I think I'll add a couple of Israeli names.
Shotei HaNevua (Prophecy Fools), though not quite my cuppa, have taken traditional Eastern Jewish songs, melodies and texts from sources like the Kabbala, and added guitars, electronic sampling, all sorts of things, as well as ouds, sarods and neys to the mix, with a sort of hippie feel. A bit like early Fairport meets the ISB meets Jewish mysticism.
Should appeal to anyone into world music or new age.

Not quite folk, and although they are splitting up, Algiers is a metal band based on Eastern and North African music. Accordions and fiddles meet distortion guitars. Fascinating stuff.