The Fiscal Authority of Israel has announced the prognosis of revenue of royalties on gas and oil profits, after an ascending review of gas reserves in the Leviathan reservoir and the discovery of Energean (LSE: Enog; tase: ENOG) of the children.
The current forecast sees that the wealth fund receives $ 57 to $ 74 billion over the years, compared to the previous forecast of $ 55 to $ 72 billion in 2024. In the next decade, the fund is expected to bring between $ 19 and $ 19 and $. These are only income for the background of wealth, while the State also benefits from gas reserves through regular levies of natural resources, as well as the profits of gas field partners.
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The background of wealth, the official named Citizens of Israel Fund, is the National Fund for Richness of Israel, which is used to obtain some of the income that the State collects from gas associations in exchange for the production and sale of gas reserves in Israel’s water.
Unlike the regular tax that goes directly to the state coffers, the wealth fund contains the “Shehinsky’s tax”, which is collected from the colleagues once they approved a profit threshold that is supposed to cover their investments. Until now, only the Tamar reservoir has paid the royalties, and the Leviahan reservoir oriented to export and the narrowest Karish reservoir will be joined, which is used only for the national economy.
A jump in income
This is expected to lead to a jump in the fund income. According to the last estimate, at least $ 290 million will enter the Fund in 2025, an amount that will almost double at $ 550 million in 2026, and will double again at $ 1.2 billion in 2027. The maximum estimate for that year is $ 1.9 billion. Income will be expected to reach its maximum point in 2031, when the fund will bring between $ 2.7 and $ 3.1 billion. After that, unless new gas reserves are found, income will gradually fall until gas reserves are exhausted.
According to the law, the fund began its operations as soon as Nis 1 billion accumulated, which occurred in 2022. It will be possible to withdraw 3.5% of the assets accumulated in it every year for purposes such as investment. After the eighth year of operations, which will be in 2030, it will also be possible to remove the profits from the fund.
One of the objectives of the fund is to avoid the expense of the large amounts collected at the same time, which would cause the “Dutch disease”, above the local currency and hinder the export industries, while the government gets used to the large temporary temporary part.
Posted by Globes, Israel Business News – Y.globes.co.il – on July 3, 2025.
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