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Battered by Gaza war, Israel's tech sector in recovery mode

Rising private funding in 2025 and Nvidia's December plan for a northern R&D centre signal Israel's tech sector is showing early signs of recovery.
Investor freezes and suspended air traffic constrained the sector, as the defence ministry accepted products from startups and 8,300 advanced-technology employees left.
Startups in the defence sector nearly doubled from 160 to 312 between July 2025 and February 2026, with over 130 of more than 300 emerging companies joining Israel's defence ministry during the war.
Industry professionals now say the sector is turning a corner, supported by rising private funding and defence startups, as cutting-edge technologies account for 17 percent of GDP and a large share of exports.
The sector's output stagnated in 2024 and 2025, with the 2021 historic peak remaining a reference point amid global tensions like the Russia-Ukraine war and China relations, so recovery can't come soon enough.

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Battered by Gaza war, Israel’s tech sector in recovery mode

Israel's vital tech sector, dragged down by the war in Gaza, is showing early signs of recovery, buoyed by a surge in defence innovation and fresh investment momentum. Cutting-edge technologies represent 17 percent of the country's GDP, 11.5 percent of jobs and 57 percent of exports, according to the latest available data from the Israel

15 hours ago

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Battered by Gaza war, Israel's tech sector in recovery mode

Israel's vital tech sector, dragged down by the war in Gaza, is showing early signs of recovery, buoyed by a surge in defence innovation and fresh investment momentum.

15 hours ago·Cherokee County, United States

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