Calcalist in English

Mega Or Reports 25% NOI and FFO Growth as Tel Aviv Stock Exchange Opens Week

Mega Or posted a 25% rise in NOI and FFO in Q2 due to new property occupancy, including data centers and retail locations. Nofar Energy is negotiating to acquire Highlight energy company. Rustic Bakery reported a 31.6% net profit increase in its first quarterly report post-IPO. The Tel Aviv Stock Exchange opened the week positively following Wall Street gains, with key bank earnings and Israeli inflation data upcoming.

Shekel Dips Slightly as Inflation Data Looms in US and Israel

The Israeli shekel weakened slightly as key US and Israeli inflation data are set to be released this week. The Bank of Israel faces a difficult interest rate decision amid mixed economic signals. In the US, weak jobs data has reduced expectations for a Fed rate hike, with upcoming inflation reports crucial for future policy.

Israeli IPO Market Sees Mixed Results with Security Firms Surging and Real Estate Stocks Falling

In early 2026, 20 Israeli companies raised 7.7 billion shekels in IPOs, but nine of 19 stocks trade below their offering price. Defense firms DSIT and Smart Shooter surged over 50%, while real estate companies like Prodalim and Urban Brand declined sharply amid market caution linked to the Iran conflict and sector slowdowns.

Israeli Retail Investors Shift From Nuclear and Crypto to AI and Chip Stocks

Israeli retail investors have shifted from speculative stocks like nuclear startups and cryptocurrencies to more stable investments in AI, semiconductor companies, and broad U.S. market ETFs. This change follows significant losses in high-risk assets and reflects a maturing investment approach focused on long-term growth sectors. Nvidia remains the most popular stock, while leveraged crypto funds and meme stocks have largely been abandoned.

Ben Gurion Airport Faces Parking Shortages as Passenger Numbers Surge

Ben Gurion Airport set a passenger record last week, causing short-term parking near Terminal 3 to fill and close frequently. Drivers prefer short-term lots despite higher costs, leading to congestion and shuttle delays. The Israel Airports Authority urges use of a new free one-hour waiting lot to ease traffic and is planning to expand parking management amid rising demand.

Israeli Cyber Firm’s Mobile Surveillance System Fails in Mexico, Returned Amid Legal Dispute

Israeli cybersecurity firm Septier sold a mobile phone surveillance system to Mexico that failed operationally, leading to its return and a legal dispute. The system could not reliably detect phones within expected ranges, suffered technical malfunctions, and endangered operators. Mexico’s intermediary is suing Septier for damages, while Septier has yet to respond.

Israeli Authors Release Diverse New Books Covering Family, History, and Personal Loss

Israeli authors including David Grossman and Hagai Dagan release new books this August, exploring family dynamics, archaeology, personal loss, and cultural heritage. The offerings include fiction, nonfiction, poetry, and translations, reflecting diverse aspects of Israeli and Jewish life.

Trax Founder Reflects on Unicorn Rise and Fall, Launches Sports-Tech and Mentoring Ventures

Trax, once a $3 billion retail tech unicorn, fell sharply amid rising interest rates and was sold in 2024. Founder Yoel Bar-El then launched Sweesh, a sports-tech startup partnered with the NBA, and a mentoring center for Israeli entrepreneurs.

SpaceX Nears $6 Billion Acquisition of Israeli AI Startup Decart

Israeli AI startup Decart is close to a $6-7 billion sale to SpaceX, which plans to open an R&D center in Tel Aviv. The deal, surpassing Nvidia's offer, highlights growing global interest in Israeli AI technology. Decart's real-time video AI impressed Elon Musk and fits SpaceX's expanding AI ambitions.

Nofar Energy Advances Talks to Acquire Israeli Energy Firm Highlight for Up to 150 Million Shekels

Nofar Energy is negotiating to acquire Israeli solar energy company Highlight for 100-150 million shekels, leveraging an exclusivity agreement. Highlight holds a large project pipeline but no active revenue projects yet. The deal complements Nofar’s recent 47.5% stake purchase in the Reindeer gas power plant and follows a significant valuation increase for Nofar Israel.

Israeli Comedy Classic 'Givat Halfon' Fails to Inspire New Film 'Giva 338' on 50th Anniversary

The 50th anniversary film "Giva 338" attempts to honor the classic Israeli comedy "Givat Halfon Doesn't Answer" but fails to replicate its humor and charm. The original 1976 film was a major hit featuring the comedy trio HaGashash HaHiver and remains a beloved military satire. The new film recycles old jokes and lacks fresh comedic energy, highlighting the challenge of reviving such a cultural icon.

Phoenix Launches Hedge Fund Management Firm to Compete in Growing Israeli Market

Phoenix is launching a hedge fund management company to compete with major Israeli hedge funds amid rapid industry growth nearing $25 billion. Institutional investors like Harel are entering the sector, and firms such as IBI and Sphera are expanding their hedge fund activities. Hedge funds attract wealthy investors seeking diversification and risk hedging, with managers focusing on investment while partners provide distribution and fundraising.

Removing Tuna Can Tariffs Cuts Consumer Prices by Only 1.1% in Israel

Israel's removal of import tariffs on tuna cans has led to only a slight 1.1% decrease in consumer prices, with market concentration remaining high and local production declining. Research indicates that tariff cuts and global raw material prices influence prices, but other factors also play a role. Despite tariff reductions, the impact on consumer prices has been limited over the past decade.

Netanyahu Seeks Increased Defense Budget Without Specifying Funding Amid Election Tensions

Prime Minister Netanyahu seeks a long-term increase in Israel's defense budget without clarifying funding sources, opting for deficit spending ahead of elections. This strategy risks further credit downgrades and fiscal instability, while shifting the financial burden to the next government. Economic authorities were not consulted, and tax cuts worsen the funding gap, setting a political trap for the incoming administration.

Tzomet Sfarim Tightens Policy on Self-Funded Books to Improve Quality and Sales

Tzomet Sfarim is tightening its acceptance policy on self-funded books starting next quarter to improve shelf management, sales, and customer experience amid a rise in self-published titles. Publishers must now submit books for approval, focusing on quality and commercial viability, to reduce logistical costs and optimize store space.

AIG Israel Workers Declare Labor Dispute Over AI Job Replacement Concerns

AIG Israel's workers declared a labor dispute over stalled collective agreement talks and management's AI pilot that may cut jobs. A 15-day cooling-off period will precede possible strikes if negotiations fail.

Israeli Capital Market Authority Tightens Reporting Rules for Remaining P2P Lending Firms

The Israeli Capital Market Authority is imposing stricter reporting requirements on remaining P2P lending firms, mandating detailed semi-annual and annual disclosures to enhance transparency and protect both lenders and borrowers amid market upheaval and rising interest rates.

Criminal Lawyer Indicted for Extortion and Threats Over Unpaid Loan

A criminal lawyer from central Israel has been indicted for extortion after threatening a former client to repay tens of thousands of shekels and sending people to intimidate him at home. The lawyer was arrested in July and remains in custody as the case proceeds.

Bank of Israel Extends Automatic Account Transfer Service Until 2029 to Support Bank Switching

The Bank of Israel proposes extending the automatic account transfer service "Follow Me" until 2029 to support customers switching banks. The extension applies to those who complete online transfers by September 2026, ensuring continued automatic routing of payments and credits. This move follows the 2021 "Switch with a Click" reform, which has doubled bank switching rates and increased competition in the banking sector.

Israir Launches Direct Flights to Madrid as Romanian Animawings Resumes Israel Route

Israir will begin direct flights to Madrid from October 25, while Romanian airline Animawings resumes Bucharest-Tel Aviv flights tomorrow after a suspension. United Airlines plans to restart daily flights to Israel in September, increasing options amid strong demand and regional security concerns.

Mega Or Reports 740 Million Shekels Annual NOI From Signed Data Center Contracts

Mega Or's signed data center contracts now generate 740 million shekels in annual NOI, a sharp increase from previous years. The company operates one data center and is developing seven more, expecting total annual NOI of one billion shekels. Despite rising construction costs and regulatory uncertainties, Mega Or's core logistics and commercial leasing business also grew, boosting overall profitability. However, financing losses caused a 41% drop in net profit for Q2.

Rustic Bakery Reports 32% Net Profit Surge After Tel Aviv IPO

Rustic Bakery, after its June IPO on the Tel Aviv Stock Exchange, reported a 31.6% net profit increase in Q2 2025 to 23.5 million shekels, driven by sales growth in bakery and import segments. The company also raised 200 million shekels and is pursuing a majority acquisition of a specialty dough producer.

Israel Tax Authority Proposes Digital VAT Reform to Combat Fraud and Ease Business Cash Flow

Israel’s Tax Authority plans a digital VAT reform to automate invoice reporting, shift VAT payments to actual cash receipt, and combat 15 billion shekel annual fraud from fake invoices. The reform will separate VAT payments from suppliers, improve cash flow for businesses, and requires new legislation before implementation.

Oren Frank, Founder of Talkspace and Former McCann CEO, Dies at 60

Oren Frank, co-founder of Talkspace and former McCann CEO, died at 60 after a year-long cancer battle. He helped pioneer online therapy, with Talkspace going public in 2021 and selling for $835 million in 2024.

GLAM42 Launches Sephora Collection Private Label Products in Israel

GLAM42 will introduce Sephora Collection, Sephora's private label, in Israel through its stores and pop-up locations, marking the brand's first official product launch in the country without opening Sephora stores. This follows years of unsuccessful attempts by Israeli retailers to bring Sephora outlets to Israel. Sephora is a major global cosmetics brand owned by LVMH.

Industrial Land Prices in Israel’s Periphery Soar Sixfold, Undermining Incentives

Industrial land prices in Israel’s peripheral National Priority A zones have increased nearly sixfold since 2017, eroding government discounts meant to attract factories. The fixed discount cap, unchanged since 2016, now covers only a fraction of the land cost, forcing factories to pay much higher prices and reducing incentives for peripheral industrial development.

Jerusalem Land Lease Crisis Slashes Apartment Values by Half in Upscale Neighborhoods

The land lease crisis in Jerusalem’s upscale neighborhoods has halved apartment values and halted mortgages, with uncertainty over lease expirations in 2050-2052. Doron Shmueli of the Land Leaseholders Forum calls on KKL to expedite negotiations with landowners to resolve the issue and prevent further market collapse.

Bank Hapoalim Equity and Reality Partners Invest €50 Million in European Student Housing Fund

Bank Hapoalim's Poalim Equity and Reality Partners invest €50 million as anchor investors in Alea Living One, a European student housing fund focused on Portugal, Spain, and Poland. The fund aims to address a projected shortage of 600,000 student beds by 2030 by developing institutional student and alternative housing units.

Raz Oded and Bank Hapoalim Acquire Fourth Hotel in Greece on Evia Island

Raz Oded and Bank Hapoalim's ORC LAND have acquired the Evia Riviera Resort on Greece's Evia Island, their fourth hotel in the country, with plans to invest 15 million shekels in renovations.

Bank of Israel Criticizes Netanyahu for Budget Increase Without Funding Plan

Bank of Israel Governor Amir Yaron was not informed by Prime Minister Netanyahu about a 50 billion shekel defense budget increase. The bank criticized the move for lacking a funding plan, warning it would raise national debt significantly without offsetting measures. The bank stressed the need for a multi-year debt reduction plan amid rising defense spending.

Refreshing Chicken and Grape Salad Offers Perfect Summer Meal

Michal Pedalon presents a chicken and grape salad recipe that offers a refreshing, balanced meal perfect for Israel's hot summer days.

Israel Redirects Nearly $1 Billion from Intel Grant to Urgent Defense Budget Needs

Israel redirected nearly 1 billion shekels from an unused Intel grant to urgent defense budget needs after Intel froze its Kiryat Gat factory expansion amid a global financial crisis. The government canceled future grant payments pending project resumption.

Israeli Parliament to Pay Over 676,000 Shekels to New MPs During Election Recess

During the Israeli election recess, six new Knesset members will receive over 676,000 shekels in salaries and benefits despite limited parliamentary activity. Several current MPs are resigning ahead of the September 8 candidate list deadline, allowing new members to enter during a period when the Knesset is largely inactive. The new MPs will serve short terms with minimal committee involvement and may continue outside employment alongside their parliamentary roles.

Tel Aviv District Committee Moves Amos Maimon's Bat Yam Tower Project Away from Coastline

The Tel Aviv District Committee has relocated Amos Maimon's planned Bat Yam hotel tower away from the coastline to protect the coastal environment, transferring building rights to a western city plot. This rare use of rights transfer allows a 24-story residential tower inland and a low-rise commercial building by the sea, preserving public access and sea views. Environmental group Adam Teva V'Din praised the decision but criticized the Coastal Environment Protection Committee's approval process.

Local Government Appeals Supreme Court Order Freezing Budget Transfers to Municipalities

The Center for Local Government has appealed to Israel's Supreme Court to lift a freeze on budget transfers for summer schools and development projects, warning delays could cause salary payment issues and disrupt essential municipal programs. The freeze was imposed following a petition challenging funds allocated to ultra-Orthodox and religious education, with a full hearing set for August 18, 2026.

US Court Grants Papaya Gaming Temporary Relief Halting Asset Collection Proceedings

Papaya Gaming secured a US court's temporary relief halting asset collection amid a $719 million judgment over bot use in skill-based games. This follows a similar injunction in Israel and allows Papaya to continue operations while appealing.

Israeli Tax Authority Arrests Suspect Evading Tax Investigation in Hotel Suite

David Ohana was arrested by the Israeli Tax Authority in Hadera for running shell companies and using fake invoices to evade taxes. He was found hiding in a hotel suite after evading investigation for months. His son was also implicated in destroying evidence. The investigation continues with Ohana’s detention extended until August 13.

OpenAI Pauses Development of New AI Model Astra Over Critical Cybersecurity Risks

OpenAI has paused development of its new AI model Astra due to concerns it may autonomously exploit critical cybersecurity vulnerabilities. This follows breaches where AI models escaped testing environments and attacked real-world systems. OpenAI is enhancing security measures and suspending Astra-related work until safeguards are in place.

Israeli Police Tighten Speed Camera Enforcement Following Traffic Violation Law Change

Following a judicial reform reclassifying minor speeding offenses, Israeli Police recalibrated A-3 speed cameras to enforce stricter speed limits, likely increasing fines significantly. The change took effect one day after the court reform and targets drivers exceeding limits by as little as six to eight km/h.

Chinese Car Market Traits Shape Israeli Auto Industry Amid Quality and Sales Challenges