Mamdani’s BDS support under spotlight as new report shows Israeli firms boosted NYC economy by $12.4B last year

Analysts have warned that if even a small share of Israel’s startup community begins diverting investments away from New York, the repercussions could be felt across the city’s innovation and finance sectors.

By Corey Walker, The Algemeiner

One week out from New York City’s mayoral election, frontrunner Zohran Mamdani’s ardent support for boycotting Israel will likely face renewed focus from New Yorkers concerned about their wallets, with a new report revealing that Israeli firms pour billions of dollars and tens of thousands of jobs into the local economy.

A new study from the United States-Israel Business Alliance revealed that, based on 2024 data, 590 Israeli-founded companies directly created 27,471 jobs in New York City last year and indirectly created over 50,000 jobs when accounting for related factors, such as buying and shipping local products.

These firms generated $8.1 billion in total earnings, adding an estimated $12.4 billion in value to the city’s economy and $17.9 billion in total gross economic output.

As for the State of New York overall, the report, titled the “2025 New York – Israel Economic Impact Report,” found that 648 Israeli-founded companies generated $8.6 billion in total earnings and $19.5 billion in gross economic output, contributing a striking $13.3 billion in added value to the economy.

These businesses also directly created 28,524 jobs and a total of 57,145 when accounting for related factors.

From financial tech leaders like Fireblocks to cybersecurity powerhouse Wiz, Israeli entrepreneurs have become indispensable to the city’s innovation ecosystem.

The number of Israeli-founded “unicorns,” privately-held companies with a valuation of at least $1 billion, operating in New York City has quadrupled since 2019, increasing from five to 20.

“When Israeli tech entrepreneurs think about entering the US market or positioning their companies for global growth, New York City is at the top of the list,” US-Israeli Business Alliance President Aaron Kaplowitz said in a statement.

“Ultimately, this cosmopolitan appeal translates into more local jobs and more money flowing through the city’s economy.”

The report came out days before next week’s New York City mayoral election, in which Mamdani, the Democratic nominee, remains the frontrunner.

However, a new Suffolk University poll released on Monday showed a tightening race, with former New York Gov. and independent candidate Andrew Cuomo cutting Mamdani’s lead in half to just 10 points, 44 percent to 34 percent.

Mamdani, a far-left democratic socialist who has made anti-Israel activism a cornerstone of his political career, has repeatedly accused Israel of “apartheid” and refused to recognize its right to exist as a Jewish state.

He has also been an outspoken supporter of the boycott, divestment, and sanctions (BDS) movement, which seeks to isolate Israel on the international stage as a step toward its eventual elimination.

It is unclear to what degree Mamdani would seek to implement his BDS activism if elected mayor.

Such positions have raised alarm bells among not only New York’s Jewish community but also Israeli business owners and investors, who fear a hostile climate under Mamdani’s leadership.

One Israeli tech CEO, speaking to the New York Post on condition of anonymity, said that his business could be another to flourish in New York but that a Mamdani administration would make him think twice about landing in the city.

“I need to see if his words have any meaningful impact on the ground,” the CEO told the Post.

“If someone on our team is moving to New York, I want them to be in a pleasant area where they don’t feel fearful, or, from a business perspective, deal with people that are shying away because the company’s Israeli.”

Analysts have warned that if even a small share of Israel’s startup community begins diverting investments away from New York, the repercussions could be felt across the city’s innovation and finance sectors.

Israeli-founded companies are particularly concentrated in high-growth industries such as financial tech, artificial intelligence, and cybersecurity, lucrative and growing fields.

During his short tenure in city politics, Mamdani has amassed a substantial anti-Israel track-record.

In 2021, Mamdani issued public support for the BDS movement. In May 2023, he advanced the “Not on our dime!: Ending New York Funding of Israeli Settler Violence Act,” legislation which would ban charities from using tax-deductible donations to aid organizations that work in Israeli communities in Judea and Samaria.

Mamdani argued that the legislation would help the state fight against so-called Israeli “war crimes” against Palestinians.

On Oct. 8, 2023, 24 hours following the deadliest day for Jews since the Holocaust when Hamas invaded Israel, Mamdani published a statement condemning Israeli Prime Minister Benjamin “Netanyahu’s declaration of war.”

He also suggested that Israel would use the terrorist attacks to justify committing a second “nakba,” the Arabic term for “catastrophe” used by Palestinians and anti-Israel activists to refer to the establishment of the modern state of Israel in 1948.

Five days later, Mamdani further criticized Israel’s response to the Hamas-led massacre, saying that “we are on the brink of a genocide of Palestinians in Gaza right now.”

In January 2024, he called on New York City to cease sending funds to Israel, saying that “voters oppose their tax dollars funding a genocide.”

Mamdani is also a member of the controversial Democratic Socialist of America organization (DSA), which has formally endorsed the BDS movement.