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The Bank of Israel and the Ministry of Finance announce today the publication of the 2025 Annual Report of the Citizens of Israel Fund (the “Fund” or “CIF”).

The year 2025 marked the Fund’s third full year of operation and was characterized by continued strengthening of its management infrastructure, expansion across additional asset classes, and further growth in the value of the Fund’s assets, in accordance with the principles established in the Citizens of Israel Fund Law, 5774–2014 (the “Law”).

The Citizens of Israel Fund was established to manage the State’s revenues derived from the levy on windfall profits from oil and natural gas (the “Levy”), pursuant to the Law. The Fund operates under a long term economic framework, intended to ensure that revenues from non renewable natural resources serve as a stable and valuable financial foundation for the benefit of current and future generations.

Key Results for 2025

  • As of December 31, 2025, the Fund’s assets under management amounted to approximately USD 2.8 billion.
  • During 2025, the Fund recorded a nominal U.S. dollar return of 18.4% and a real U.S. dollar return of 15.4%.
  • Deposits to the Fund during the year, derived from State revenues in accordance with the Natural Resources Taxation Law, totaled USD 350.7 million.
  • In accordance with the Law, the Fund transferred an annual allocation of USD 51.7 million to the State Treasury in 2025.

Looking ahead, the Fund is expected to continue growing and to further expand its exposure across additional asset classes, including the gradual expansion of private investments. The management infrastructure developed in recent years is expected to continue supporting the efficient management of the Fund’s expanding investment portfolio, while maintaining stability and strengthening the Fund’s ability to generate sustainable long term value for future generations.

 

Minister of Finance Bezalel Smotrich, Chair of the Fund’s Council: "Even in a year marked by heightened security instability alongside unprecedented national expenditures, the State of Israel and its economy demonstrated responsibility and a long term perspective. The Citizens of Israel Fund, which recorded an exceptional nominal U.S. dollar return of 18.4% this year, is clear evidence that we are not drawn to short term, ‘here and now’ solutions. Professional and disciplined management is transforming Israel’s natural resources into a strategic anchor that ensures intergenerational financial stability and strengthens confidence among international markets. I would like to thank my colleagues on the Fund’s Council, the Investment Committee, and the asset management division at the Bank of Israel for their dedicated and professional work, which secured these strong results for the benefit of the citizens of Israel and future generations."

Governor of the Bank of Israel, Prof. Amir Yaron: "Recent years have presented the Israeli economy with unprecedented challenges. It is precisely in such times that the importance of long-term strategic planning becomes especially evident, as it is a key factor in the economy’s ability to address complex reality and to strengthen its resilience in preparation for future challenges. Accordingly, this year as well, the Citizens of Israel Fund continued to play an important role in managing the State’s revenues from natural resources, while adhering to long-term investment principles. The Bank of Israel is proud to lead the management of the Fund’s assets and to take a meaningful part in promoting its development and expanding its assets. I would like to express my gratitude to the Fund’s institutions and to all the employees of the department at the Bank of Israel for their cooperation, professionalism, dedication, and perseverance especially during such a challenging period".

 

Ms. Lena Krupalnik, Head of the BOI’s Management Division of the Citizens of Israel Fund: “The year 2025 marked a significant step forward in the Fund’s capabilities, both in strengthening its management infrastructure and in expanding its exposure across additional asset classes. Behind the strong results stands a professional and dedicated team, driven by a clear sense of responsibility toward future generations. During the year, we completed advanced infrastructure for the integration of non liquid assets, enhanced real time analytical capabilities, and expanded portfolio diversification in a prudent and measured manner. The Management Division will continue to operate responsibly, building on a solid foundation that supports sustainable growth and value creation over the long term.”