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Israel's parliament passed the first reading of the proposed 2026 state budget, a $220 billion package secured with support from ultra-Orthodox parties. The budget's ultimate passage remains politically fraught, as failure to approve it would trigger a constitutional crisis and likely force new elections. In a separate economic initiative, the government is advancing plans to privatize two major defense contractors, Israel Aerospace Industries and Rafael, by selling public shares as part of a broader effort to reduce state ownership in key sectors.
Regional security concerns significantly impacted commercial aviation, with multiple European carriers suspending flights to Israel. KLM and Air France canceled services to Tel Aviv, citing increased tensions, while the Lufthansa group halted flights to Israel and began avoiding Iranian and Iraqi airspace due to fears of military escalation with Iran. On the economic front, Apple made its largest-ever acquisition by purchasing the Israeli AI firm Q.ai for up to $2 billion, aiming to bolster its competitive position in AI technology. Cross-border economic and aid dynamics were complex: Israel is investigating a large-scale smuggling operation into Gaza, and financial aid transfers to Gaza are being obstructed, leading some donors to explore cryptocurrency. Meanwhile, Israel approved a 4G cellular upgrade for the West Bank, a move expected to benefit the local economy.
2 topics | 40 sources
Israel's parliament, the Knesset, has passed the first reading of the proposed state budget for 2026. The budget totals about $220 billion and was approved with the support of two key ultra-Orthodox political parties. The budget draft has now been submitted for further legislative steps. If a budget is not passed by the deadline, it can trigger a government collapse and new elections.
The Israeli government is moving forward with plans to privatize two of its key defense contractors, Israel Aerospace Industries (IAI) and Rafael Advanced Defense Systems. A government official said the process of selling shares to the public could happen within the next few months. This would shift ownership of these major arms and technology manufacturers from the state to private investors.
5 topics | 76 sources
Jan 30
Apple buys Israeli AI startup Q.ai in a deal worth around $1.6 billionApple has made its biggest acquisition ever by purchasing an Israeli artificial intelligence company called Q.ai. The deal is reported to be worth between $1.5 billion and $2 billion. Q.ai specializes in technology for sound and facial detection. The purchase is seen as a major move by Apple to compete with other tech giants like Google and Meta in the race to build advanced AI features into its devices.
Jan 22
New York official Mamdani faces legal setback over Israeli investment dealsA U.S. court has rejected an attempt by New York City official Zohran Mamdani to block a real estate deal involving an Israeli-owned company. Mamdani has also publicly rejected a plan from the city's comptroller to invest in Israeli bonds, highlighting a political divide over financial ties to Israel. Separately, the Tel Aviv Stock Exchange is reportedly making a business push into New York, aiming to attract Israeli tech companies listed there.