Israeli High-Tech Exports Surge 21% Amid Strong Job Growth and Investment

A new report from the Aaron Institute for Economic Policy at Reichman University reveals a significant recovery and expansion in Israel's high-tech sector during the first half of 2026. High-tech exports experienced a dramatic 21.3% increase in dollar terms, reaching $46.5 billion, which constitutes approximately 57% of Israel's total goods and services exports. This growth is complemented by robust investor confidence, with $9.2 billion in capital raised by the industry.

The employment landscape within the tech sector also shows positive momentum. The number of tech employees rose by 3.3% to 595,700, nearing the national goal of 20% of all employed individuals by 2035. This increased demand for talent has driven up job openings by 8.7% to 17,881, and the average monthly salary climbed by 4.9% to 34,406 shekels.

However, the report highlights a significant challenge for local companies: the dramatic strengthening of the shekel by 15.6% against the dollar. This appreciation has diminished the shekel value of exports, which grew by only 2.4% in local currency terms. The disparity between rising shekel-denominated labor costs and shrinking dollar-denominated revenues upon conversion is eroding company profit margins.

In parallel with these sector-wide trends, a major acquisition occurred in mid-September. International financial infrastructure group Prytek fully merged Israeli technology company Scanovate into its operations. The deal involves an immediate payment of $50 million, with an additional $50 million contingent on performance, potentially valuing the exit at $100 million.