JERUSALEM: Israel’s vital tech sector, dragged down by the war in Gaza, is showing early signs of recovery, buoyed by a surge in defense innovation and fresh investment momentum.
Cutting-edge technologies represent 17 percent of the country’s GDP, 11.5 percent of jobs and 57 percent of exports, according to the latest available data from the Israel Innovation Authority (IIA), published in September 2025.
But like the rest of the economy, the sector was not spared the knock-on effects of the war, which began in October 2023 and led to staffing shortages and skittishness from would-be backers.
Now, with a ceasefire largely holding in Gaza since October, Israel’s appeal is gradually returning, as illustrated in mid-December, when US chip giant Nvidia announced it would create a massive research and development center in the north that could host up to 10,000 employees.
“Investors are coming to Israel nonstop,” Prime Minister Benjamin Netanyahu said at the time.
