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.”


Iraq’s foreign minister makes first visit to Iran

Updated 26 September 2020

Iraq’s foreign minister makes first visit to Iran

  • Iran sees neighboring Iraq as a possible route to bypass US sanctions that President Donald Trump re-imposed in 2018

TEHRAN: Iraq’s foreign minister arrived Saturday in Tehran for bilateral talks with senior Iranian officials, according to the state-run news agency.
IRNA reported that Fuad Hussein planned to meet his Iranian counterpart Mohammad Javad Zarif and President Hassan Rouhani, in what marked his first visit to the Iranian capital.
Zarif visited Baghdad in mid-July, when he met with Hussein and Iraqi Prime Minister Mustafa Al-Kadhimi. It was Zarif’s first visit to Iraq since a US airstrike in January killed a top Iranian general, Qassim Soleimani, outside Baghdad’s international airport. The strike catapulted Iraq to the brink of a US-Iran proxy war that could have destabilized the Middle East.
After Zarif’s trip, the Iraqi premier visited Iran in July.
The report did not elaborate on the main reasons behind the top Iraqi diplomat’s two-day trip to Tehran.
Iran sees neighboring Iraq as a possible route to bypass US sanctions that President Donald Trump re-imposed in 2018 after pulling the US out of the 2015 nuclear deal between Tehran and world powers.
Last year, Iran’s exports to Iraq amounted to nearly $9 billion, the official IRNA news agency reported on Tuesday. It said the two nations will discuss increasing the amount to $20 billion.
Before the current global pandemic, some 5 million Iranian pilgrims annually brought in nearly $5 billion visiting Iraq’s Shiite holy sites.
Iran has seen the worst outbreak in the region, with more than 443,000 thousand confirmed cases and at least 25,300 deaths.
A news website affiliated with Iranian state TV, yjc.ir, reported that Iran canceled all its flights to Iraqi cities until the religious holiday of Arbaeen, due to concerns over the coronavirus outbreak. The holiday marks the end of the forty days of mourning that follow annually on the death anniversary of the seventh-century Muslim leader Hussein, who was killed at the Battle of Karbala during the tumultuous first century of Islam’s history.
Iran fought an eight-year war with Iraq that killed nearly 1 million people on both sides, after former Iraqi dictator Saddam Hussein invaded in the early 1980s.