Israel’s sovereign wealth fund accumulates NIS 8.8b

Up to the end of 2025, Israel’s sovereign wealth fund, or to give it its proper title The Citizens of Israel Fund, had accumulated NIS 8.8 billion from royalties and levies on the super-profits of the gas partnerships. Of this amount, NIS 7.3 billion represents final sums against which appeals cannot be lodged. In total, NIS 1.3 billion was collected in 2025, up from NIS 1 billion in 2024.

The Israeli gas exploration partnerships pay several kinds of taxation to the state on their profits and on gas production. A 12.5% royalty is due from the moment that production begins from a gas reservoir. Collection and control of royalties is the responsibility of the royalties division in the Ministry of Energy and Infrastructure, and the proceeds are transferred directly to the state’s coffers. Companies tax of 23% on profits is collected by the Israel Tax Authority under the Tax Ordinance. That too goes straight to the state. The third element, the tax on super-profits from natural resources, is levied at a rate of 20-46.8% after a return on investment of 150%. This is a special tax imposed following the report of the Sheshinski Committee, administered by the Israel Tax Authority and transferred to the wealth fund, which is managed by the Bank of Israel.

Taxes that are not final are advance payments or deductions at source made during the tax year that are subject to the figures in the partnerships’ annual reports and to final assessments.

Every quarter, the Israel Tax Authority transfers both final and non-final taxes collected to the accountant general in the Ministry of Finance, who manages the non-final sums until they become final, and makes a quarterly transfer to The Citizens of Israel Fund of the final sums with the addition of profits (or the deduction of losses) on investment, after conversion to foreign currency.

The Citizens of Israel Fund was set up in June 2022, four years after the planned date. The opening of the fund was postponed several times because of the lower than expected amounts collected from operation of the gas reservoirs.

Published by Globes, Israel business news – en.globes.co.il – on January 12, 2026.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.