The chief scientist at Microsoft Israel's Research and Development Center, Tomer Simon, expressed his concern about the future of the high-tech sector in the occupying state due to the war it is waging against the Palestinian Islamic Resistance Movement (Hamas).

The official warned, according to Reuters, that multinational companies may stop research and development activities in Israel. Simon said he expressed his concerns in a letter to Israeli National Security Advisor Tzachi Hanegbi but did not receive a response.

Accordingly, Simon published his letter in the Calcalist economic newspaper on Wednesday, saying that this is his personal opinion and does not represent Microsoft, which is one of hundreds of multinational companies operating in Israel.

“The country must create a positive horizon for multinational companies to continue to grow,” Simon said, noting that for every technology job, five more jobs are created, which supports the Israeli economy. He added: "There is a great danger here. Israel cannot return to producing only oranges. Without high technology, we will return to a third world economy."

Microsoft provides millions of dollars in financial and technical assistance to Israel annually. In 2022, the value of the aid provided by the company to Israel reached $50 million.

Intel also announced yesterday, Tuesday, that it will pay all of its 12,000 employees in Israel a grant of 5,000 shekels, in support of the Israeli war effort against the Gaza Strip, and the grant will be paid at the end of November.

The modern technology sector represents great importance in the Israeli economy, as last year it contributed 18% of the gross domestic product, employing 14% of the total working population, with $71 billion in exports.

After the outbreak of war between the Israeli occupation and the Palestinian resistance in the Gaza Strip since last October 7, about 15% of workers in the Strip were summoned to military service away from their offices, according to estimates by the SNC Association.

Even before the outbreak of war, Israeli technology companies were suffering from a sharp decline in investments of up to 70%, which was exacerbated by the global economic slowdown and the country's judicial reform crisis.

Recently, The Times of Israel website quoted the CEO of the Israel Innovation Authority, Dror Ben, saying, “The slowdown in fundraising cycles and mobilization of reservists for war poses a challenge to a large number of high-tech companies.”

"Businesses are at risk of closing in the coming months," Ben warned.

Source: Agencies