High-tech sector dominates Israel's exports, accounts for 58% in 2025
Translated from English, summarized and contextualized by DistantNews.
At a glance
- Israel's high-tech sector accounted for 58% of the country's total exports in 2025, driven by software-as-a-service projects.
- The sector contributed 50% to Israel's economic growth in 2025, with its share of GDP rising to 18.3%.
- Artificial intelligence is impacting the job market, leading to a decline in R&D positions but growth in product roles, with some companies undergoing restructuring.
Israel's high-tech sector solidified its position as the nation's primary export in 2025, contributing 58% of total exports, according to a report by the Israel Innovation Authority. This dominance is largely fueled by the robust performance of Software-as-a-Service (SaaS) projects, which rely heavily on foreign currency income.
The sector's influence extends to the broader economy, accounting for half of Israel's growth in 2025. Total output in high-tech increased by 8.2% to NIS 352 billion, raising the sector's contribution to the Gross Domestic Product (GDP) to 18.3%. Hardware exports also saw significant growth, increasing by 20.7% for computers and electronics manufacturers and 12.5% for aerospace equipment producers.
However, the report also highlights the sector's vulnerability to currency fluctuations, with the shekel's strength posing potential challenges. Furthermore, the rise of artificial intelligence is reshaping the job market. While research and development positions saw a decline of 3,500 employees, product-focused roles gained 15,000 positions. This shift is exemplified by companies like Wix, which is restructuring its workforce, cutting 20% of employees while introducing new AI-centric roles.
We are moving to a structure with fewer levels between any member of our leadership and the most junior person on the team. Fewer layers means faster decisions, clearer ownership, and less distance between the people setting direction and the people building the product - but it also means a smaller number of people.
Originally published by Jerusalem Post in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.