The Israeli Ministries of Health and Finance will consider legalizing the export of medical cannabis, allowing farmers in the country to export $1 billion worth of medical cannabis annually.

The Israeli agricultural ministry recently announced medical cannabis will be classified as a farming sector, entitling cannabis cultivators to grants, water quotas, support, and training in cannabis growing. The country is now taking the issue a step further and intends to become more involved with medical cannabis exports. Currently, companies are only allowed to export medical technology for cannabis.

Israel is also home to Prof. Mechoulam of the Hebrew University, who is considered the father of medical cannabis. Mechoulam began his research in Israel in the 1960s and was the first scientist in the world to identify THC, the chemical compound responsible for a euphoric high, as well as other compounds.

Since then, the use of cannabis for medical purposes has slowly gained popularity in the country and the ministry has been encouraging cannabis-related research to make progress in killing cancer cells, healing brain damage and more medical uses. Israel is one of the few countries that allows medical cannabis to be tested in clinical trials on humans.

As part of its involvement, the ministry has also recently announced it will invest $2.13 million to finance 13 biochemical studies.

“There is significant demand for Israeli cannabis,” Clifton Flack, CEO and co-founder of Israeli cannabinoid company CIITECH said at a recent cannabis conference in Israel. “We’ve been talking about this country as the epicenter of research for a number of years.”

Israel is considered to be one of the first movers in the cannabis industry, progressing with its research and technology. Attorney Yoav Etzyon, a partner at law firm APM & Co., said Israel has very good experience at enabling new ecosystems.

In order to allow its domestic medical cannabis industry to grow and local startups to enter the market, Israel will have to legalize the export of medical cannabis and invest internationally. According to government officials, over 500 companies in Israel have already submitted applications for licenses to grow, manufacture, and export cannabis products.

Startup Syqe Medical is one of the new startups working in the cannabis field that developed a 3D-printed, hand-held cannabis inhaler that vaporizes granules of medical cannabis in small doses.

Another pharmaceutical company, Therapix Biosciences, has developed cannabinoid-based drugs for sublingual administration. The tablet is currently being tested and may cure impairments in cognitive functioning, such as Alzheimer’s and Tourette’s syndrome.

If the government allows for international exports, the medical cannabis economic benefits could be immense for the country.

Israeli parliament member Tamar Zandberg said, “This is an export Israel can be very proud of, because we stand at the forefront of technological, medical and cultural developments.”