https://sputnikglobe.com/20230422/israels-judicial-reform-may-negatively-affect-it-startups-cause-relocation-1109755782.html
Israel’s Judicial Reform May Negatively Affect IT Startups, Cause Relocation
Israel’s Judicial Reform May Negatively Affect IT Startups, Cause Relocation
Sputnik International
Judicial Reform, proposed by Israeli Prime Minister Benjamin Netanyahu sparks fears of political instability among IT startups and forces CEOs to think about relocation, Eldad Ben Tora, the president of KIDOZ Inc., told Sputnik
2023-04-22T07:23+0000
2023-04-22T07:23+0000
2023-04-22T07:23+0000
world
middle east
israel
judicial reform
benjamin netanyahu
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The draft law is intended to shake up the judiciary. If adopted, it will curtail the Supreme Court's power to review and strike down laws that it rules unconstitutional and give the government a greater say in the selection of judges. Thousands have been protesting against the reform nationwide for months. In late March, Israeli Prime Minister Benjamin Netanyahu announced the suspension of the legislative process on the judicial reform in order to negotiate and reach a compromise with its opponents. According to a survey conducted by research non-profit organization Start-Up Nation Central among 1,142 heads of start-ups, international companies and investment funds on March 22-23, some 80% believe that judicial reform will negatively affect "them and their portfolio companies." The survey also showed that the vast majority of investors (84%) believe that judicial reform will negatively affect the ability to attract capital from abroad. The enterprises seem to agree with investors, as 77 percent think it will be difficult for them to raise capital from foreign investors, and nearly 80 percent of companies said that investors had canceled meetings with them after the news about the judicial reform emerged. The survey also suggests that more and more high-tech companies have started placing their funds outside Israel. This situation has the potential to cause a massive outflow of funds from the country, the survey concluded. High-tech companies currently employ approximately one in ten workers in Israel. According to the 2022 global startup ecosystem index, Israel's high-tech industry comfortably remains the third-largest worldwide and an undisputed leader among the Middle Eastern countries.
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https://sputnikglobe.com/20230408/israelis-protest-judicial-reform-in-tel-aviv-1109273202.html
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Israel’s Judicial Reform May Negatively Affect IT Startups, Cause Relocation
SAINT PETERSBURG (Sputnik) - The judicial reform proposed by the Israeli government will have a serious negative impact on the country's booming startup ecosystem and may force some companies to consider relocation, as fear of political instability grows among them, Eldad Ben Tora, the president and general manager of KIDOZ Inc., told Sputnik.
The draft law is intended to shake up the judiciary. If adopted, it will curtail the Supreme Court's power to review and strike down laws that it rules unconstitutional and give the government a greater say in the selection of judges. Thousands have been protesting against the reform nationwide for months. In late March, Israeli Prime Minister Benjamin Netanyahu announced the suspension of the legislative process on the judicial reform in order to negotiate and reach a compromise with its opponents.
"We believe that the judicial reform will have a serious negative impact on the high-tech sector in Israel," Eldad Ben Tora said.
According to a survey conducted by research non-profit organization Start-Up Nation Central among 1,142 heads of start-ups, international companies and investment funds on March 22-23, some 80% believe that judicial reform will negatively affect "them and their portfolio companies."
The survey also showed that the vast majority of investors (84%) believe that judicial reform will negatively affect the ability to attract capital from abroad. The enterprises seem to agree with investors, as 77 percent think it will be difficult for them to raise capital from foreign investors, and nearly 80 percent of companies said that investors had canceled meetings with them after the news about the judicial reform emerged.
"Our concern is the decrease in Israel's attractiveness in the eyes of investors who fear instability, arbitrary legislation and weakened courts that will protect their interests," the entrepreneur explained the position behind his negative outlook.
The survey also suggests that more and more high-tech companies have started placing their funds outside Israel. This situation has the potential to cause a massive outflow of funds from the country, the survey concluded.
High-tech companies currently employ approximately one in ten workers in Israel. According to the 2022 global startup ecosystem index, Israel's high-tech industry comfortably remains the third-largest worldwide and an undisputed leader among the Middle Eastern countries.
