At the 2025 National Economics Conference in Eilat, Prime Minister's Office Director-General Yossi Sheli emphasized the importance of solving housing issues for foreign workers. He proposed an ambitious initiative to establish a residential city near Modi'in that could accommodate approximately 30,000 workers. This initiative aims to facilitate the rapid integration of foreign workers and improve the construction sector's condition.
The conference, attended by dozens of ministers, members of parliament, and experts, provided an opportunity to rethink the future of Israel's construction industry. Notable participants included MK Yaakov Asher, Chairman of the Interior Committee, Yoav Simchi, Chairman of the National Labor Federation, and Eldad Nitzan, Chairman of the Association of Foreign Labor Corporations in Construction.
Attendees called for the Ministry of Finance to eliminate fees imposed on bringing foreign workers, which amount to approximately NIS 130 billion ($36.6 b.) annually. MK Asher noted that such a move would significantly help rehabilitate the sector, which has been severely impacted since the war's outbreak and could lead to a 7-10% reduction in housing prices.
Eldad Nitzan stated during a discussion that "bureaucracy imposed by the Population Authority and Ministry of Justice is delaying the arrival of about 40,000 foreign workers to the construction sector. The current pace of worker recruitment won't resolve the severe shortage stalling hundreds of projects nationwide." He explained that 200 foreign labor corporations in the construction sector could bring workers from Vietnam, India, Sri Lanka, and Thailand within three months.
According to Nitzan, the current situation, with only about 50,000 foreign workers employed in Israel, doesn't meet the sector's needs, especially following the cessation of Palestinian workers' employment after the Swords of Iron War.
"The selection of foreign construction workers through the private track is done in collaboration with contractors, matching the professional requirements of the construction sector,” he said. “Increasing the foreign worker quota, representing about 36% of apartment construction costs, will create a significant incentive for contractors to accelerate construction rates and ultimately reduce housing prices."