Big companies like Intel are realizing that Israel just might be bad for business.
Big business is beginning to realise that Israel is a bad bet. Intel has stopped a $25bn investment in Israel, Ireland’s Sovereign Investment Fund is divesting from six Israeli firms, multiple bands have pulled out of the massive Download festival because of sponsor Barclays Bank’s connection to Israel — forcing Barclays to suspend sponsorship.
There have been calls within the EU to break trade ties with Israel altogether, putting Israel in the position of having to make thinly-veiled threats towards EU citizen states, behaviour which enamours it to no one.
Meanwhile Colombia has stopped selling coal to Israel which will have a knock on effect, given that Colombia is Israel’s biggest coal supplier. And Turkey has banned all trade with Israel too.
The fact that Israel is increasingly being diplomatically isolated — with Africa, Bahrain, Chile, Honduras, Chad and Jordan withdrawing their ambassadors — will only serve to encourage more investor flight.
After a significant contraction in late 2023, Israel’s economy bounced back in spite of the ongoing conflict in Gaza. That is unlikely to be the case now that the war with Hezbollah is intensifying. Spending on military fronts will necessitate budget cuts elsewhere, and it is the average Israeli citizen who will feel the pinch, not the top echelons of that society.
