Israel’s Sovereign Wealth Fund
Israel’s Sovereign Wealth Fund, known as the Citizens’ Fund, recorded assets of approximately $2 billion by the end of 2024, according to the latest annual report from the Ministry of Finance.
The fund achieved an 11.5% return on investments in 2024 (in nominal US dollar terms), reflecting strong financial performance and effective asset management. Since its inception, the Citizens’ Fund has delivered an average annual return of 11.7%, underscoring its role in supporting Israel’s long-term economic stability.
The Citizens of Israel Fund was established to manage the state’s revenues from the levy on oil and natural gas profits collected under the provisions of the Natural Resources Profits Tax Law. Its purpose, as defined by the Citizens of Israel Fund Law, is to manage the state’s revenues from the levy with a long-term economic perspective to maximize them and ensure the Fund’s continued existence for many generations. The Citizens of Israel Fund Law was enacted in 2014, and the Fund began its operations in June 2022, after the accumulated levy amount reached NIS 1 billion—the threshold set for the law to take effect.
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“The year 2024 was one of the most challenging years in the history of Israel in terms of security, economy, and society,” said Betzalel Smotrich, Israel’s Minister of Finance and Chairman of the Fund’s Council. “This year tested the purpose of the Citizens of Israel Fund as a fund that operates beyond considerations of “the here and now” and remains true to its role and mission for the benefit of future generations. “
Smotrich explained that the Citizens of Israel Fund maintained an investment policy focused on the long term, unaffected by local fluctuations, and operated based on principles of stability, responsibility, and steady economic growth, even in difficult times.
Throughout the year, the Citizens of Israel Fund continued growth, reaching an approximate return of 11.5%, and the significant expansion of its assets, demonstrate our progress in securing a stable and valuable economic foundation for the benefit of Israel’s citizens in the years ahead. This success is directly linked to the development of the natural gas sector and Israel’s energy independence.
“The prolonged and resource-intensive war highlights the importance of the Citizens of Israel Fund, which is focused on the long term and invests its assets outside of Israel and in foreign currency, unaffected by local events such as the war,” added Yarom Ariav, Chairman of the Citizens of Israel Fund’s Investment Committee. “In this way, the Fund may provide the state with a stable economic anchor in times of crisis. Throughout the year, despite the difficult war events, the Fund continued to expand and develop, achieving a particularly high annual return of approximately 11.5%.”
Key business results:
As of December 31, 2024, the Citizens of Israel Fund’s assets totaled approximately US$ 2.080 billion. During the year, the Fund received revenues from the state, according to the provisions of the Natural Resources Profits Tax Law, amounting to approximately $417 million. In 2023, the Fund transferred approximately $33.6 million to the state budget for the fiscal years 2023 and 2024. In 2024, the Citizens of Israel Fund recorded a nominal dollar return of approximately 11.5%. Since its establishment, the Fund has recorded an average annual return of approximately 11.7%.
