The report sets forth an innovative regional financing plan to leverage technology, support local businesses, and finance infrastructure urgently needed for Israel’s growth.

20 February 2025 (Jerusalem, Israel) – Israel’s economy is facing significant challenges as communities, businesses, and local authorities navigate the financial impact of recent events. The region has faced population displacement, infrastructure damage, and reduced investment making economic recovery increasingly difficult. The need for targeted recovery efforts and strategic investment has become more critical than ever to support long-term stability and growth.

The Milken Innovation Center, a nonprofit, nonpartisan think tank based at the Jerusalem Institute for Policy Research Israel, hosted a Financial Innovation Lab at the Museum of Tolerance Jerusalem’s Milken-Mizel Campus on June 18, 2024, where a diverse group of investors and advisors, met for a day of strategy and planning. The session, which followed a pre-Lab workshop hosted by Apollo Global Management in New York on February 21, 2024, focused on ways to catalyze Israel’s economy and develop actionable steps for integrated regional development through structured finance (both credit and equity), small business structured financing, and other priority project areas identified by regional leadership.

Innovative Finance for Rebuilding Israel’s Regions, a new Financial Innovations Lab report by the Milken Innovation Center-Israel, proposes innovative financing mechanisms that would secure project financing through structured public/private credit, mitigating financial risks for both investors and local authorities while utilizing catalytic capital from government and philanthropic sources to crowd in private domestic and foreign direct investment into the region.

"Post-war recovery requires more than just emergency relief—it demands innovative financial solutions that can accelerate rebuilding while creating sustainable economic growth," said Prof. Glenn Yago, Senior Director at the Milken Innovation Center-Israel. "This report provides a practical roadmap for mobilizing capital at the scale needed for comprehensive regional development, integrating regions from the North, Center, and South."

Dr. Hadas Shabtay, Head of Energy, Industry and Trade, The Tkuma Directorate, said that "Now is the time to focus efforts and leverage a combination of diverse solutions and tools to sow the seeds for sustainable economic growth, while simultaneously fostering innovation, excellence, and the advancement of economic and energy resilience in the Tekuma region."

Jon Medved, OurCrowd CEO, said, “The pioneering plan developed by the Milken Innovation Center will provide urgent economic relief and investment in the areas directly affected by the devastation left in the wake of the Gaza war, by creating scalable, market-driven, and sustainable financial structures through an innovative blend of private and public finance that leverages government, philanthropic and capital market tools. The Milken Innovation Center’s innovative response is our best bet to rejuvenate and revive the affected areas as fast as possible by drawing on the proven experience of blending public and private sector finance, similar to the way Israel developed its high-tech Startup Nation economy that is now the envy of the world.”

The report details several financing mechanisms designed to reduce risk, attract capital, and accelerate economic activity, including:

• Public-private investment structures – Leveraging government funds as catalytic capital to attract institutional and philanthropic investment.

• Small business financing – Developing structured credit solutions to expand access to capital for small businesses.

• Strategic Infrastructure Investment – Targeting energy, water, agriculture, and technology sectors to support long-term economic resilience.

• Tax incentives & De-risking Measures – Proposing investment tax credits and joint government-philanthropic guarantees to encourage capital deployment.

Ogen, Israel's leading social lender, was presented at the Lab as a prime example of utilizing blended finance models for impactful investment and societal benefit. Moshe Daniel, Deputy CEO of Ogen, said, “At Ogen, we are committed to bolstering Israel’s financial resilience by combining philanthropic, public, and private capital to create sustainable lending solutions. By fostering financial inclusion and economic growth through blended finance models, we aim to build a stronger, more resilient Israel.”

Apollo served as an anchor sponsor of the Financial Innovation Lab, held in June 2024 and was also supported by other key partners including the PEF-Israel Endowment Fund, the Tkuma Recovery Authority, Western Negev Eshkol, TASE, OurCrowd, Israel Innovation Authority, Start-Up Nation Central, Jewish Federations of North America, Israel Forum for Impact Economy, RISE Israel, Ogen, and Stax Consulting.

Read the Full Report: Innovative Finance for Rebuilding Israel’s Regions

About the Milken Innovation Center

The Milken Innovation Center at the Jerusalem Institute for Policy Research focuses on developing market-driven solutions to Israel’s greatest economic challenges in regional development, agriculture, health, energy, and water. Through applied research and Financial Innovations Labs, alongside training programs in Israel and abroad, the center works to bridge economic, social, and regional gaps, fostering sustainable growth and long-term resilience.

About Financial Innovations Labs

Financial Innovations Labs® (FIL) are the Milken Institute's and Milken Innovation Center’s signature, applied research projects, designed to devise new business models, policy recommendations, capital structures, and financial technologies that can achieve concrete goals. By bringing together a diverse group of stakeholders, FIL encourages collaboration among parties who may not normally interact to address global challenges by examination through a financial lens, accelerating outcomes that influence the flow of capital to promote progress and change.

For Media Inquiries

Gil Kraiem, Pitch Media
+972-50-570309

Glenn Yago, Senior Director, Milken Innovation Center; Founder, Milken Institute Financial Innovations Labs
+972-528-735583
[email protected]