Israels tech sector says more staff seek relocation abroad-report
JERUSALEM – Demands from Israelis working for multinational companies operating in Israel to move abroad increased last year in response to Israel’s two-year war against the Palestinian militant group Hamas, according to a report published Sunday.
The Israel Advanced Technology Industries Association found that 53% of companies reported an increase in relocation requests from Israeli employees, stating that this was “a trend that could, over time, harm the local innovation engine and Israel’s technological leadership.”
The technology sector accounts for approximately 20% of Israel’s GDP, 15% of its employment and more than half of its exports. Hundreds of multinational companies in Israel include Microsoft, Intel, Nvidia, Amazon, Meta and Apple.
INTERRUPTIONS IN SUPPLY CHAINS
IATI also stated in its annual report that they are examining the transfer of investments and activities of some multinational companies to other countries.
“In some cases, companies facing disruptions in their supply chains have found alternatives outside Israel during the war, and there is a risk that activity will not fully return when these prove effective,” said the report, released at a meeting led by IATI CEO and President Karin Mayer Rubinstein.
He added that there has also been an increase in relocation demand among senior executives and families, and more employees are applying for positions outside Israel.
Still, the report notes that multinational companies are looking at the Israeli tech ecosystem from a long-term perspective, and many firms were successful during the war.
TECHNOLOGY SECTOR ‘PROVES ITS DURABILITY’
About 57 percent of companies maintained stable business operations throughout the war, and 21 percent expanded their activities in Israel, a figure that “shows continued confidence in local activities and the Israeli ecosystem even under conditions of uncertainty,” IATI said.
Another 22% of companies reported damage to business operations during the war, which was triggered by a Hamas attack on Israel on October 7, 2023, and ended two months ago following a US-led ceasefire agreement.
“Even during the difficult war, the Israeli high-tech industry, including global companies operating in Israel, once again proved its resilience and ability to lead in innovation and creativity,” Rubinstein said. “We are working tirelessly to ensure that Israel remains an attractive center for the activities of multinational companies.”
IATI noted that “concerns exist about the gradual erosion of the stability of the local ecosystem unless active steps are taken by the state to create regulatory and geopolitical stability.”
This article was generated from an automated news agency feed without modifications to the text.
