Israel's Finance Ministry said on Tuesday it was launching a 1.6 billion shekel ($537 million) programme to support the country's technology and export sectors, which have been hurt by a rapid appreciation of the shekel FX_IDC:USDILS.
Some details:
The shekel strengthened about 30% against the dollar between April 2025 and May 2026, reaching a 33-year high of 2.80 per dollar. It has since weakened to about 3 per dollar.
The technology sector is a key driver of Israel's economy, accounting for about 20% of economic activity, more than 50% of exports and nearly 15% of jobs.
The Finance Ministry will allocate 1 billion shekels to a fast-track support programme for early-stage and growth-stage technology companies to help extend their financial runway, support growth and maintain or expand operations in Israel.
Funds will also be used to review the long-term global competitiveness of Israel's technology sector and examine potential structural reforms ahead of the 2027 state budget.
The remaining funds will go towards advanced manufacturing equipment, exporter support, vocational training and tax incentives under the Law for the Encouragement of Capital Investments.
Finance Minister Bezalel Smotrich said the Bank of Israel should also respond to the strong shekel by significantly reducing interest rates.
The ministry said the package would give companies breathing room at a challenging time but was "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."
($1 = 2.9780 shekels)