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Quick takes:
Regulation & Labor: The Bank of Israel Monetary Committee has held interest rates steady at 4.0%; January saw a slight dip in job vacancies to 150,389; The Consumer Protection Authority announced its intent to fine Hot Net; The Ministry of Education announced that Financial Literacy will become a mandatory subject starting next year.
Real Estate: Reality Group completed a rapid flip of the ‘Nes LaGoyim’ complex in Tel Aviv; Kardan Real Estate is moving forward with a major urban renewal project in Haifa; Four industrial plots in the Tefen Industrial Zone were marketed for ₪7.2 million.
Energy: Enlight Renewable Energy was authorized to develop two 300 MW national infrastructure projects in the Gaza Envelope; Dalia Energy and Israel Infrastructure Fund (IIF) signed an MOU to build a 130 MW national data center.
Technology: Palo Alto Networks officially began dual listing in Tel Aviv today.
Labor & Regulation
After two back-to-back rate reductions, Governor Amir Yaron and the Monetary Committee have opted for a hawkish wait, keeping the benchmark interest rate at 4.0%. Despite inflation cooling to 1.8% the Bank of Israel remains wary of a ‘hot’ domestic economy.
The Resilience Factor:
GDP Growth: A robust 3.1% in 2025 with an aggressive 5.2% forecast for 2026 makes the BoI cautious about over-stimulating.
Consumption: Credit card spending is up 9% annually, suggesting the Israeli consumer hasn’t yet felt the full pinch of restrictive policy.
The Shekel: Persistent currency appreciation remains a headache for exporters, but the BoI is signaling it will not cut rates solely to manipulate the exchange rate while domestic demand remains high.
Our take: This is a strategic pause. The Governor is effectively ‘stress-testing’ the current rate to see if the recent rebound in housing prices is a fluke or a trend. By holding at 4%, the Bank maintains dry powder to act if the global macro environment (or the Fed) shifts later this spring.
Finance Minister Bezalel Smotrich immediately slammed the decision as ‘wrong,’ stating that there is no inflationary danger justifying such restrictive policy. “Credit is choking the economy," Smotrich noted, calling on the Governor to reverse course and prioritize growth over conservatism.
The Employment Service reports that job seekers fell to 158.1k in January, but the composition of the unemployed has changed dramatically. The ‘Professional’ segment (academics and managers) now makes up nearly half of all claimants. While blue-collar demand for builders (+13%) and drivers (+5%) is rising, software development vacancies have dropped to 7,056, well below 2022 peaks.
Our take: We might be witnessing the AI Correction in the labor market. The high-tech sector is no longer hiring masses; it is hiring specialists. The glut of unemployed managers suggests that companies are flattening their hierarchies to preserve margins. This is a Right-Sizing phase that will likely keep wage inflation in check for the mid-market, even as the cost of specialized engineering talent remains high.
The Consumer Protection and Fair Trade Authority has notified Hot Net of its intent to impose a ₪2,483,676 fine. The regulator found dozens of cases where customers remained billed for over a year after requesting cancellation, despite the legal requirement to disconnect services within three days.
Education Minister Yoav Kisch announced that Financial Literacy will become a mandatory subject for 9th and 10th graders starting the next school year. The curriculum will cover the ‘Time Value of Money,’ compound interest, stock market fundamentals, and worker rights.
Real estate
Reality Group has sold the ‘Nes LaGoyim’ site in Jaffa/South Tel Aviv to Demri (TASE:DIMRI) and Goshen for ₪450 million. The land was acquired just three months ago for ₪350 million. The site is approved for 498 residential units and significant commercial space.
Kardan Real Estate (TASE:KARE) received conditional approval for a ‘Pinui-Binui’ project on France Road in Haifa. The plan features high-density development with a street-level commercial front, targeting a total of ₪1.6 billion in projected sales value.
Four industrial plots in the Tefen Industrial Zone were successfully marketed by the Israel Land Authority for a total of ₪7.2 million (excluding development costs). Winning bidders include Vulcan Automotive Industries, Nehorai & Sons, M.S. Integration and Development, and Naji Mahoul & Sons. The expansion is part of a larger plan to modernize the northern manufacturing hub, which currently employs roughly 10,000 workers.
Energy
The Israeli government has approved a proposal to authorize Enlight Renewable Energy (TASE:ENLT) to advance two major National Infrastructure Plans (TTL). The projects, spanning 3,000 dunams across the Eshkol and Merhavim regional councils, will combine active agriculture with 300 MW of solar power and significant storage capacity.
In a move toward ‘AI Sovereignty,’ Dalia Energy, Subsidiary of Meshek Energy (TASE: MSKE), and IIF (managed by Yaron Kastenbaum) partnered with Serverfarm to build a 130 MW data center adjacent to the Eshkol power plant in Ashdod. The facility will leverage seawater cooling and a planned subsea cable landing station to connect Israel directly to European and Middle Eastern data arteries. Meshek Energy shares surged 6% in midday trading.
Technology
Palo Alto Networks (TASE:CYBR) continues its aggressive inorganic growth strategy, following its recent $25 billion acquisition of CyberArk and the $400 million acquisition of Israeli startup Koi.
Despite recent market volatility following its earnings report, the company cited persistent demand for AI-driven security normalization as a primary revenue catalyst for 2026.
The dual-listing on the TASE is a strategic nod to the company’s Israeli roots and its reliance on local R&D. By listing locally, it unlocks access to Israeli institutional passive funds that track the TA-35 and TA-125 indices.
TASE snapshot for Monday, Feb. 23, 2026
TA-35 Index (TASE:TA35): 🟢 +0.27%
TA-90 (TASE:TA90): 🔴 -0.82%
TA-125 (TASE:TA125): 🟢 +0.05%
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