3 Arab Israelis Excelling in Business Despite Hardships of War
ShoppyFit, HAAT Delivery, and Babcom highlight innovation, tackling societal and economic challenges while driving progress in tech, business, and inclusion
Giorgia Valente/The Media Line
A virtual fitting experience, a food delivery app tailored to serve Arab communities in Israel, and two pivotal companies offering call center services and new tools for Arab Israelis in high-tech—these are stories that might not typically draw attention amid a war. Yet, they highlight Arab companies driving significant economic growth.
Ahdab Serhan, a 32-year-old from Nazareth, the largest Arab city in Israel, spent years pursuing her degree in software engineering before founding her all-virtual startup, ShoppyFit, to merge technology and fashion. The platform provides a virtual fitting service available in three languages: Arabic, English, and Hebrew.
“The idea for ShoppyFit began with the realization that online shopping lacks the personal touch and accurate fit customers experience in stores. We developed 3D technology, a virtual try-on, and an AI fashion assistant to create a complete shopping experience,” explained Serhan, the CEO of ShoppyFit, to The Media Line.
Despite the challenges posed by the ongoing conflict, ShoppyFit has integrated with major e-commerce platforms, helping online retailers increase sales and reduce return rates.
“It was challenging for us to develop the AI tool initially, particularly in building global partnerships, but the resilience and dedication of our team allowed us to overcome those hurdles—even the complications arising from the war,” Serhan shared. “Fundraising was another obstacle we faced early on, but targeting online clothing retailers helped us secure international partnerships and stay economically stable.”
She shared with The Media Line the difficulties Arab entrepreneurs face in Israel. “As Arab entrepreneurs, we often deal with limited access to networks and resources compared to other communities. We constantly have to prove ourselves within the country. Overcoming societal biases adds an extra layer of complexity, particularly in fields like fashion and high-tech.”
Another inspiring story is the one of 35-year-old Hasan Abbasi from northern Israel’s Umm al-Fahm.
After earning a PhD in computer science in Israel and working for companies such as Google, IBM, and Intel,
Abbasi returned from Haifa to his hometown with his wife but found it impossible to order delivery there. This experience sparked the idea for HAAT Delivery, a free delivery app offering services in Arabic, English, and Hebrew.
“HAAT Delivery was founded in Umm al-Fahm in February 2020 to address infrastructure challenges in Arab cities, such as the lack of clear addresses and reliance on cash payments. It started as a food delivery app but quickly grew to establish a network of local restaurants,” Abbasi told The Media Line.
“The concept came to me when I realized that, despite my background working on advanced technology projects at Google, I couldn’t even order a pizza in my hometown. We started the company with $200,000 from friends and family. Over time, we attracted investors who believed in our mission,” he added.
Today, HAAT Delivery operates in 40 Arab cities and villages across Israel, serving over 2.5 million people. The company partners with 2,000 local and international businesses and employs 4,000 couriers.
“Our expansion to underserved areas, including places like Tulkarem in the West Bank, has been one of our key achievements. We’ve recently entered Morocco and plan to expand further into Africa. Fortunately, the ongoing war hasn’t impacted our operations, and we continue to grow,” Abbasi shared.
However, Arab businesses, like their Jewish counterparts, face unique challenges due to foreign BDS (Boycott, Divestment, Sanctions) campaigns. Iman Telhami, founder of Babcom and Takwin Labs, explained the complications to The Media Line:
“BDS has made it harder to raise funds from abroad. Projects like the one we had planned in Ramallah have been affected. People often associate Israel exclusively with Jewish businesses, but Arab companies also face the consequences,” Telhami noted.
“The war brought further challenges. I had plans to launch a business in Gaza to provide services to the Emirates. We were aiming to create 5,000 jobs, but the war disrupted everything. My goal is to rebuild this project once Gaza is rebuilt,” he added.
Telhami, a 65-year-old entrepreneur from Isfiya, in northern Israel, spent 25 years in management positions, including as CEO of Delta Galil. In 2008, he founded Babcom, which initially employed 2,500 people—70% from the Arab sector and 80% women. The company provides call center and software development services to leading Israeli businesses and has since then doubled its workforce.
“‘Babcom’ means ‘your door’ in Arabic, symbolizing inclusivity and opportunity for everyone—Muslims, Christians, Jews, Druze, Bedouins, and others. I am part of this country, and I value its inner differences. Our vision is to provide the best customer experience through our diverse team,” Telhami explained.
In 2014, he founded Takwin Labs, an incubator for Arab entrepreneurs based in Haifa. With 50 engineers currently involved in Ramallah, the initiative aims to foster Arab participation in the startup world and high-tech industry.
“Sixteen years ago, only a handful of Arabs were in high-tech startups. Today, there are about 20,000, representing 4% of the sector. It’s modest but reflects significant progress,” noted Maisam Jaljuli, CEO of Tsofen Tashbik.
While Arab Israelis comprise 21% of Israel’s population, their economic participation lags behind. Employment rates for Arab men stand at 69%, and only 40% of Arab women work, compared to 80% of Jewish women. Many Arabs work in low-wage sectors like construction and agriculture, while only 3-4% are in high-tech.
“In some universities, like the Technion, Arabs make up 20-25% of students, and 65% of them are women. This trend is reversing traditional gender roles in higher education.”, explained Jaljuli.
“This is a good sign regarding women’s participation but also reflects a systematic problem among young Arab males, who may end up from a very young age in criminal networks for a faster way to get wealth,” she added.
Educational advancements have played a pivotal role, as the percentage of Arab undergraduate students has grown from 10% in 2010 to 18.3% by 2020, correlating with modest income growth in the community. However, as of 2024, approximately 30% of Arab youth in Israel (ages 18-24) are categorized as “idle,” meaning they are neither in education, training, nor employment due to the high phenomenon of local criminal groups.
The average income for Arab Israelis is significantly lower than that of Jewish Israelis, even though it has grown at a faster rate in recent years.
“The challenges we face are systemic, but the bright spots, like increased Arab representation in universities and professional fields, show there is general hope for change,” Jaljuli concluded.
However, the economic divide between Arab and Jewish Israelis remains stark, and achieving parity will require not just targeted initiatives but systemic reform to create equitable opportunities across all sectors.
Telhami, Abbasi, and Serhan each shared final messages to inspire other young Arab entrepreneurs:
“Being a minority shouldn’t lead to a victim complex. We must dream big, be brave, and show our full potential. Arab entrepreneurs can achieve remarkable things, and these stories present just that, and hopefully, they may inspire others,” Telhami said.
“Execution matters more than ideas. Networking is crucial, but Arab entrepreneurs often hesitate to promote their concepts. We tailored our service to address Arab society’s challenges, which was the key to our success. We hope other young Arab entrepreneurs may follow in these footsteps,” Abbasi added.
“Our growth and recent partnerships in the US show that investing in Arab-led ventures fosters innovation and diversity in Israel’s economy,” Serhan concluded.
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