AGP Executive Report

AI & Tech: Amnon Shashua’s startup doubleAI unveiled Maxwell, a model designed to optimize software while it runs. Biotech: The FDA cleared Alpha Tau to double its U.S. brain-cancer trial to 20 patients; new data are due in November. Manufacturing: Gauzy secured $7 million in financing to restart smart-glass production and work through its customer backlog after settling about $61 million in liabilities. Public Spending: Israel approved NIS 2.6 billion in ministry cuts to fund defense, as the military seeks more money—putting pressure on other spending. Business Growth: The IMF forecast 4.5% growth for Israel this year. Civan Lasers is planning a TASE listing at a valuation above NIS 1 billion, while Dan is buying bus operator Tnufa for NIS 150 million. Economic Risks: Economists warn that rising settler violence could damage Israel’s economy and international standing.

Public Finances: Israel approved NIS 2.5 billion in urgent defense spending ahead of the election, while cutting civilian ministry budgets by NIS 2.6 billion. Economic Risks: Senior economists warn that settlement expansion and nationalist violence could damage the economy, as attacks in the West Bank draw growing international pressure. Cybersecurity: Proofpoint agreed to buy Israeli-founded Varonis for about $6.3 billion in cash, in a major deal driven by demand for AI security tools; it is expected to close in the first half of 2027. Jerusalem Development: Final approval for the Orion Cinema redevelopment includes 202 homes, a 140-room hotel, retail and public space, while preserving the historic cinema as a cultural venue. Tech Talent: Israel launched a NIS 25 million initiative to narrow the high-tech gender gap; a separate poll found nearly one in three Israeli students is considering leaving as living costs rise.

Economic Risks: Sixty-one senior economists warned that settlement expansion and rising violence could trigger wider sanctions, deepen Israel’s isolation and raise costs for businesses and households. Public Spending: The government approved NIS 2.5 billion for urgent defense purchases, funded by 4.9% cuts to ministry budgets, including health, education and welfare, less than two weeks before the election. Trade Resilience: Ashdod Port is prioritizing technology, infrastructure and energy independence to keep goods moving through disruptions; it handles about 40% of Israel’s cargo. High-Tech Deal: Proofpoint agreed to buy Israeli-founded cybersecurity firm Varonis for $6.3 billion, one of the week’s largest exits. Online Retail: AliExpress launched its Elite loyalty program in Israel as Israel Post forecasts more than 20 million parcels arriving in November, subject to security conditions and shipping costs.

Energy Costs: Brent crude neared $110 a barrel as the Iran war threatened supply, while futures point to elevated prices into 2027—an added cost risk for Israeli businesses and consumers. Cybersecurity Deal: Proofpoint agreed to buy Israeli-founded Varonis for $6.3 billion, a major exit for the country’s tech sector. Public Spending: Israel plans $800 million in cuts to education, health care and welfare to fund military purchases, putting pressure on civilian services. Trade Ties: Colombia restored free trade with Israel alongside the opening of its Jerusalem embassy, renewing a channel for bilateral commerce. Corporate Risk: The European Council warned companies against financing Israel’s planned E1 settlement construction, raising potential compliance and reputational concerns.

Cybersecurity Deal: Proofpoint agreed to buy Israeli-founded Varonis for $6.3 billion in cash, a major exit for the local tech sector. Aviation Tech: Israeli startup Ciconia landed a California deal for technology designed to prevent helicopter midair collisions. Digital Security: Researchers say Israeli ad firm Discover-Tech’s network helped deliver spyware to Al Jazeera devices, raising fresh scrutiny of the ad-tech industry. Growth Outlook: The IMF expects Israel’s economy to grow 4.5% this year. Trade Ties: Colombia restored its free-trade agreement with Israel as it opened an embassy in Jerusalem. US Business Links: Israeli and American business groups say they are joining forces to strengthen economic ties amid rising anti-Israel pressure.

Defense Industry: Elbit Systems plans to open its first European laser-warning production and maintenance center in Sweden in 2027, positioning the Israeli firm for rising NATO demand. Israel also signed a $1 billion deal for 12 Apache helicopters. Tech Deals: Cybersecurity giant Proofpoint agreed to buy Israeli firm Varonis for $6.3 billion, while Nebius acquired startup Inferize. Economic Outlook: The IMF expects Israel’s economy to grow 4.5% in 2026, though renewed attacks in the Strait of Hormuz and slower oil flows threaten to keep energy costs volatile. Investment Links: A new U.S.-Israel innovation exchange, led by the Michigan Israel Business Accelerator, aims to deepen commercial ties, as a new venture fund offers immigrant entrepreneurs up to $500,000.

Tech Deals: Proofpoint is set to buy Israeli cybersecurity firm Varonis for $6.3 billion, while AI-cloud company Nebius acquired Israeli startup Inferize to strengthen its AI inference platform. Growth Outlook: The IMF forecasts Israel’s economy will grow 4.5% this year, but a separate report warns that lagging productivity is a longer-term risk. Business Costs: Inflation facing businesses has reached its highest level in four years, adding pressure as regional conflict threatens energy supplies and growth. Cybersecurity: Researchers say Israeli firms used online ads to deliver spyware, including in attacks targeting Al Jazeera devices—a case that could intensify scrutiny of the country’s ad-tech and surveillance industries.

Israel Bonds: New York State says Israeli bonds remain in its portfolio, while New York City Comptroller Mark Levine reversed his pledge to buy them, citing investment concerns. Tech & Retail: Wiz founders are reportedly close to a deal for McDonald’s Israel, which operates 235 branches and generates about NIS 1.7 billion in annual sales. Trade Routes: Israel Ports Company plans to seek approval for inland ports linking seaports, rail and logistics centers, aiming to position Israel as a hub on the India–Middle East–Europe corridor. Currency & Ties: The dollar-shekel rate reached NIS 3.1, while 80 organizations signed an agreement to strengthen Israel–U.S. commercial relations. Cybersecurity: Researchers allege Israeli ad firm Discover-Tech used online advertising to track users and enable spyware attacks; its ads reportedly appeared on more than 120,000 websites and 75,000 apps.

Trade: Colombia opened an embassy in Jerusalem and restored its free-trade agreement with Israel, marking a commercial reset after ties were cut. Israeli Tech: Cybersecurity and AI firms lead LinkedIn’s 2026 ranking of Israeli startups. Nanox’s imaging system made TIME’s Best Inventions list, while AGAT Software launched a tool to track and control enterprise AI use. Ultrobotix is exploring robotics for food production, though no purchase or deployment is agreed. Industry: An explosion at an Intel plant in Israel left three people seriously injured. Cybersecurity: Researchers say Israeli ad agency Discover-Tech used online ads to track users and help deliver spyware, a case that could draw more scrutiny to digital advertising and surveillance. Economic Outlook: The IMF projects Israel’s economy will grow 4.5% in 2026; a separate report warns that weak productivity threatens the country’s longer-term prospects.

Trade and Diplomacy: Colombia opened an embassy in Jerusalem and restored its free-trade agreement with Israel, reversing the previous government’s break in ties. Tourism Investment: Fattal plans 12 new hotels and more than 2,000 rooms in Israel by 2030, including projects in Tel Aviv, Jerusalem, Eilat and the Dead Sea. Tech Deals: Amazon may acquire Israeli AI startup Descartes for about $7 billion, while Microsoft plans to cut dozens of jobs at its Israeli R&D center. Economic Outlook: The IMF forecasts Israel’s economy will grow 4.5% in 2026, even as a Tel Aviv University study found food prices climbed 19% over four years. Defense Industry: Israel confirmed a deal for 12 Boeing Apache helicopters, estimated at $1 billion.

Defense Industry: Elbit Systems plans a European laser-warning production center, due to open in 2027, as it expands local support for military customers. Trade: Colombia has restored its free-trade agreement with Israel and opened an embassy in Jerusalem, reversing its previous government’s break in ties. Growth: The IMF forecasts Israel’s economy will grow 4.5% in 2026, despite the regional conflict. Public Finances: Israel’s deficit has narrowed with help from Nvidia-related revenue, but Fitch warns election-year political instability could make further deficit reduction difficult. Tech Jobs: Microsoft is laying off dozens of workers at its Israeli R&D center, while reports say cybersecurity firm XM Cyber has also cut most of its local staff after a sale of its intellectual property. Cost of Living: A Tel Aviv University study found Israeli food prices rose 19% over four years, adding to voter concerns over household costs.

Startup Funding: Tel Aviv-based Pluto Security raised $42 million to help companies identify and secure AI agents, in a fresh vote of confidence in Israel’s tech sector. Growth Outlook: The IMF forecasts Israel’s economy will expand 4.5% in 2026, even as it sharply downgraded its outlook for West and Central Asia amid war-related disruption. Big-Ticket AI: Amazon is reportedly in advanced talks to buy Israeli-founded startup Decart for about $7 billion, underscoring global demand for Israeli AI companies. Tech Jobs: Microsoft is cutting dozens of roles at its Israeli research and development center, a reminder that the sector’s investment momentum is not shielding every team from restructuring.

AI & Tech: Amazon is reportedly in talks to buy Israeli-founded Decart for about $7 billion. Microsoft, meanwhile, is cutting dozens of jobs at its Israeli R&D center. Startup Funding: Undecimal, a spinout developing technology to deliver RNA medicines beyond the liver, raised $18 million. Expansion: Foresight signed a non-binding term sheet to acquire control of a Polish data-center developer with projects planned for up to 270 megawatts. Business & Infrastructure: SolidRun and Leopard Imaging expanded their partnership on edge-AI vision systems, while Tel Aviv’s wave of new office towers is raising questions about how to fill space left behind by relocating tenants. Costs & Travel: Israeli food prices climbed 19% over four years, according to a Tel Aviv University study. New Israeli rules barring some foreign flight crews are also prompting airline compliance and could affect service from multiple countries. Economic Outlook: The IMF cut its regional growth outlook as war-related disruptions weigh on economies across the Middle East.

AI and Tech: Amazon is reportedly in talks to acquire Israeli-founded Decart for about $7 billion, potentially one of the largest exits in Israeli tech. The startup’s software helps run AI workloads across chips. Microsoft, meanwhile, has called about 50 employees in its Israeli Copilot Studio group to pre-dismissal hearings, with roughly half expected to remain. Life Sciences: Israeli genetic-testing firm Identifai raised $10 million and debuted on Australia’s ASX at a 15% premium, aiming to commercialize an AI-based prenatal screening test. Public Finances: Israel’s fiscal deficit narrowed, with Nvidia cited as a factor. Trade and Investment: Israel and Albania signed a cooperation deal spanning trade, investment, technology and agriculture. Global Outlook: The IMF forecasts 3.1% global growth in 2026, supported by AI investment, but warns that prolonged Middle East conflict, high energy prices and debt threaten the outlook.

Tech Deals: Amazon is reportedly in talks to acquire Israeli AI startup Decart at a $7 billion valuation, a potential landmark exit for the country’s tech sector. Microsoft is restructuring its Copilot Studio operation in Israel, with some layoffs expected as staff are moved or let go. Public Finances: Israel’s 2026 deficit is forecast at 4% of GDP, below the 4.9% target, with Nvidia’s tax payments a major factor; estimated payments are about NIS 2.5 billion per quarter. The figures also highlight Israel’s growing reliance on the chipmaker. Trade: Israel and Albania signed an expanded cooperation agreement covering technology, energy, water, healthcare, agriculture and tourism, with both governments pointing to new business opportunities.

Cost of Living: Israeli food prices rose 19% over four years, a Tel Aviv University study found, keeping affordability in focus even as the economy shows resilience through years of war. Banking: A court ruling has unsettled Israel’s banking sector, though reports offered few details on its potential impact. Trade Pressure: Proposed Dutch restrictions on goods from West Bank settlements are raising concerns about wider economic pressure on Israel. Technology: Israeli robotics startup Ultra raised $62 million and announced a partnership with AI research firm Physical Intelligence. Defense Exports: Israel’s defense industry opened its first national pavilion at Morocco’s airshow, seeking opportunities in a growing market. Pharma: Teva won US FDA approval for a monthly schizophrenia injection, adding a new product to the Israeli drugmaker’s portfolio.