Israel's Tech Sector Could Face Disruptions after Attacks, Say Investors

A person holds a flag during a demonstration at Ben Gurion International Airport as a response to Israeli Prime Minister Benjamin Netanyahu and his nationalist coalition government's judicial overhaul, in Lod, Israel July 3, 2023. (Reuters)
A person holds a flag during a demonstration at Ben Gurion International Airport as a response to Israeli Prime Minister Benjamin Netanyahu and his nationalist coalition government's judicial overhaul, in Lod, Israel July 3, 2023. (Reuters)
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Israel's Tech Sector Could Face Disruptions after Attacks, Say Investors

A person holds a flag during a demonstration at Ben Gurion International Airport as a response to Israeli Prime Minister Benjamin Netanyahu and his nationalist coalition government's judicial overhaul, in Lod, Israel July 3, 2023. (Reuters)
A person holds a flag during a demonstration at Ben Gurion International Airport as a response to Israeli Prime Minister Benjamin Netanyahu and his nationalist coalition government's judicial overhaul, in Lod, Israel July 3, 2023. (Reuters)

Tech companies operating in Israel are expected to fortify security as they could face disruptions, said investors and analysts, after Hamas gunmen from Gaza killed hundreds of Israelis and abducted an unknown number of others.

High-tech industries have for a few decades been the fastest growing sector in Israel and crucial for economic growth, accounting for 14% of jobs and almost a fifth of gross domestic product.

Israeli stock and bond prices slid and many businesses were closed on Sunday after gunmen from the Palestinian group Hamas rampaged through Israeli towns on Saturday and militants also fired thousands of rockets into Israel in a surprise attack.

Some rockets reached as far as Tel Aviv, prompting airlines to suspend flights to and from Israel, Reuters reported.

Israel retaliated with air strikes on Hamas targets in Gaza, and hundreds of people have died.

"It is a huge disruption to business as usual," said Jack Ablin, chief investment officer and founding partner at Cresset Wealth Advisors. He said in the short-term resources could be diverted if the conflict expands, such as staff at tech companies being called up as military reservists.

Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina, said there will likely be a "tremendous effort" to guard physical installations for companies based in Israel from attacks because some technology spending is tied to the military.

A spokesperson for chipmaker Intel Corp, Israel's largest private employer and exporter, said on Sunday the company was "closely monitoring the situation in Israel and taking steps to safeguard and support our workers." The spokesperson declined to say whether chip production has been affected by the situation.

Nvidia, the world's largest maker of chips used for artificial intelligence and computer graphics, said it had canceled an AI summit scheduled for Tel Aviv next week, where its CEO Jensen Huang was due to speak.

Israel-based Tower Semiconductor, which provides customers with analog and mixed-signal semiconductors, mainly for the automotive and consumer industries, said it was operating as usual.

Other tech giants, Meta Platforms, Alphabet and Apple did not respond to requests for comment. Microsoft declined to comment.

Israel's technology sector had already been facing a slowdown in 2023, exacerbated by internal political conflict and protests. A growing number of Israel's tech startups have been incorporating in the United States.



Saudi Communications Minister Discusses Expanding AI Partnership with UK Secretary of State for Science

The discussions on Sunday aimed to support digital economy growth by leveraging technology to build sustainable economies
The discussions on Sunday aimed to support digital economy growth by leveraging technology to build sustainable economies
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Saudi Communications Minister Discusses Expanding AI Partnership with UK Secretary of State for Science

The discussions on Sunday aimed to support digital economy growth by leveraging technology to build sustainable economies
The discussions on Sunday aimed to support digital economy growth by leveraging technology to build sustainable economies

Saudi Minister of Communications and Information Technology Abdullah Alswaha has met with UK Secretary of State for Science, Innovation, and Technology Peter Kyle to strengthen the strategic partnership between the two nations in artificial intelligence (AI), innovation, and space.

The discussions on Sunday aimed to support digital economy growth by leveraging technology to build sustainable economies.

The meeting explored investments in digital infrastructure that align with the demands of the smart era and highlighted AI’s role as a key driver of economic growth. Both sides discussed joint projects focused on harnessing AI for humanity and sustainability solutions.
As part of efforts to advance innovation in both countries, the discussions also addressed supporting researchers and innovators, developing skills, and fostering collaboration between Saudi and British entrepreneurs and researchers. The meeting emphasized capitalizing on promising opportunities and leveraging competitive advantages between the two nations.