INDEX / DIRECTORY / IBM / V-ECON

IBM V-ECON

ECONOMIC AUDIT UPDATED 2026-05-31
V-ECON Score 5.50 /10 B IBM — BDS-1000 749
V-ECON 5.50

Evidence-only forensic audit. Scoring happens downstream — see the main dossier for the composite assessment.

V-ECON Audit: IBM

Supply Chain & Sourcing Relationships

Direct Supplier Relationships (Agricultural & Food) No public evidence identified of commercial relationships between IBM and Israeli agricultural exporters, aggregators, or produce distributors. IBM is a technology, software, and professional services corporation; agricultural procurement is not relevant to its business model 12.

Technology & Services Supply Chain IBM supplies technology products and services directly to Israeli government ministries and defense-adjacent agencies through IBM Israel Ltd. 12. IBM is sole supplier of IBM DataPower products and MQ software to Israeli Police, with November 2025 contract for DataPower until January 2031 and May 2025 contract for MQ maintenance until December 2030 1. IBM provides cloud services to Israeli startup Repo Cyber, which provides anonymous crime reporting app to Israeli police 13. IBM provides services to Israeli Prison System through Repo Cyber app and as sole supplier of DataPower and MQ software to Israeli Police 13.

Importer of Record Structure No public evidence identified of IBM importing agricultural or food goods; not applicable to IBM’s business model.

Product Origin, Labeling & Regulatory Compliance

Settlement-Origin Products Not applicable; IBM does not procure or retail physical food or consumer goods.

UN OHCHR Business Database The UN OHCHR business enterprises database was updated September 26, 2025 to list 158 business enterprises from 11 countries involved in Israeli settlements 4. IBM is named separately in UN Special Rapporteur Francesca Albanese’s report A/HRC/59/23 (July 2025) as central to Israel’s surveillance apparatus, though the database listing itself does not prominently feature IBM in settlement-specific contexts beyond the Albanese report’s thematic analysis 54.

Labeling Compliance Country-of-origin labeling obligations as applied to food and consumer goods are not applicable to IBM’s commercial operations.

Investment, Capital & Financial Exposure

Foreign Direct Investment in Israel IBM Israel Ltd. is the principal wholly-owned subsidiary conducting sales, services, and technology operations in Israel 126. IBM Israel Ltd. is registered under Israeli corporate law (Registration No. 510067333), originally incorporated June 8, 1950, with last annual report filed in 2025 6. IBM holds Preferred Technology Enterprise (PTE) status in Israel, benefiting from reduced 12% corporate tax rate on qualifying income, confirmed in SEC filings showing PTE election from 2019 onwards 7. IBM SEC filings disclose long-lived assets in Israel: $33.2M (2025) 8. Headquarters confirmed at Hashachar Tower, 4 Ariel Sharon St., Givatayim (central Tel Aviv area) 1.

R&D and Innovation Centres IBM Research — Haifa (also called IBM Research – Israel), established 1972, located on Technion campus, major research center with approximately 500+ employees, focuses on AI, cloud, security, healthcare 9. IBM acquired Israeli cybersecurity firm Trusteer in August 2013 for $800M-$1B, establishing cybersecurity R&D lab in Israel with 200+ researchers 10. IBM participates in programs affiliated with the Israel Innovation Authority (IIA) — the Israeli government body that co-funds multinational R&D investments under Israeli industrial R&D law 7.

Parent and Beneficial Ownership Flows IBM Corporation is incorporated in New York State, USA, and is publicly traded on the NYSE under ticker IBM 8. IBM has no Israeli parent company or Israeli beneficial owner 8. Principal institutional shareholders (Vanguard, BlackRock, State Street) are US-domiciled passive index asset managers; no Israeli sovereign wealth fund or state-linked investor has been identified as a significant IBM shareholder 8. Profit flows run outward from IBM Israel to IBM’s US parent via intercompany consolidation — not inward to Israel from IBM’s global operations 8.

Portfolio and Fund Exposure IBM does not publicly disclose holdings in Israeli sovereign bonds, Israeli-domiciled equities, or Israel-focused investment funds in annual reports or 10-K filings 8. Norwegian asset manager Storebrand divested from IBM in March 2024 over biometric database complicity 11.

Operational Presence & Market Activity

Physical Footprint IBM Israel Ltd. maintains commercial offices in Givatayim (Hashachar Tower, 4 Ariel Sharon St.) 1. IBM Research — Haifa occupies facilities on the Haifa University/Technion campus 9. No IBM offices, warehouses, sales operations, or support centres in the West Bank, Gaza, or Golan Heights have been identified in public sources reviewed 1.

Government and Institutional Contracts IBM designed and operates the central biometric population registry (Eitan System) for Israel’s Population, Immigration and Border Authority (PIBA), contract valued at approximately $240 million ( NIS 800 million), awarded in 2017, operational until 2035 12. IBM contracted for Israeli Ministry of Defense server supply (2007, $20-30M), military computing centers (2017, $20M+), logistics centers (2020, $1B shared with Malam Team) 121. IBM has a $1B shared contract with Malam Team (2020) to be main IT provider for three new Israeli military regional logistics centers for 25 years 1. Israeli Ministry of Health uses IBM Operational Decision Manager for COVID-19 vaccination status and genomic sequencing 13. Israel Tax Authority uses IBM Storage DS8910F and IBM Spectrum Virtualize 14. Israeli Police IBM is sole supplier of IBM DataPower products and MQ software, contracts extending through 2030-2031 1. Red Hat (IBM subsidiary) provides OpenShift services for Israeli government cloud project Nimbus, includes Ministry of Defense, Israel Aerospace Industries, and Rafael Advanced Defense Systems 1. IDF Center of Computing and Information Systems (Mamram Unit) uses Red Hat OpenShift for cloud infrastructure, awarded 2022 Red Hat innovation award 115.

Employment IBM Research — Haifa employs approximately 500+ researchers 9. IBM Israel’s precise employee headcount is not publicly disclosed in IBM’s global annual reports; industry estimates historically range from 1,000–2,000 employees but cannot be verified against primary documents 8.

Market Positioning IBM does not designate Israel as a separately named strategic growth market in annual reports; Israel-specific revenue is not reported as standalone geographic segment 816.

Post-July 2024 Operational Continuity IBM CEO Arvind Krishna stated in June 2024 that IBM follows what governments “consider to be correct behavior” when working for foreign governments, specifically mentioning Israel and Saudi Arabia, indicating no policy change following ICJ advisory opinion 17. IBM Research — Haifa confirmed ongoing operations post-July 2024 and post-November 2024 9. IBM Israel Ltd. commercial operations confirmed ongoing 1. No IBM announcement of suspension or termination of Israeli government contracts in response to ICJ AO or ICC warrants has been identified 17.

Corporate Structure & Foundational Ties

Founding and Incorporation History IBM (International Business Machines Corporation) traces origin to Computing-Tabulating-Recording Company (CTR), incorporated in New York in 1911, renamed IBM in 1924 8. IBM was not founded in Israel; IBM Israel Ltd. was established as wholly-owned local subsidiary of IBM Corporation 6. The 2013 acquisition of Trusteer introduced an Israeli-founded company into IBM’s portfolio, but Trusteer was fully integrated into IBM Security and does not function as independent brand 10.

Headquarters and Legal Domicile IBM Corporation’s legal domicile: Armonk, New York, USA 8. IBM Israel Ltd. registered address: originally in Petah Tikva, currently Hashachar Tower, Givatayim 16.

Group Attribution — Parent, Subsidiary, and Sibling Entities IBM Israel Ltd. is wholly-owned operating subsidiary, primary vehicle for Israel operations 16. Red Hat Israel is an IBM subsidiary (acquired July 2019), provides OpenShift platform to Israeli military (Mamram unit), enterprise agreement with Israeli defense 118. Kyndryl Israel Ltd. is an IBM spin-off infrastructure services entity (spun off November 2021), registered at 94 Derech Em Hamoshavot, Park Azorim, Petach Tikva 19. IBM acquired Trusteer in 2013 10, Turbonomic in June 2021, Apptio in August 2023 — none with Israeli founding history or separate Israeli operations beyond IBM Israel 108.

Israeli-Nexus Floor Factors IBM is not founded in Israel; IBM incorporated in New York in 1911 8. IBM does not have headquarters or principal management in Israel; Armonk, New York, USA 8. IBM holds PTE status (reduced 12% corporate tax rate) confirmed from 2019 onwards 7. IBM is not beneficially owned or controlled by Israeli capital; US institutional index managers dominate 8.

State and Institutional Linkages No Israeli government ownership stake in IBM identified 8. IBM Israel has participated in Israel Innovation Authority (IIA) co-funded R&D programs 7. No designation of IBM as critical national infrastructure in Israel has been identified 8.

Structural Governance Features IBM Corporation has no golden shares, founder shares, or charter provisions tying it to Israeli policy objectives 8.

Profit Repatriation & Economic Contribution

Revenue Attribution IBM does not publicly disclose Israel-specific revenue; revenue is reported at segment level (Software, Consulting, Infrastructure) and broad geographic level (Americas; EMEA; Asia Pacific) 816. EMEA revenue: $19.43B (2024); Israel-specific revenue not broken out 16.

Profit Flows As wholly-owned subsidiary of IBM Corporation (USA), IBM Israel Ltd.’s profits flow outward from Israel to the US parent via standard intercompany consolidation 8.

Economic Ecosystem Role IBM Research — Haifa is regarded within Israeli technology sector as long-standing anchor institution for applied computer science research, operating over 50 years 9. IBM Israel contributes to broader Israeli enterprise IT market as vendor of cloud, AI, mainframe infrastructure, and consulting solutions 1.

End Notes

Footnotes

  1. https://www.whoprofits.org/companies/company/7236 ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13 ↩14 ↩15 ↩16 ↩17 ↩18 ↩19 ↩20

  2. https://investigate.afsc.org/company/ibm ↩ ↩2 ↩3 ↩4

  3. https://www.ibm.com/case-studies/repo-cyber ↩ ↩2

  4. https://media.un.org/unifeed/en/asset/d345/d3453276 ↩ ↩2

  5. https://www.ohchr.org/sites/default/files/documents/hrbodies/hrcouncil/sessions-regular/session59/advance-version/a-hrc-59-23-aev.pdf ↩

  6. https://www.kycisrael.com/companies/510067333/i-b-m-israel-ltd ↩ ↩2 ↩3 ↩4 ↩5

  7. https://www.sec.gov/Archives/edgar/data/1854587/000162828025013334/R27.htm ↩ ↩2 ↩3 ↩4

  8. https://www.sec.gov/Archives/edgar/data/1907085/000110465926029490/R71.htm ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13 ↩14 ↩15 ↩16 ↩17 ↩18 ↩19

  9. https://research.ibm.com/labs/israel ↩ ↩2 ↩3 ↩4 ↩5

  10. https://techcrunch.com/2013/08/15/ibm-buys-israelus-cybersecurity-specialist-trusteer-for-few-hundred-million-dollars ↩ ↩2 ↩3 ↩4

  11. https://www.computerweekly.com/news/366586713/Storebrand-divests-from-IBM-over-supply-of-biometrics-to-Israel ↩

  12. https://www.globes.co.il/news/article.aspx?did=1000277794 ↩

  13. https://www.ibm.com/case-studies/israeli-ministry-of-health ↩

  14. https://www.ibm.com/case-studies/israel-tax-authority ↩

  15. https://www.edgeir.com/red-hat-upgrades-idfs-field-applications-of-cloud-and-edge-computing-20220508 ↩

  16. https://www.statista.com/statistics/531138/worldwide-ibm-global-revenue-by-region ↩ ↩2 ↩3

  17. https://theintercept.com/2024/09/04/ibm-ceo-israel-saudi-arabia-ethics ↩ ↩2

  18. https://www.is-boycott.com/en/c/red-hat ↩

  19. https://www.ibm.com/services/us/kyndryl/ibm-and-kyndryl-client-guide-sub-processors.pdf ↩