Tel Aviv Boosts Transparency to Attract Foreign Investment

The Tel Aviv Stock Exchange (TASE) is set to enhance its transparency and attract foreign investment by requiring companies to report dividends on a ‘per share’ basis starting February 1, 2025. This move aligns TASE with leading international practices observed in the U.S. and U.K., aiming to improve market liquidity and investor confidence.

Currently, over 75% of TASE-listed companies follow this reporting practice, but the Israel Securities Authority and the finance minister’s approval are still needed for full implementation. The regulatory change allows companies to update their final dividend per share amount up to two trading days before the record date, providing flexibility.

Financially, TASE has shown robust health, with a 7% increase in adjusted net profit to 27.8 million shekels ($7.6 million) and an 8% rise in revenue to 108.3 million shekels. The market capitalization of equity firms on TASE surged by 9% in the first quarter, reaching 1.15 trillion shekels, while daily trading volume increased by 7%.

By adopting international dividend reporting standards, TASE aims to enhance transparency, boost investor confidence, and attract foreign investments. This could lead to higher trading volumes and increased market capitalization, benefiting both investors and the Israeli economy. Additionally, TASE’s planned Friday trading aligns its schedule more closely with global markets like Wall Street and European exchanges, potentially facilitating its inclusion in MSCI’s Europe category. This synchronisation is expected to increase the visibility and attractiveness of the Israeli market on the global stage, fostering economic and national resilience.