Report: Many Israeli firms teetering on edge of bankruptcy amid worsening cris

A recent report has revealed that many large companies in the Israeli-occupied territories have resorted to borrowing over the past two years to pay off their previous loans, and they are now teetering on the edge of bankruptcy.

According to the Hebrew-language financial daily newspaper Globes, large construction companies, both Israeli and foreign, are trying to obtain new loans and pay their promissory notes.

The report added that the companies, due to the conditions that the Israeli regime has been experiencing over the past two years, have been forced to seek loans and borrowings or pre-sales on a large scale to meet their minimum needs, especially to settle their overdue loans.

This comes as the Barclays Hotel Company listed its shares on the stock exchange, while announcing a budget deficit of 90 million shekels and a negative financial balance to its management.

Globes further noted that many Israeli settlers are no longer looking to invest in the housing sector and have transferred their capital to other sectors.

This has caused many construction companies to face numerous challenges, the financial daily wrote.

Since the onset of its genocidal war in Gaza in October 2023, Israel has invested enormous financial and human resources in demolishing the Palestinian territory and dismantling its institutions

The Bank of Israel assessed the total economic impact of the war to be around 352 billion shekels ($112 billion). This figure constitutes approximately 243 billion shekels ($77 billion) in direct military expenses, 33 billion shekels ($10.5 billion) allocated for the property tax compensation fund, civilian costs amounting to 57 billion shekels ($18 billion), and interest obligations of 19 billion shekels ($6 billion).

By early 2025, assessing the Gaza war alone, Gil Pinchas, Israel’s former chief military economic advisor, estimated that the genocidal offensive had cost Israel about 150 billion shekels ($48 billion), averaging around 300 million shekels ($96 million) daily.

Pinchas noted that Israel had spent 340 billion shekels ($108 billion) on munitions since the bloody onslaught began, though much of that has not yet been deployed.

A substantial portion of that expenditure has also gone towards acquiring weapons from domestic manufacturers, which has mitigated some of the broader effects of the war on the Israeli economy.

The Wall Street Journal estimated midway through the war that Israel's June 2025 aggression against Iran was costing it $200 million daily, with intercepting missiles aimed at Iranian rockets, at times totaling 400 per day, valued between $700,000 and $4 million each.

Moreover, Israel's September 2024 assault on Hezbollah's communication systems reportedly set back the Israeli treasury by around one billion shekels ($318 million).

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