a vital hub in the global Internet infrastructure and attract leading technology companies and international investors.
SUCH AN initiative would also serve Israel well in a shifting geopolitical landscape, granting it control over critical transit infrastructure in the region. Located at the crossroads of three continents, Israel has the potential to become a major communication gateway linking Europe, the Middle East, and Asia.
Currently, most data traffic between Europe and Asia passes through Egypt, but a direct connection between the Mediterranean and the Persian Gulf via Israel – whether through a new terrestrial or subsea cable – could provide a crucial, stable, and cost-effective alternative to existing routes.
Additionally, regional players such as the United Arab Emirates and Saudi Arabia are investing billions in communication infrastructure, aiming to become regional data hubs. Israel can integrate itself into these initiatives by forming strategic collaborations that strengthen its regional position and economic ties with neighboring countries.
Over the past decade, investments in subsea cables have surged. Technology giants such as Google, Facebook, Amazon, and Microsoft are leading private cable projects to ensure fast and reliable connectivity to their data centers.
The EU, as well as the US and other countries, are actively promoting initiatives to reinforce critical communication infrastructure amid growing threats from China and Russia, which seek to expand their influence over global networks.
Creating the right conditions for the development of additional subsea and terrestrial cables will solidify Israel’s standing as a technology hub and allow it to leverage its regional and global advantages. Investing in this sector is not a luxury but a necessity – economically, in terms of security, and geopolitically.
The Israeli government must advance a national strategy that encourages private investments, fosters regional partnerships, and enhances the security of the country’s critical networks. Israel’s future as a global technology center depends on its ability to seize these opportunities now.
The writer is the CEO of Exelera Group, owner of a subsea cable and provider of international digital infrastructure.