Judicial-reform causes Divestment: Netanyahu's accidental BDS
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In a survey conducted by "Start-Up Nation Central" 80% of participants believe that the judicial reform will have a negative impact on Israeli companies.
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A sign reading, ‘Time is running out for Israeli hi-tech,’ in "Tel Aviv", on March 23, 2023 (Israeli media)
Eldad Ben Tora, the president and general manager of KIDOZ Inc, said the judicial overhaul promoted by Netanyahu’s government will have serious repercussions on the Israeli market by prompting some companies to relocate or offshore for fear of political instability and arbitrary legislation, Sputnik reported.
"We believe that the judicial reform will have a serious negative impact on the high-tech sector in Israel," Eldad Ben Tora said.
"Our concern is the decrease in Israel's attractiveness in the eyes of investors who fear instability, arbitrary legislation, and weakened courts that will protect their interests."
In a survey conducted by Start-Up Nation Central on a sample of 1,142 entrepreneurs, international companies, and investment funds on March 22-23, around 80% of participants believe that the judicial reform will negatively impact "them and their portfolio companies."
According to the survey:
- 84% of investors believe that the judicial reform will stifle the influx of foreign capital
- Similarly, 77% of enterprises think it will be difficult to attract capital from foreign investors
- Around 80% of companies said that investors canceled plans with them after the judicial reform bill was proposed.
The findings of the survey suggest that high-tech companies especially have started to increasingly offshore their funds from “Israel”. Hightech companies hold special significance to the Israeli market: Such that one in ten Israelis in the occupation workforce is employed in Hightech.
The judicial overhaul risks a massive outflow of funds from “Israel”, the survey concluded.
Over the past month, upheaval and chaos took the Israeli occupation entity by storm. Violent clashes erupted between the opposition and police, as Israeli settlers protest against the government’s judicial reforms. Appeals for civil disobedience and riots have been met with stern warnings from both sides.
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Moody's global risk assessment agency downgraded the Israeli occupation's economic outlook to "stable" on April 16 after it was "positive" amid several crises affecting the Israeli occupation.
Moody's said its sovereign credit rating for the Israeli occupation was A1, which made the decrease shocking, though many financial and economic experts had warned of the decision in light of the plight of crises facing the Israeli occupation.
On April 17th, the Israeli occupation's Finance Ministry announced that its government recorded a budget deficit of $82 million in March.
The budget deficit is the first one recorded in nine months as tax revenues fell, according to preliminary data issued by the occupation's Finance Ministry.
The downward trend in revenues was preceded by an "exceptionally high increase in state revenues" received in 2022.
The Finance Ministry said the deficit is fueled by a downward trend in government revenues following the “exceptionally high increase in state revenues” in 2022. In March, the occupation government's earnings were cut down to $11.18 billion, which marks a 4.7% decrease in comparison to revenues of March 2022 which amounted to $11.73 billion.
Moody's global risk assessment agency downgraded the Israeli occupation's economic outlook to "stable" on April 16 after it was "positive" amid several crises affecting the Israeli occupation.
