Steven Schell
JERUSALEM, Dec 28 (Reuters) – Requests from Israelis working for Israeli-run multinational companies to emigrate have increased in the past year as Israel waged a two-year war against the Palestinian militant group Hamas, a report showed on Sunday.
The Israel Association of Advanced Technology Industries (IATI) found that 53% of companies reported an increase in relocation requests from Israeli employees, noting that “over time, this trend could harm local innovation engines and Israel’s technology leadership.”
The technology industry accounts for approximately 20% of Israel’s GDP, 15% of its employment opportunities, and more than half of its exports. Israel is home to hundreds of multinational companies, including Microsoft, Intel, Nvidia, Amazon, Meta and Apple.
IATI also said in its annual report that some multinational companies are looking into shifting investments and activities to other countries.
“In some cases, companies facing supply chain disruptions found alternatives outside of Israel during the war, and when these solutions proved effective, there was a risk that activity would not fully resume,” said the report, released at a conference chaired by IATI CEO and President Karin Mayer Rubinstein.
At the same time, it added, there has been an increase in relocation needs for senior managers and families, with more employees applying for positions outside Israel.
Nonetheless, the report noted that multinational companies took a long-term view of the Israeli tech ecosystem, with many companies thriving during the war.
Some 57% of companies maintained stable business activity throughout the fighting and 21% expanded their operations in Israel, “a figure that demonstrates confidence in local activity and the Israeli ecosystem even in the face of uncertainty,” IATI said.
Another 22% of companies reported that business activity was harmed during the war, which was sparked by Hamas’ attack on Israel on October 7, 2023, and ended with a US-led ceasefire two months ago.
“Even during a difficult war, the Israeli high-tech industry, including the multinational companies operating in Israel, has once again proven its resilience and ability to lead innovation and creativity,” Rubinstein said. “We work tirelessly to ensure that Israel continues to be an attractive center for multinational corporate activity.”
IATI noted that “if countries do not take proactive steps to establish regulatory and geopolitical stability, there are concerns that the stability of local ecosystems will gradually be eroded.”
(Reporting by Steven Schell; Editing by David Holmes)
