Breaking Update
Plan to Revive Northern Border Region’s Economy After Two Years of War Includes New University in Kiryat Shmona, Expanding High-Tech Industries and Much More
Israel approves a comprehensive plan to boost the northern border region's economy, including a new university in Kiryat Shmona, expanding high-tech.
Jerusalem, 1 February, 2026 (TPS-IL) — The government of Israel approved a plan for northern economic and demographic growth in the Lebanon border fence communities like kiryat shmona, Shlomi and Metula, that includes establishing a university in Kiryat Shmona, economic and demographic acceleration, and a grant for use by businesses in the city.
This region, known as the “Finger of the Galilee” since it stretches northward on the eastern border with Lebanon, suffered economic devastation over the past two years due to the war and attacks by Hezbollah terrorists based in Lebanon.
“The plan is intended to ensure immediate assistance to local authorities and for the benefit of residents and businesses in the urban area, as a first step to strengthening the region and establishing long-term economic and demographic growth engines,” said the government. “At the same time, work began on a broad strategic plan for the rehabilitation and growth of the entire region.”
Program highlights include:
Assistance to local businesses and assistance grant for residents: Providing a grant (via a digital wallet) for implementation in local businesses in the area and as a supportive measure for the economy in the area.
Demographic growth and housing: Dedicated budgets to strengthen the young population, branding the area as an attractive residential destination, and renovating buildings for recreation and community needs.
Economic acceleration: Establishing dedicated tracks to subsidize wages for workers in high-tech and advanced industries, and grants for development expenses in industrial zones in the settlements along the fence.
Health and transportation: Establishing a medical emergency center and specialist clinic in Kiryat Shmona, and examining the feasibility of operating regular and subsidized flights from the airstrip in Kiryat Shmona to the center of the country.
University City: A plan to connect the city of Kiryat Shmona to Tel Hai University, including moving academic buildings into the city and creating an urban student experience.
