For the first time in several decades, wealthy immigrants leaving Israel outnumber those determined to stay, according to Henley & Partners' 2024 Private Wealth Migration Report. The Israeli Globes platform quoted the report, indicating that Israel was removed from Henley & Partners' list of the 20 countries that attract private wealth. This is a significant deviation from the 12th position it held last year when it saw a net influx of 600 wealthy individuals.
A report published by the International Residency and Citizenship Foundation by the investment consulting firm Henley & Partners underscores a significant decline for Israel. The country has been ranked among the top ten destinations for millionaire immigrants for several decades. Henley & Partners define a wealthy person as someone with liquid assets of more than $1 million.
Dan Marconi, senior client advisor for Henley & Partners' Israel branch, commented that this seismic shift underscores how quickly any conflict can undermine a country's attractiveness in the eyes of the world's wealthy and globally mobile. The economic damage caused by the Israeli war on Gaza, particularly in sectors like high-tech startups that rely heavily on investor money, has been substantial.
In a related development, the Prime Minister of Israel, Benjamin Netanyahu, dissolved the War Cabinet, a mechanism created on October 11 to make decisions on the military operation in the Gaza Strip after the Hamas attack. The deactivation comes shortly after Benny Gantz and Gadi Eisenkot left the Cabinet due to disagreements with Netanyahu. Sensitive decisions will now be made in a smaller consultation forum including key ministers and Netanyahu's inner circle.
The ongoing conflict and political instability have not only shattered Israel's image as a safe haven but also threaten to overshadow its economic achievements. The exodus of wealthy investors represents a major economic setback that may be difficult to reverse. As investors seek safer and more stable environments, restoring confidence and rebuilding Israel's appeal to the wealthy and globally mobile will be crucial.
- While Israel has seen a decline, other countries have recorded significant influxes of wealthy immigrants. The UAE ranked first, attracting 6,700 wealthy immigrants last year, followed by the United States with 3,800. Other major destinations include Singapore, Canada, Australia, Italy, Switzerland, Greece, Portugal, and Japan.
- Conversely, countries like China, the UK, and India have experienced the highest outflows of wealthy individuals, signifying a shift in global economic confidence and perceptions of safety.
- The dissolution of the War Cabinet marks a return to the decision-making process established after the Hamas attack, where a smaller group of key ministers will handle sensitive war-related decisions. This new system excludes far-right wing leaders like Itamar Ben Gvir and Bezalel Smotrich, focusing instead on a strategic core.
- Benny Gantz and Gadi Eisenkot's resignation from the War Cabinet highlights the broader political disarray and disagreements within the Israeli government. Their departure underlines the absence of a clear post-war plan for Gaza, creating further uncertainty in Israel's political landscape.
