Space Law 2025 Comparisons

The current landscape of space law reflects a transformation from the international regulatory framework established in the 1960s and 1970s to modern frameworks addressing the rapid commercialisation and diversification of space activities. The evolution addresses:

• commercial space enterprise and private sector integration;
• space traffic co-ordination and orbital management systems;
• sustainable space environment preservation;
• international co-operation and multilateral governance mechanisms;
• legal framework modernisation and adaptive regulation;
• transparency;
• accountability; and
• compliance enforcement.

The convergence of these developmental trends demonstrates that space law is evolving into a multifaceted regulatory domain requiring continuous adaptation to technological advancement and commercial innovation. The successful governance of this expanding frontier depends on the national and international communities’ ability to maintain space as a realm of peaceful co-operation, sustainable development and shared benefit for humanity while accommodating the legitimate commercial and security interests of private enterprises, ventures and initiatives.

Israel maintains binding legal obligations under three foundational international space law treaties through formal ratification processes. The State of Israel has ratified:

• the 1967 Treaty on Principles Governing the Activities of States in the Exploration and Use of Outer Space, including the Moon and Other Celestial Bodies (commonly referred to as the Outer Space Treaty);
• the 1968 Agreement on the Rescue of Astronauts, the Return of Astronauts and the Return of Objects Launched Into Outer Space (the Rescue Agreement); and
• the 1972 Convention on International Liability for Damage Caused by Space Objects (the Liability Convention).

The 1975 Convention on Registration of Objects Launched Into Outer Space (the Registration Convention) and the 1979 Agreement Governing the Activities of States on the Moon and Other Celestial Bodies (the Moon Agreement) were not executed or ratified by Israel, meaning these treaties do not have any binding effect on Israeli space activities and operations.

Israel was also a signatory to the 1963 treaty between the United States, the Soviet Union and the United Kingdom on banning nuclear weapons testing in the atmosphere, in outer space and under water (known as the Limited Test Ban Treaty), and is party to space-related bilateral agreements, such as:

• the 2009 Agreement between the Government of the State of Israel and the Government of the Republic of Kazakhstan on Cooperation in the Field of Exploration and Use of Outer Space for Peaceful Purposes; and
• the Memorandum of Understanding (MoU) signed on 20 October 2021 between the Israeli Ministry of Innovation, Science and Technology and the UAE Ministry of Advanced Technology (ratified through Government Decision No 1024 on 23 January 2022).

Israel is taking an active role in various international space-related organisations and initiatives. On 9 December 2015, the UN General Assembly appointed Israel as a member of the Committee on the Peaceful Uses of Outer Space (COPUOS), and Israel has been an active member ever since. On 26 January 2022, Israel Space Agency Director General Uri Oron signed the Artemis Accords on behalf of the State of Israel during a ceremony in Tel Aviv, making Israel the first country to sign the accords, and paving the way for Israeli space ventures to integrate their developed technology into forthcoming Artemis space missions.

A comprehensive national law dedicated to space regulation is yet to be enacted, although efforts are currently being made in that direction by the Ministry of Innovation, Science and Technology. As the Israeli space industry is focused on the global market, adhering to other national and international regulatory frameworks has become an essential element in the growth and expansion of local space ventures.

A distinctive characteristic of Israel’s space regulatory framework is its careful balance between promoting commercial space development and maintaining strict national security controls. The dual-use nature of the Israeli space industry – where technologies and capabilities often have both civilian and military applications – has led to a regulatory approach that emphasises security clearances, export control and careful oversight of technology transfers. This is reflected, inter alia, in the Israeli Defense Export Controls Agency (DECA) licensing procedures, which require detailed application procedures for space-related activities.

Israel has positioned itself as a key player in the global space ecosystem, leveraging its advanced technology industry, innovation-driven culture and specific expertise in satellites, communication applications, cybersecurity, artificial intelligence and defence applications. However, insufficient governmental support, halted foreign investments due to geopolitical instability and the lack of a regulatory framework prevent the Israeli “NewSpace” industry from reaching its full potential.

Despite this, Israel has established itself as a noteworthy player in the global space technology sector, with an advanced ecosystem that demonstrates innovation density and strategic positioning. The country's space technology landscape encompasses some 100 companies across various space-related verticals, including satellite systems, launch technologies, earth observation and space-based communications. Key industry leaders include:

• Israel Aerospace Industries (IAI), a developer and deployer in orbit of multiple satellite platforms and launch systems;
• SpaceIL, known for its lunar mission initiatives;
• Rafael, a developer of advanced space propulsion solutions;
• Gilat Satellite Networks, a global provider of satellite communication solutions; and
• Spacecom, which operates the Amos fleet of satellites.

Alongside these, notable NewSpace start-ups include Ramon.space, StemRad, tomorrow.io, Helios and Creation Space’s Expand programme for dual value (terrestrial and deep space) ventures, which fosters start-ups such as Inhayle and Oasix.

Multiple space-related projects are to be built and implemented in Mitzpe Ramon, in the Negev Desert, in the next few years, with the aim of transforming this town into the Israeli hub for space development, research and education.

The Israeli Innovation Authority has sponsored several support programmes aimed at the space industry, some in collaboration with the Israeli Space Agency (ISA) and with foreign organisations and agencies such as the Space Florida Organization and the aerospace development authority of Florida, to foster R&D space technological solutions and co-operation between Israeli and foreign space ventures. Yet Israel is falling behind in terms of governmental support for the growth of the local space industry.

In May 2022, Israel published a ILS600 million (USD180 million) New Strategic Plan for Advancing the Israeli Civilian Space Industry, with the following aims:

• doubling the number of space companies;
• quadrupling the number of people employed in the space industry, from 2,500 to 10,000;
• quadrupling the scope of annual sales made by the space industry, from USD1 billion to USD4 billion;
• increasing the number of space researchers in the academic world, from 120 to 160;
• increasing the number of high school graduates who have actually been involved in the space industry, from 200 to 4,000; and
• establishing international partnerships in the space industry and increasing Israeli presence in key multi- and international organisations.

Currently, with limited government backing, the commercial space sector in Israel has experienced some growth, with private companies driving innovation in areas such as microsatellite technology, space-based imaging systems and satellite communication infrastructure. Israeli companies have successfully deployed satellites for both domestic and international clients, with particular strength in reconnaissance, communications and earth observation capabilities. In the past five years, the sector has attracted USD700 million in investments, with venture capital flowing into space technology start-ups focusing on the miniaturisation of space systems, advanced propulsion technologies and space-based data analytics. Notable achievements include the first Israeli satellite (Offeq 1) launched into orbit in 1988 and SpaceIL’s 2019 Beresheet mission, which placed SpaceIL as one of the very few non-governmental entities to orbit the moon, demonstrating the country's advanced technological capabilities and strategic autonomy in space operations.

Looking forward, Israel's space technology sector is positioned to capitalise on emerging opportunities in commercial space exploration, space-based manufacturing and next-generation satellite constellations. The ecosystem benefits from strong academic institutions, including the Technion, the Weizmann Institute and Tel Aviv University, which produce skilled engineers and researchers.

Israel's space technology innovation is characterised by its dual-use approach, where technologies developed for defence applications often find commercial applications, and vice versa. This cross-pollination has accelerated development cycles and created robust, battle-tested solutions that compete effectively in global markets. The country's expertise in cybersecurity, artificial intelligence and advanced materials science has been successfully integrated into space applications, creating unique competitive advantages. Israeli space companies have established partnerships with major international space agencies, including NASA and ESA, and have participated in significant missions such as the International Space Station programmes and various planetary exploration initiatives.

The convergence of Israel's traditional strengths in defence technology, telecommunications and software development with the expanding commercial space market positions the country as a potential key player in the global space economy, with particular advantages in small satellite technologies, space-based intelligence systems and innovative space mission applications.

Israel is a parliamentary democracy with a legal system that is substantially rooted in the Anglo-American common law but integrates several other jurisprudential traditions, including EU continental law (especially German law), Ottoman law and religious codes. The system operates through a three-tiered general court hierarchy consisting of the Supreme Court, District Courts and Magistrate Courts, supplemented by specialised tribunals addressing labour disputes, administrative matters and family law issues. The judicial architecture reflects historical influences from the British common law, inherited by Israel from the British Mandate that predated the independence of the country in 1948. Alongside this, remnants of the Ottoman Empire's legal code that ruled the land until the end of World War I still exist, and elements of German civil law, especially in contract law, and a growing influence of US case law create a unique amalgamation of legal traditions that operates under secular governance principles while accommodating religious law in personal status matters.

International law influences Israeli law, as Israel has ratified the Outer Space Treaty, the Rescue Agreement and the Liability Convention, and is a signatory to the Artemis Accords and to bilateral and multilateral space-related agreements and treaties.

While Israel has not codified space regulation into a specific act, many laws and regulations have a direct impact on the local space industry. For example, the general corporate, contract and tort laws have a direct impact on any space corporation operating in Israel. Alongside these are laws regulating specific relevant matters, including:

• the regulation of satellite broadcasting in the Communications Law (Broadcasting and Telecommunications), 5742-1982;
• the Defense Export Control Law, 5767-2007, including multiple regulations and orders enacted pursuant to this law, regulating the export of defence systems and knowledge;
• the Encouragement of Research, Development and Technological Innovation in Industry, 5744-1984, which established the Israel Innovation Authority (IIA) and a national policy to promote and support innovation, which has affected the local space industry, to some extent; and
• the Encouragement of Knowledge-Intensive Industry (Temporary Provision), 5783–2023, also known as the “Angels Law”, which superseded a previous 2011 law and is aimed at promoting investment in the country's hi-tech sector. The law provides various tax incentives to both investors and companies, particularly start-ups, to foster growth and maintain Israel's position as a leading hub for innovation.

The government of Israel acts as a regulator, a participant and, to some extent, a contributor to the local space industry.

While there is no one authority to govern space-related regulations, several authorities and government ministries function within their jurisdiction to address matters related to space ventures, including:

• the Ministry of Communications in relation to satellite broadcasting, frequency allocation and satellite communications licensing, including co-ordination with the International Telecommunication Union (ITU) regarding the use of frequencies and orbital slots;
• DECA regulates the export of defence systems and knowledge;
• the Export Control Agency of the Ministry of Economy and Industry administers and enforces controls over dual use, nuclear, chemical and biological exports; and
• launches from Israel will require co-ordination and approvals from the Civil Aviation Authority (CAAI) and the Israeli Air Force’s air control.

The ISA co-ordinates civilian space activities and promotes international co-operation in space research and development but has no supervision or enforcement powers.

Currently, there is no comprehensive licensing scheme for space missions and activities in Israel. Satellite launches by the IAI are conducted as a governmental project, using military or government-owned facilities, while most if not all payloads of commercial, non-governmental companies are launched from launch sites in the US and other countries. Israel has not ratified the Registration Convention. Israeli payloads are registered in the launching countries.       

Israel obtained membership status in the ITU through formal accession on 24 June 1948, and maintains permanent representation at the organisation's Geneva headquarters. Beyond the Ministry of Communications, which serves as the official governmental representative of the State of Israel, multiple private sector telecommunications entities hold organisational membership, including Bezeq, Tadiran, Comverse Technology, Red Computer Communications, Telrad Networks, Alvarion Technologies, AudioCodes Ltd. and additional telecommunications service providers and equipment manufacturers. Israeli corporate entities actively participate in the development and establishment of international telecommunications standards, with particular involvement in Voice over Internet Protocol (VoIP) transmission protocols and wireless communication technical specifications and regulatory frameworks.

The Ministry of Communications Planning and Spectrum Engineering Branch exercises regulatory authority over Israel's radio frequency spectrum resources and maintains licensing jurisdiction for spectrum utilisation activities. The Branch performs spectrum planning and allocation functions for both civilian and security sector users through formal licensing procedures, maintains ongoing professional co-ordination with telecommunications operators, and administers the collection of licensing fees and frequency allocation assessments pursuant to applicable regulatory frameworks.

The State of Israel plays a central role in the satellite launching process through its national space infrastructure and regulatory oversight. Israel is one of the few nations with independent orbital launch capabilities, primarily through its domestically developed Shavit rocket, which has been in operation since 1988. The Shavit launch vehicle is used to deploy satellites such as the Ofeq (Horizon) series, which serve both military and civilian purposes.

Israel’s launch operations are conducted from the Palmachim Airbase, a facility operated by the Israeli Air Force, which serves as the country’s primary launch site. Due to geopolitical constraints, launches are directed westward over the Mediterranean Sea, a trajectory that avoids overflight of neighbouring countries but limits payload capacity and orbital options.

Israel’s satellite launch programme is tightly integrated with national security interests. The dual-use nature of space technologies means that launches are subject to strict export controls and classified protocols. The Shavit rocket shares components with Israel’s Jericho ballistic missile system, which imposes limitations on international collaboration and export opportunities.

Despite these constraints, Israel continues to invest in its space capabilities, maintaining its status as the first orbital-launch-capable nation in the Middle East. The government’s strategic commitment to space autonomy reflects broader goals of technological sovereignty and defence readiness.

The launching process of satellites involves a complex interplay of legal, technical and regulatory frameworks. In Israel, this process is governed by a combination of domestic legislation, international obligations and administrative procedures. Entities seeking to launch satellites must comply with export control laws, environmental regulations and safety standards, and must obtain necessary authorisations from relevant governmental bodies.

Israel is a party to three core international space law treaties:

• the Outer Space Treaty (1967);
• the Rescue Agreement (1968); and
• the Liability Convention (1972).

It has not signed or ratified the Registration Convention (1975) or the Moon Agreement (1979).

Israel also signed the 1963 Limited Test Ban Treaty, which prohibits nuclear weapon tests in outer space, among other environments. In addition, it has entered into bilateral agreements, such as the 2009 co-operation agreement with Kazakhstan on peaceful space exploration and the 2021 MOU with the UAE.

Internationally, Israel is active in space governance. It became a member of the UN Committee on the Peaceful Uses of Outer Space (COPUOS) in 2015 and has participated actively since. On 26 January 2022, Israel became the first country to sign the Artemis Accords, in a Tel Aviv ceremony. This move supports the integration of Israeli technologies into future Artemis missions.

The State of Israel does not currently have a comprehensive domestic statute specifically governing liability for damage caused by space activities. However, liability in this domain is shaped by a combination of international treaty obligations and general principles of Israeli tort law.

Israel is a party to the Liability Convention, which establishes a strict liability regime for damage caused by space objects on the surface of the Earth or to aircraft in flight. Under this treaty, Israel, as a launching state, bears liability for such damage, regardless of fault. For damage occurring elsewhere in outer space, liability is based on fault.

These obligations apply not only to state-sponsored launches but also to private entities operating under Israeli jurisdiction. Accordingly, the State of Israel may be held internationally responsible for damage caused by private actors and may in turn seek indemnification from those entities under domestic law.

While Israel has not enacted a dedicated “Space Liability Act”, general principles of Israeli tort law (particularly under the Torts Ordinance [New Version] 1968) will apply to space-related damage. These principles include liability for negligence, strict liability in certain hazardous activities, and doctrines of causation and foreseeability.

Given the inherently high-risk nature of space operations, Israeli courts may be inclined to apply doctrines of strict or absolute liability in cases involving substantial harm, particularly where public safety or environmental damage is implicated.       

Israel currently lacks a dedicated statutory framework explicitly regulating very high altitude (VHA) operations, such as stratospheric balloons and High Altitude Platform Stations (HAPS) used for telecommunications, surveillance or scientific research. These platforms typically operate in the stratosphere, between 18 km and 25 km altitude, and are increasingly used for connectivity, disaster response and defence applications.

In the absence of a specific space or stratospheric law, VHA operations in Israel fall under the purview of civil aviation regulations. The CAAI oversees airspace usage and may regulate HAPS and stratospheric balloons as part of non-conventional aerial platforms, subject to general aviation safety standards. However, there is no publicly available regulation equivalent to other countries' relevant frameworks that explicitly defines or licenses “higher airspace operations”.

Given Israel’s unique geopolitical environment and advanced defence infrastructure, VHA platforms are subject to military oversight, especially those with surveillance or dual-use capabilities. The deployment of stratospheric assets for intelligence, surveillance and reconnaissance (ISR) purposes intersects with national security protocols. These platforms may be regulated under classified defence frameworks, particularly when operated by or in co-ordination with the Israel Defense Forces or defence contractors.

Currently, Israel public authorities and private companies have limited engagement with international discussions on stratospheric governance. For example, Gilat Satellite Networks (a global provider of satellite-based broadband communications, headquartered in Israel) is a member of the HAPS Alliance, a global alliance that brings together recognised companies across telecommunications, technology, aviation and aerospace with a mission to promote HAPS technology.

The legal boundary between sovereign airspace and outer space remains a grey zone in Israeli law. While Israel is a party to key space treaties such as the Outer Space Treaty and the Liability Convention, these instruments apply only to activities in outer space and do not clearly extend to stratospheric operations. As such, VHA platforms remain in a regulatory gap between aviation and space law.

There is growing recognition among Israeli policymakers and legal scholars of the need to codify a national legal framework for space activities, which may also include VHA operations. Such a framework would ideally define the legal status of stratospheric platforms, establish licensing and oversight mechanisms, and clarify liability and insurance obligations. This is particularly urgent as Israel expands its commercial and defence-related use of near-space technologies.       

Israel’s engagement with space activities is governed by a combination of international obligations, general domestic law and sector-specific regulatory frameworks. While Israel does not yet possess a comprehensive national space law, its legal and institutional infrastructure provides a certain yet currently partial foundation for the expansion and commercialisation of space technologies.

Israel is a signatory to key international treaties governing outer space, including the 1967 Outer Space Treaty, the 1968 Rescue Agreement and the 1972 Liability Convention. These instruments impose obligations on Israel regarding the peaceful use of outer space, liability for damage caused by space objects, and the rescue and return of astronauts and space objects. Israel reaffirmed its commitment to these principles by signing the Artemis Accords in 2022, thereby aligning itself with emerging norms for sustainable and co-operative lunar and deep-space exploration.

Israel’s space sector is currently undergoing a measured yet accelerating transformation, characterised by the growth of private sector entities, commonly referred to as “NewSpace” start-ups, actively engaged across multiple segments of the commercial space industry, with many of them developing dual-use (civilian and military) or dual-value (space and terrestrial) applications. These segments include the following.

• Space infrastructure: this refers to the essential physical assets and technological systems required to support space exploration, scientific research and commercial applications. Such infrastructure encompasses launch facilities, ground stations, satellite components and other mission-critical hardware and software.
• Communications and navigation: Israeli entities are developing and deploying satellite-based technologies designed to facilitate high-bandwidth data transmission, secure signalling, geolocation services and dynamic movement tracking for terrestrial and orbital platforms.
• Earth observation: leveraging remote sensing technology, start-ups are collecting, processing and analysing geospatial data to support use cases in environmental monitoring, maritime monitoring, climate research, agricultural optimisation, urban planning and national security.

These activities are governed by general administrative law, civil aviation regulations and international legal obligations. At present, there is no comprehensive national space law in force; however, existing frameworks – such as licensing under the CAAI (where relevant), export control regulations, communications and frequencies-related licences and others – operate as de facto regulatory mechanisms. The absence of sector-specific legislation governing healthcare, life sciences, agri-food, mobility, energy and environmental applications in outer space presents both regulatory flexibility and a legislative opportunity.

The absence of restrictive laws presents an opportunity for Israel to develop a flexible and innovation-friendly legal framework that supports cross-sectoral applications of space technology.

Currently, Israel is actively considering the development of national space legislation that would likely codify licensing procedures for launches and satellite operations, define liability and registration obligations, align domestic law with international standards and encourage private sector participation and foreign investment. Such legislation would mirror similar legal frameworks while preserving Israel’s agility in adapting to emerging technologies and commercial models.

Israel is a party to several foundational treaties governing space activities, including the 1967 Outer Space Treaty, which entered into force for Israel on 1 March 1977. The Outer Space Treaty obliges Israel to conduct space activities with due regard to the interests of other states, and to avoid harmful interference with their space operations. Article IX of the Outer Space Treaty specifically requires states to avoid harmful contamination and interference, and to consult with other parties when activities may cause potentially harmful effects.

Israel also signed the Artemis Accords in January 2022, reinforcing its commitment to responsible behaviour in space, including transparency, interoperability and sustainable practices.

In addition, Israel participates in the United Nations Committee on the Peaceful Uses of Outer Space (COPUOS) and has signed co-operation agreements with the United Nations Office for Outer Space Affairs (UNOOSA) to promote responsible use of satellite technology for humanitarian and environmental purposes.

Israel does not yet have a dedicated national space law that codifies non-interference.

Israel is a party to the foundational space treaties that shape operator responsibilities under international law:

• 1967 Outer Space Treaty (entered into force for Israel on 1 March 1977);
• 1968 Rescue Agreement (19 December 1969); and
• 1972 Liability Convention (23 June 1977).

These treaties impose obligations on Israel to ensure that national space activities – whether conducted by governmental or non-governmental entities – are carried out with due regard to the interests of other states, avoid harmful contamination and ensure international responsibility and liability for damage caused by space objects.

Operators’ responsibilities are governed through a combination of administrative, aviation and defence regulations. For example, operators involved in satellite development, launch or operation – such as IAI and ImageSat International – must comply with defence export controls, cybersecurity protocols and national security restrictions on Earth observation data.

While Israel has not enacted binding legislation on environmental or debris mitigation, it acknowledges international best practices through, for example, alignment with UN COPUOS guidelines on long-term sustainability.

Israel has begun integrating environmental, social and governance (ESG) principles into its space ecosystem through the Impact Nation Initiative, which funds companies embedding ESG evaluations into their reporting processes, and through the ESG initiatives of the Israel Securities Authority and the Tel Aviv Stock Exchange for publicly traded companies.

Protection of national interests is central to Israel’s space governance model. Activities that pose risks to national security, foreign relations or critical infrastructure are subject to review and may be excluded from authorisation.

Israel has a robust set of laws and regulations governing privacy, including personal data, backed by a constitutional right to privacy under the Basic Law: Human Dignity and Liberty, an omnibus privacy and data protection law (the Protection of Privacy Law, 5741-1981), data protection and security regulations, industry-specific laws, regulatory directives and case law.

To date, the processing of personal data in relation to space activities has not been addressed, and there is no Israeli law or regulation specifically addressing data protection associated with space activities. However, Israel’s space sector is not immune from the need to comply with comprehensive data protection and cybersecurity frameworks that align with both domestic requirements and international regulations and standards.

In Israel, there is no dedicated statutory regime governing “space data spaces” as a distinct legal category, but Israel is involved in international space data sharing and co-operation. For example, NASA and the ISA have a strong history of collaboration in space, including agreements for data sharing and joint missions. This collaboration extends to various projects and to areas like radiation protection technology, with NASA testing an Israeli radiation vest for potential use in space missions, analysing scientific data from joint missions, providing access to deep space networks, and promoting space education and exploration.

NASA will provide the launch for Israel's ULTRASAT telescope and will have access to the data gathered by the satellite's observations. ULTRASAT will be launched into geostationary orbit, enabling constant communication with Israel and providing a wider view of the universe to detect transient events. NASA and the ISA collaborated on the SpaceIL Beresheet lunar missions by granting SpaceIL access to NASA’s Deep Space Network for communication and attempting to capture images of the spacecraft during landing. Israel has signed the Artemis Accords, joining the international collaboration in NASA's efforts to return humans to the Moon and eventually Mars. NASA and the ISA are identifying Israeli technologies that may be included in the Artemis programme. NASA is also establishing a data node at Tel Aviv University to collect data unique to Israel, such as regional model outputs and historical reports. Researchers will be able to request and receive data, and the centre aims to facilitate community data sharing.

The ISA co-operates with ESA as well. In January 2011, the two agencies signed a co-operation agreement aimed at, inter alia, mutually improving their technological know-how and industrial efficiency.

Furthermore, in April 2024, in a landmark move to strengthen Israel’s space ecosystem, the ISA signed a strategic co-operation agreement with Space ISAC, a national co-ordination body serving as a hub for information security and cyber services for the private and public sectors. The agreement’s core objective is to enhance national capabilities in space by aligning research, development and innovation efforts. The agreement facilitates the advancement of opportunities in the field of cyber in space, including research and development of technologies.

Data governance requirements for space activities encompass several key areas, such as:

• the secure storage and transmission of Earth observation data;
• the protection of satellite command and control communications;
• the safeguarding of proprietary technical data;
• securing hosted and transmitted data to protect commercial confidentiality and classified information; and
• lawful management of personal data collected through space-based services.

Essential elements of a cybersecurity framework for space activities include conducting security and data protection impact assessments for high-risk activities, assigning dedicated professionals, embedding technologies, defining systems’ architecture subject to security-by-design and privacy-by-design requirements, and putting suitable measures and controls in place to secure hosted and transmitted data.

A space-related activity conducted by a “public body” as defined under the Law for Regulating Security in Public Bodies, 5758-1998 (equivalent to some extent to “critical infrastructure”) would be subject to the cybersecurity supervision and guidance of the Israel National Cyber Directorate.

Satellite-based telecommunications services are subject to cybersecurity duties as part of their licence scheme under the Communications Law (Telecommunications and Broadcasting), 5742-1982 and decrees of the Communications Ministry. Pursuant to amendments adopted on 12 May 2022, Israeli telecommunications licences were supplemented with a mandatory Cybersecurity Annex (“Cyber Annex”). This regulatory instrument imposes enhanced obligations aimed at ensuring operational resilience, data privacy and preparedness for cybersecurity incidents. The Cyber Annex draws upon the National Cyber Directorate’s Cyber Defense Doctrine and aligns with both Israeli regulatory standards and international cybersecurity norms.

Key provisions include the following.

• Cyber Protection Program Requirement Licensees must:
1. implement a formal cyber protection programme to ensure continuity of services during cyber incidents, limit disruptions to service delivery and safeguard subscriber privacy;
2. implement a three-phase operational framework for planning and prevention that includes risk mapping, penetration testing and security audits of outsourced data storage providers;
3. undertake implementation and monitoring, which requires simulation exercises and ongoing event detection and response monitoring; and
4. deploy structured response procedures for cyberattacks, for incident management and recovery.
• Board accountability: the licensee’s board of directors must approve the cyber protection plan annually, review threat assessments and receive reports on incident detection, remediation progress and post-event analysis.
• Internal governance: licensees must appoint a Steering Committee chaired by the CEO to oversee cybersecurity functions, and must designate a Cybersecurity Officer responsible for compliance with the Cyber Annex.
• Procedural requirements: licensees are required to implement detailed procedures covering access control and user account management, cloud services use, procurement and vendor management, incident preparedness and crisis handling.

Certain requirements are conditioned by the licensee’s size.

Additional cybersecurity requirements may also apply pursuant to additional industry-specific directives and regulations, such as the Legal Opinion 105-33 of the Israel Securities Authority on cybersecurity, which applies to all publicly traded companies.

There are no specific national laws and regulations addressing environmental protection and climate change in relation to space activities.

In terms of climate change impact, Israel has developed significant capabilities in Earth observation and climate monitoring through its satellite programmes. The Venus satellite collaboration with France focuses specifically on monitoring vegetation, soil conditions and climate impacts. Data from these missions supports environmental research and policy-making both domestically and internationally.

Sustainability measures extend to ground-based space activities as well. Launch facilities and testing sites must comply with Israel’s environmental protection law, which requires environmental impact assessments and the implementation of pollution prevention measures. The law mandates specific requirements for handling hazardous materials, including proper disposal procedures and emergency response protocols.

Israel has also integrated space-based climate monitoring into its national climate change adaptation strategy. Under the plan, the ISA will be involved in developing prediction capabilities for wildfires and urban heat sources, for example.

See 3.3 Operators’ Responsibilities.

There is no tax system designed specifically for space activities under Israeli laws and regulations. Space ventures will be subject to the Israeli tax legal schemes, such as corporations tax and VAT, while benefitting from tax deductions generated by governmental incentives for technological ventures and aimed at fostering innovation.

Israel’s taxation framework for space activities operates within the existing corporate tax structure while incorporating specific provisions for early-stage start-ups and ventures, including in the space sector. Significant tax incentives exist to foster technological innovation under the Encouragement of Capital Investment Law, which is designated to encourage capital investment and economic entrepreneurship that involves technological innovation and manufacturing activities located in national development areas for the following purposes:

• enhancement of production capacity;
• improving the business sector to compete in international markets; and
• creating a sustainable infrastructure of new job opportunities.

Space companies operating in Israel’s designated “Priority Areas” may qualify for reduced corporate tax rates. Research and development expenses related to space activities generally qualify for immediate deduction, and the Israeli Innovation Authority offers various incentive programmes to foster innovation and technological development across different sectors. These programmes provide financial support, guidance and assistance to Israeli companies, start-ups and entrepreneurs at various stages of development.

New Angels Law

In 2023, Israel enacted a tax reform law known as the new Angels Law, introducing three principal incentives designed to promote early-stage investment, cross-border acquisition and foreign credit access for Israeli technology enterprises. The first provision allows affluent individuals to defer tax liabilities – both capital gains and ordinary income – by investing in qualified Israeli start-ups. Tax payment is deferred until the investor disposes of the shares, and no tax is due if the company closes without an exit. While similar treatment existed under prior law, the new statute relaxes eligibility criteria to broaden access.

The second incentive provides a rollover relief for technology investors who sell shares in an Israeli R&D-focused start-up. Rather than paying immediate tax, investors may reinvest the proceeds in another R&D company within 12 months, up to a threshold of NIS5 million per company.

The third provision enables one Israeli tech company to acquire another and amortise the cost of share acquisition over five years for tax purposes. Unlike the prior framework, the new law permits post-acquisition mergers and treats the investment expense as deductible annually rather than only upon disposal, offering substantial tax relief and streamlining corporate consolidation.

The transfer of space assets, including satellites and related equipment, is subject to value-added tax (VAT) at the standard rate of 18% for domestic transactions. Exports of space technology and services are typically zero-rated for VAT purposes.

Israel’s space sector has experienced certain growth in private investment and financing activities, particularly in the NewSpace ecosystem. As of 2025, private investment in Israeli space companies is gradually increasing, mainly due to private initiatives such as the Creation Space Expand programme for start-ups, backed by investments made by Creation VC.

The IIA has offered certain grants for space technology development, including dual-use technologies that serve both commercial and national security interests.

Currently, the large majority of finance for space activities comes from private actors, including individual investors and local and international venture capital funds.

Governmental financing for the space sector includes grants from the IIA and the government’s New Strategic Plan for Advancing the Israeli Civilian Space Industry published in 2022, with the aim, inter alia, to double the number of space companies in Israel.

Israel’s approach to attracting investment in space activities is built on a multi-tiered framework combining strategic public funding, targeted tax incentives, venture capital mobilisation and public-private partnerships (PPPs). While Israel does not yet have a dedicated space economy law, its national innovation infrastructure and statutory frameworks provide a robust foundation for commercial space development.

The ISA launched a five-year strategic plan (2022–2027) committing NIS600 million (USD180 million) to support the civilian space industry. The plan includes:

• establishing a National Space Data Centre;
• funding annual satellite launches to low Earth orbit for technology demonstration;
• expanding the Tevel satellite education programme; and
• supporting the SHALOM hyperspectral satellite mission in partnership with Italy.

The ISA also collaborates with the IIA and the Telem Forum to develop infrastructure for small satellite R&D and access-to-space services.

Israel offers a range of R&D incentives through the Law for the Encouragement of Industrial R&D Innovation, 5744-1984 and the Preferred Technology Enterprise (PTE) regime.

The new 2023 Angels Law provides tax deferral and credit mechanisms for early-stage investments in R&D-intensive start-ups, including space tech ventures.

These incentives are designed to de-risk early-stage investment and encourage private capital formation in the hi-tech sectors, including space.

Israel’s space-tech ecosystem is supported by the following specialised venture funds and accelerators:

• Earth & Beyond Ventures launched a USD125 million fund to invest in Israeli space start-ups, backed by global corporations and the IIA;
• Creation-Space operates the Expand accelerator programme in Mitzpe Ramon, offering up to USD250,000 per company and technical bootcamps for deep-space technologies; and
• Moon2Mars Ventures is Israel’s first dedicated space-tech VC fund, focusing on dual-value technologies in robotics, telehealth, agri-tech and AI.

These entities operate under equity participation models and maintain partnerships and co-operation with US and European institutions and private entities, including investors and grantors.

Israel actively promotes public-private partnerships (PPPs) in space through:

• the Rakia Mission, a landmark PPP enabling Israeli start-ups to conduct experiments aboard the ISS, including, for example, the Space Hummus project, aimed at proving greenhouse capabilities, using advanced synthetic biology and optogenetics, in support of chickpea growth on future space settlements;
• government and philanthropists’ support for deep-space ventures in the Negev Desert, with incentives for companies relocating to Mitzpe Ramon; and
• participation in Horizon Europe and bilateral R&D agreements with the EU, US and other countries.

The ISA also supports international co-operation through joint missions and membership in global space organisations.

Under the Encouragement of Knowledge-Based Industry Law (Temporary Provision), 5783-2023, Israel provides foreign financial institutions with a tax exemption on income derived from interest and discount fees generated by lending to Israeli R&D companies. This exemption applies to qualifying loans issued directly to Israeli hi-tech entities, with the intention of reducing cross-border financing costs and fostering increased capital flow into domestic innovation sectors. The law aims to align Israel’s tax regime with international investment standards while promoting technological growth through strategic foreign institutional participation.

Fundraising for Israeli NewSpace ventures generally adheres to conventional start-up financing practices, including the preparation of a comprehensive business plan, detailed financial projections and standard legal instruments such as articles of incorporation, shareholder agreements, board resolutions, option plans (ESOP), various agreements, capitalisation tables, etc. Specific space-related documents may include:

• Preliminary and Critical Design Reviews (PDRs and CDRs);
• licences and regulatory submissions and registrations;
• space-specific agreements – eg, launch services agreements; and
• Technology Readiness Level (TRL) Assessments.

Investing in an Israeli venture, including in the space sector, typically begins with a comprehensive due diligence process designed to assess the company’s legal, financial, technological and operational integrity. This process is essential for mitigating risk and validating the venture’s readiness for investment. Investors – whether venture capital firms, angel investors or institutional backers – initiate the review by requesting access to a secure data room containing corporate documents, cap tables, IP assignments, financial statements, contracts and regulatory filings. The goal is to ensure that the company is properly incorporated under Israeli law, that its equity structure is sound, that its governance complies with shareholder agreements and the Articles of Association, and that there are no substantial commercial risks.

Financial Due Diligence

The financial due diligence focuses on evaluating the venture’s burn rate, revenue model, historical funding rounds and compliance with Israeli tax regulations, including Section 102 option plans. Simultaneously, technological due diligence assesses the maturity of the product, intellectual property ownership and alignment with market needs. Space ventures typically encompass deep-tech or defence-adjacent technology. Investors may also examine export control compliance and dual-use technology disclosures. As many start-ups receive government grants from the IIA, the review includes obligations tied to such funding, like IP restrictions or repayment clauses upon exit.

Legal Due Diligence

Legal due diligence involves scrutinising employment agreements, founder vesting schedules, non-disclosure agreements and any outstanding litigation or liabilities. Investors also evaluate commercial contracts for termination clauses, change-of-control provisions and exclusivity terms. Strategic considerations include the venture’s go-to-market plan, competitive landscape and scalability potential. For foreign investors, particular attention is paid to regulatory compatibility, such as licensing or Ministry of Communications approvals. Ultimately, the due diligence process in Israel is not just a risk assessment but is rather a strategic gateway to understanding the start-up’s long-term viability and alignment with global investment standards.

Liquidity events within Israel’s space-tech ecosystem generally follow conventional corporate exit pathways such as mergers, acquisitions and public offerings, albeit shaped by sector-specific dynamics and national strategic priorities.

Key considerations in Israeli space-related liquidity events include compliance with defence export controls and intellectual property transfer restrictions (especially when IIA funding is involved). These factors often necessitate additional legal review and government notifications, particularly when foreign entities seek controlling stakes in companies with dual-use technologies or satellite capabilities.

Moreover, liquidity planning in Israel’s space sector is influenced by the country’s emphasis on strategic autonomy and international collaboration. Transactions may incorporate milestone-based earnouts tied to orbital deployment, payload integration or regulatory approvals. While IPOs remain rare, secondary sales and structured buyouts involving multinational aerospace firms or sovereign-backed venture funds do exist.

While private equity remains the dominant funding channel for NewSpace start-ups, public markets may offer access to additional capital, enhanced liquidity and valuation transparency, particularly for companies transitioning to revenue-generating operations.

However, very few space-related companies are listed in the Tel Aviv Stock Exchange, while some prefer to migrate to foreign exchanges, or to dual-listing.

The intersection of intellectual property rights and space activities presents unique challenges under Israeli law, particularly regarding the territorial nature of patent protection versus the borderless realm of outer space. Israel’s Patent Law 5727-1967 provides the primary framework for protecting space-related innovations, but its application becomes complex when inventions are used or created in orbit.

Israeli patent law follows the territorial principle, meaning patents are only enforceable within Israel’s jurisdiction. Although Israeli ventures would pursue patent protection in various relevant territories (typically in the US and EU), space activities still often transcend traditional territorial boundaries, creating uncertainty about patent enforcement for inventions used in space.

The protection of space-related inventions in Israel requires careful consideration of several factors. First, inventions must meet the standard patentability criteria of novelty, inventive step and industrial applicability. Second, inventors must consider the timing of patent applications, as public disclosure of inventions during space missions could affect patentability. Third, special attention must be paid to collaborative international space projects, where multiple jurisdictions may be involved.

Enforcement challenges are particularly acute in the space sector. The Israeli courts and the Israel Patent Office (ILPO) have limited precedent in handling space-related patent disputes, and the complexity of determining jurisdiction and applicable law in space-based patent infringement cases remains a significant challenge. In addition, the dual-use nature of many space technologies requires careful navigation of both civilian patent law and military security considerations.

To address these challenges, Israeli space operators typically rely on comprehensive contractual arrangements that include detailed intellectual property provisions. These agreements often incorporate choice of law clauses and specify mechanisms for resolving intellectual property disputes.

Israel maintains a robust intellectual property regime that aligns with international standards and supports innovation across hi-tech sectors, including space technologies. The ILPO, under the Ministry of Justice, administers patent registration and examination. Patent protection is available for inventions that meet the statutory criteria of novelty, inventive step and industrial applicability, and is granted for a term of 20 years from the filing date.

Israel is a contracting state to the Patent Cooperation Treaty (PCT), allowing inventors to file international patent applications through the ILPO as a receiving office. This facilitates multi-jurisdictional protection for space-related inventions, particularly in countries involved in launch, manufacturing or distribution activities. Israeli law also permits modified examination based on corresponding foreign patents.

Israel’s participation in the Artemis Accords (signed in 2022) further reinforces its commitment to developing frameworks for intellectual property protection in outer space. Section 2.1(b) of the Accords encourages signatories to establish national mechanisms for safeguarding IP rights in extraterrestrial environments.

Collaborations between local and foreign space-related entities, agencies and institutions often result in joint ownership or co-ownership of intellectual property, governed by contractual arrangements. The IIA requires grant recipients to retain IP ownership, subject to certain conditions. Licensing, commercialisation and IP transfer agreements must comply with Israeli law and, where applicable, export control regulations.

Patent disputes in Israel are adjudicated by district courts, which serve as courts of first instance for IP litigation. While Israel lacks a specialised patent court, judges with IP expertise preside over such matters. Enforcement mechanisms include injunctions, damages and delivery-up orders, with damages awards being available in cases of infringements.

Alternative dispute resolution, including arbitration and mediation, is increasingly agreed in space-related contracts, including in relation to IP disputes, especially those involving international parties.

Israeli laws do not include any specific rules relating to the enforcement of IP rights in space.

Israel’s approach to space-related dispute resolution reflects the complex international nature of space activities while maintaining consistency with domestic legal frameworks. Arbitration agreements in space contracts typically specify either Israeli law (typically in a contract between two Israeli entities) as the governing law or a relevant foreign law when engaging a foreign entity, with most commercial space international contracts including mandatory arbitration clauses designating a known international arbitration institute such as the International Chamber of Commerce or the London Court of International Arbitration as the preferred forum.

To date, there are no published documented arbitration cases between space-related investors and the state.

Israel’s participation in the legal framework governing outer space is anchored in its accession to principal international agreements, notably the 1967 Outer Space Treaty, the 1968 Rescue Agreement and the 1972 Liability Convention. These instruments codify essential doctrines concerning sovereign accountability, reparations for harm resulting from space objects, and the assertion of jurisdiction over national space operations. While Israel has not enacted a comprehensive domestic space law, its regulatory framework is shaped by treaty obligations, administrative directives and sector-specific legislation.

With the rise of NewSpace ventures, private sector participation has accelerated in areas such as satellite communications, Earth observation and orbital R&D platforms. This shift introduces enhanced litigation risks, particularly in the context of commercial contracts, insurance coverage and intellectual property. Arbitration is typically favoured for resolving disputes among private entities, especially where cross-border transactions or technology transfers are involved.

Space-related litigation in Israel may include commercial and insurance disputes, cybersecurity-related actions, licensing and regulatory violations, and indemnity actions by the state following paid compensation under the Liability Convention.

As Israel’s space economy matures, judicial institutions are expected to play a more active role in adjudicating regulatory compliance, enforcing licensing conditions and interpreting treaty obligations. The convergence of public and private interests, alongside increased international collaboration, will likely expand the litigation landscape in both administrative and civil forums.