The number of requests to relocate abroad by workers at multinational companies operating in Israel rose in the past year in reaction to its two-year genocidal campaign in Gaza, a report showed on Sunday.
The Israel Advanced Technology Industries Association (IATI) found that 53% of companies reported an increase in relocation requests from Israeli employees, noting this was "a trend that may, over time, harm the local innovation engine and Israel's technological leadership."
The tech sector accounts for about 20% of Israel's gross domestic product (GDP), 15% of its jobs and more than half of its exports. The hundreds of multinationals in Israel include Microsoft, Intel, Nvidia, Amazon, Meta and Apple.
In its annual report, the IATI also said some multinational companies are examining the transfer of investments and activities to other countries.
"In some cases, companies that faced disruptions in supply chains found alternatives outside Israel during the war, and when these proved efficient, there is a risk that activity will not fully return," said the report, issued at a meeting led by IATI CEO and President Karin Mayer Rubinstein.
At the same time, it added, there has been an increase in demand for relocation among senior executives and families, with more employees applying for positions outside Israel.
The report suggested some 57% of companies maintained stable business activities throughout the war, and 21% expanded their operations in Israel.
Another 22% of companies reported damage to business activity during the war, which began on Oct. 7, 2023, after Palestinian resistance group Hamas' cross-border attack on Israel, and ended two months ago following a U.S.-led cease-fire deal.
But Israel has fallen short of fulfilling its obligations under the first phase of the agreement, particularly a halt to hostilities, as its forces have continued to launch attacks, which killed more than 410 Palestinians and wounded over 1,140 since the cease-fire.
Since October 2023, the Israeli army has killed over 71,200 Palestinians, mostly women and children, and injured more than 171,200 others in attacks in Gaza.
The IATI noted that, "Without active steps by the state to create regulatory and geopolitical stability, there is concern about gradual erosion in the stability of the local ecosystem."
