Israel Cannabis Industry 2019

This page was last updated on March 4, 2019

CANNABIS: Israelis have long played important roles in the study of cannabis: THC and CBD were first isolated by Israeli scientists Raphael Mechoulam, of the Hebrew University in Jerusalem's Center for Research on Pain, and Yechiel Gaoni, of the Weizmann Institute, in 1964. Since then Israel has become a center for medical marijuana research -- which largely revolves around CBD and THC. Both the government and academia have actively participated for decades in cannabis research.

CBD and THC-containing cannabis was prohibited, technically, by Israel’s Dangerous Drugs Ordinance (New Version), 5733-1973. However, amendments since the early 1990s permitted possession of the plant or its derivatives for "authorized pharmacists, physicians, veterinarians, and persons who received the drugs from authorized medical professionals."

They were allowed to prescribe and dispense cannabis derivatives for treatment of cancer, chronic neuropathic pain, post-traumatic stress disorder, colitis, Parkinson’s, epilepsy, HIV/AIDS, Crohn’s disease, multiple sclerosis, Tourette’s syndrome, and terminal illnesses.

Today, an estimated 38,000 persons in Israel have medical marijuana prescriptions, requiring from ten to 14 tonnes of cannabis annually. Israel's illicit (or 'recreational') cannabis market, on the other hand, consumes perhaps ten times that amount.

Meanwhile, medical marijuana demand in Israel alone is expected to grow in the near future to cover as much as 170,000 patients, requiring up to 90 tonnes yearly.

The procedure for obtaining medical and research licenses for cannabis in Israel can be found at this link

In March 2017, Israel's parliament joined those of the Netherlands, Mexico, Czech Republic, Costa Rica and Portugal in decriminalizing recreational marijuana so that only fines are issued to first (US$250) and second (US$500) offenders, with no criminal prosecution.

Then, on December 25, 2018, Israel's Parliament (the "Knesset") passed the 16th amendment to the Dangerous Drugs Ordinance, allowing for export of medical marijuana. Following that vote (and facing re-election), the Minister of Internal Security, Gilad Erdan, who had previously opposed the amendment, gave his approval.

Ever ready to take the lead in new technologies and products with which to shape mankind's future, Israel has over 70 startups developing cannabis-related technology and products, most founded in only the last few years; and enthusiasm is growing. In a January funding round, Tel Aviv-based cannabis inhaler company Syqe Medical Ltd. raised US$50 million. The same month, a delegation of Chinese businessmen and academic researchers in the fields of technology and agriculture visited the country especially to meet Israeli cannabis researchers and companies, especially those focused on pharmaceuticals and innovation.

Also in January, Ehud Barak -- one of Israel's most prominent men, the nation's most highly decorated soldier, former Israeli military chief of staff and Israel's tenth prime minister -- was appointed chairman of Israeli medical cannabis company InterCure Ltd., suggesting that, at least in Israel, no stigma attaches to cannabis anymore.

Israel’s leadership in the medical cannabis industry has not gone unnoticed by other governments in Asia. In February, a 20-person delegation from Thailand’s Ministry of Health and Government Pharmaceutical Organization visited Israel for meetings with Israeli cannabis companies to discuss potential cooperation in agriculture, cultivation and producing cannabis extracts.