(Communicated by the Economy Ministry)

Israeli exports constitute one of the main engines of growth in the local market. During 2013, Israeli exports totaled 32.6% of annual production in Israel. This factor becomes doubly important during periods of instability and a decline in domestic market activity.

With the aim of reaching new markets, the Foreign Trade Administration at the Israeli Ministry of Economy together with the Israeli Ministry of Finance has developed their "Smart Money" program, launched this week. As part of the program, professional guidance and financial assistance totaling NIS 50 million will be provided to companies with an export infrastructure, which market products abroad.

The companies will receive support and guidance given by professional advisors who will help tailor their marketing program specifically to their target markets. Companies will benefit from the assistance and guidance in coordination with the Ministry of Economy's trade attachés in the chosen markets.

The program will be run by the International Projects & Financing Departmentat the Foreign Trade Administration. Approximately 100 Israeli companies will enjoy support of up to 50% of marketing expenditures for activities in their target markets, with each company receiving up to NIS 500,000. The program is based on a deeply focused process of establishing a foothold in target markets and will include milestones scheduled over a period of two years.  Companies that receive financial assistance in this program will pay royalties of 3% of sales growth in the chosen market, up to the sum of the grant.

Minister of Economy Naftali Bennett said: "We are taking companies under our wing, which have the potential to increase their exports, and supplying them with a full-service support package that will help them grow significantly."

Amit Lang, Director-General of the Israeli Ministry of Economy: "Today, two-thirds of Israeli exports are carried out by some 70 Israeli companies, which shows that the Israeli export industry is still overly-centralized. According to our research, small and medium businesses interested in exporting face many challenges and find it difficult to allocate the necessary resources. That is why we decided to offer financial assistance as well as professional guidance, including mentoring from professionals in the Ministry of Economy as well as external consultants. It is an effective way to increase the pie and reduce centralization in Israel’s export industry."

Ohad Cohen, Director of the Foreign Trade Administration said: "I am proud to present this new program intended to help Israeli exporters. This program follows the successful 200 x 2 Fund that we ran between 2009-2013, in addition to the two funds we manage today: The International Projects Fund and the Indo-China Fund.

The Ministry of Economy's Foreign Trade Administration added that the 200 x 2 Fund that ended in December, 2013 managed to significantly increase exports of companies that participated in the program. Small exporters' total exports increased by 291% and 530 jobs were created. According to the companies that took part in the program, the main area of improvement came as a result of the professional guidance offered by marketing mavens and the assistance which helped companies stick to the goals defined at the beginning of the program.

To this day, grants totaling more than NIS 90 million were approved for over 70 companies as part of the Indo-China Fund. In the International Projects Fund, grants totaling NIS 34 million were approved for 114 projects around the world.