The city’s Quality of Life category also benefits from the tech sector, primarily through its well-paid jobs that boost Tel Aviv’s income per person to just outside of the global top 100
Tel Aviv ranked in 30th place among the top 50 attractive cities in the world by Oxford Economics Global Cities Index 2024:
“The sole city from the Middle East and North Africa region in the top 50, Tel Aviv performs highly due to its Economics and Human Capital scores. In many ways, the city’s booming tech industry powers its ranks in both these categories. ‘Silicon Wadi,’ as the city is known, is home to both startups and more established businesses across the tech spectrum, from defence, to finance, to biotech.
“These businesses drive the economy, helping Tel Aviv rank in the top decile globally for GDP size and GDP per person. But Tel Aviv’s economy—and Israel’s as a whole—has taken a significant hit since the October 7 attacks and the subsequent war.
“Tel Aviv’s tech cluster fosters an ecosystem of innovation, bolstering the city’s Human Capital score. The presence of institutions like the Weizmann Institute of Science and Tel Aviv University fuels the research and development that underpins much of the city’s tech sector, and helps Tel Aviv achieve the highest rate of educational attainment in the MENA region. And while Israel has always had a history of attracting foreign-born residents—particularly from the Jewish diaspora—in recent years, the existence of highly paid jobs in the tech sector has played a role as well. But despite an inflow of young workers, Tel Aviv still has the oldest population in the region, slightly lowering its Human Capital score.
“The city’s Quality of Life category also benefits from the tech sector, primarily through its well-paid jobs that boost Tel Aviv’s income per person to just outside of the global top 100. Residents also benefit from the highest life expectancy in the region thanks to Tel Aviv’s robust healthcare system, although they must also contend with high housing costs. In the Environment category, since much of Tel Aviv’s growth comes from the low-carbon tech industry, the city has one of the lowest emissions intensities in the world.
“The city’s weakest category is Governance, a reflection of Israel’s unique geopolitical situation. Political stability in Israel is among the worst in the world, a combination of the ongoing Israeli-Hamas war, the government’s attempts to roll back judicial authority, and large-scale protests. Regional geopolitical tensions also play a significant role, particularly the persistent threats posed by Iran and its allies, such as Hezbollah.
“Although Tel Aviv remains slated to perform well in the rankings in the coming years from a structural standpoint, questions surrounding the long-term effects of the terror attacks, Israel’s invasion of Gaza, and the grave political instability pose serious risks.”