The Israel Advanced Technology Industries Association (IATI) found that 53% of multinational companies reported an increase in relocation requests from Israeli staff. The association warned that this trend could eventually weaken Israel’s innovation engine and its global leadership in technology.
The Israeli tech sector contributes about 20% of the country’s GDP, provides 15% of jobs, and accounts for more than half of exports. Hundreds of global tech giants operate in Israel, including Microsoft, Intel, Nvidia, Amazon, Meta, and Apple.
Supply Chain Disruptions Spur Relocation and Investment Shifts
IATI’s annual report highlighted that some multinational firms are exploring the relocation of investments and business activities to other countries. Disruptions in supply chains during the conflict prompted companies to seek alternatives abroad, and in some cases, these proved efficient enough to risk not returning fully to Israel.
The report also noted a growing trend among senior executives and families seeking positions outside Israel, indicating that the desire to relocate is spreading across different levels of the workforce.
Tech Sector Demonstrates Resilience Despite Conflict
Despite these challenges, the report emphasized the resilience of Israel’s tech ecosystem. About 57% of companies maintained stable operations during the war, and 21% even expanded activities in Israel, signaling sustained confidence in the country’s innovation landscape.
“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,” said IATI CEO and President Karin Mayer Rubinstein. She added that the association continues to work to ensure Israel remains an attractive hub for multinational investment.
However, IATI cautioned that without active government efforts to enhance regulatory and geopolitical stability, the ongoing uncertainty could gradually erode the local tech ecosystem’s long-term stability.