'Israel' witnesses 60% decline in investment during early 2023
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According to a report by the Israeli Finance Ministry, the decline is attributed to a combination of global and local uncertainties.
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A view of an Israeli colonial settlement in the occupied West Bank, on June 18, 2023 (AP)
In the first quarter of 2023, foreign direct investment in "Israel" experienced a significant decline of 60%, as compared to the average quarterly figures in recent years, a report from the occupation's finance ministry indicated, as per Bloomberg.
Additionally, both the number of investment deals and investors decreased by one-third, as outlined by the report.
This decline in investment was attributed to a combination of "global and local" uncertainties.
Israeli occupation Prime Minister Benjamin Netanyahu's judicial overhaul has shaken the occupation to its very core, critics say, generating unprecedented political and social turmoil.
The report indicated that direct foreign investment in the Israeli occupation in the initial quarter of the year amounted to $2.6 billion.
Read more: As Israelis protest, Palestinian rights are thrown out the window
In 2022, the total reached $29.32 billion, with 72% originating from the US and 8% from the UK. Notably, 54% of these investments were directed toward the IT and enterprise software sector.
The average value of high-tech exits experienced a substantial decline, plummeting by 80% from an average of $307 million in recent years to $56 million during the first quarter of 2023.
The report stated that this decline can be partly attributed to the decrease in the valuation of tech companies in the US, which is also reflected in the reduced funding rounds of these companies.
Moreover, the value of investments made by foreign companies establishing operations in "Israel", often referred to as greenfield investments, saw a 50% decline in the initial quarter of 2023, amounting to $180 million compared to previous quarters.
Notably, the number of these investments remained consistent. In 2022, "Israel" recorded $1.68 billion in greenfield investments, which led to the creation of 5,000 jobs across 71 companies, with 43 of them being newcomers.
Read more: Hundreds of thousands during 35th week of protests in "Israel"
In July, Former Deputy Governor of the Bank of "Israel", Zvi Eckstein, warned that "Israel" is on the path of a massive economic decline that will harm all Israelis, and that the judicial overhaul legislation threatens the authoritarian structure in "Israel", as well as the "national" consensus.
He pointed out that the judicial overhaul threatens the security capabilities in "Israel" and affects the desire of high-tech companies to invest in it, especially foreign investors.
Eckstein noted that "Israel" has a dramatic decline in high-tech investments compared to previous years, adding that the market shows uncertainty and a decline in economic activity.
Later that month, The Times published a report detailing that tens of thousands of Israelis are considering emigration due to concerns about their freedoms, human rights, and the current quality of life in the occupation entity.
Ocean Relocation, a firm assisting with immigration and emigration, reported an unprecedented surge in queries to leave "Israel" since January, with 90% of them being about emigration.
