JERUSALEM : The government's plan to overhaul the judicial system is harming investor confidence and pushing high-tech firms to relocate abroad, Israel's state-backed agency that supports high-tech companies said on Monday.
Israel's high-tech sector employs 10 per cent of the country's workforce accounting for around 15 per cent of economic output, more than half of exports and a quarter of tax income. Final approval has been delayed after widespread protests to try and find a compromise between proponents and opponents.
In a report delivered to of Innovation, Science and Technology Minister Ofir Akunis, the authority cited a significant gap between tech stocks traded in Tel Aviv and on Nasdaq.Should the gap widen further,"many Israeli hi-tech companies will find it very hard to raise investment and will be forced to close or move to other countries," it said.