Samsung Next has announced the decision to shut down its operations in Israel and relocate its activities to other countries. The Korean company had been operating in Tel Aviv for nearly a decade, investing in Israeli startups and companies through its innovation branch.
In an email to employees, Samsung Next expressed gratitude for the achievements made during its time in Israel, which included investments in 70 companies. The US office will take over regional clients and investments, with the transition expected to be completed by autumn. The team in Israel will receive resources and support from the US office during this process.
The move comes as Israel faces economic challenges due to ongoing conflict and political instability. The Boycott, Divestment, Sanctions (BDS) movement views Samsung Next’s departure as a sign of declining confidence in the Israeli economy. Additionally, the International Monetary Fund (IMF) has warned of negative impacts from controversial judicial reforms and the country’s economic contraction during the war.
Despite being removed from its “rating watch negative” status by Fitch Ratings, Israel still faces economic uncertainties due to ongoing conflict with Palestine. The country’s tourism industry has also been affected by the conflict, further contributing to the economic challenges faced by the nation. Samsung Next’s decision reflects the difficulty of doing business in a region plagued by political instability and ongoing conflict.
Samsung Next had been working closely with Israeli startups and companies for nearly a decade before making this decision. Despite this closure, Samsung Next remains committed to supporting these businesses through their transition period.
The move is seen as a major blow to Israel’s tech industry and overall economy. However, it is not clear whether other companies will follow suit and shut down their operations in Israel.
Israeli officials have yet to comment on Samsung Next’s decision but have emphasized that their government remains committed to supporting businesses operating within their borders.
As tensions continue between Israel and Palestine, it is likely that more businesses may decide to shut down their operations or scale back their investments in the region.
