Israel's tech sector could face disruptions after attacks, say investors

Tech companies operating in Israel are expected to amp up their security in light of the attacks by Hamas.

Tech companies operating in Israel are expected to fortify security as they could face disruptions, said investors and analysts, after Hamas gunmen from Gaza killed hundreds of Israelis and abducted an unknown number of others.

High-tech industries have for a few decades been the fastest growing sector in Israel and crucial for economic growth, accounting for 14% of jobs and almost a fifth of gross domestic product.

Israeli stock and bond prices slid and many businesses were closed on Sunday after gunmen from the Palestinian group Hamas rampaged through Israeli towns on Saturday and militants also fired thousands of rockets into Israel in a surprise attack.

Some rockets reached as far as Tel Aviv, prompting airlines to suspend flights to and from Israel.

(For top technology news of the day, subscribe to our tech newsletter Today’s Cache)

Israel retaliated with air strikes on Hamas targets in Gaza, and hundreds of people have died.

"It is a huge disruption to business as usual," said Jack Ablin, chief investment officer and founding partner at Cresset Wealth Advisors. He said in the short-term resources could be diverted if the conflict expands, such as staff at tech companies being called up as military reservists.