The high-tech industry is considered the locomotive of the Israeli economy, which pulls the whole economy forward. However, there are a few stations at which this locomotive did not stop until a few years ago. One such station is the Arab sector. While many enjoy the innovation and the developed economy, most of the Arab population in Israel does not enjoy the fruits of technology. This was the topic of the “Start-up nation for all its citizens” panel at the “Globes” 2014 Israel Business Conference.
“It can’t be that the Arab villages and settlements will be only a source for traditional, polluting industries; we have the tools to be part of the Israeli economy’s growth engine, said Tsofen co-Manager Sami Saadi, who moderated the panel. Saadi presented data on the changes that have taken place in the Arab sector, and said that in 2008 there were only 350 Arab engineers, compared with more than 2,000 today. “Our vision is to establish four high-tech centers in the Arab sector by 2020 - two have already been established, in Nazareth and in Tira, and the next two will be in the Negev and in the Galilee.”
Broadcom Corporation VP Dr. Shlomo Markel explained why the company decided to open development centers specifically in Nazareth. “I’ve been asked if we opened there because the workers are cheaper or because there are worthwhile grants. I answered that if we wanted cheap workers, we would have gone to India or China, because we are a global company. We prefer excellent workers, and if there are excellent workers and they already live in Nazareth and they can bring good workers and friends, even better. It’s true that the government also offers help and support, that’s important, but that is not the goal, and our workers in Nazareth are great workers, and they receive the same salaries as workers in Tel Aviv.”
Prime Minister’s Office Authority for the Economic Development of the Arab, Druze and Circassian Sectors Director Aiman Saif was the government representative in the discussion. Saif surprised panel participants when he said, “The aim is to create good conditions in order to integrate the Arab population into the economy and to point young people towards high tech, but I must say - today, there is no government strategy or long-term plan to integrate the Arab sector in high tech. We work on isolated projects.”
”Social integration”
Amdocs Ltd. (NYSE: DOX) Nazareth Branch Manager Ihab Atalla spoke about the center in Nazareth and said, “we have very broad social integration, which creates a pluralism of creative ideas that lead to innovation. You feel the energy between the people who work, and begin thinking outside of the box.” Atalla said, “We, in the Arab population, like to be close to home, and to live in the North, and working in central Israel is difficult. So if you bring the company close to your home, it gives people the option of working in the high-tech sector.” Atalla also spoke about women in Israeli high tech and said, “An Arab woman can be both and engineer and a mom. It does not go without saying. This couldn’t have happened 20-30 years ago.”
Arab-sector VC firm Al Bawader board member and fund manager Dr. Ehab Farah said, “If my daughter came to me and asked if she could learn technology at the Technion, I would tell her to learn what she thinks suits her and not to become a teacher so she can be home at 2:00 pm. I don’t want to damage the reputation of teachers, but perceptions have changed.”
Saif spoke of the difference between the medical sector and high tech in terms of hiring and recruiting workers. “We must open high-tech companies to Arabs. Today, there are graduates from the sector who can work in high tech, but the door is practically locked. Why does it work in hospitals and not in high tech? We, as a government, give incentives to companies like Amdocs, Broadcom, Intel, and HP for this. We see a significant change, but it’s not enough.”
Alpha Omega owner Reem Younis, who was the only female panelist, spoke of the importance of entrepreneurship in the Arab sector. “We need to expand the existing companies, like ours, from 60 workers to 500 or 1,000 workers, and then there is chance that more entrepreneurs will come out of them. Four entrepreneurs have come from Alpha Omega.” Seif also spoke on the matter and said that it is worthwhile to encourage local entrepreneurship. “We must encourage the creation of Arab start-ups. I am waiting for the first Arab sector exit. I am waiting for the first Waze. The moment that happens, a lot of young Arabs will enter this field. We need success stories like this, with government support.”
Younis summarized, saying, “If we succeed in creating a system that everyone benefits from, then there is no reason that the whole high-tech locomotive shouldn’t continue on to the Arab sector. The Arab contribution to the GNP is 8%. On the other hand, the State loses NIS 31 billion each year from Arabs that don’t work."