2025

By Steven Scheer

JERUSALEM, Dec 28 (Reuters) – Requests to relocate abroad by Israelis working at multinational companies operating in Israel rose in the past year in reaction to Israel’s two-year war against Palestinian militant group Hamas, 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 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.

DISRUPTIONS IN SUPPLY CHAINS

In its annual report, 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.

Still, the report noted that multinationals view the Israeli tech ecosystem through a long-term lens and many firms have thrived during the war.

TECH SECTOR ‘PROVES ITS RESILIENCE’

Some 57% of companies maintained stable business activities throughout the fighting, and 21% expanded their operations in Israel, “a figure that indicates continued confidence in local activity and the Israeli ecosystem even under conditions of uncertainty,” IATI said.

Another 22% of companies reported damage to business activity during the war, which began on October 7, 2023, triggered by Hamas’ raid on Israel, and ended two months ago following a U.S.-led ceasefire deal.

“Even during the difficult war, the Israeli high-tech industry, including the global companies operating in Israel, once again proved its resilience and its ability to lead in innovation and creativity,” said Rubinstein. “We work tirelessly to ensure that Israel continues to be an attractive hub for the activity of multinational companies.”

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.”

(Reporting by Steven Scheer; Editing by David Holmes)

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ROME, Dec 28 (Reuters) – Amazon said on Sunday it has decided not to pursue plans to deliver goods by drone in Italy, saying that while it had made good progress with aerospace regulators, broader business regulatory issues did not support the project.

The Italian civil aviation ENAC called the decision unexpected, saying in a statement on Saturday the move was motivated by company policy, linked to “recent financial events involving the Group”.

The company had announced in December 2024 the successful completion of initial tests of delivery drones in San Salvo, a town in the central Abruzzo region.

In a statement to Reuters on Sunday, Amazon said:

“Following a strategic review, we have decided to stop our commercial drone delivery plans in Italy”.

“Despite positive engagement and progress with Italian aerospace regulators, the broader business regulatory framework in the country does not, at this time, support our longer-term objectives for this program,” Amazon added.

(Reporting by Alvise ArmelliniEditing by Frances Kerry)

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