“No other region in the world has a perfect storm like Israel in general, and Beersheba specifically,” said Yoav Tzruya, partner in JVP Cyberlabs in Beersheba.

JVP’s technology-development center in Jerusalem spawned companies such as the cloud-encryption firm Navajo, which was bought by Salesforce.com Inc. in 2011. The venture firm went as far as South Korea seeking a second location before settling on Beersheba. Key reasons included the government and military investment in the region, Tzruya said.

As the region gears up to become an anti-hacking center, an Internet security-focused high school is in the works, as is a second hospital and more residential neighborhoods amid expectations that the Negev population will jump from today’s , about 610,000, to about a million by 2020.}

“Economic development, if it works well, is sort of like being a fan of the football team,” said Erel Margalit, a Labor lawmaker, head of the lobby for the Negev and founder of JVP. “It unites everyone in a big message of growth.”

Eoin Treacy's view

Israel doesn’t have the regulatory framework precluding companies from taking proactive measures against hackers. In tandem with the close ties its technology sector has with the military the potential to build a world class cyber security centre of excellence is credible. 

One of the challenges for the Israeli market is that the country’s most significant cyber security firms are not listed in Israel.

Check Point Software is currently somewhat overextended relative to the 200-day MA and therefore susceptible to mean reversion. However a sustained move below the trend mean would be required to question medium-term scope for additional upside. 

EMC is not an Israeli company but it does have significant operations there. The share has pulled back test the medium-term progression of higher reaction lows and will need to find support above $26 if potential for additional upside is to continue to be given the benefit of the doubt.