Israeli Finance Minister Smotrich Unveils $460 Million Plan to Boost High-Tech and Exports

In response to the strengthening shekel, Israeli Finance Minister Bezalel Smotrich has adopted a comprehensive plan worth approximately 1.6 billion shekels (around $460 million) aimed at reinforcing the high-tech sector, exports, and industry. The initiative was developed by a team appointed by the Finance Ministry in collaboration with the Innovation Authority and announced on Tuesday.

The plan includes nearly 1 billion shekels allocated for rapid support grants to startups and growth-stage companies to extend their operations, sustain growth, and maintain activity within Israel. Additionally, 175 million shekels will be invested in advanced industrial machinery and equipment, 25 million shekels will support exporters through expanded Export Institute activities and grants, and 10 million shekels will fund professional training programs in partnership with employers. The scheme also expands accelerated depreciation benefits for export-oriented industrial companies, estimated at about 360 million shekels.

Following weeks of roundtable discussions with representatives from startups, growth companies, multinational corporations, investment funds, and industry leaders, the package aims to help these sectors cope with the shekel's appreciation, preserve economic competitiveness, and strengthen Israel's growth engines. A new inter-ministerial committee will be established to assess the global competitiveness of the high-tech industry and consider structural changes ahead of the 2027 state budget.

Smotrich emphasized the swift response of the Finance Ministry to economic developments and expressed hope that the Bank of Israel would also act promptly, advocating for a sharp interest rate cut to stimulate the economy. He assured companies and investors that Israel is experiencing economic prosperity and that investments in the country will yield significant returns, supported by leading economists and investors worldwide.