Updated
Updated · The Jerusalem Post · Jun 30
Israel Unveils NIS 1.6 Billion Export Aid as Shekel Hits 33-Year Peak
Updated
Updated · The Jerusalem Post · Jun 30

Israel Unveils NIS 1.6 Billion Export Aid as Shekel Hits 33-Year Peak

3 articles · Updated · The Jerusalem Post · Jun 30

Summary

  • NIS 1.6 billion in emergency support will be deployed to shore up Israel’s export and high-tech sectors, with about NIS 1 billion fast-tracked to early-stage and growth tech firms.
  • A roughly 20% shekel rise against the dollar over the past year has squeezed exporters’ margins and shortened startups’ cash runways, pushing some to hire abroad or consider moving R&D out of Israel.
  • Industrial measures include NIS 175 million for advanced manufacturing equipment, NIS 25 million for exporter support, NIS 10 million for vocational training, and broader accelerated depreciation worth an estimated NIS 360 million.
  • Finance Minister Bezalel Smotrich paired the package with a call for Bank of Israel rate cuts, while industry groups said the plan offers relief but still falls short of companies’ immediate operating needs.
  • An interministerial committee will review longer-term competitiveness before the 2027 budget as officials try to keep high-tech—18.3% of GDP and 58% of exports—anchored in Israel.

Insights

Can a billion-shekel bailout truly save Israel's tech sector from its own currency's success?
Will letting Google pay taxes in dollars be the secret weapon to weaken Israel's powerful shekel?
Is Israel's tech rescue plan also a strategic move to build a self-reliant military machine?