A technologically advanced market economy, the financial workings of Israel include rapidly developing service and high-tech sectors.
Major industrial sectors of Israel include metal products, biomedical and electronic equipment, processed foods, chemicals and equipment for transport. Israel's diamond industry is also known to be a world center for cutting and polishing choice stones. It is also a world leader in software, telecommunications and semiconductor development, earning the region responsible the nickname of “Silicon Wadi.”
As of September 2010, Israel has been extended an invitation to join the OECD despite Palestinian objection. It has also signed free trade agreements with the U.S., the European Free Trade Association, Turkey, Mexico, Canada, Jordan, Egypt and in 2007 became the first non-Latin American country to break the Mercosur trade bloc.
Israel currently imports much of its energy as it is gearing up to change over to its own reserves of natural gas that were recently discovered off of its coast.
Challenges Israel faces presently are its inability to attract multinational corporations or duplicate the success it found in the telcom market with other growing industries and skilled staffing problems that have arisen from a non-partipatory and growing segment of Ultra-Orthodox Jews which may result in a higher employment to population ratio than is generally desirable for economic growth.