The report indicated that the situation is particularly challenging in the north of the country, where 69 per cent of high-tech companies are stationed.
Forty-nine percent of Israeli high-tech companies have reported losing investments since Israel’s genocidal war on Gaza began last October, while 48 percent of investors expect shares to decline next year, a report by Start-Up Nation Central cited by the Middle East Monitor (MEMO) has revealed.
The report indicated that the situation is particularly challenging in the north of the country, where 69 percent of high-tech companies are stationed.
A separate survey of about 60 northern-based tech firms found that only 45 percent are fully operational, 41 percent have relocated their activities to central Israel and 20 percent already know they won’t return to the north.
The report reflected the very low confidence among companies and investors in the Israeli government’s ability to develop recovery plans, with more than 80 percent of companies and 74 percent of investors doubting the government’s ability to assist the high-tech sector, said MEMO.
It also indicated that high-tech companies were able to raise $7.8 billion in investments this year; four percent less than the investments raised last year.
The value of mergers and acquisitions amounted to $9.6 billion this year, down $1 billion from the previous year, according to the report.
‘Uncertainty’
More than 50 per cent of companies believe the situation will improve in the coming year, and 72 percent of investors believe that high-tech companies will continue to grow despite the economic distress caused by the war on Gaza.
‘Regional Tensions’ – Fitch Downgrades Israel’s Credit Rating
The report, according to MEMO, stated that “due to the uncertainty caused by the ongoing conflict and the Israeli government’s economic policy, which is widely considered to be destructive, the technology sector’s immunity will not exist.”
Last month, credit ratings agency Fitch downgraded Israel’s credit rating to “A” from “A+” on Monday, citing the ongoing war in Gaza.
“The downgrade to ‘A’ reflects the impact of the continuation of the war in Gaza, heightened geopolitical risks and military operations on multiple fronts,” the rating agency said.
Fitch also kept its rating outlook negative as “the conflict in Gaza could last well into 2025 and there are risks of it broadening to other fronts,” it said.
Ongoing Genocide
Flouting a UN Security Council resolution demanding an immediate ceasefire, Israel has faced international condemnation amid its continued brutal offensive on Gaza.
Currently on trial before the International Court of Justice for genocide against Palestinians, Israel has been waging a devastating war on Gaza since October 7.
Strikes on ‘Safe Areas’ – Israel’s Bloody Negotiations Strategy in Gaza
According to Gaza’s Ministry of Health, 41,118 Palestinians have, to date, been killed, and 95,125 wounded. Moreover, at least 11,000 people are unaccounted for, presumed dead under the rubble of their homes throughout the Strip.
Israel says that 1,200 soldiers and civilians were killed during the Al-Aqsa Flood Operation on October 7. Israeli media published reports suggesting that many Israelis were killed on that day by ‘friendly fire’.
Palestinian and international organizations say that the majority of those killed and wounded are women and children.
The Israeli war has resulted in an acute famine, mostly in northern Gaza, resulting in the death of many Palestinians, mostly children.
The Israeli aggression has also resulted in the forceful displacement of nearly two million people from all over the Gaza Strip, with the vast majority of the displaced forced into the densely crowded southern city of Rafah near the border with Egypt – in what has become Palestine’s largest mass exodus since the 1948 Nakba.
Later in the war, hundreds of thousands of Palestinians began moving from the south to central Gaza in a constant search for safety.
(MEMO, PC)
