On December 29, according to Reuters,Israel's two-year war with the Palestinian armed group Hamas has impacted the country's technology industry.Some multinational companies are considering shifting investments to other countries, and more and more employees want to work overseas.Israel's technology industry accounts for about 20% of its gross domestic product (GDP), provides 15% of the country's jobs, and contributes more than half of its exports.Israel is home to hundreds of multinational companies, including technology giants such as Microsoft, Intel, Nvidia, Amazon, Meta and Apple.
Tel Aviv, Israel in conflict
Enterprises and talents leaving the country
However, a report on Sunday showed that over the past year, more and more workers have begun applying to work overseas. A survey by the Israel Association of Advanced Technology Industries (IATI) found that 53% of the companies surveyed said that applications for overseas transfers from Israeli employees had increased. "This trend could, over time, undermine the local innovation engine and Israel's technological leadership," the association noted.
At the same time, IATI said in its annual report that some multinational companies are considering shifting investments and operations to other countries.
53% of multinational companies said more Israeli employees are applying to work abroad
"In some cases, companies that faced supply chain disruptions during the war have found alternatives outside Israel. Once these alternatives have proven efficient and feasible, there is a risk that these operations may not be fully reshored," the report said. The report was released at a conference by IATI President and CEO Karin Mayer Rubinstein.
Moreover, the report also pointed out that the demand for overseas transfers by executives of multinational companies and their families has increased.More and moreMore employees apply for positions outside Israel.
toughness
Nonetheless, the report highlights that multinational companies still take a long-term view of Israel’s tech ecosystem, andMany companies continued to grow during the war.
IATI said that about 57% of companies maintained stable business activities during the war, and another 21% even expanded their business in Israel. "This data shows that even under uncertain conditions, companies continue to maintain confidence in local business and the Israeli ecosystem."
Additionally, 22% of companies reported that their business had been affected by the war. The war began with Hamas's attack on Israel on October 7, 2023, and ended two months ago under a US-led ceasefire agreement.
"Even during difficult times of war, the Israeli high-tech industry, including multinational companies operating in Israel, once again proved its resilience and leadership in innovation and creativity. We work tirelessly to ensure that Israel continues to be an important hub for the business activities of multinational companies." IATI CEO Rubinstein said.
IATI also warned that "if the country does not take proactive measures to establish a stable regulatory and geopolitical environment, the stability of the local ecosystem may face the risk of gradual erosion."