Hollande, who is flatlining in polls at home, will also use his three-day visit to try to boost trade with the Jewish state, which stood at 2.3 billion euros (USD 3 billion) in 2011.
He is accompanied by the heads of Alstom, Arianespace and Vinci as well as French Foreign Minister Laurent Fabius, a key participant in talks on curbing Iran's nuclear programme which ended in deadlock last weekend.
Today he will meet President Shimon Peres and Prime Minister Benjamin Netanyahu, who has described the French president as "a close friend of the state of Israel."
"We are convinced that if Iran manufactures its bomb, all the countries of the Middle East will want to follow suit," the Israeli president told French weekly Le Journal du Dimanche.
Israel and Western powers suspect the Islamic republic's uranium enrichment programme is part of a covert drive to acquire a nuclear weapons capability, an allegation vehemently denied by Tehran.
The P5+1 group negotiating with Tehran is made up of the five permanent members of the UN Security Council - Britain, China, France, Russia and the United States - plus Germany.
Hollande's office said that although France's "tactical approach" on Iran was different from Israel's more bellicose stance, both seek to prevent Tehran from developing a nuclear weapon.
Tomorrow Hollande goes to the West Bank city of Ramallah for discussions with Palestinian president Mahmud Abbas.
French sources said he would encourage both sides to make the necessary compromises to overcome obstacles to US-brokered peace talks revived in July after a nearly three-year hiatus.
Hollande, accompanied by half a dozen of his ministers, will argue for a two-state solution to the Israeli-Palestinian conflict, with security guarantees for Israel to exist alongside a viable Palestinian state.
He will also visit the grave of Palestinian leader Yasser Arafat, who died in 2004 in a French hospital and who Swiss scientists recently said may have been poisoned with polonium.
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