Israel unveils £320m support package to shield tech sector from surging shekel
The government package includes fast-track funding for early-stage companies and exporters after rapid appreciation of the Israeli currency squeezes competitiveness
The Israeli government has unveiled a NIS 1.6 billion (£320 million) support programme aimed at helping the country’s high-tech and export sectors cope with the rapid appreciation of the shekel.
Announced on Tuesday by the Ministry of Finance and the Israel Innovation Authority, the measures include around NIS 1 billion in fast-track funding for early-stage startups and growth-stage technology companies, alongside investment in industrial modernisation, exporter support, workforce training and expanded tax incentives.
The move comes after the sharp rise in the value of the shekel in recent months. While a stronger currency is often seen as a sign of economic confidence, it also makes Israeli exports more expensive overseas and reduces the value of overseas investment raised in foreign currencies when converted into shekels, putting pressure on technology companies and other exporters.
Under the initiative, startups and scale-up businesses will be eligible for matching grants designed to extend their financial runway, support continued growth and encourage them to maintain and expand their operations in Israel.
An inter-ministerial committee will also be established to review the long-term competitiveness of Israel’s high-tech sector and consider structural reforms ahead of the 2027 State Budget.
The wider package includes NIS 175 million for advanced manufacturing and industrial modernisation, NIS 25 million to support exporters through the Israel Export Institute and market expansion grants, and NIS 10 million for employer-led vocational training. The government will also expand accelerated depreciation tax incentives for businesses, at an estimated fiscal cost of NIS 360 million.
Finance Minister Bezalel Smotrich said: “Following the swift and focused work of the task force, which included extensive consultations, discussions, and meetings with a broad range of representatives from Israel’s high-tech ecosystem, we are launching an immediate NIS 1.6 billion support package for the country’s export-oriented industries. As the Ministry of Finance, we acted quickly in response to these developments. I also expect the Bank of Israel to rise to the challenge and respond accordingly.
“For some time, I have believed that a significant reduction in interest rates is the policy response that can best support and accelerate economic growth. My message to technology companies and investors is clear: the State of Israel is experiencing a period of strong economic momentum. Those who invest here stand to generate substantial returns. Our economy is on a path toward even greater growth and prosperity than we have witnessed to date. This assessment is shared by leading economists and prominent investors around the world.”
Dror Bin, chief executive of the Israel Innovation Authority, said the funding would help companies navigate a rapidly changing global market while strengthening Israel’s position as a leading innovation hub.
“High-tech is Israel’s primary engine of economic growth, accounting for 18.3 percent of the country’s GDP and 58 percent of its exports,” he said. “In the coming weeks, we will launch fast-track funding programmes through which we will invest in both early-stage startups and growth-stage companies. Our responsibility is to ensure that, even as the global landscape evolves, Israel remains the destination where companies choose to invest, develop breakthrough technologies and scale their businesses.”
The announcement follows weeks of discussions between government officials and representatives from startups, multinational companies, investment funds and industry bodies as ministers sought ways to support exporters and preserve the competitiveness of Israel’s technology sector amid continued exchange-rate volatility.
Keep community journalism free.
Jewish News is free for everyone. No paywall. No barriers. Just trusted journalism for anyone who wants to stay connected to Jewish life in Britain.
If you value that, please support us.
From as little as £5 a month, you can help keep our journalism free and accessible to all.
Every day, we report on the issues that matter to our community. We celebrate achievements, support charities, challenge antisemitism and ensure Jewish voices are heard more widely.
From as little as £5 a month, you can help us continue to:
- Report on the stories shaping Jewish life in the UK and beyond
- Bring our community together through shared stories, events and campaigns
- Celebrate the people, culture and moments that define our community
- Support organisations doing vital work across Jewish Britain
You can make a one-off donation or become a regular supporter. Every contribution helps keep our journalism free, independent and accessible to all.
If everyone who values Jewish News gave a small amount, it would make a real difference to our future.
