While Americans suffer from rising prices, and analysts are warning of an imminent recession, the Jewish state is managing to maintain growing prosperity. This despite the fact that it is heading toward the fifth election in four years and facing a surge of terrorism—not to mention the graver threats from a near-nuclear Iran. Matthew Winkler writes:

Israel’s perennial headlines obscure a greater reality, which is that the Mideast nation of nine million is an economic juggernaut. It has the fastest growth and one of the lowest rates of inflation and joblessness. On top of that, the shekel is the world’s best-performing currency among the 31 that trade actively and the only one that strengthened against the dollar the past decade.

Unlike any of the 34 developed economies, Israel is poised to achieve 5.2-percent gross domestic-product growth in 2022, 3.5-percent in 2023, and 3.5-percent in 2024, according to more than a dozen forecasts compiled by Bloomberg. With unemployment at 3.5 percent and inflation at 4.3 percent (around half the annualized rate for the U.S. and European Union) Israel is proving to be the benchmark not only for stability, but for innovation as well.

From auto parts to medical-equipment solutions to food, water, and climate change, technology made in Israel is transforming the world’s biggest industries. This hub of innovation includes Mobileye Global Inc., the creator of vision-based driver assistance systems for 50 car makers, or 70 percent of the global market. Mobileye recently filed with the U.S. Securities and Exchange Commission for an initial public offering valuing the Intel Inc. unit at as much as $30 billion. Also, there’s Nanox Imaging Ltd., serving governments, hospitals, and clinics with cloud-based image analysis, online diagnosis, and billing services while developing a 3D medical-imaging device; [and] Innoviz Technologies Ltd., the maker of light-detection ranging (Lidar) sensors and perception software for autonomous driving.

Small in area and population and rich in natural gas, Qatar plays an outsize role in the Middle East. While its support keeps Hamas in business, it also has vital relations with Israel that are much better than those enjoyed by many other Arab countries. Doha’s relationship with Washington, though more complex, isn’t so different. Yoel Guzansky offers a comprehensive examination of Israel’s Qatar dilemma:

At first glance, Qatar’s foreign policy seems filled with contradictions. Since 1995, it has pursued a strategy of diplomatic hedging—building relationships with multiple, often competing, actors. Qatar’s vast wealth and close ties with the United States have enabled it to maneuver independently on the international stage, maintaining relations with rival factions, including those that are direct adversaries.

Qatar plays an active role in international diplomacy, engaging in conflict mediation in over twenty regions worldwide. While not all of its mediation efforts have been successful, they have helped boost its international prestige, which it considers vital for its survival among larger and more powerful neighbors. Qatar has participated in mediation efforts in Venezuela, Lebanon, Iran, Afghanistan, and other conflict zones, reinforcing its image as a neutral broker.

Israel’s stated objective of removing Hamas from power in Gaza is fundamentally at odds with Qatar’s interest in keeping Hamas as the governing force. In theory, if the Israeli hostages would to be released, Israel could break free from its dependence on Qatari mediation. However, it is likely that even after such a development, Qatar will continue positioning itself as a mediator—particularly in enforcing agreements and shaping Gaza’s reconstruction efforts.

Qatar’s position is strengthened further by its good relations with the U.S. Yet, Guzansky notes, it has weaknesses as well that Israel could exploit:

Qatar is highly sensitive to its global image and prides itself on maintaining a neutral diplomatic posture. If Israel chooses to undermine Qatar’s reputation, it could target specific aspects of Qatari activity that are problematic from an Israeli perspective.