Palestinian contractors set to gain from Israeli tech firm’s takeover

A technician at work at Mellanox Technologies in Yokneam, Israel. (Reuters)
Updated 17 June 2019

Palestinian contractors set to gain from Israeli tech firm’s takeover

  • The chipmaker offered stock options to more than 100 Palestinian engineers in the occupied West Bank and Gaza Strip

RAWABI, WEST BANK/TEL AVIV: Palestinian engineers working for Israeli chip designer Mellanox Technologies are poised to share a $3.5 million payout when the company’s takeover by US chip supplier Nvidia Corp. is completed.

Mellanox is one of a handful of Israeli firms that have begun to collaborate with the emerging Palestinian tech scene, bypassing the political conflict to tap a growing pool of engineers at costs they say are comparable to hiring from engineering expertise in India or Ukraine.

The chipmaker offered stock options to more than 100 Palestinian engineers in the occupied West Bank and Gaza Strip when it hired them as contractors, even though they are not permanent staff, as a shortage of engineers in Israel makes their skills highly sought after by multinationals.

Mellanox says its Palestinian designers and coders, outsourced through software firm ASAL Technologies, will now be able to exercise those options after Nvidia’s $6.8 billion takeover closes at the end of 2019, and stand to collectively earn as much as $3.5 million.

“We’re very proud they have equity, the same as all other employees in the company,” Mellanox Chief Executive Eyal Waldman told Reuters in an interview.

“Thirty, forty thousand dollars for an employee in the West Bank or in Gaza is a lot of money,” Waldman added, noting that unemployment there hovers at around 40 percent.

The median daily wage in the West Bank is $28 and just $11 in Gaza, according to the Palestine Economic Policy Research Institute.

ASAL CEO Murad Tahboub said 125 of his 350 employees work exclusively for Mellanox, which makes products that connect databases, servers and computers, and they were given options in a bid to reduce job hopping among workers.

“(Mellanox) saw value, they saw loyalty in the relationship,” Tahboub said in his office in a bustling high-tech center in Rawabi, the first Palestinian planned city in the West Bank. “The Israeli market provides an opportunity for the whole Palestinian high-tech sector.”

ASAL’s other clients include Microsoft, Intel and Cisco. Tahboub said his engineers designed 70 percent of Cortana, the virtual assistant created by Microsoft.

High-tech provides a unique opportunity for Palestinians, whose universities produced around 3,000 engineers in 2018, Tahboub said.

Still, Tahboub said Israeli restrictions — particularly curbs on the movement of goods and people in and out of the West Bank and Gaza — deter multinationals from investing in or outsourcing from the Palestinian territories.

“(Investors) avoid risk. Why should I invest in a startup in Palestine if I’m not sure if the owner of that startup can travel to the US?” Tahboub asked.

Those challenges are intimately felt in Gaza, whose economy has suffered from years of Israeli and Egyptian blockades. Economic cooperation between Israel and Gaza is mostly limited to merchants importing goods, including cement and petrol.

Both Mellanox and ASAL agree tech can be a major boost for Gaza, and they plan to increase their joint remote workforce in Gaza from 25 engineers currently.

Waldman hopes the two companies’ collaboration will help improve relations and reduce tensions between Israelis and Palestinians.

“The more positive friction there is between the two people the better it is for us, for the environment, for the Israelis, for the Palestinians,” Waldman said. “I think we can have an impact.”


Suspected arson at East Jerusalem mosque

Israeli border policemen take up position during clashes with Palestinian demonstrators at a protest against Trump's decision on Jerusalem, near Ramallah, in the occupied West Bank March 9, 2018. (REUTERS)
Updated 25 January 2020

Suspected arson at East Jerusalem mosque

  • The attack had the appearance of a “price tag” attack, a euphemism for Jewish nationalist-motivated hate crimes that generally target Palestinian or Arab Israeli property

JERUSALEM: Israeli police launched a manhunt on Friday after an apparent arson attack, accompanied by Hebrew-language graffiti, at a mosque in Israeli-annexed East Jerusalem.
“Police were summoned to a mosque in Beit Safafa, in Jerusalem, following a report of arson in one of the building’s rooms and spraying of graffiti on a nearby wall outside the building,” a police statement said.
“A wide-scale search is taking place in Jerusalem,” police spokesman Micky Rosenfeld told AFP. “We believe that the incident took place overnight. We are searching for suspects.”
The spokesman would not say if police viewed it as a hate crime. The graffiti, on a wall in the mosque compound and viewed by an AFP journalist, contained the name Kumi Ori, a small settlement outpost in the north of the Israeli-occupied West Bank.
The Times of Israel newspaper said on Friday that the wildcat outpost “is home to seven families along with roughly a dozen extremist Israeli teens.”
“Earlier this month security forces razed a pair of illegally built settler homes in the outpost,” it reported.
All settlements on occupied Palestinian land are considered illegal under international law, but Israel distinguishes between those it has approved and those it has not.
The paper said: “A number of young settlers living there were involved in a string of violent attacks on Palestinians and (Israeli) security forces.”
Police said that nobody was injured in the mosque incident.
The attack had the appearance of a “price tag” attack, a euphemism for Jewish nationalist-motivated hate crimes that generally target Palestinian or Arab Israeli property in revenge for nationalistic attacks against Israelis or Israeli government moves against unauthorized outposts like Kumi Ori.
“This is price tag,” Israeli Arab lawmaker Osama Saadi told AFP at the scene.
“The settlers didn’t only write words, they also burned the place and they burnt a Qur’an,” said Saadi, who lives in the area.
Ismail Awwad, the local mayor, said he called the police after he found apparent evidence of arson, pointing to an empty can he said had contained petrol or some other accelerant and scorch marks in the burned room.
“The fire in the mosque burned in many straight lines which is a sign that somebody poured inflammable material,” he said.
There was damage to an interior prayer room but the building’s structure was unharmed.
In December, more than 160 cars were vandalized in the Shuafaat neighborhood of east Jerusalem with anti-Arab slogans scrawled nearby.
The slogans read “Arabs=enemies,” “There is no room in the country for enemies” and “When Jews are stabbed we aren’t silent.”
The attackers were described by a local resident as “masked settlers.”