Israeli Startups Eye Morocco Amid Economic Uncertainty, Moody’s Warns

The "deterioration of Israel’s governance" could have "negative consequences" on the stability of the economy as well as on the country’s security, warned the American rating agency on Tuesday, recalling the failure of "attempts at compromise with the opposition" and the "widespread protests from civil society that have continued since January".

From "positive" in April, Israel’s credit outlook is now considered "stable" by Moody’s, which specifies that "venture capital investments in Israeli high-tech companies have declined significantly, with the sector raising $3.7 billion in the first six months of the year," the lowest figure since 2019. According to the Innovation Authority, "more than 80% of startups have decided not to form in Israel, compared to 20% in 2022".

In addition, the American banks Morgan Stanley and City Bank have decided to withdraw their investment recommendation in Israel. At the same time, 200 Israeli companies have authorized their employees to go on strike on Monday to put pressure on the government to abandon its controversial legislative reform project.

Israeli startups have set their sights on Morocco since the normalization of relations between Rabat and Tel Aviv in December 2020. Since then, cooperation between the two countries has intensified in all areas (Tech, agri-food, aeronautics, military, etc.). The Jewish state has just recognized the Moroccanness of the Sahara.