Israeli Tech Firms See Rising Relocation Requests as War Fallout Spurs Talent Concerns
GeokHub
Contributing Writer
JERUSALEM, Dec 28 (GeokHub) Israel’s technology sector is facing growing concern over talent retention, as a rising number of employees at multinational companies seek to relocate abroad following the country’s two-year war with Palestinian militant group Hamas, according to a new industry report.
The Israel Advanced Technology Industries Association (IATI) said 53% of multinational firms operating in Israel reported an increase in relocation requests from Israeli staff over the past year — a trend the group warned could, over time, weaken Israel’s innovation pipeline and technological leadership.
Israel’s tech industry is a cornerstone of the economy, accounting for around 20% of GDP, 15% of employment and more than half of exports. Hundreds of global companies operate in the country, including Microsoft, Intel, Nvidia, Amazon, Meta and Apple.
Supply Chain Disruptions and Investment Risks
In its annual report, IATI said some multinational firms are reassessing where they deploy capital and operations after disruptions caused by the war.
“In some cases, companies that faced supply chain disruptions found effective alternatives outside Israel,” the report said. “When those alternatives prove efficient, there is a risk that activity will not fully return.”
The report also highlighted a rise in relocation interest among senior executives and families, with more employees applying for roles outside Israel during the conflict.
Resilience Despite Uncertainty
Despite the challenges, IATI stressed that many global firms continue to take a long-term view of Israel’s tech ecosystem.
According to the report:
- 57% of companies maintained stable business operations throughout the war
- 21% expanded their activities in Israel
- 22% reported damage to business activity during the conflict
The war began on October 7, 2023, following a Hamas attack on Israel, and ended two months ago under a U.S.-brokered ceasefire.
“Even during the difficult war, the Israeli high-tech industry once again proved its resilience and ability to lead in innovation and creativity,” said Karin Mayer Rubinstein, IATI’s CEO and president.
Warning on Long-Term Stability
Still, IATI cautioned that resilience alone may not be enough to safeguard Israel’s tech dominance.
“Without active steps by the state to create regulatory and geopolitical stability, there is concern about a gradual erosion of the local ecosystem,” the association said.
