Israeli Finance Ministry Unveils $460 Million Aid Package for High-Tech and Export Sectors Amid Shekel Surge

The Israeli Finance Ministry announced a 1.6 billion shekel (approximately $460 million) aid package aimed at supporting the high-tech and export industries, responding to the sharp appreciation of the shekel in recent months that has hurt company revenues. The plan, developed in collaboration with the Innovation Authority and after consultations with the Manufacturers Association, focuses on grants for startups, growth companies, and industrial firms.

About one billion shekels will be allocated to a rapid assistance track for startups and growth companies, offering matching grants where the government covers up to half the cost of company investments such as equipment purchases. The goal is to extend operational periods and preserve business activity within Israel. An additional 570 million shekels will support the industrial sector, including 360 million shekels to expand accelerated depreciation benefits for exporters, 175 million shekels for grants to acquire advanced machinery, 25 million shekels to expand Export Institute activities, and 10 million shekels for professional training linked to high-productivity jobs.

This funding is new and not part of the current state budget, requiring budget reallocations from other ministries without broad cuts. A new interministerial committee will also be formed to examine the high-tech sector's competitiveness and propose structural recommendations for the 2027 budget.

The Israeli Advanced Industries Association criticized the plan for focusing on future growth incentives rather than immediate operational support, emphasizing that companies currently seek tools to maintain existing activity and jobs amid economic challenges caused by the strong shekel. They called for short-term measures to ease cash flow and expanding R&D incentives to multinational companies operating large development centers in Israel.

Finance Minister Bezalel Smotrich urged the Bank of Israel to respond to the economic challenges, advocating for a sharp interest rate cut to stimulate the economy. Innovation Authority CEO Dror Bin highlighted high-tech’s significant contribution to GDP (18.3%) and exports (58%) and promised fast-track funding channels for startups and growth companies in the coming weeks. Manufacturers Association President Avraham Novogratzky described the package as an important step but stressed the need for further measures to address the depth of the industrial sector’s difficulties.