On June 2, 2026, Israel formalized a partnership with the Inter-American Development Bank (IDB) by signing a letter of intent aimed at establishing two new investment funds. The initiative, linked to the Isaac Accords, is geared towards attracting both public and private investments in critical sectors such as agriculture, food security, water management, and technology in Latin America and the Caribbean.

The agreement was signed by Bezalel Smotrich, Israel's Finance Minister, and Ilan Goldfajn, the IDB president, during a ceremony at the Israeli embassy in Washington. Smotrich emphasized that this partnership leverages substantial Israeli government funds to stimulate investment in countries that support the accords.

Initially launched in November 2025, the Isaac Accords aim to foster economic cooperation between Israel, the United States, and Argentina, mirroring the success of the Abraham Accords in the Middle East.

The proposed funds will focus on areas where Israeli technology can make a significant impact, thus enhancing sustainable economic growth in the partner nations. Smotrich highlighted the importance of these sectors, explaining that they align with Israeli expertise and innovations.

The IDB's extensive experience and strong investment ratings position it well to facilitate these investments, making them beneficial for both Israel and the Latin American countries involved. The fund is designed to become self-sustaining, reducing reliance on continual government support while maximizing the positive economic impact in the region.

This collaborative effort reflects Israel's broader strategy to strengthen economic ties in Latin America while providing viable development solutions in partnership with local governments and industries.