Samsung Next exits Israel amidst economic downturn caused by Gaza conflict


Samsung Next exits Israel amidst economic downturn caused by Gaza conflict

Samsung Next is closing its operations in Israel and moving its activities abroad as the Israeli economy faces challenges due to the ongoing war on Gaza. The innovation branch of Korean company Samsung made the announcement to its staff in Tel Aviv, a regional tech hub.

Despite the difficulty of the decision, the company recognized the achievements made over the last decade, which included investing in 70 companies and Israeli startups. The US office will take over regional clients and investments, with the transition expected to be completed by autumn. The team in Israel will receive resources and advice from the US office.

The move by Samsung Next comes amid economic difficulties in Israel following the war on Gaza. The Boycott, Divestment, Sanctions (BDS) movement, which advocates for an embargo on Israel, sees the closure of Samsung Next’s operations as a sign of declining confidence in the Israeli economy. Prior to the war on Gaza, concerns were raised over controversial judicial reforms that could impact economic growth.

The Israeli economy has been contracting, with warnings about growth persisting since the beginning of the war on Gaza. The Central Bank has cut interest rates to support businesses and households during the conflict. Credit ratings agencies have expressed concerns about the country’s economic outlook, citing uncertainties around fiscal trajectory and the duration and intensity of the war.

In addition to economic challenges, Israel’s tourism industry has been affected by the war. The closure of Samsung Next’s operations in Israel is a significant development in the midst of ongoing economic difficulties caused by the conflict in Gaza.

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