Israel’s construction sector is warning of sharp disruptions after a government directive ordering the non-renewal of work permits for thousands of veteran foreign workers, prompting urgent appeals to senior ministers to reverse the move.
Eldad Nitzan, chairman of the Association of Foreign Construction Corporations, has called on Housing Minister Haim Katz to immediately cancel a directive by the Population and Immigration Authority not to extend permits for about 5,000 foreign construction workers who have been in Israel for more than 63 months.
“In recent days we have received an outcry from construction corporations, contractors and developers over the decision and its implications,” Nitzan said. He urged the minister to freeze implementation of the directive, warning it could destabilize the sector.
‘Unilateral Decision’ With Far-Reaching Consequences
The Association of Employers of Foreign Construction Companies said the move was taken without prior notice or consultation with industry stakeholders.
“This unilateral decision has serious implications for the stability and day-to-day functioning of Israel’s construction industry,” the association said in a statement. “It will reduce housing starts and delay apartment deliveries to customers.”
Major Contractors Join Protest
Dozens of leading contractors — including Dimri, Shikun & Binui, and Motiv Engineering, among others — have appealed directly to both the housing minister and Prime Minister Benjamin Netanyahu, calling for immediate intervention.
In their letter, the contractors stressed that veteran foreign workers form the backbone of construction sites, managing daily operations and training newly arrived workers. Removing them, they warned, would significantly delay project completion and undermine build quality.
Industry leaders also cautioned that the decision could jeopardize Israel’s plans to absorb an additional 40,000 foreign construction workers expected to arrive in the coming months.
“These experienced workers are essential to integrating new arrivals,” the association said. “An abrupt termination, without preparation, creates chaos and severely harms the industry’s operational capacity.”
Emergency Conference Planned
The Association of Foreign Construction Corporations said it is organizing an emergency conference involving contractors, developers and corporations to address what it described as a “systemic failure” by the Population and Immigration Authority.
The association placed direct responsibility for the crisis on the head of the authority, Moshe Nakash, accusing him of unilateral decision-making and detachment from conditions in the field.
Attorney Yair David, legal adviser to the association, said the directive was “illogical and unreasonable” and could cause serious harm to employers and workers alike.
“The order must be canceled without delay,” he said. “Otherwise, it risks triggering a collapse of the construction industry and harming thousands of homebuyers across Israel.”
