Israeli firms exit Turkey amid trade embargo

The Israeli sanitary ware company Hamat has decided to close its MCP subsidiary in Izmir, Turkey, marking a continued trend of Israeli businesses withdrawing from the Turkish market. This move follows the comprehensive trade embargo imposed by the Turkish government under President Recep Tayyip Erdogan in May 2024. According to data reported by the Israeli financial outlet Globes, bilateral trade has suffered a severe decline since the policy's implementation. Israeli imports from Turkey dropped from approximately $2 billion in 2024 to $924.1 million in 2025. Meanwhile, Israeli exports to Turkey collapsed from $598.6 million to just $10.9 million. Galia Lindenstrauss, a researcher at the Institute for National Security Studies (INSS), noted that Israeli exports to the country have effectively reached near-zero levels. While some Israeli firms maintain a minimal presence, the overall trend reflects a significant decoupling of economic ties. Companies cite increasing difficulties in distributing products within Turkey and to international markets as the primary driver for these closures.