Israel's tech funding rises and Tamar gas field tops Leviathan as government boosts northern industry

Israeli start‑ups raised about $8.6 billion in the first six months of 2026, a 45 % increase year‑on‑year despite the ongoing war. Capital was concentrated in cybersecurity and artificial‑intelligence deals, while the number of financing rounds fell roughly 35 % as investors favored seasoned founders. The strong shekel, at a 33‑year high versus the dollar, cuts the local value of dollar‑denominated funds by up to 20 %, prompting tighter cost control and more overseas hiring.

The Tamar offshore gas field now produces 16 billion cubic metres a year, 45 % higher than before and overtaking Leviathan in domestic supply, providing 47 % of Israel’s gas for power plants and industry. Leviathan remains the main export source, chiefly to Egypt. The Knesset lowered the VAT‑exemption threshold for personal imports back to $75, reversing a recent increase. Additionally, the Ministry of Economy launched a 400‑million‑shekel programme to develop industrial zones in Israel’s northern region, emphasizing AI, robotics, semiconductor manufacturing and defence‑related production.