The cabinet today approved NIS 245 million for the Ministry of the Economy's Investments Promotion Center to support cyber companies in Israel and increase the number of handicapped, haredim (ultra-orthodox), and Arab employees.
The Investments Promotion Center will receive NIS 90 million from this amount as a grant to be distributed to existing or new Israeli and foreign companies to set up shop in the Beersheva high-tech industrial park adjacent to the new IDF computer center. The Ministry of the Economy said that this amount will be able to support 3-4 cyber companies to operate in Beersheva, after the ministry holds a competitive process to choose the companies that will win the support.
NIS 24 million will be budgeted for the development of a cyber industry in Jerusalem. The money will be used to support a cyber company that pays employees 2.5 times the average national salary. Minister of the Economy Naftali Bennett, "This is an important step in branding and positioning Israel as a cyber nation. Development of this industry will be a cornerstone for foreign investment for the establishment of a cyber center in Israel."
At a defense conference last week, Prime Minister Benjamin Netanyahu said, "Beersheva will be Israel's cyber capital."
Tens of millions of shekels in grants will be offered to companies that hire Arabs, haredim, and the handicapped, groups with low rates of participation in the labor force. Investments Promotion Center director Nahum Itzkovich said today that the aid will be given to companies for 30-48 months, and estimated that the allocation would result in the hiring of 2,000 employees directly by the companies, with a similar number of indirect employees.
Published by Globes [online], Israel business news - www.globes-online.com - on February 2, 2014
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