Philenews

Israel: Brain Drain from High-Tech Sector Amidst War

Published December 29, 2025, 08:22
Israel: Brain Drain from High-Tech Sector Amidst War

The ongoing conflict between Israel and Hamas has led to an increase in requests for relocation abroad from Israeli employees in the high-tech sector. According to a report by the Israel Advanced Technology Industries (IATI), 53% of companies report an increase in requests, which could potentially impact the country's innovation and technological superiority. The high-tech sector is a significant part of the Israeli economy, contributing 20% to GDP, 15% to employment, and over 50% to exports. The report states that some multinational companies are considering transferring investments and activities to other countries due to disruptions to supply chains caused by the war. If companies find effective alternatives outside of Israel, there is a risk that their activities will not fully return. Simultaneously, demand for relocation is increasing among senior executives and families. However, the report emphasizes that many multinational companies maintain long-term confidence in the Israeli technology ecosystem. More than half of the companies (57%) maintained stable business activity during the war, while 21% expanded their operations. Nevertheless, 22% reported damage or a slowdown in their activity. IATI warns that without government intervention to strengthen regulatory and geopolitical stability, there is a risk of erosion of the stability of the local technology ecosystem, with negative consequences for employment, investment, and the competitiveness of the economy.