Relocation Spikes Among Israel-Based Multinational R&D Staff

29 December, 2025

IATI’s annual report highlights ecosystem resilience and an M&A recovery, while warning of a spike in relocation demands and the potential erosion of Israel’s tech standing

photo above: Karin Mayer Rubinstein, CEO and President of IATI

A new annual report by Israel’s Advanced Technology Industries (IATI) paints a complex picture of multinational corporations (MNCs) operating in Israel following a year of conflict. While the sector remains a primary growth engine of the Israeli economy, cracks are beginning to show in human capital stability and global sentiment.

The report highlights that approximately 430 multinational companies currently operate in Israel, employing 90,000 people. While these employees represent 23% of the high-tech workforce, their economic footprint is far larger: MNCs accounted for 80% of the average M&A volume in Israel over the last five years. In 2024, that figure surged to 91%, with MNCs driving 58 deals valued at $9.2 billion out of a total of $10.1 billion deals.

The findings suggest a mixed reality for global tech giants in Israel: Approximately 57% of companies reported stable business operations throughout the war, and 21% actually expanded their local footprint—a testament to the deep-rooted trust in the Israeli ecosystem. Conversely, 22% reported a hit to business activity. Some noted a “weakening of influence” within their global parent organizations and a cooling of relations with overseas headquarters.

Troubling Undercurrents

Beyond the macro figures, the report identifies alarming trends regarding human capital. 53% of companies reported an increase in relocation requests from Israeli employees citing security concerns and geopolitical instability. The IATI warns that this “brain drain” poses a long-term threat to Israel’s ability to retain its technology advantage. Quietly, some corporations are diversifying their risk by shifting investments or supply chain dependencies to other regions. This “silent erosion” often occurs beneath the surface of official press releases but represents a significant shift in how global boards view Israel’s risk profile.”The high-tech industry, including the global companies operating here, has once again proven its resilience and ability to lead in innovation and creativity even during a difficult war,” said Karin Mayer Rubinstein, CEO and President of IATI.

Resilience is Not a Guarantee

Despite the challenges, the report emphasizes that MNCs are not short-term players. Significant investments and acquisitions continued throughout 2024, signaling that many still view Israel as a critical hub for high-end R&D and infrastructure. “The high-tech industry, including the global companies operating here, has once again proven its resilience and ability to lead in innovation and creativity even during a difficult war,” said Karin Mayer Rubinstein, CEO and President of IATI.

However, the IATI issues a clear warning: Israel’s resilience cannot be taken for granted. Without proactive government measures to ensure regulatory, fiscal, and geopolitical stability, the country faces a gradual but persistent decline in its status as a preferred destination for global corporate giants.

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Posted in: Business , Electronics Industry , News

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