As 2025 comes to a close and the new year begins, we have compiled the key legal developments affecting the Israeli business sector across multiple practice areas, together with practical recommendations for implementation ahead of corporate activity in 2026. The review is designed to provide an up-to-date overview and actionable guidance for informed legal planning in the year ahead.
Search by Practice
Insights & News / Efrat Cohen
Globes: Returning from In-House Roles to Law Firms
Adv. Efrat Cohen, a senior partner at our firm, was interviewed by Globes about the growing movement between law firms and in-house legal roles, and the return to private practice. She discussed her own transition back to private practice following senior positions in the business sector, including serving as Head of Regulation in the Legal Division of Bank Leumi. According to Efrat, working within a corporate environment provided her with a broader understanding of decision-making processes, risk management, and clients’ practical business needs.
Categories:
Regulation
New Israeli Draft Bill Seeks to Expand Control of Dual-Use Exports and Strengthen Regulatory Enforcement over Israeli Companies
In March 2026, the Ministry of Economy and Industry published a draft bill to replace the current dual-use export control orders with comprehensive primary legislation. The proposed law aims to broaden regulatory oversight and establish a more effective, modern framework for controlling exports of civilian, nuclear, biological, and chemical items.
Key Trends and Regulatory Challenges in Israel’s Financial Sector
Adv. Efrat Cohen, a senior partner in our firm's Regulation Department, discussed in an interview the most significant ongoing developments in the Israeli financial market: the payments initiative revolution and its impact on both businesses and consumers; expansion of the open banking reform toward open finance, including broader access for insurance agents to clients’ financial and banking information; and the AI and algorithmic report by the Bank of Israel and the Israel Securities Authority, which establishes a new compliance framework and extends reporting and supervisory obligations regarding the use of artificial intelligence and algorithmic models in the financial sector.
Categories:
Regulation
Bank of Israel Issues New Draft Directive to Ease Regulatory Requirements for Small and New Banks
The Banking Supervision Department has published for public comment a draft Proper Conduct of Banking Business Directive titled “Supervisory Framework for Small and New Banks.” The purpose of the draft directive is to adapt regulatory and supervisory requirements to the size and complexity of small and new banking corporations’ operations, in accordance with the Basel Committee’s principle of proportionality, while maintaining banking system stability and protecting customers.
Bank of Israel Expands “Identification Code” in Payment Systems: Latest Measure to Increase Competition and Open Up the Financial Market
The Bank of Israel recently issued its decision to expand the identification code used by banking corporations and nonbank entities to connect to payment systems from two digits to three digits. While ostensibly only a technical change, in practice it is a significant step that will enable financial entities to hold accounts and transfer funds for customers directly and independently, without relying on existing banks.
2025 Year-End Review: Increasing Competition in the Israeli Banking Market and Tightening Supervision
In 2025, the Bank of Israel, the Ministry of Finance, and the Israel Securities Authority accelerated measures to significantly increase competition in the banking system. These included regulatory and legislative amendments, some of which are expected to come into effect in 2026.
New Bank of Israel Directive: Banks May Restrict Accounts of Sanctioned Israelis
On December 30, 2025, the Supervisor of Banks published Directive 412, aimed at instructing banking corporations on providing services to customers subject to international sanctions.
2025 Legal Year in Review: Key Business Updates and 2026 Outlook
Categories:
Corporate
|
Employment
|
High Tech
|
Litigation
|
Privacy Law
|
Real Estate
|
Real Estate Taxation
|
Regulation
|
Tax
Recent Israeli Supreme Court Ruling Reinforces Primacy of Contractual Wording of Commercial Contracts
A recent Israeli Supreme Court ruling held that in disputes over management agreements for vacation units, detailed commercial contracts must be interpreted according to their explicit wording, giving full primacy to the contract text.
Reforming Payment Models for Securities and Advisory Services
On the eve of Rosh Hashanah, a joint task force from the Bank of Israel, the Ministry of Finance, and the Israel Securities Authority published an interim report for public comments, proposing a major reform in the way financial institutions (mainly banks, TASE members, and other players) are paid for securities services and investment advice.
Wine Industry Regulation: Boutique Wineries Now Require a Manufacturer’s License
Israel has hundreds of wineries, many of which are boutique wineries that opened and operated without any significant regulation over the years. Now, following the enactment of new regulations in early 2025 to regulate the wine market and transfer responsibilities over alcoholic beverages to the Ministry of Health, these wineries must begin the process of […]
Israel’s Latest Attempt to Increase Competition in the Banking Sector
On August 6, 2025, the interministerial team to increase competition in the retail banking sector (established by Israel’s Minister of Finance in collaboration with the Governor of the Bank of Israel) published its recommendations on the measures needed to increase competition in banking services.
Webinar: July 2025 - Status and Future Outlook
Our firm hosted a webinar focused on the current situation in Israel, following nearly two years of ongoing conflict and the recent removal of some of the major threats facing the country, most notably from Hezbollah and Iran. The discussion addressed Israel’s entry into a new geopolitical reality and explored pressing questions regarding the country’s future direction in the Middle East, as well as its diplomatic and security positioning on the global stage.
Speakers included Maj. Gen. (res.) Yaakov Amidror, former National Security Advisor to the Prime Minister of Israel and former Head of the Research Department in the IDF Directorate of Military Intelligence; Prof. Yossi Shain, former Member of Knesset (24th Knesset), founding head of Tel Aviv University’s School of Government, and Emeritus Professor of International Affairs at Georgetown University and author of several internationally acclaimed books; and Mr. Jeffrey Kahn, an international strategy expert who has held senior positions across global institutions and industries.
The webinar concluded with a lecture by Prof. Amichai Cohen, Special Counsel on International Law at our firm, on extending the Abraham Accords and new opportunities in the Middle East.
Key Legal and Regulatory Updates Amid the Ongoing State of Emergency
As Operation Rising Lion continues, government ministries and authorities are continuing to announce regulatory reliefs in various areas.
Regulatory Relief Measures in Light of the State of Emergency in Israel
Upon the launch of Operation Rising Lion last Friday, the Minister of Defense declared a special national state of emergency in conformity with the Civil Defense Law, 1951. On Sunday, the government extended the state of emergency until June 30, 2025.
Tariff Crisis with the US Rekindles Debate over Israel’s Reciprocal Procurement Obligation
The Ministry of Finance, in conjunction with other government ministries, is currently formulating a plan to reduce the US trade deficit with Israel, in order to reduce the tariff rate that the Trump administration has imposed on goods imported from Israel. According to reports, one of the proposals currently being considered is to exempt US companies from reciprocal procurement obligation in exchange for their winning large-scale tenders in Israel.
Drug Registration Reform in Israel: Processes Are Being Streamlined and Time Frames Shortened to Increase Supply and Lower Prices
The Ministry of Health published a new outline recently, which is designed to shorten the registration time frames for new drugs. The outline is based on higher cooperation between the Ministry of Health and leading drug registration authorities around the world, while relying on approvals issued in other countries.
Bank of Israel Releases Preliminary Digital Shekel Design for Public Comment – A Real Opportunity for Competition and Innovation?
Last week, the Bank of Israel published a preliminary design of the central bank’s Digital Shekel system. In a detailed document, holding more than 100 pages, the Bank of Israel presents guiding principles and a work plan for further advancing this ambitious project.