Israeli college president: Young tech entrepreneurs will drive Israel’s future economy

Prof. Ami Moyal, who heads the Tel Aviv-based Afeka Academic College of Engineering, predicts that young Israelis involved in high-tech and engineering will play a critical role in advancing the Jewish state’s postwar economic recovery.

“The main growth engine in Israel is its hi-tech sector,” Moyal said, adding “and the underlying power source that runs this engine is skilled human capital – specifically engineers. I expect that the State of Israel will require many engineers to rebuild and restore our country after the war.”

Known as the "Start-Up Nation," the Israeli tech industry is closely connected to the Israel Defense Forces, where many technological innovations originate before being adapted for civilian applications.

More than 42% of the Afeka College students have reportedly served the State of Israel during the ongoing war against Iranian terrorist proxy groups in the region, including Hamas in Gaza and Hezbollah in Lebanon.

Despite the many challenges of war, the close bond between the IDF and the tech industry stimulates innovation and strengthens the nation's economy.

Recognized as one of Israel’s top engineering and technology-focused academic institutions, Afeka is responsible for producing 10% of all new engineers entering the Israeli workforce. Each Afeka graduate is estimated to contribute approximately $250,000 annually to Israel’s Gross Domestic Product (GDP).

In recent years, the Israel Innovation Authority has reported an annual shortage of 13,000 to 20,000 engineers and computer programmers. Moyal warns that this shortage needs to be met urgently as skilled human capital is critical for growing the economy.

The Israeli tech sector currently employs some 10% of the total Israeli workforce. However, during the period from 2018 to 2023, the Israeli tech industry contributed 40% of the Jewish state’s total GDP growth. Furthermore, Israeli tech products account for over 50% of the country’s total exports.

However, Moyal stressed that technological innovation is also driven by the goal of improving human life and living conditions.

“The essence of engineering is developing pioneering technologies to improve human life, create a better world, and drive progress,” Moyal stated. “In this landscape, engineers will be a critical component, not only in the success of Israel’s hi-tech industry and subsequently its economy, but also in the country’s global positioning as a leader in quality human capital and pioneering technology – a positioning that feeds back into the economy through international investments and collaborations.”

Looking ahead, Moyal predicted that artificial intelligence will have a dramatic impact on the global tech industry.

“AI will change the world as we know it and will have a dramatic, yet not entirely predictable, impact on teaching, learning, and research processes,” Moyal noted. “Instead of fearing its consequences,” he urged the next generation to embrace this change.

“AI should be viewed as a technology that enhances the power of the human brain, much in the same way that the invention of the hammer enhanced the power of the human hand,” he said.

While a thriving tech industry requires quality human capital, it also needs an inflow of funds to sustain itself.

In November, Bank Leumi, one of Israel’s leading banks announced it would create a $77million high-tech fund in honor of Israel’s upcoming 77th Independence Day in 2025.

"For more than a year, Israel has been at war, and throughout this time, I have been asking myself what we, as the largest bank in Israel, can do and what our role is on a national level. For me and for the bank, the answer is clear: to continue driving the economy forward and doing everything possible to enable the Israeli economy to demonstrate its incredible resilience," Bank Leumi CEO Hanan Friedman stated.