The medical cannabis industry in israel
The Israeli Ministry of Health reports that after the announcement of the expected reform in the field of medical cannabis, and due to the legal possibility of conducting research and development, investments of NIS 100 million were made for research and development
In January 2019, the Israeli government approved the export of medical cannabis abroad.
The export of the products will be done at the quality level of medical cannabis – medical grade, similar to the accepted standards in the pharmaceutical world. This decision can enable Israel to set a global standard in the medical cannabis market, while ensuring safety, effectiveness, and higher quality.
Why invest in the Israeli cannabis market?
Israel has unique advantages in the medical cannabis market:
Research and development
The cannabis research procedure in Israel, which is unique to the world (in many countries including the United States, research of cannabis plant is prohibited), allows for the research of cannabis plant and clinical trials research requests by the Cannabis Research and Development Committee, which consists of experts from the fields of medicine, .
Due to this situation, along with the high level of medical, agricultural and biological research institutions, Israel is considered the world leader in cannabis research and development for medical use. Thus, for example, the central psychoactive substance in the cannabis plant, the THC, was first identified and isolated by Prof. Meshulam of the Hebrew University of Jerusalem, who won a Nobel prize in chemistry.
According to data from the Ministry of Health, as of August 2017, the Research and Development Committee had approved approximately 110 research requests, which are in various stages of implementation.
The Israeli Ministry of Health reports that after the announcement of the expected reform in the field of medical cannabis, and due to the legal possibility of conducting research and development, investments of NIS 100 million were made for research and development.
The existing assessment suggests that since the US and most of the countries in the world do not allow clinical trials of cannabis-containing substances, there is great potential for expanding the scope of the Israeli business in the amount of tens of millions of shekels annually.
Agricultural Technology
Israel is known worldwide for its groundbreaking innovation in the field of agriculture, and many countries in the world boast of integrating Israeli technologies into their agriculture. Since the growth of medical cannabis is high-tech, Israeli innovation is well integrated in increasing the quantity and quality of cannabis crops in Israel through innovative technologies in the field of irrigation, high – tech greenhouses, climate control and more.
The Manpower
Israel’s backbone is not its natural resources, but rather its quality manpower that has brought Israel to the forefront of success and innovation in the high-tech and agricultural fields. Medical cannabis cultivation is a field combining high-tech and advanced agriculture, two areas in which Israel has a reputation for excellence and proven experience, placing it in the forefront of the global cannabis market.
The Weather
The weather is a crucial component of agricultural crops in general, and of cannabis in particular. Cannabis cultivation is carried out in greenhouses or designated buildings for about three to four months, and due to the comfortable climatic conditions in Israel, it is possible to grow about 4 cycles a year.
In conclusion
It is safe to say that at present time, there is a window of opportunity in which Israel will be among the first countries in the world to export medical cannabis using its relative advantages in terms of growth, research and development and advanced regulation in order to capture a significant market share compared to other countries that may compete in the industry in the near future. In addition, since the global cannabis market is still in its design stages, the adoption of the Israeli clinical method and accompanying standards as an international standard can help Israeli exports lead the global market.
The export potential of medical cannabis in Israel is very wide and is estimated at between one billion shekels a year and several billion dollars a year. In addition, there is also an accompanying peripheral industry of research and development, clinical trials and related products for the cannabis industry.
Our office offers a variety of investment opportunities in various projects in the Israeli cannabis market.
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