The ongoing war on Gaza has had a significant impact on Israel’s economy, leading Samsung Next to shut down its operations in Tel Aviv and shift its activities abroad. Despite the difficult decision, the Korean company highlighted its achievements in almost a decade of working together with Israeli startups and companies. Samsung Next invested in 70 Israeli startups, as reported by Israeli tech publication CTech.
The economic difficulties faced by Israel since the war on Gaza began have been challenging, particularly in the tech sector. The Boycott, Divestment, Sanctions (BDS) movement has criticized Israel for its actions, leading to declining confidence in the country’s economy. Prior to the war, the IMF had warned about the negative impact of controversial judicial reforms on economic growth.
Since the start of the war on Gaza, warnings about Israel’s economic growth have continued with the economy contracting by nearly 20% in annualized terms in the last quarter of 2023. The Central Bank cut interest rates in January to support businesses and households. While Fitch Ratings removed “rating watch negative” status from Israel due to uncertainties around fiscal trajectory and war’s impact, a negative ratings outlook remains due to these uncertainties.
The tourism industry has also suffered due to the war on Gaza, further adding to Israel’s economic challenges. With this shift, Samsung Next will be taking over regional clients and investments from its office overseas while providing resources and advice to their team during transition period expected by autumn.
In conclusion, Samsung Next’s decision to shut down its operations in Israel is a reflection of how difficult times are for Israeli businesses amidst ongoing conflict with Palestine. However it is not only Samsung that is feeling these effects but many other companies operating there are facing similar challenges due to declining confidence in
