Israel’s Finance Ministry launched a NIS 1.6 billion emergency package to support the country’s export and high-tech sectors on Tuesday as the shekel continues to strengthen sharply, a trend officials say is straining companies reliant on foreign revenue.
The plan, drafted by a joint task force of the ministry and the Israel Innovation Authority (IIA), directs roughly NIS 1 billion to fast‑track grants for early‑stage and growth‑stage tech firms. The Finance Ministry on Tuesday unveiled a NIS 1.6 billion emergency package aimed at stabilizing the country’s export and high‑tech sectors as the shekel continues to strengthen sharply.
The funding is intended to extend financial runways and keep operations anchored in Israel. The appreciation of the shekel has shortened start-ups’ cash runways. Despite raising $8.6 billion in the first five months of 2026 -a 45% jump from last year – funding has been concentrated in fewer companies, and many start-ups have begun hiring overseas to offset rising local costs.
An interministerial committee will also be formed to assess long‑term competitiveness ahead of the 2027 budget.
Finance Minister Bezalel Smotrich said that the government had moved quickly in response to exchange‑rate pressures, and he called on the Bank of Israel to cut interest rates, saying that “policy response that can best support and accelerate economic growth.”
Israel is experiencing a period of economic momentum, says Smotrich
According to Smotrich, “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.”
Budget Commissioner Maharan Frozenfar said the program provides immediate relief while supporting long‑term structural resilience.
“The appreciation of the shekel and fluctuations in exchange rates present significant challenges for Israel's export industries and hi-tech sector, which are among the country's primary engines of economic growth. The NIS 1.6b. program we are introducing is designed to provide an immediate response to these challenges while continuing to invest in long-term structural measures that will strengthen the competitiveness of the Israeli economy,” Frozenfar noted.
The ministry said the package builds on recent government initiatives, including expanded R&D tax incentives, the NIS 580 million Yozma Fund, and the nearly NIS 3 billion National Artificial Intelligence Program.
Industrial measures include NIS 175m. for advanced manufacturing equipment, NIS 25m. to expand exporter support programs, and NIS 10m. for employer‑led vocational training. Accelerated depreciation benefits will also be broadened at an estimated fiscal cost of NIS 360m..
Chief Economist Shmuel Abramzon warned that the rapid appreciation of the shekel was straining exporters and start-ups reliant on foreign capital, saying the package offered temporary breathing room but did not replace the need for efficiency and innovation.
“Israeli industry, particularly its export-oriented and technology sectors, forms the backbone of the Israeli economy, driving growth and resilience,” he said.
The shekel has appreciated roughly 20% against the dollar over the past year, recently reaching a 33‑year peak. The surge has eroded profitability for many companies earning in dollars but paying salaries and operating costs in shekels, forcing start-ups to consider layoffs, hiring abroad, or shifting research and development (R&D) centers outside Israel.
The support package, Abramzon added, “is intended to provide companies with breathing room during this challenging period, but it is not a substitute for the adjustments required by the new economic reality, foremost among them increased efficiency and continued innovation, areas in which Israeli industry has consistently excelled.
“Over the long term, the ability of the business sector to adapt and improve its operations in response to changing conditions, particularly during today's rapid technological transformation, will be essential to maintaining the resilience and global competitiveness of the Israeli economy,” he said.
IIA CEO Dror Bin said the NIS 1b. allocated to hi‑tech would help companies navigate shifting global conditions and maintain Israel’s position as a leading R&D hub.
“Hi-tech is Israel's primary engine of economic growth, accounting for 18.3% of the country's GDP and 58% of its exports. This funding will equip start-ups and mid-sized growth companies with the resources to navigate these changes while reinforcing Israel's attractiveness as a premier destination for research and development investment, even amid shifting market conditions,” Bin said.
Manufacturers Association President Avraham Novogrotsky said the plan was a key step in a broader strategy to safeguard industrial competitiveness.
“The package presented today represents an important building block within a broader multi-year strategy to safeguard the competitiveness of the Israeli economy,” he said, adding that, nevertheless, “the current package should be expanded and adapted over time to provide a comprehensive response that reflects the full extent of the challenges facing Israeli industry.”
Karin Mayer Rubenstein, CEO and president of the Israeli Association for Advanced Industries (IATI) highlighted that the plan focuses primarily on creating future growth engines, while the main need of companies today is to respond to the immediate economic and operational challenges created by the strengthening shekel
"Many companies are not currently looking for incentives for growth, but rather tools that will help them maintain their existing operations in Israel, their employees, and their development centers,” she said.
According to Mayer Rubenstein, additional short-term solutions are necessary, such as adjustments in tax payments and employer expenses that would allow for the division of the burden between the state and the companies – something that has been done in other countries around the world during periods of economic challenges.
“In addition, we believe that the law to encourage and incentivize research and development should be expanded to include strategic multinational companies that do not own intellectual property (IP) in Israel but operate significant development centers here, employ thousands of employees, and constitute a central anchor for the Israeli economy and hi-tech industry,” she noted.