The war on the Gaza Strip plunged Israel into unconventional economic crises that it had not experienced even when it entered previous regional wars. For the first time in several decades, a larger number of wealthy immigrants left Israel than those who came to it, according to the Private Wealth Migration Report.
The report, issued last week, showed Israel’s exit from the private wealth immigration rankings for 2024 published by the investment consulting firm Henley & Partners, which specializes in international residency and citizenship.
Each year, the company lists the 20 countries that have absorbed the most wealthy people; Last year, Israel ranked 12th with an additional 600 wealthy people living in the country, up from eighth in 2022.
The Wealth Migration report says: “In a reversal of circumstances, the report reveals that Israel dropped out of the list of largest money flows for the first time in 2024… This represents a major shift.”
Going back to the report’s nearly 50-year history, Israel has been ranked 10th among the top destinations for millionaire immigrants for several decades, with an average rank.
This means that the war on the Gaza Strip prompted a smaller number of wealthy investors to express interest in stability in the country, but what happened was that a wide segment of investors transferred their capital to other countries considered safer.
Henley defines a wealthy person as someone with liquid assets in excess of $1 million.
American visa
Among the crises that Israel faced due to its war on the Gaza Strip, according to a report detailed by the Israeli newspaper Yedioth Ahronoth, was that the United States, Israel’s largest ally, restricted the entry of Israeli businessmen into its territory.
According to the report, interviews conducted with Israelis to obtain an entry visa to the United States show restrictions and sensitive questions about their affiliation with the army.
This means that Israeli businessmen face the risk of their business being affected in the American market, which is the backyard of the Israeli economy for them.
The newspaper quoted businessmen as saying that interviews conducted by immigration offices and consulates show that the questions appear to have been issued by the International Criminal Court, and not by a consulate.
The newspaper says, “The reason behind this appears to be the war in the Gaza Strip, where some Israelis applying for residency are being investigated about whether they have served in the Israeli army, and the nature of their previous service.”
She added, “According to a press investigation we conducted, the United States asks Israelis applying for a green card whether they have committed war crimes.”
The investigation concluded that “Israeli applicants for permanent residency in the United States are currently subject to in-depth investigation regarding their service in the military, including skills in using weapons and explosives.”
Technology leaders
After their frustration with Israeli Prime Minister Benjamin Netanyahu, some Israeli business leaders are considering entering politics, according to the outcomes of an economic forum, details of which were reported by Bloomberg.
The forum, which brings together the 200 largest business leaders in Israel, called last week for early elections to “save Israel from a deep economic crisis.”
According to an Anadolu survey of forum participants’ data, half of the companies listed on the Tel Aviv Stock Exchange TA-35 index are represented, including the CEOs of the four largest banks (Hapoalim, Leumi, Discount, and Mizrahi).
Among those attending the discussions who were said to be considering a political role from the world of technology was Kimi Peres of Petango, the son of former President Shimon Peres.
The names also include Inat Gez, CEO of Papaya Global, and Izhar Shai, a partner in the venture capital firm Disruptive AI. He is a former science minister whose son, a soldier, was also killed on October 7.
Central Bank estimates indicate that the war on the Gaza Strip will cost Israel about $67 billion until 2025, or approximately 15% of the annual gross domestic product.
Per capita GDP fell in 2023 for the first time in 8 years, according to the International Monetary Fund, while the Israeli government is on track to record its largest budget deficit this century in 2024.
