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Israel’s Vital Tech Sector to Gain From Return of Army Reservists

Employees of StoreDot, an Israeli company that has developed extreme fast charging electric vehicle batteries, work in a laboratory in Herzliya, Israel, Oct. 2, 2023. Photo: REUTERS/Amir Cohen

Israel‘s wartime economy will get a much-awaited boost as the military gradually releases reservists fighting in the Gaza Strip so they can return to their jobs and jump-start softening growth.

Since the Oct. 7 attacks by the Palestinian terrorist group Hamas, more than 300,000 Israelis were drafted to reserve duty — many coming from the globally-important high-tech sector — leading to labor shortages and a gloomy national mood that hurt consumer spending and is expected to dent economic growth.

After nearly three months of intense air bombardment and a massive ground incursion, Israeli leaders have hinted that the war is entering a new phase, with a shift towards more targeted operations aimed at eliminating the Islamist group that rules Gaza and rescuing Israeli hostages.

The military accordingly is adjusting deployment plans for its forces in Gaza and other hot spots, first and foremost by starting to send reservists home — at least for a while.

It declined to share specifics about its number of forces, but said the move will “significantly alleviate economic burdens and enable them to gather strength for upcoming activities in the next year, as the fighting will persist, and their services will still be needed.”

Prior to the war, Israel was headed for solid economic growth of 3.4 percent in 2023 and 3 percent in 2024, according to the central bank. Now, the economy is headed for a fourth-quarter contraction and the Bank of Israel sees 2 percent growth this year and next, or zero growth per capita given Israel‘s fast-growing population.

Erel Margalit, who heads one of Israel‘s most active venture capital firms, Jerusalem Venture Partners (JVP), said the military made a calculated decision.

“They understand you need to go release people to go back to work because going back to work makes Israel stronger,” Margalit said. “Israel is not only strong militarily.”

START-UPS

With inflation easing, the Bank of Israel cut short-term borrowing rates by 25 basis points to 4.5 percent on Monday, its first reduction in nearly four years. The central bank’s policy makers are keeping an eye on the military’s strategy.

The release of reservists will benefit consumer spending, said deputy central bank chief Andrew Abir, which accounts for more than 50 percent of total economic activity.

“People were called up with no warning. In the first month, there was a real mess, because they were in the middle of projects,” Abir told Reuters, referring mainly to high-tech firms.

Spouses who may have been caring for their families alone since October will also be able to return fully to their employment, he said. This is good news for the high-tech sector, which accounts for 12 percent of employment, more than half of Israel‘s exports, 25 percent of income taxes, and nearly a fifth of its overall economic output.

Other signs of economic recovery in real-time data are emerging. Credit card purchases have returned to pre-war levels, Abir said, in “a sign the economy is functioning again.”

Foreign investment, while it has slowed, has not dried up. Startups raised $1.5 billion in the final three months of 2023 in 75 deals, according to data published last week. In 2023, funding fell to $7 billion from $16 billion in 2022.

Geopolitical risks may be off-putting, but they also offer a bigger potential upside, said JVP’s Margalit.

“There are some very good deals to be had,” he said.

Larger, well-funded tech firms have mostly weathered the war, and some have even thrived. Smaller companies, especially those that were hoping to close early financing rounds when the war broke out, have had a harder time.

In some cases, Margalit said, JVP and partner investors have had to inject more funds into these firms in order to “extend the runway.”

STATE SUPPORT

Pini Yakuel, CEO of marketing data firm Optimove, said they saw strong growth in the fourth-quarter despite having 41 of 240 workers in Tel Aviv drafted for reserve duty.

“We’ve adapted. It’s a new reality,” he said. “We just kind of, like, pressed on. Focused on what’s most important. Some things were paused, some things were delayed, but you continue to execute.”

His company put non-critical projects on hold and relied on offices abroad to help cover the load. And things will get easier as the absent employees slowly return.

“I notice in the office: ‘Oh hey, you’re back.’ ‘Yeah, I’m back.’ ‘Is it for good?’ ‘No, for the next month. Then they’re gonna tell us if we need to go back [to the reserves] or not’.”

The government took steps to protect the sector. State-funded Israel Innovation Authority set up a $100 million fund to help early stage startups.

In its recent survey, half of young companies only had sufficient funding for six months, said Dror Bin, the authority’s CEO. His fund has invested about $41 million so far.

“We all got our act together,” Bin said. “CEOs and employees realized that if they want to sustain the company’s success and their jobs they needed to refocus themselves on work.

“Despite all the empathy we get from the tech industry globally, at the end of the day when customers abroad need to get deliveries they can’t say that they didn’t get the deliveries because of the war in Israel,” he said.

($1 = 3.6437 shekels)

The post Israel’s Vital Tech Sector to Gain From Return of Army Reservists first appeared on Algemeiner.com.

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As Gaza War Continues, Hamas Calls for Global Protests While Israel Marks Breakthroughs in Medical Innovation

A pro-Hamas march in London, United Kingdom, Feb. 17, 2024. Photo: Chrissa Giannakoudi via Reuters Connect

As the Palestinian terrorist group Hamas calls for global protests amid stalled Gaza ceasefire talks, Israel has broken new ground despite the ongoing conflict, achieving a major medical breakthrough in synthetic human kidney development.

The contrast illustrates a stark contrast between the priorities of Hamas, an international designated terrorist group that has ruled Gaza for nearly two decades, and Israel, the lone democracy in the Middle East that has long been a leader in tech and medical innovation.

On Wednesday, Hamas urged worldwide protests in support of Palestinians, calling on the international community “to denounce Israel’s genocidal war and starvation policy in Gaza.”

“We call for continuing and escalating the popular pressure in all cities and squares on Friday, Saturday, and Sunday … through rallies, demonstrations and sit-ins outside the embassies of the Israeli regime and its allies, particularly in the US,” the statement read.

The Palestinian terrorist group also called to expose what it described as “the terrorism of the Zio-Nazi occupation against defenseless civilians.”

Hamas’s latest move against Israel comes amid stalled indirect negotiations over a proposed 60-day ceasefire and hostage release deal, which collapsed last month after the group vowed it would not disarm unless an independent Palestinian state is established — rejecting a key Israeli demand to end the war in Gaza.

In its statement, Hamas demanded the opening of all border crossings to allow immediate aid into the war-torn enclave and urged a global condemnation of “the international community’s inaction on the Israeli crimes.”

Amid mounting international pressure to address the humanitarian crisis in Gaza, Israel announced new measures to facilitate the delivery of aid, including temporary pauses in fighting in certain areas and the creation of protected routes for aid convoys.

Israeli officials have previously accused Hamas of diverting aid for terrorist activities and selling supplies at inflated prices to civilians, while also blaming the United Nations and other foreign organizations for enabling this diversion.

Hamas’s statement also emphasized that the “global resistance movement must continue until Israeli aggression on Gaza ends and the siege on the coastal strip is lifted.”

Meanwhile, as Israel faces escalating hostilities and the heavy toll of war, the Jewish state continues to push the boundaries of innovation and resilience, achieving new medical breakthroughs while confronting ongoing challenges.

In a major medical breakthrough, scientists at Sheba Medical Center and Tel Aviv University have successfully grown a synthetic 3D miniature human kidney in a lab using specialized stem cells derived from kidney tissue — one of the most promising advances in regenerative medicine.

Dr. Dror Harats, chairman of Sheba’s Research Authority, described this achievement as a reflection of Israel’s leading role in global medical innovation.

“Despite growing efforts to isolate Israel from international science, breakthroughs like this prove our impact is both lasting and essential,” he said.

In a landmark study, a team from Sheba’s Safra Children’s Hospital and Tel Aviv University’s Sagol Center for Regenerative Medicine created synthetic kidney organs that matured and remained stable for 34 weeks — the longest-lasting and most refined kidney organoids developed to date.

Nearly a decade ago, the research team became the first to successfully isolate human kidney tissue stem cells — the cells responsible for the organ’s development and growth.

Previous attempts to grow kidneys in a lab using general-purpose stem cells were short-lived, typically lasting only a few weeks and often producing unwanted cell types that compromised research accuracy.

However, this Israeli research team used stem cells taken directly from kidney tissue — cells that naturally develop into kidney parts — allowing them to create a much purer and more stable model with key features found in real kidneys.

This medical breakthrough could have far-reaching implications, redefining the current understanding of kidney diseases and advancing the development of innovative treatments.

Researchers believe the model could help assess how medications impact fetal kidneys during pregnancy and move science closer to repairing or replacing damaged kidney tissue with lab-grown cells.

The discovery came days after researchers from Hebrew University of Jerusalem and international partners discovered a way to boost the immune system’s cancer-fighting ability by reprogramming how T cells, which are white blood cells critical to the immune system, produce energy.

The researchers explained in a study published in the peer-reviewed Nature Communications that disabling a protein known as Ant2 in T cells greatly enhances their effectiveness against tumors.

“By disabling Ant2, we triggered a complete shift in how T cells produce and use energy,” Prof. Michael Berger of Hebrew University’s Faculty of Medicine, who co-led the study with doctorate student Omri Yosef, told the Tazpit Press Service. “This reprogramming made them significantly better at recognizing and killing cancer cells.”

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Netherlands to Push EU to Suspend Israel Trade Deal but Won’t Recognize Palestinian State ‘At This Time’

Netherlands Foreign Affairs Minister Caspar Veldkamp addresses a press conference, in New Delhi on April 1, 2025. Photo: ANI Photo/Sanjay Sharma via Reuters Connect

The Netherlands is spearheading efforts to suspend the European Union-Israel trade agreement amid rising EU criticism of Israel’s actions in Gaza, while simultaneously refusing to recognize a Palestinian state, contrasting with other member states as international pressure mounts.

On Thursday, Dutch Foreign Minister Caspar Veldkamp announced that the Netherlands will push the EU to suspend the trade component of the EU-Israel Association Agreement — a pact governing the EU’s political and economic ties with the Jewish state.

This latest anti-Israel initiative follows a recent EU-commissioned report accusing Israel of committing “indiscriminate attacks … starvation … torture … [and] apartheid” against Palestinians in Gaza during its military campaign against Hamas, an internationally designated terrorist group.

Following calls from a majority of EU member states for a formal investigation, this report built on Belgium’s recent decision to review Israel’s compliance with the trade agreement, a process initiated by the Netherlands and led by EU High Representative for Foreign Affairs and Security Policy Kaja Kallas.

According to the report, “there are indications that Israel would be in breach of its human rights obligations” under the 25-year-old EU-Israel Association Agreement.

While the document acknowledges the reality of violence by Hamas, it states that this issue lies outside its scope — failing to address the Palestinian terrorist group’s role in sparking the current war with its bloody rampage across southern Israel on Oct. 7, 2023.

Israeli officials have slammed the report as factually incorrect and morally flawed, noting that Hamas embeds its military infrastructure within civilian targets and Israel’s army takes extensive precautions to try and avoid civilian casualties.

In a Dutch parliamentary debate on Gaza on Thursday, Veldkamp also announced that the government would not recognize a Palestinian state for now — a position that stands in sharp contrast to the recent moves by several other EU member states to extend recognition.

“The Netherlands is not planning to recognize a Palestinian state at this time,” the Dutch diplomat said.

“This war has ceased to be a just war and is now leading to the erosion of Israel’s own security and identity,” he continued.

This latest decision goes against the position of several EU member states, including France, which has committed to recognizing Palestinian statehood in September.

The United Kingdom has likewise indicated it will do so unless Israel acts to ease the humanitarian crisis in Gaza and agrees to a ceasefire.

For its part, Germany said it was not planning to recognize a Palestinian state in the short term, and Italy argued that recognition must occur simultaneously with the recognition of Israel by the new entity.

Spain, Norway, Ireland, and Slovenia all recognized a Palestinian state last year.

Israel has been facing growing pressure from several EU member states seeking to undermine its defensive campaign against the Palestinian terrorist group Hamas in Gaza.

On Thursday, European Commission Vice President Teresa Ribera strongly condemned Israel’s actions in the war-torn enclave, describing the situation as a “grave violation of human dignity.”

“What we are seeing is a concrete population being targeted, killed and condemned to starve to death,” Ribera told Politico. “If it is not genocide, it looks very much like the definition used to express its meaning.”

Until now, the European Commission has refrained from accusing Israel of genocide, but Ribera’s comments mark one of the strongest European condemnations since the outbreak of the war in Gaza.

She also called on the EU to take decisive action by considering the suspension of its trade agreement with Israel and the implementation of sanctions, while emphasizing that such measures would require unanimous approval from all member states.

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Graduate Student Unions Promoting Antisemitism, Reform Group Says

Students listen to a speech at a protest encampment at Stanford University in Stanford, California US, on April 26, 2024. Photo: Carlos Barria via Reuters Connect.

Higher-education-based unions controlled by United Electrical, Radio, and Machine Workers of America (UE) are rife with antisemitism and anti-Zionist discrimination, according to a new letter imploring the US Congress’s House Committee on Education and the Workforce to address the matter.

“Tracing its roots to communism in the 1930s, the UE is a radical, pro-Hamas labor union that has a long history of antisemitism,” the National Right to Work Foundation (NRTW), one of the US’s leading labor reform groups, wrote on July 30 in a message obtained by The Algemeiner. “The UE openly supports the boycott, divestment, and sanctions (BDS) movement, which is designed to cripple and destroy Israel economically. Today, the UE furthers its antisemitic agenda by unionizing graduate students on college campuses and using its exclusive representation powers to create a hostile environment for Jewish students. The hostile environment includes demanding compulsory dues to fund the UE’s abhorrent activities.”

NRTW went on to describe a litany of alleged injustices to which UE members subject Jewish student-employees in the US’s most prestigious institutions of higher education, from the Massachusetts Institute of Technology (MIT) to Cornell University. At MIT, the letter said, “union officers” aided a riotous group which illegally occupied a section of campus with a “Gaza Solidarity Encampment,” participating in the demonstration and even denying access to campus buildings. UE members at Stanford University, meanwhile, allegedly denied religious accommodations to Jewish students who requested exemption from union dues over that branch’s supporting the BDS movement. And Cornell University UE was accused of denying religious exemptions in several cases as well and followed up the rejection with an intrusive “questionnaire” which probed Jewish students for “legally-irrelevant information.”

The situation requires federal oversight and intervention, NRTW said, including Congress’s possibly clarifying that student-employees are not traditional employees and are therefore afforded protections under sections of the Civil Rights Act which apply to the campus.

“These continuing patterns of antisemitism are illegal, immoral, and must be stopped,” the letter continued. “We encourage you to do all that is in your power to investigate and help bring an end to the UE and its affiliates’ nonstop harassment and intimidation of Jewish students … The Trump administration can also use tools available to it under Title VI and Title VI of the Civil Rights Act against colleges who work with unions to create a hostile environment for Jewish students.”

July’s letter is not the first time NRTW has publicized alleged antisemitic abuse in unions representing higher education employees.

In 2024, it represented a group of six City University of New York (CUNY) professors, five of whom are Jewish, who sued to be “freed” from CUNY’s Professional Staff Congress (PSC-CUNY) over its passing a resolution during Israel’s May 2021 war with Hamas which declared solidarity with Palestinians and accused the Jewish state of ethnic cleansing, apartheid, and crimes against humanity. The group contested New York State’s “Taylor Law,” which it said chained the professors to the union’s “bargaining unit” and denied their right to freedom of speech and association by forcing them to be represented in negotiations by an organization they claim holds antisemitic views.

That same year, NRTW prevailed in a discrimination suit filed to exempt another cohort of Jewish MIT students from paying dues to the Graduate Student Union (GSU). The students had attempted to resist financially supporting GSU’s anti-Zionism, but the union bosses attempted to coerce their compliance, telling them that “no principles, teachings, or tenets of Judaism prohibit membership in or the payment of dues or fees” to the union.

“All Americans should have a right to protect their money from going to union bosses they don’t support, whether those objections are based on religion, politics, or any other reason,” NRTW said at the time.

Follow Dion J. Pierre @DionJPierre.

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