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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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Incoming US Senate Majority Leader Threatens ICC With Sanctions Over Arrest Warrant for Netanyahu

An exterior view of the International Criminal Court in the Hague, Netherlands, March 31, 2021. Photo: REUTERS/Piroschka van de Wouw

Incoming US Senate Majority Leader John Thune (R-SD) has threatened to push legislation imposing sanctions on the International Criminal Court (ICC) if it does not halt its efforts to pursue arrest warrants against Israeli officials, including Prime Minister Benjamin Netanyahu.

Thune, who was picked last week to be the next Senate majority leader once the Republicans take control of the legislative chamber in January, wrote Sunday on X/Twitter that he will make it a “top priority” to punish the ICC if it refuses to walk back its arrest warrant application issued against Netanyahu and former Israeli Defense Minister Yoav Gallant. The US lawmaker also indicated he would take action if Sen. Chuck Schumer (D-NY), the current Senate majority leader, does not do so against the intergovernmental organization.

“If the ICC and its prosecutor do not reverse their outrageous and unlawful actions to pursue arrest warrants against Israeli officials, the Senate should immediately pass sanctions legislation, as the House has already done on a bipartisan basis,” he wrote. “If Majority Leader Schumer does not act, the Senate Republican majority will stand with our key ally Israel and make this — and other supportive legislation ‚ a top priority in the next Congress.”

In May, the ICC chief prosecutor officially requested arrest warrants for the Israeli premier, Gallant, and three Hamas terrorist leaders — Yahya Sinwar, Mohammed Al-Masri, and Ismail Haniyeh — accusing all five men of “bearing criminal responsibility” for alleged war crimes and crimes against humanity committed in Israel or the Gaza Strip. The three Hamas leaders have since been killed, and Gallant was recently fired as Israel’s defense minister.

US and Israeli officials subsequently issued blistering condemnations of the ICC move, decrying the court for drawing a moral equivalence between Israel’s democratically elected leaders and the heads of Hamas, the Palestinian terrorist group that launched the ongoing war in Gaza with its massacre across southern Israel last Oct. 7.

ICC chief prosecutor Karim Khan has come under fire for making his surprise demand for arrest warrants for Netanyahu and Gallant on the same day in May that he suddenly canceled a long-planned visit to both Gaza and Israel to collect evidence of alleged war crimes. The last-second cancellation infuriated US and British leaders, according to Reuters, which reported that the trip would have offered Israeli leaders a first opportunity to present their position and outline any action they were taking to respond to the war crime allegations.

Thune’s Republican colleagues praised his threat to the ICC, suggesting that the Senate should target the international organization. 

“Well done Senator Thune. The ICC’s actions against Israel have been outrageous, and an independent review into the prosecutor’s actions is more than called for,” wrote Sen. Lindsey Graham (R-SC). :The Senate should take up the ICC sanctions bill that passed the House in a bipartisan manner. Standing up for Israel today protects America tomorrow.”

“The Senate must immediately pass legislation to sanction the International Criminal Court,” stated Sen. John Barrasso (R-WY.), chair of the Senate Republican Conference. “Senate Republicans stands with Israel.”

“The Senate Foreign Relations Committee can and should act ASAP to pass ICC sanctions legislation. We waited for months for the majority to schedule the vote only to have them postpone it before the election. We will not fail to act when Republicans are in the majority,” wrote Sen. John Risch (R-ID), the top Republican on the Senate Foreign Relations Committee.

Sen. Susan Collins (R-ME) wrote that the Senate “should immediately consider the bipartisan legislation passed by the House to sanction the ICC.”

Sen. Tom Cotton (R-AK) added that Thune is “right” and that “Chuck Schumer should do his job” by advancing legislation to sanction the ICC.

The US has said it does not recognize the ICC’s jurisdiction and rejects the implied equivalence drawn between Israel and Hamas.

The post Incoming US Senate Majority Leader Threatens ICC With Sanctions Over Arrest Warrant for Netanyahu first appeared on Algemeiner.com.

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Concordia closes its Montreal Institute for Genocide and Human Rights Studies, citing ‘budgetary constraints’

It was announced quietly, wit a small, two-paragraph notice replacing the web page for Concordia University’s Montreal Institute for Genocide and Human Rights Studies (MIGS), along with an unrelated stock […]

The post Concordia closes its Montreal Institute for Genocide and Human Rights Studies, citing ‘budgetary constraints’ appeared first on The Canadian Jewish News.

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Jamaal Bowman Continues Diatribes Against Israel, AIPAC; Expresses Pride in Not Condemning Oct. 7 Massacre

US Rep. Jamaal Bowman (D-NY) speaks during the National Action Network National Convention in New York City, US, April 7, 2022. Photo: REUTERS/Eduardo Munoz

In his final weeks as a US federal lawmaker, Rep. Jamaal Bowman (D-NY) has continued his persistent condemnation of Israel, accusing the Jewish state of perpetrating “apartheid” against Palestinians, expressing pride in not supporting a resolution condemning Hamas’s massacre across southern Israel last Oct. 7, and arguing against the funding of Israel’s Iron Dome air defense system. 

During a newly released interview with left-wing pundit Rania Khalek, Bowman reflected on his unsuccessful reelection bid earlier this year. The lawmaker blamed the “pro-Israel lobby” for his loss in the Democratic primary, claiming that his outspokenness about the ongoing Israel-Hamas war made him a target for “Zionists.”

Bowman, one of the staunchest critics of Israel in the US Congress, argued that the American Israel Public Affairs Committee (AIPAC), a prominent pro-Israel lobbying group, overwhelmed his campaign by spending roughly $15 million to aid his opponent, Westchester County Executive George Latimer. He added that his constituents were stunned that a “special interest” group such as AIPAC “can remove a congressman” by submerging a primary race in a torrent of money. 

“Now the world has seen AIPAC for who they are,” Bowman stated. 

The stated mission of AIPAC is to seek bipartisan support to strengthen the US-Israel relationship.

Bowman admitted that he did not know much about the Israeli-Palestinian conflict when he initially ran for office, opting to parrot talking points such as Israel “has a right to exist” and a “right to defend itself.”

Bowman said that his opinion on Israel was transformed after he visited the country on a trip sponsored by J Street, a progressive Zionist organization that recently called for the US to impose an arms embargo against the Jewish state. The left-wing firebrand said that the trip — which consisted of a series of discussions with peace activists, scholars, and former Israel Defense Force (IDF) officers — soured his view of the Jewish state, comparing the security checkpoints and barrier wall that separate Israel and the West Bank to protect against terrorism with the Jim Crow laws in the US south segregating black Americans.

Khalek asked Bomwan if his view on Iron Dome has shifted, citing that the missile interception system “shields Israel from the consequences for bombing all of its neighbors, for constantly stealing land.”

The congressman claimed that his view on Israel’s air defense system has changed, arguing that it represents “a weapon to use and continue apartheid, oppression, open-air prison, occupation, and now the genocide” of Palestinians. He said that he regrets voting in favor of Iron Dome funding, and that the missile defense system should only be replenished if the Palestinians are given a fully-funded army on Israel’s borders.

Bowman also criticized a congressional resolution condemning the Palestinian terrorist group Hamas’s massacre across southern Israel last Oct. 7, suggesting that AIPAC authored the document. He dismissed the notion that the mass murder, rape, and kidnapping of Israelis on Oct. 7 was “unprovoked,” claiming that Israel initiated the aggression by enacting “apartheid” on Palestinians. He then lambasted American governors, senators, and President Joe Biden for immediately showing empathy to Israelis, saying that legislators were being “dishonest” and not having a “full conversation” about the Jewish state. 

In the year following the Oct. 7 attacks on Israel, Bowman  intensified his rhetoric against Israel and pro-Israel organizations. Over the summer, he condemned AIPAC as a “Zionist regime.” In a desperate attempt to salvage his ill-fated primary effort, he promise the Democratic Socialists of America — a prominent far-left organization that has made anti-Israel activism a top priority — that he would vote against future Iron Dome funding in exchange for financial backing of his campaign. Bowman infamously dismissed the widely reported and corroborated allegations of Hamas terrorists raping Israeli women during the Oct. 7 onslaught as “propaganda” before being forced to walk back his remarks.

In June, Latimer cruised to a commanding victory over Bowman, winning by a margin of 58 percent to 41 percent.

The post Jamaal Bowman Continues Diatribes Against Israel, AIPAC; Expresses Pride in Not Condemning Oct. 7 Massacre first appeared on Algemeiner.com.

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