Moody's upgrades Israel. Jerusalem's ₪3B renewal. Sugat goes shopping
Re: February 2, 2026 in Israel - and what it all means for investors at home and abroad.
Quick Takes:
Macro: Moody’s upgrades Israel’s outlook to “Stable,” Government approves a new university in Kiryat Shmona.
Real Estate & Infrastructure: Aviv Melisron and Acro win a tender for a massive Jerusalem renewal project; BST Group wins the ₪420 million tender to build the new Ichilov Hospital tower.
M&A: Sugat signs a non-binding MoU to acquire a local food manufacturer for ₪200-300 million.
Consumer: Gasoline prices rose at midnight to ₪6.88 per liter (+3 agorot).
Macro
Moody’s Ratings has officially upgraded Israel’s credit outlook from Negative to Stable, while affirming the sovereign rating at Baa1. The agency cites a material de-escalation in geopolitical risk following the cessation of direct conflict with Iran and ceasefires on the southern and northern fronts.
Moody’s forecasts a sharp recovery with 5% GDP growth in 2026, stabilizing at 3-3.5% annually thereafter. While debt-to-GDP is expected to stabilize around 68%, the agency notes government debt will remain significantly higher than pre-war forecasts. Outgoing Accountant General Yali Rothenberg highlighted the resilience of the economy, noting that the drop in Israel’s risk premium reflects market confidence.
The Cabinet approved a strategic plan for the ‘Gaza Envelope of the North’ (Kiryat Shmona, Shlomi, Metula). The flagship initiative is the establishment of a University in Kiryat Shmona, alongside immediate grants for local businesses and wage subsidies for high-tech employees in the region.
Real Estate & Infrastructure
A major urban renewal win for Melisron (TASE:MLSR) subsidiary Aviv Melisron and Acro Real Estate (TASE:ACRO). The partners won a tenant tender in Jerusalem’s Armon HaNatziv/Arnona seam line. Demolition of 281 old apartments to build 1,450 new units on 20 dunams. Expected revenue is pegged at ₪3 billion.
In Kfar Saba, the local planning committee approved the Yoseftal neighborhood renewal, aiming for 3,200 new units (totaling 4,140).
Private construction giant BST Group (owned by the Tannoys family) won the ₪420 million tender to construct the skeleton and shell of the new hospitalization tower at Ichilov Hospital in Tel Aviv. The project includes a protected underground emergency hospital and will take 33 months.
M&A
Less than two months after its IPO, Sugat (TASE:SUGT) is deploying capital. The food conglomerate signed a non-binding MoU to acquire a controlling stake in an unnamed Israeli food company at a valuation of ₪200-300 million.
The target company generates ₪250-300 million in revenue with an EBITDA of ₪30-40 million. The deal includes performance-based earn-outs.
This aligns with Sugat’s aggressive expansion beyond commodities (sugar/rice) into branded food products, following previous acquisitions like “Al Arz” tahini and “Pere” spices.
Energy
The Ministry of Energy updated regulated fuel prices at midnight. The maximum price for 95 octane gasoline rose by 3 agorot to ₪6.88 per liter. The hike was driven by a 5.71% jump in international oil prices, though the impact was significantly cushioned by the strengthening shekel (which dropped import costs by ~3.5%).
TASE snapshot for Monday, Feb. 2, 2026
TA-35 Index (TASE:TA35): 🟢 +1.14%
TA-90 (TASE:TA90): 🟢 +1.13%
TA-125 (TASE:TA125): 🟢 +1.11%
If you enjoyed this update, forward it on.
TV10 Global | Israel for Investors
Bringing you the top stories from the Israeli business community, by Israel’s only business and finance network.
Share your thoughts with us via: global@tv10.co.il or the Newsroom WhatsApp: +972-55-994-5851.
📧 Subscribe to this newsletter! And follow the daily conversation on 𝕏 @tv10global.
Pings available via WhatsApp Channel.
Disclaimer: This brief is for informational purposes only and does not constitute investment advice. All data current as of publication date.