Israel unveils $430 million rescue package for high-tech as shekel surges

The Israeli government has announced a NIS 1.6 billion ($430 million) emergency support package aimed at shielding the country’s high-tech and export sectors from the rapid appreciation of the shekel, which has significantly eroded the competitiveness of Israeli companies.

Most Israeli tech firms earn their revenue in US dollars and euros but pay much of their salaries and operating costs in shekels. As the shekel strengthens, every dollar of foreign revenue converts into fewer shekels, squeezing profit margins, shortening startups’ financial runway, and making Israel a more expensive place to build and expand companies.

The package includes NIS 1 billion in fast-track grants for startups and growth-stage companies to help preserve jobs, extend funding, and keep operations in Israel. Additional investments will support manufacturers, exporters, workforce training, and tax incentives, while the government also launched a broader review of Israel’s long-term competitiveness.

Finance Minister Bezalel Smotrich said the measures are designed to protect Israel’s economic growth engines, urging the Bank of Israel to cut interest rates to ease pressure on exporters. High-tech remains the backbone of the Israeli economy, generating 18.3% of GDP and 58% of the country’s exports.