Israeli High-Tech Exports Surge to $46.5 Billion in H1 2026 Despite Shekel Pressures
Israel's high-tech industry reports a massive recovery in H1 2026, with exports hitting $46.5 billion and capital raising reaching $9.2 billion, though a strengthening shekel threatens profit margins.
The Israeli high-tech industry is roaring back to life. According to the first-half 2026 High-Tech Status Report by the Aaron Institute for Economic Policy at Reichman University, authored by Dr. Sergey Sumkin, the sector is experiencing a remarkable recovery.
Record Exports and Capital Raising
The most dramatic figure comes from the export arena: high-tech exports surged by 21.3% in dollar terms, totaling $46.5 billion. This massive figure accounts for about 57% of Israel's total goods and services exports. Simultaneously, investors demonstrated strong confidence in the local industry with widespread capital raising reaching $9.2 billion.
"High-tech exports surged by 21.3% in dollar terms, totaling $46.5 billion, accounting for about 57% of Israel's total exports."
Employment and Rising Wages
The return to growth is also deeply felt in the boiling labor market. The number of tech employees climbed to 595,700 workers—a 3.3% increase—bringing the sector closer to the national target of 20% of all employed persons by 2035. High demand for workers has also spiked competition and wages: the number of open positions in the sector jumped to 17,881 (an 8.7% increase), while the average monthly salary in the sector rose by 4.9% to 34,406 shekels.
The Currency Challenge and Market Activity
However, alongside the celebration, the report reveals a complex and threatening side for local companies. The dramatic strengthening of the shekel by 15.6% against the dollar (to an average level of 3.04 shekels per dollar) drastically reduced the shekel value of exports, which grew by only 2.4%. This gap ruthlessly eroded the profitability of high-tech companies, which face high payroll expenses in shekels against dollar revenues that shrink upon conversion.
These robust industry trends are also reflected in major M&A transactions. In mid-September, an impressive exit was unveiled as international financial infrastructure group Prytek consolidated its presence in the global fintech market by fully merging Israeli tech firm Scanovate into its operations. The transaction involves an immediate payment of some $50 million alongside a performance-based consideration of another $50 million, bringing the total exit valuation to $100 million.
