Samsung Next, the innovation division of the South Korean technology giant Samsung, has announced that it will close its operations in Tel Aviv, Palestine. Samsung Next has invested in around 70 Israeli start-ups over the years, but it is now joining the list of companies leaving the Israeli tech industry, which makes up 50% of the country’s exports. According to the Boycott, Divestment, Sanctions (BDS) movement, investments in Israeli tech firms have decreased by 56% in 2023 compared to the previous year.
The Israeli cybersecurity sector has also experienced a decline in funding, reaching a five-year low in 2023. This may be a sign of decreasing confidence in Israel’s once highly-regarded security capabilities.
This news follows the recent announcement from McDonald’s Corporation, which plans to purchase all of the restaurants franchised by the Alonyal group in Israel. This includes all 225 locations and the full staff of around 5,000 employees.
The decisions of both Samsung Next and McDonald’s may signal a shift in business operations and investments in the region. This change could impact the future growth and development of the Israeli tech and business sectors.
