Israel is among the top 10 destinations for Ukrainian IT exports

Ukrainian IT exports in May 2026 showed an important picture for the economy: there is a monthly decline, but it cannot be said that the sector has failed.

According to data cited by Ukrainian industry publications with reference to NBU statistics, in May, the export of computer services from Ukraine amounted to $560 million. This is $18 million, or 3.1%, less than in April 2026, when the figure was $578 million. However, in a year-on-year comparison, the result was better: in May 2025, Ukrainian IT exports amounted to $545 million, meaning this May is approximately $15 million higher.

The main news for the Israeli audience is different: Israel entered the top 10 destinations for Ukrainian IT exports.

In May 2026, Ukrainian computer services were exported to Israel for $19 million. This is not the level of the USA, which remains the main market for Ukrainian IT, but it is no longer a random figure and not a small episode in the statistics.

What May 2026 showed

The top 10 countries buying Ukrainian IT services in May included:

This structure shows that Ukrainian IT still relies on large Western markets, primarily the USA. But Israel is particularly interesting in this table because it is not just another external customer. Israel itself is one of the most technologically advanced economies in the world, with a strong engineering school, a developed cyber sector, startups, defense technologies, medical developments, and high standards for contractors.

If Israel buys Ukrainian IT services for $19 million a month, it means that Ukrainian teams remain competitive even in a market where the buyer understands the cost of development, engineering quality, security risks, and project deadlines.

In the first five months of 2026, Ukrainian IT exports reached $2.782 billion. This is $98 million, or 3.7%, more than in the same period in 2025, when the figure was $2.684 billion. Thus, the May decline compared to April looks not like a collapse, but as a fluctuation within the overall positive trend.

Why Israel is important for Ukrainian IT

At first glance, $19 million may seem like a small amount against the backdrop of the total May export of $560 million. But in share, this is about 3.4% of the total Ukrainian IT exports for the month.

For Ukraine, this is already a noticeable market.

If the May figure is recalculated into an annual rate, it amounts to about $228 million a year of Ukrainian IT services to Israel. Of course, one month cannot be mechanically turned into an annual forecast, as service exports fluctuate from month to month. But such a calculation helps to understand the order of magnitude: we are talking not about symbolic contacts, but about hundreds of millions of dollars annually.

In the first quarter of 2026, Israel was already in the top 5 buyers of Ukrainian IT services: at that time, the volume of computer services exports from Ukraine to Israel amounted to $67 million. In May, Israel was in the top 10 with a figure of $19 million, confirming that the direction remains stable, although the ranking position may change monthly.

For the Israeli audience, NAnews — Israel News | Nikk.Agency this figure is important not only as economic statistics. It shows a real, not declarative, connection between Israel and Ukraine: the Israeli market uses Ukrainian engineering expertise, and Ukrainian IT continues to earn foreign currency even in conditions of war, mobilization, team relocations, energy risks, and high uncertainty.

How significant is this for Israel itself

To understand the scale, it is necessary to compare not only with Ukrainian exports but also with the size of the Israeli technology market.

According to Mordor Intelligence, the ICT market in Israel in 2026 is about $55.01 billion and could grow to $63.64 billion by 2031. It is separately noted that the IT services segment is growing faster than the overall market — by about 4.32% per year until 2031.

The US Department of Commerce gives a similar estimate: the Israeli ICT market was estimated at about $52.39 billion in 2024, expected to be at the level of $54.22 billion in 2025, and could reach about $63.99 billion by 2030.

Against the backdrop of the entire Israeli ICT market, Ukrainian $19 million a month is a small share. If calculated at an annual rate of about $228 million, this is approximately 0.4% of the ICT market in Israel, which is about $55 billion.

But this does not make the figure insignificant.

The Israeli market is huge, saturated with its own companies and international suppliers. To enter the top ten destinations for Ukrainian IT exports in such a market means to withstand competition not only by price but also by competence. Especially in areas where Ukraine has strengthened its positions in recent years: software development, cybersecurity, fintech, cloud solutions, data engineering, AI tools, defense tech, and business products.

There is another benchmark. According to WITS/World Bank data, Israel’s service imports in 2023 amounted to about $46.87 billion, and the category of computer, communications, and other services accounted for about 59% of commercial service imports. This means that a wide group of computer, communication, and related services in Israeli imports is measured in tens of billions of dollars.

Against this background, Ukrainian IT services do not dominate but already occupy a visible place.

What this means for Ukraine

For Ukraine, IT remains one of the key sources of foreign currency revenue. In May 2026, the share of computer services in total service exports was 39.4%. The total export revenue of all services in Ukraine for May reached $1.421 billion, meaning IT continues to occupy a very large part of the country’s service exports.

But there is also a worrying signal.

Ukrainian IT no longer grows “on its own,” as it did in the fastest years. The market has become tougher, customers more cautious, competition higher. The war creates additional risks: issues of work continuity, data security, specialist availability, contract insurance, and infrastructure resilience.

Therefore, entering and maintaining such markets as Israel is of strategic importance.

Israel is not just about money. It is access to a technological environment where speed, flexibility, engineering discipline, and the ability to work with high-complexity tasks are valued. For Ukrainian companies, this is an opportunity to establish themselves in niches that provide higher added value, rather than competing only as “cheap outsourcing.”

Conclusion

Israel is not the largest buyer of Ukrainian IT. The main market remains the USA, which in May purchased Ukrainian computer services for $208 million.

But Israel is already part of a group of notable destinations. $19 million a month and a place in the top 10 is an indicator of trust in Ukrainian developers in one of the most demanding technology markets in the world.

For Ukraine, this is economic support, foreign currency revenue, and confirmation of the IT sector’s competitiveness.

For Israel, it is access to strong Ukrainian engineering teams that continue to work, provide services, and develop international projects even in wartime conditions.

That is why this statistic is more important than it seems at first glance: it shows that the Ukrainian-Israeli technological connection exists not only in statements, conferences, and diplomatic formulations but in real contracts, money, and company work.