Video Series: Business in Israel

Business in Israel is booming, despite the ongoing conflict with its Arab neighbors and the ever-present threat of terrorism and war.

In this special six-part video series reported by CNBC Europe'sGuy Johnson and produced by On the Money's Jason Gewirtz, we'll show you how Israeli businesses are turning the country's challenges into opportunities.

Part 1: Prosperity Without Peace

Israel's geopolitical situation hasn't held back a booming economy, which is getting help from international investment in the country's high-tech sector.

Warren Buffett’s Berkshire Hathaway last year paid $4 billion for an 80% stake in Israel’s Iscar, a company based just miles away from the Lebanese border. Within weeks of the American billionaire’s largest foreign acquisition, full-scale war erupted.

The Israeli economy, however, saw barely a ripple. The economy grew by more than 5% for the third consecutive year, and the stock market rose more than 20% in 2006. In part one, find out what’s behind Israel's economic prowess and whether it's an authentic boom -- or merely a bubble.

Part 2: China As Threat and Opportunity

In a world dominated by Chinese exports, Beijing may be a threat, but it also provides enormous opportunity.

Though China exports to Israel three times the amount it imports from Israel, it offers a growing middle class-market and a tremendous cost advantage for Israeli firms looking to cut costs.

In part 2, CNBC Europe’s Guy Johnson reveals how Israeli firms are finding advantages in doing business with China.

Part 3: Europe Challenges Wall Street

Traditionally, many Israeli companies have used Wall Street's Nasdaq as a way to list their shares internationally. Now that may be changing, as the Tel Aviv Stock Exchange strengthens its ties with London.

So far, the London Stock Exchange has attracted 40 Israeli companies. And, if London establishes success in one sector, expect other Israeli sectors to join the move.

Part 4: Exporting Water Conservation

For decades, the desert nation of Israel has been developing technologies designed to help agriculture and business use less water and to recycle the water they do use. Now that technology is a hot export as the world begins to face a water shortage of its own.

Aside from pioneering technologies like drip irrigation, Israel is also a model nation when it comes to water conservation. Today, it uses 70% recycled water for agriculture.

In part 4, we look at how the country has taken advantage of environmental adversity.

Part 5: The High-Tech Kibbutz

Kibbutz Shamir is a story with a twist. Its founders sewed seeds for a different future— from its socialist, agricultural roots, the kibbutz has become a high-tech money maker.

Take the case of Shamir Optical. It's listed on the Nasdaq with a market cap of $150 million, and it’s looking to expand operations across the globe.

In part 5, Guy Johnson explains how this Israeli kibbutz near the Syrian and Lebanese borders landed on Wall Street.

Part 6: Working Together

Arab-Israeli Walid Abulafia is one of the country's wealthiest men. After building a fortune in the baking business, the Abulafia family is now expanding into real estate and construction.

Abulafia is building an international hotel, but most importantly, he hopes to show that Jews and Arabs can work together peacefully and profitably.