The bill, backed last month by parliament, allows companies approved by the health regulator and police to export medical cannabis to countries that permit its use. Israeli media said exports could start in as little as nine months.
"I am glad this is finally happening. It opens a very big market in Israel. The technology is here in Israel and until now we simply had to give the technology to other countries. Therefore, I am glad we can reap the profits here in Israel," said Justice Minister Ayelet Shaked.
Some lawmakers had tried to block the legislation, fearing more cultivation could push more drugs onto the streets at home.