₪6.2 billion for IDF reservists. Elbit upgrade. Azrieli’s energy play.
Re: January 26, 2026 in Israel - and what it all means for investors at home and abroad.
Editor’s note
Before we get into the day’s economic news from Israel, a moment to acknowledge what everyone in Israel has top of mind this evening. The Israeli hero, Master Sergeant Ran Gvili, has been returned to Israel to be laid to rest. The last person held hostage in Gaza, Master Sgt. Gvili was murdered by Hamas terrorists on October 7th, 2023. May his memory be a blessing, and may his family be comforted among the mourners of Zion.
— Sophia Tupolev, TV10 Global Editor
Quick Takes:
Defense: Elbit Systems lands $228M US Army contract; Aryt Industries enters NATO market with 5-year deal.
Energy: Azrieli Group buys 50% of Shikun & Binui’s solar field; Ex-Nofar & Enlight chiefs form Stark Power.
Real Estate: Archimedes & Migdal fund ₪700M Netanya project; More Investments House buys 20.8% of Megureit; Mutag Ironi completes ₪26M IPO;
Macro & Policy: 2026 Budget vote delayed; Government approves ₪6.2B reservist aid package; New ‘Contract Law’ amendment prioritizes written language in B2B deals.
Tech: Radware acquires Pynt; CareBestie raises $4.4M Seed.
Defense
The defense sector is pivoting back to major global contracts. Elbit Systems (TASE:ESLT) secured a $228 million follow-on contract to supply its ‘Iron Fist’ Active Protection System for the US Army’s Bradley vehicles. This 3-year deal confirms Elbit’s entrenched status in the Pentagon’s supply chain.
Aryt Industries (TASE:ARYT) is expanding into Europe. Its subsidiary, Reshef (TASE:RESF), signed a strategic 5-year agreement to manufacture fuzes for a Western European defense contractor. The deal uses a cost-plus model (~70% revenue retention for Aryt) and marks a critical entry into the NATO procurement ecosystem.
Energy
Azrieli Group (TASE:AZRG) is moving upstream into power generation. The mall giant acquired 50% of the ‘Ramat Beka’ solar project from Shikun & Binui Energy (TASE:SBEN). With 112MW of solar capacity and substantial storage (784MWh), the project (operational in 2029) allows Azrieli to hedge future energy costs for its massive property portfolio.
Former Nofar Energy CEOs Nadav Tene and Shahar Gershon are teaming up with Enlight co-founder Tzafrir Yoeli to merge operations into E.E.A.M.I-M (TASE:EEAM-M), rebranding it as Stark Power. The venture is targeting the 70GW energy gap in the US Data Center market, developing power and storage projects to solve the AI energy bottleneck, backed by a ₪20 million founder injection. The stock surged more than 30% today.
Real Estate
Archimedes Real Estate Financing and Migdal Insurance (TASE:MGDL) signed a mega-financing deal to provide a ₪700 million credit facility to Sela Issta Real Estate (a partnership of Sela Binui and Issta Assets). The capital will fund the ‘Gold Coast’ project in North Netanya, a 168-unit development combining 101 ‘Mechir Matara’ units with 67 free-market apartments. The deal represents a ‘force multiplier’ model where Migdal provides the balance sheet guarantees while Archimedes structures the complex credit facility.
Megureit Israel (TASE:MGRT) secured a ₪147.5 million private placement, with More Investment House (TASE:MRIN) injecting ₪120 million to become the REIT’s largest shareholder (20.8%). Schestowitz Group added ₪27.5 million. The deal, priced at market value (₪8.85/share) with future options attached, positions Megureit (which holds a ₪7.5B portfolio) to acquire distressed residential assets. The REIT is planning a further ₪200 million rights issue.
Urban Brand (Mutag Ironi) (TASE:MUTG), Urban renewal developer, successfully floated on the TASE, raising ₪26 million at a valuation of ₪104 million. The offering was oversubscribed, signaling investor appetite for residential developers with solid backlogs (projected revenue of ₪1.8B).
Macro & Regulation
The government approved a ₪6.2 billion aid package for reservists in 2026. The plan includes capping active duty at 40,000 reservists per day, increased grants for combat troops, and 100% tuition subsidies for student soldiers.
The Knesset vote on the 2026 budget was delayed to Wednesday due to coalition friction, but the figures are now public, revealing a total budget of ₪662 billion and a stretched deficit target of 3.9% (significantly lower than the OECD’s prediction of over 4.1%). Defense spending is set to hit ₪112 billion (rising to ₪134 billion when including aid), a massive allocation that effectively squeezes civil ministries. The accompanying Arrangements Law introduces major reforms, including a controversial 6% surtax on bank profits through 2030 and a dairy market liberalization facing stiff opposition. The government must pass this package by March 31, 2026 to avoid triggering snap elections.
The Knesset passed Amendment 3 to ‘The Contract Law’. The amendment establishes that in business-to-business (B2B) contracts, the written language of the contract is the sole determinant for interpretation. This move is designed to increase business certainty and reduce judicial intervention (effectively rolling back the ‘Apropim Rule’).
The Central Bureau of Statistics (CBS) reports a 7.4% rise in total economic revenue (Sept-Nov annualized). The standout performer was Industrial High-Tech, which increased by 18.5%, significantly outperforming other sectors.
Technology
CareBestie emerged from stealth with a $4.4 million Seed round led by TLV Partners. The startup develops an AI voice platform for continuous engagement with elderly patients and is already serving organizations covering 55,000 patients in the US.
Radware (NASDAQ:RDWR) is acquiring Israeli startup Pynt for "tens of millions of dollars." Pynt specializes in API security testing (pre-production), a capability that Radware will integrate to secure the full API lifecycle from development to runtime.
TASE snapshot for Monday, Jan. 26, 2026
TA-35 Index (TASE:TA35): 🟢 +0.48%
TA-90 (TASE:TA90): 🟢 +0.57%
TA-125 (TASE:TA125): 🟢 +0.48%
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