Recovery for ailing Israeli tech sector looks distant

Al-Monitor Readers

David Rosenberg

Israeli reporter specializing in business, economics and politics

Feb. 13, 2024

The Israeli high tech sector —  the engine of the country’s economy — has been contending with a series of crises over the past 18 months that include a global funding downturn, a big hit to business confidence from the government’s judicial overhaul drive and most recently the Gaza war. All three factors threaten to continue weighing on the industry well into 2024, deterring investment and new-company formation and forcing less well-funded start-ups to close. Faced with another crisis year, Israeli tech will struggle to return to the strong growth it enjoyed in the decade through 2021. A rapid end to the Gaza war and the election of a centrist government would hasten a recovery.