Israel Unveils $460 Million Plan to Support High-Tech and Export Sectors Amid Shekel Strengthening

Israeli Finance Minister Bezalel Smotrich and senior officials presented a comprehensive plan on Tuesday to bolster the high-tech and export industries with a budget of approximately 1.6 billion shekels (around $460 million). The initiative aims to help these sectors cope with the challenges posed by the strengthening shekel, preserve Israel's economic competitiveness, and sustain growth engines within the economy. The final plan excludes any tax payments in foreign currency, specifically dollars.

Key measures include allocating about one billion shekels to a rapid assistance track for startups and growth-stage companies. This funding will be provided as matching grants to extend their operational runway, support continued growth, and maintain their presence in Israel. Additionally, an interministerial committee will be established to conduct an in-depth review of the global competitiveness of Israel's high-tech sector and explore structural reforms ahead of the 2027 state budget formulation.

The plan also dedicates 175 million shekels to advanced machinery and equipment for industry through grants under the Capital Investment Encouragement Law and advanced manufacturing productivity track. Furthermore, 25 million shekels will support exporters by expanding the Export Institute's activities and providing grants. Lastly, the accelerated depreciation benefit for export-oriented industrial companies will be expanded, with an estimated value of about 360 million shekels.