At least 1,700 millionaires have departed Israel in the past year as economic conditions deteriorate following the Gaza war, according to a report by Henley & Partners and South African data intelligence firm New World Wealth cited by Israeli media.

The figures quoted by The Daily Sabah reveal that Tel Aviv and Herzliya, which hosted 24,300 millionaires in 2023, now have approximately 22,600 wealthy residents in 2024. While the report did not explicitly state reasons for this exodus, previous Israeli media coverage has linked population departures to the economic and security impacts of the ongoing Gaza conflict.

Parallel to this wealth migration, Israel's tech sector is experiencing its first workforce contraction in over a decade, Globes noted. The Israel Innovation Authority reported that between October 2023 and July 2024, 8,300 tech employees left the country for extended periods of at least one year, representing 2.1% of Israel's entire tech workforce. October 2023 alone saw 1,207 tech workers leave Israel.

According to the Israel Innovation Authority’s report, the total number of employees in Israel's high-tech industry fell to 390,847 in 2024, a 1.2% decrease from 2023. This marks a significant reversal from the industry's consistent growth over the previous decade, during which the tech workforce nearly doubled from 213,493 in 2012.

The report highlights a striking trend in workforce distribution: Israeli tech companies now employ 440,000 workers abroad compared to 400,000 domestically. Privately held Israeli tech firms have 190,000 employees in Israel and 242,000 internationally, while publicly traded companies maintain just 63,000 workers in Israel versus 199,000 abroad.

This distribution varies significantly by function. Sales, marketing, and customer service roles are predominantly based overseas (75%), while R&D positions are more evenly split, with 52% located in Israel. Senior management positions remain primarily in Israel (64%). Despite these shifts, 59% of new hires by Israeli high-tech companies in 2024 were still within Israel.

These reports suggest that working professionals and industry leaders in Israel may be declining in confidence over the country’s ability to improve its economic prospects following the ongoing war, consequently creating a vacuum in the country’s labour force.