The Investment Authority has recently granted approvals for the Tiberias Municipality and the Mateh Binyamin Regional Council to designate the Upper Tiberias (Egoz) and Macabim industrial zones as Regional Industrial Zones (RIZs), in accordance with the Law for the Encouragement of Capital Investments.
The Upper Tiberias industrial zone, strategically located in the northwestern part of the city, encompasses an area exceeding 40 hectares (approximately 100 acres). It is primarily reserved for high-tech industries characterized by lucrative wage structures. Currently, this zone accommodates approximately 40 businesses engaged in diverse sectors, including the manufacturing of medical equipment, plastics, nonwoven fabrics, printing, food production, and more. The newly approved area will specifically cater to the hi-tech sector, fostering innovation and advanced industries.
In addition, the Macabim industrial zone is in the developmental stage, situated along the northern ridge adjacent to Route 443, near the Macabim checkpoint, within the jurisdiction of the Mateh Binyamin Regional Council in the Judea and Samaria region.
In order to establish a Regional Industrial Zone, local authorities must fulfill specific criteria outlined by the Law for the Encouragement of Capital Investments and abide by the Investment Authority’s regulations, which include geographic specifications and a minimum industrial area of 10 hectares. The Investment Authority operates a grant program that allows industrial enterprises situated in RIZs within Development Area A, that meet the statutory criteria, to be eligible for a grant comprising 20% of their total investments. Furthermore, these companies can benefit from a significantly reduced corporate tax rate of 7.5%, markedly lower than the standard rate of 23%. This represents a reduction of more than two-thirds.
The financial grants extended by the Investment Authority are designed to incentivize factories to pursue capital investments, enhance process and operational innovation, elevate productivity, and catalyze economic growth. This initiative is expected to foster the creation of high-wage employment opportunities and broaden the job market within the region.
Mr. Shlomo Attias, the Director of the Investment Authority at the Ministry of Economy and Industry, has affirmed the commitment to prioritize the development of Regional Industrial Zones over local industrial zones. He stated, “These areas contribute significantly to economic growth in the region, enhance employment prospects, and facilitate the provision of high-wage jobs. Henceforth, the industrial zones in Upper Tiberias and Macabim will also be able to avail themselves of these substantial benefits.”
In conclusion, the establishment of these Regional Industrial Zones represents a pivotal development for the Tiberias area, promising to invigorate its economy and provide long-lasting benefits through increased investment and employment opportunities.
Leave a Reply