Bennett Unveils Comprehensive Plan to Boost Israel's High-Tech Industry
Naftali Bennett unveiled an economic plan for Israel's high-tech sector, proposing a new AI ministry, tax reforms, and a 24-hour company registration track.
Former Prime Minister and BeYachad party leader Naftali Bennett has unveiled a comprehensive economic plan to boost the Israeli high-tech industry. The core of the initiative involves establishing a new government ministry dedicated to artificial intelligence and technology, implementing tax reforms, encouraging investments, and bringing returning experts and global companies back to Israel. The strategy outlines eight key measures designed to solidify the nation's status as a global technological powerhouse.
Economic Significance and Current Challenges
The high-tech sector accounts for roughly 18% of Israel's GDP, about half of the nation's overall economic growth, and nearly 35% of income tax revenues. However, Bennett warns of a declining trend in the sector, citing a 25% drop in the formation of new startup companies, a contraction in investment deals, and a reduction in the number of active research and development personnel.
"High-tech is no longer a luxury; it is a foundational component of Israeli power, the engine of our economic growth, and an inseparable part of national security," stated Naftali Bennett.
Strategic Steps for High-Tech Growth
Among the flagship proposals is the creation of an AI and Technology Ministry to replace the current Innovation Authority, consolidating government authorities ranging from education and academia to industry and defense under measurable long-term metrics. To protect investors, Bennett proposes an "economic iron dome" ensuring no retroactive regulatory changes, along with incentives for long-term investments in advanced technologies.
Additional measures include a 24-hour company registration track, a ten-year tax certainty framework, and the establishment of national computing infrastructures and dedicated datasets. The program also offers tax benefits for returning Israelis and aims to expand technology education throughout the geographic periphery.
