News - Middle East: The Israeli economic platform Globes, known for its coverage of economic developments in Israel, has highlighted a sharp decline in salaries, a collapse in living standards, and significant challenges in the tech and advanced industries sectors. This downturn is compounded by ongoing reductions in investment and persistent threats to Israel’s economic and critical infrastructure.

Eyal Solomon, CEO of the Israeli company Ethosia, told Globes: “Political and security uncertainty, declining investor confidence, and economic fluctuations have severely impacted the Israeli tech industry.” He further noted that export restrictions and reduced competitiveness, exacerbated by the Yemeni naval blockade, have disrupted Israel’s export and import sectors, causing a ripple effect across other vital industries.

Solomon also highlighted that rising government expenditures and the protracted conflict have severely undermined investor confidence. He stated, “With a 60 percent decrease in foreign investments compared to 2023, numerous startups have been forced to lay off employees, and many have shut down entirely due to the inability to secure capital.”

Globes reported a significant decline in salaries within Israel’s tech sector in 2024, marking a stark reversal of years of steady growth. Monthly salaries for specialists in fields like technology fell by 3 percent, while regular workers saw even steeper declines, according to earlier Israeli reports.

This drop in wages is particularly alarming for young professionals, often seen as the future of the industry. Thousands of skilled professionals have reportedly left the country, further exacerbating the challenges facing Israel’s industrial and production sectors, both financially and in terms of human resources.

Earlier reports from Israeli media have also detailed a significant exodus of skilled professionals fleeing the worsening economic and security conditions. This has intensified the struggles of the tech and advanced industries sectors, alongside logistical issues such as disruptions in air transportation and the Yemeni-imposed naval blockade.

The Israeli newspaper Yedioth Ahronoth recently highlighted rising prices for essential goods and a soaring cost of living, which have deepened domestic discontent with Prime Minister Benjamin Netanyahu’s government.

These deteriorating conditions stem from multiple factors, including escalated conflict in the Red Sea and Arabian Sea regions, which have increased transportation costs. Airlines have reduced flights to Israel, and shipping companies have rerouted vessels around Africa to avoid the conflict zones. These challenges underscore the widespread impact of operations by the Yemeni Armed Forces targeting Israeli interests.

Since Israel began its devastating war on Gaza on October 7, 2023, Yemen has openly expressed support for Palestine’s resistance against the Israeli occupation. The ongoing aggression in Gaza has claimed the lives of at least 45,514 Palestinians, mostly women and children.

In addition to missile strikes, Yemen has also targeted ships linked to Israel, the United States, and the United Kingdom, aiming to force an end to the Tel Aviv regime’s genocidal war on Gaza.

The US-British coalition continues its aggression on Yemen in support of the Israeli occupation, attempting to deter Yemen from supporting the Palestinian people.

However, the Yemeni Armed Forces have vowed to continue their attacks until Israel halts its ground and aerial offensives in Gaza.