IATI Report: Multional Companies’ Contribution to the Israel Economy and Society 2025

This report presents the impact of multinational companies (MNCs) on Israel’s tech ecosystem, focusing on deal trends, sector activity, geopolitical effects, workforce changes and AI adoption.
The report is based on qualitative research methodologies and estimations.
The data was collected from industry reports, public sources and from surveys and interviews with tech executives in multinational entities, members of the IATI MNC Forum.

The resilience demonstrated by MNC activity is notable, yet Israel’s strategic importance is gradually eroding:
57% of multinational companies maintained stable business activity during the war period, and 21% even expanded their operations, indicating continued confidence in and robustness of local MNC activity. At the same time, a concerning trend has emerged: around 22% of companies reported a decline in business activity during the war, alongside weakened connections with global headquarters and a gradual erosion of the influence of local R&D and operational centers.

Relocation risk poses a direct threat to Israel’s innovation engines:
Fifty-three percent of companies report an increase in relocation requests from Israeli employees. A significant wave of employee departures could undermine local innovation capabilities and weaken Israel’s technological leadership.

Beyond the visible indicators, a quieter yet substantial risk is developing:
Some multinational companies are choosing to redirect investments and operational centers to other countries. This process often occurs behind the scenes and may gradually damage the Israeli high-tech ecosystem and its long-term competitiveness.

To learn more please read the full report

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