TOP STORIES

• Avitar’s ORALscreen Deployed by Egyptian Ministry of Tourism
• US Congress Increases Economic Assistance to Jordan by 48% in 2008
• GCC Common Market Becomes a Reality
• Turkey’s 2007 CPI Came In Below 8.5% Level

1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS

1.1 Israel & Region Prepare For Bush Visit

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2: ISRAEL MARKET & BUSINESS NEWS

2.1 AirTran Airways Awards Long-Term Maintenance Contract to IAI's Bedek Group
2.2 BOS Announces Advanced Negotiations for the Acquisition of Assets of Dimex Systems
2.3 TAT Technologies Signed MOU to Purchase 55% of Bental
2.4 MTI Wireless Edge Signs Distribution Agreement With WAV for North America

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3: REGIONAL PRIVATE SECTOR NEWS

3.1 Fluor Awarded Five-Year $334 Million Contract by Kuwait Oil Company
3.2 Borse Dubai Gets Approval for NASDAQ Investment
3.3 Limitless Begins Work on $11 Billion Arabian Canal Project
3.4 Avitar’s ORALscreen Deployed by Egyptian Ministry of Tourism
3.5 Pratt & Whitney and Turkish Airlines Technic Form MRO Joint Venture
3.6 WaterPure Delivers Its Atmospheric Water Generators to Center Esagogiki, Its Greek Distributor

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4: ISRAEL MACRO-DEVELOPMENTS

4.1 Municipality & Government Revise Jerusalem Rail Timetable
4.2 Tel Aviv Centennial to Cost $20 Million

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5: ARAB STATE & PAKISTANI DEVELOPMENTS

5.1 US Congress Increases Economic Assistance to Jordan by 48% in 2008
5.2 GCC Common Market Becomes a Reality
5.3 Kuwait's Parliament Approves Bill Substantially Lowering Taxes On Foreign Company Profits
5.4 Bahrain May Ban Foreign Ownership of Property
5.5 FDI Flow to UAE Exceeds $18 Billion
5.6 UAE to Set Up Federal Agency to Fight Fake Medicines
5.7 Oman Will Slow Projects to Curb Inflation
5.8 Saudi Exports to Reach Record High of $240 Billion in 2007
5.9 Saudi Oil Investments Surpasses $100 Billion
5.10 Saudi Arabia Expects Food Prices To Rise 30% This Year
5.11 Saudi To End Self-Sufficiency In Wheat

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6: TURKISH, CYPRIOT & GREEK DEVELOPMENTS:

6.1 Turkey’s 2007 CPI Came In Below 8.5% Level
6.2 Turkish Trade Balance Posted $5.3 Billion Deficit in November
6.3 Third Bosporus Bridge Is Expected For Highway Privatizations
6.4 Malta & Greek Cyprus Adopt Euro
6.5 Greek New Car Registrations Up 4.5% In 2007

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7: GENERAL NEWS AND INTEREST

*ISRAEL:

7.1 Tu B’Shvat Celebrated in Israel on 21/22 January
7.2 Percentage of World Jewry Living in Israel Steadily Increasing

*REGIONAL:

7.3 The Gregorian Year 2008 Will See Three Hijri Years
7.4 Kuwait Woman Minister Grilled By Deputy
7.5 UAE Signs Operational Structure of Louvre Museum in Abu Dhabi
7.6 Turkish Parliament Decides Expanding Smoking Ban To Bars & Restaurants

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8: ISRAEL LIFE SCIENCE NEWS

8.1 Teva Announces Approval of Generic Kytril Injection and Tablets
8.2 BrainStorm & Rutgers Join to Identify a Cure for Spinal Cord Injuries via Stem-Cell Research
8.3 Sol-Gel Signs $24.7 Million Deal for Dermatology Drug Delivery
8.4 Can-Fite Receives FDA Approval to Conduct Phase I Study With CF102
8.5 Pluristem Second Clinical Indication Revascularization Effect After PLX-PAD Therapy
8.6 Yissum & Eucalyptus Develop a Small Molecule for the Treatment of Neurodegenerative Diseases

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9: ISRAEL PRODUCT & TECHNOLOGY NEWS

9.1 Robert Parker Rates Israeli Wines "Outstanding"
9.2 RADA Electronic Industries Receives $5.9 Million IAF Purchase Order
9.3 NICE Receives Major Orders from Leading US Banks to Address Key Business Challenges
9.4 CopperGate Announces Highest Speed Home Networking Solution over Coax & Phone Wires
9.5 Alvarion & Bridgewater Systems Announce Joint WiMAX Deployment in Angola
9.6 Sightic's SIP4000 Video DSP Power LG's New CCTV XDI Cameras

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10: ISRAEL ECONOMIC STATISTICS

10.1 Israel's Auto Industry Completes Best Year Ever
10.2 Most Israeli Youth Use Internet

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In Depth

11.1 ABU DHABI: Energy Deals With Japan
11.2 OMAN: 2007 Year in Review
11.3 TURKEY: Shifting Gear
11.4 GREECE: Government Faces Five Major Economic Challenges in 2008

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1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS

1.1 Israel & Region Prepare For Bush Visit

At press time, Israel was poised to welcome the 9 January arrival of President G. W. Bush. President Bush will arrive in Israel on the start of his nine day, multiple leg tour of the Middle East. Israel is pulling out all the stops to impress a man who is perhaps its staunchest foreign ally in his first visit as U.S. president. The president previously visited Israel in 1998 while he was governor of Texas.

Jerusalem spent some $400,000 to spruce itself up for the visit. More than 10,500 policemen and security personnel will be deployed to protect Bush and keep order during the visit - more than one-third of Israel's entire police force. The security personnel will include snipers, bomb-sniffing dogs and bodyguards from the Shin Bet internal security service, including reservists called up especially for the visit, according to police officials. The operation, dubbed "Clear Skies," will cost Israel $25,000 for every hour Bush is in the country, it has been reported.

Explosives-sniffing dogs, electronic warfare systems to jam bomb signals, and over 250 armed bodyguards will accompany every move US President George W. Bush makes in Israel, from the moment he lands at Ben-Gurion International Airport until he takes off on 11 January. He will also be stopping in the Palestinian Authority, as well as Kuwait, Bahrain, the United Arab Emirates, Saudi Arabia and Egypt.

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2: ISRAEL MARKET & BUSINESS NEWS

2.1 AirTran Airways Awards Long-Term Maintenance Contract to IAI's Bedek Group

AirTran Airways, a subsidiary of AirTran Holdings, announced that it has awarded Israel Aerospace Industries' Bedek Group a long-term contract for landing gear maintenance covering its entire fleet of Boeing 737NG aircraft. AirTran Airways has ordered 115 Boeing 737NG aircraft and taken delivery of 50 to date. AirTran Airways also operates 87 Boeing 717 aircraft and has the youngest, all-Boeing fleet in North America. Israel Aerospace Industries' Bedek Aviation Group is a leading supplier of aviation maintenance, repair, overhaul and conversion services on a variety of commercial and military aircraft, engines and components. Bedek provides cost-effective, total maintenance support packages through its Full Services Provider Programs. (AirTran Airways 03.01)

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2.2 BOS Announces Advanced Negotiations for the Acquisition of Assets of Dimex Systems

B.O.S. Better Online Solutions announced that it is the course of advanced negotiations for the acquisition of assets of Dimex Systems. The parties expect to consummate the transaction in January, 2008. Dimex, an Israeli private company incorporated in 1988, is a leading integrator of AIDC (Automatic Identification and Data Collection) solutions based on RFID and Barcode technology. Dimex offers comprehensive solutions that include peripheral equipment, software applications, integration and support. BOS intends to acquire the majority of Dimex's assets in consideration for cash and BOS ordinary shares. The consideration will include approximately $4.5m for the purchase of, among other things, intellectual property rights and goodwill. An additional $7m will be paid for the purchase of Dimex's inventory, accounts receivable and fixed assets, and is subject to adjustments based on the 2007 year-end financials of Dimex. The cash consideration is payable over a period of twenty four months. The ordinary shares consideration equals approximately 3.5% of the outstanding shares of BOS. Rishon LeZion, Israel’s B.O.S Better Online Solutions (http://www.boscorporate.com) operations consist of: (i) Software Solutions, providing specialized enterprise software, including IBM System i middleware, data and license management, mobile connectivity and RFID solutions, and (ii) Supply Chain products, reselling electronic systems and components for security, aerospace, networking and RFID. BOS is traded on NASDAQ and on the Tel-Aviv Stock Exchange. (BOS 30.12)

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2.3 TAT Technologies Signed MOU to Purchase 55% of Bental

TAT Technologies has signed a Memorandum of Understanding to buy 55% of Bental Industries. Since TAT Industries, the major stockholder of the company, already holds 15% of Bental. The TAT Group will hold 70% of Bental after closing. Bental specializes in innovative motion technologies such as PM Brushless Motors, PMGs (Permanent Magnet Generators), Electronic Drivers & Controllers, Servo Actuators and more. Bental is the leading supplier in its field to Israel's defense industries. Its products are also supplied to military aerospace and industrial companies worldwide. The evaluation of Bental for the transaction is $12,500,000. Gedera, Israel’s TAT Technologies is principally engaged in the manufacture, repair and overhaul of heat transfer equipment, such as heat exchangers, precoolers and oil/fuel hydraulic coolers used in aircraft, defense systems, electronic equipment and other applications. In addition, the Company manufactures aircraft accessories and systems such as pumps, valves, Power Systems, Turbines and overhauls aircraft Auxiliary Power Units (APUs), landing gears and propellers. (TAT Technologies 03.01)

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2.4 MTI Wireless Edge Signs Distribution Agreement With WAV for North America

MTI & Aurora, Illinois’ WAV, the value-added-distributor of wireless, security, RFID, VoIP, and portable data-collection equipment, announced that WAV has become a distributor of MTI WiMAX and FBWA antenna solutions in the USA and Canada. North America is a major market for MTI antenna products and WAV Distribution, with one of the largest stocking positions, is a single-stop source for wireless products and solutions. WAV's strong presence in the North American market will improve wireless reseller and WISPs accessibility to MTI's high quality, low cost antenna solutions in the US and Canada.

Tel Aviv, Israel’s MTI Wireless Edge (http://www.mtiwe.com), a leader in the development production and marketing of high quality, low cost, flat panel antennas for RFID & Fixed Wireless applications offers large portfolio with over 90 models of Linear and Circular, Single and Dual polarity antennas for active and passive RFID Systems. The frequencies that MTI offer antennas for are 450MHz, 865-870MHz, 902-928MHz, 950-956MHz, 2.4GHz as well as Integrated Enclosure Antenna solution (IAE). MTI Military products include a wide range of broadband, tactical and specialized communications antennas, antenna systems and DF arrays installed on numerous airborne, ground and naval, including submarine, platforms worldwide. (MTI Wireless07.01)

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3: REGIONAL PRIVATE SECTOR NEWS

3.1 Fluor Awarded Five-Year $334 Million Contract by Kuwait Oil Company

Irving, Texas’ Fluor Corporation won a five-year $334m consultancy services contract to provide overall program management on several projects for Kuwait Oil Company (KOC). Fluor will provide project and construction management and other services for new facilities and upgrading of existing facilities. The company plans to book the first two years of the contract, or approximately $90m, in the first quarter 2008. The Fluor project team currently resides in Ahmadi, Kuwait, with engineering performed from the firm’s Camberley office in the United Kingdom. Fluor had previously provided these consultancy services to KOC from 2003 to 2007 under a similar five-year contract. The new capital projects include the development of oil gathering centers, gas booster stations and export facilities for KOC, which is the upstream operating company of Kuwait Petroleum Corporation. Fluor is also currently performing work for Kuwait National Petroleum Corporation and Petroleum Industries Company, both subsidiaries of Kuwait Petroleum Company. Fluor Corporation provides services on a global basis in the fields of engineering, procurement, construction, operations, maintenance and project management. (Fluor 07.01)

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3.2 Borse Dubai Gets Approval for NASDAQ Investment

Borse Dubai Limited has obtained clearance from The Committee on Foreign Investment (CFIUS) in the United States concerning Borse Dubai’s investment in The NASDAQ Stock Market, which will allow Borse Dubai to proceed with its investment in NASDAQ. As all the conditions under the agreement between Borse Dubai and NASDAQ for opening of Borse Dubai’s offer to all OMX AB shareholders for acceptances have now been satisfied or waived, Borse Dubai intends shortly to file the offer document relating to the Borse Dubai Offer with relevant regulatory authorities for approval, registration and recognition. As previously announced, completion of the Borse Dubai Offer is, amongst other things, conditional upon all necessary approvals from public authorities or other regulatory bodies having been obtained. Borse Dubai and NASDAQ are currently investigating whether OMX's recent acquisitions in Norway and Armenia require additional regulatory approvals to complete the Borse Dubai Offer. These matters will not delay the opening of the offer. Following completion of the Borse Dubai Offer, provided Borse Dubai owns in total at least 67% of the shares of OMX and the other conditions for closing the transaction under the agreement with NASDAQ have been satisfied or waived, Borse Dubai will sell all OMX shares it owns to NASDAQ for consideration comprised of newly issued shares in NASDAQ and cash, as previously announced. At the same time, NASDAQ will make an investment in Dubai International Financial Exchange and enter into certain technology and trademark licenses with Borse Dubai and its subsidiary, Dubai International Financial Exchange Limited, also as previously announced. (GN01.01)

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3.3 Limitless Begins Work on $11 Billion Arabian Canal Project

Dubai: Real estate developer Limitless, part of the Dubai World conglomerate, has started work on its ambitious 75-kilometer Arabian Canal project. The waterway will flow inland from Nakheel's Dubai Waterfront development in the Jebel Ali area to a point near the Palm Jumeirah man-made island. Up to 150 meters wide and six meters deep, the $11b canal will support billions of dollars of real estate and leisure projects that will be constructed on both sides of the water. Describing the Arabian Canal as "the largest and most complex civil engineering project ever undertaken in the Middle East," Limitless said the preliminary work will be completed in three months. The project itself is expected to be completed in three years. Limitless is also planning its biggest mixed-use development as part of the Arabian Canal project. The entire plan will be developed in phases over the next 15 years. It includes marinas, residential communities and business centers serving about one million people. The plans for commercial and residential buildings along the canal have not been completed yet. (GN01.01)

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3.4 Avitar’s ORALscreen Deployed by Egyptian Ministry of Tourism

Canton, Massachusetts’ Avitar, manufacturers of nationally branded oral fluid testing diagnostic devices and customized polyurethane applications used in wound dressings, announced that the Company’s ORALscreen rapid test for drugs-of-abuse and electronic reader has been approved by the Egyptian Government to be initially deployed by the Ministry of Tourism. Avitar’s random on-site drug screening technology will be used to test all tour bus drivers, travel agents and related personnel. Avitar’s positioning as a consultative drug-free workplace technology and services provider, plays a central role in the model for convergence and integration efforts of its Egyptian business partners, the Ministry of Health, the Ministry of Tourism and the Ministry of the Interior. (Avitar07.01)

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3.5 Pratt & Whitney and Turkish Airlines Technic Form MRO Joint Venture

Pratt & Whitney, a United Technologies Corp. company, and Turkish Airlines Technic, a Turkish Airlines company, signed a joint venture agreement to build an aircraft engine overhaul center in Istanbul. Financial terms of the agreement were not disclosed. The joint venture facility, to be named Pratt & Whitney Turkish Technic Aircraft Engine Maintenance Center LLP, will overhaul V2500 and CFM56 engines. Construction will begin in early 2008 and the first engine is expected to be inducted in 2009. Once fully operational, the center is expected to overhaul up to 200 engines per year and will employ many of Turkish Technic's experienced staff. The new facility will be Pratt & Whitney's eighth commercial engine overhaul center. Turkish Technic Inc., a subsidiary of Turkish Airlines, is the leading maintenance service organization in its region, providing MRO services for Boeing and Airbus airframe, engine, auxiliary power units, landing gear and components. Turkish Technic serves airlines in Europe, the Middle East, Northern Africa, Turkey and the Commonwealth of Independent States (CIS), with its maintenance base in Istanbul and highly qualified workforce of more than 3,000 personnel. (P&W08.01)

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3.6 WaterPure Delivers Its Atmospheric Water Generators to Center Esagogiki, Its Greek Distributor

Fort Lauderdale, Florida’s WaterPure International announced that Center Esagogiki SA, the Company's distributor in Greece, has received its first shipment of WaterPure's atmospheric water generators (AWG). Headquartered in Athens, Greece, Center Esagogiki is a family owned and operated business. The company distributes and services health and water related products from showrooms in Greece and Cyprus and has been in operation for more than 17 years. The WaterPure Atmospheric Water Generator extracts moisture from the atmosphere through a condensation process and transforms it into absolutely pure, healthy drinking water. Multiple air and water filtration systems remove particulate matter smaller than .01 microns. (WaterPure08.01)

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4: ISRAEL MACRO-DEVELOPMENTS

4.1 Municipality & Government Revise Jerusalem Rail Timetable

The Jerusalem Municipality has reached agreement with the Ministry of Finance and the Ministry of Transport on the new timetable for the construction of the city's light railway service. In a 1 January document, the municipality undertook to issue the requisite permits and obtained approval for its request that a shuttle bus service to be operated to and from the city center and that the approaches to Jaffa Road remain open while work is in progress. The document, signed by Jerusalem mayor Lupolianski and Municipality director general Maayan, will also provide for the expediting of the construction of the railway track in the city center, while minimizing the disruption to commerce in the area. Accordingly, work on the section between the Mahane Yehuda market and central bus station will commence within six weeks. In mid-March, City Pass, the consortium building the light railway will begin work on the section from Heshin Street to the Davidka Monument, and this will be followed after the Passover holiday by work on the section between Mahane Yehuda and Safra Square. The Jerusalem Municipality said that most of the mayor's demands set out in the new agreement had been met. In contrast to the original program which set a two-year timeline, it was agreed that work on the Jaffa Road interchange would be completed within eighteen months, with work on some sections continuing 24 hours a day. (Globes 01.01)

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4.2 Tel Aviv Centennial to Cost $20 Million

The Tel Aviv Centennial administration announced that some $20m will be spent on the Tel Aviv Centennial in April 2009. The Tel Aviv Centennial administration said that investments will be carried out in two areas: completion of the renovations and redevelopment of cultural buildings, infrastructures, parks, and institutions; and dozens of public events to mark the occasion. Renovation projects include the Habima National Theater compound (Kikar Hatizmoret or Philharmonic Square), the Gordon Pool, Ibn Gvirol Street, and the Bialik House. In addition, the widened Kaplan Street will become the approach to the financial district, known as "the city", and an arch representing the Boulevard of Nations will be built at its entrance. The Trumpeldor Cemetery will undergo a thorough renovation and a statue of the first Mayor of Tel Aviv, Meir Dizengoff, will be placed on Rothschild Boulevard. Centennial events will include a free concert at Rabin Square, a production by Milan's Opera La Scala at Ganei Yehoshua, educational events activities at schools, and competitions about the city from its 1909 founding to the present. (Globes 01.01)

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5: ARAB STATE & PAKISTANI DEVELOPMENTS

5.1 US Congress Increases Economic Assistance to Jordan by 48% in 2008

According to the US Embassy in Amman, US economic and military assistance to Jordan will rise by 48% in 2008. The rise in the economic assistance to Jordan came to emphasize the strong and firm partnership between the two countries. The 2008 Consolidated Appropriations Act passed by the US Congress authorizes the US to participate in Jordan’s Paris Club discounted debt buy-back operation. US Ambassador to Amman Hail said the increased level of assistance reflects the bipartisan support in America for Jordan. An act passed by the US Congress and signed by President Bush is expected to provide $363.5m in economic support and $300m in foreign military financing to Jordan. Last year, total US economic aid to Jordan was $255.3m and military assistance $206m. (Petra04.01)

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5.2 GCC Common Market Becomes a Reality

On 1 January 2008 the six-member Gulf Cooperation Council (GCC), with a combined economy of $715b, made history with the launch of a common market, which is expected to draw more foreign investment to the region. The GCC, which was formed in 1981, groups Saudi Arabia, Qatar, Bahrain, Oman, Kuwait and the United Arab Emirates. The decision to launch the common market was taken by the group's leaders at their last summit, which was held in Doha on Dec. 3/4, where they also announced plans to achieve a currency union by 2010.

The market offers equal opportunities for all GCC citizens including the right to work in all government and private institutions in member states, buy and sell real estate and make other investments, move freely between the countries, and receive education and health benefits. GCC assistant secretary-general for economic affairs Mohammad Al-Mazroui said the common market would increase investments and trade between member countries.

Some 35.1 million people live in the GCC, although citizens of the member states represent around only 60% of the total population, the remainder being guest workers. In addition to allowing the free flow of capital, the common market gives GCC nationals freedom of movement, residency and employment - in both private and public sectors - in all six countries. The GCC states also represent more than half of the oil reserves of the Organization of Petroleum Exporting Countries (484 billion barrels). (Various02.01)

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5.3 Kuwait's Parliament Approves Bill Substantially Lowering Taxes On Foreign Company Profits

On 26 December, Kuwait's Parliament passed a bill slashing taxes on profit of foreign companies from 55% to 15%, in a bid to attract investments to an economy aspiring to diversify its sources. The 36-17 vote in favor amended a 1955 tax law, as requested by the Cabinet which saw the old legislation as a stumbling block to its plans to transform Kuwait into a regional financial and commercial hub. Oil is the mainstay of the country's economy, largely dependent on government spending. Along with 50 lawmakers who make up the Parliament, 13 Cabinet members also have the right to vote in the assembly. Finance Minister Mostafa al-Shemali told the assembly that Kuwait attracted less than $300m in foreign investments last year, compared to some $18b for Saudi Arabia. He said the new, 15% tax on annual net profits for foreign companies was fixed, unlike the 52-year-old one of installments that reached a maximum of 55%, according to company profits.

Most Kuwaitis work for a bloated public sector. Young graduates would rather wait for years for a government job — long considered one way of distributing the oil wealth — than work in a private company for fewer benefits. Reforming the economy requires unpopular measures that would have to be sanctioned by parliament, including introduction of income tax, privatizing public utilities and shrinking the cradle-to-grave welfare system which Kuwaitis have taken for granted for decades, amid oil abundance. Kuwait has some $171.5b of reserves, mostly in a fund for future generations that has been building since the 1970s by setting aside 10% of its annual revenues and investing them abroad. (AP26.12)

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5.4 Bahrain May Ban Foreign Ownership of Property

Bahrain's Parliament is considering a law to ban non-Bahrainis, including GCC nationals, from owning residential properties in the kingdom, a report said. The law aims to check the "unreasonable hike" in real estate prices in Bahrain, said Abduljalil Khalil, head of the Parliament's Financial Affairs Committee. GCC nationals who have inherited residential properties in Bahrain, would be excluded from the new law, the report said. "A majority of the parliamentarians support the bill as they feel it will solve the housing problem in Bahrain," he said. (KT24.12)

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5.5 FDI Flow to UAE Exceeds $18 Billion

Foreign direct investments (FDI) in the UAE reached $18.688b in 2006, up 10.8% from the previous year’s $16.861b. The figures were announced on 24 December by Sheikha Lubna bint Khalid Al Qasimi, UAE Minister of Economy, from a survey conducted by the Ministry of Economy (MoE). The survey covered companies with at least one non-resident, regardless of nationality, having invested 10% or more of the company’s capital. According to the survey, which gathered data for the years 2005 to 2006, the main economic sectors instrumental in the UAE’s substantial FDI growth were the financial intermediation and insurance (34.4%), construction (29%), domestic trade (14%), and manufacturing (10.1%). Dubai posted the largest share at 62%, followed by Abu Dhabi at 24%, while Sharjah contributed 10%. The rest of the emirates contributed 4% to the total FDI.

The volumes of FDI posted within the two-year period were significantly higher than previously estimated; the actual 2005 figure surpassed the original projection by around $10.893b, while the actual 2006 figure exceeded expectations by approximately $12.8b. The huge gap clearly shows the growing confidence of foreign investors in the country’s investment environment, it said.

The survey identified financial intermediation and insurance (35%), building and construction (35%) and domestic trade (14%) as the main economic contributors for Dubai. Financial intermediation and insurance (42%), building and construction (21%) and manufacturing (17%) were the top three for Abu Dhabi; while financial intermediation and insurance (27%), building and construction (26%), and transport, storage and communication (21%) accounted for the biggest shares in Sharjah.

The survey also showed manufacturing as the largest contributing factor in the rest of the emirates with Umm Al Qaiwain at 99%, Ajman 95%, Ras Al Khaimah 87%, and Fujairah 58%. Extracting industries also contributed a significant 24% of FDI in Fujairah, while water and electricity accounted for the remaining 5% in Ajman. The UAE is considered one of the best global locations for FDI as a result of progressive economic liberalization policies and a strong collaboration between the public and private sectors. Its willingness to welcome foreign capital, particularly for the oil and gas industries, has led to a vibrant and continuously evolving economy, differentiating it from other less-open countries in the region, it said. (TradeArabia 24.12)

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5.6 UAE to Set Up Federal Agency to Fight Fake Medicines

The UAE will establish a federal center for fighting fake medicines to ensure safety of patients. The national center for control and monitoring counterfeit medicines will be the first of its kind in the UAE. Based in Dubai under the authority of the Ministry's Pharmaceutical Control Department, the body will be made up of representatives of health, customs and other relevant authorities. As part of the project, a common registry for medicines will be created in order to unify the entry process of medicines for ensuring more pharmaceutical safety. A central committee has already begun devising benchmarks and standards required to set up the centre. The center's mandate includes raising awareness standard among the public about the proper use of medicines under the current penetration of some drug control regulations. (WAM08.01)

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5.7 Oman Will Slow Projects to Curb Inflation

Oman will slow down development projects to curb inflation, Minister of National Economy and supervisor of the Ministry of Finance, Ahmad Bin Abdul Nabi Makki, said while releasing details of Oman's deficit budget for 2008 on 1 January. Oman's general revenues for 2008 were estimated at $14.04b against $11.677b in the 2007 budget. Oil revenues were estimated on the basis of an average price of $45 per barrel and crude production of 790,000 barrels per day. Expenditures in FY2008 are estimated at $15.08b against $12.7b in 2007. Citing a spate of development projects as one of the causes of rising prices, Makki said that the government had decided to slow down the construction process. The emphasis on training and educating the large majority of young Omani nationals is evident in the 2008 budget proposal, approved by Sultan Qaboos Bin Saeed. In the budget, Makki has set aside 36.9% for education from the allocation of $4.99b for civil services, ministries and public service organizations. The defense budget has been increased slightly to $3.537b from $3.198b in the 2007 budget. (GN02.01)

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5.8 Saudi Exports to Reach Record High of $240 Billion in 2007

Saudi Arabia’s total exports of goods and services are expected to grow by 6.7% in 2007 to reach $240.2b, according to a report issued by the General Statistics Department. Non-oil exports of goods are expected to grow by 24.9% to $28.5b. Preliminary statistics issued by the Saudi Arabian Monetary Agency (SAMA) said the Kingdom’s trade balance in 2007 was estimated to record a surplus of $148b with an increase of 1.1% compared to the previous year. Current account is estimated to record a surplus of $91.95b in 2007 compared to $99b in 2006.

The Kingdom’s exports in 2006 amounted to $211b, registering an increase of $30.45b, or 17% compared to the previous year when the figure was $180.57b. Non-Arab and non-Islamic Asian countries accounted for 50% of the Kingdom’s exports ($25.2b) with an increase of 21% ($18b). Japan topped the list of countries that imported Saudi products, mainly crude and petrochemicals, with its imports amounting to $34.8b, or 17% of the total, the department pointed out, adding that the country’s imports from Saudi Arabia rose by $6.617b. The United States held the second position receiving 15% of the Kingdom’s total exports ($31.83b). South Korea was placed third with $19.377b, followed by China with $13.233b and India with $12.94b, and all of the five reporting big increase in imports from Saudi Arabia.

European countries combined received 13% of total Saudi exports worth $28.21b, with Holland importing the lion’s share worth at $6.495b, followed by Italy with $363m. The department noted a 9% drop in the total weight of exports from 469,306 tons in 2005 to 429,282 tons in 2006. (ArabNews27.12)

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5.9 Saudi Oil Investments Surpasses $100 Billion

Saudi Arabia has pumped more than $100b into its oil sector over the last 40 years, but the investments have largely been offset by crude sales which have fetched the Gulf Kingdom more than $1.6 trillion, official figures showed. The sales involved a total 79 billion barrels pumped out of the country’s giant oilfields since it began full crude exports in 1967, according to the Saudi Arabian Monetary Agency (SAMA), which cited Saudi Aramco figures. Theoretically, such a massive output could have depleted the Kingdom’s oil resources as it exceeded its proven oil reserves of 68 billion barrels in 1967. But the reserves have more than tripled to a record 264 billion barrels at the beginning of 2007, and experts attributed this surge to new major discoveries as well as the introduction of advanced drilling and production technology. SAMA figures showed the Kingdom has remained one of the world’s heaviest investors in the oil sector as such investments are needed to maintain its fields, expand output capacity and sustain the present capacity, hunt for more oil in unexplored areas, and develop its oil infrastructure. Between 1967 and 2007, the Kingdom’s oil investments totaled around $102b. But experts said the capital does not include exploration activities, downstream projects and other sectors associated with production. Experts added that the bulk of those investments covered development of the oil fields to maintain and increase the production capacity.

Investments in Saudi Arabia’s oil sector have sharply fluctuated over the past four decades as the country’s production has remained sharply volatile because of its role as a residual producer, mainly during the 1980s and 1990s. From only 2.6 million barrels per day in 1967, Saudi Arabia’s oil output shot up to 9.9 million bpd in 1980 before it dived to 3.17 million bpd in 1985. It then rose and fell again in the following years before it recovered to an average nine million bpd in 2007. SAMA put the cumulative Saudi oil export revenues during 1967-2007 at around $1.66 trillion, an average $41.5b a year, $3.45bn a month and around $115ma day. (SAMA27.12)

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5.10 Saudi Arabia Expects Food Prices To Rise 30% This Year

Prices of food products, which account for the largest chunk of Saudis' spending, may rise by up to 30% in 2008 due to a drop in global supplies and the dollar's weakness. The Saudi Ministry of Trade & Industry has urged Saudi importers and wholesalers to pile up "enough stocks" of the main food products, it said in its annual provisioning report. The report signals that inflation will continue rising in the world's largest oil exporter in 2008 after it reached 5.35% in October, its highest level since at least 2005. (Reuters05.01)

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5.11 Saudi To End Self-Sufficiency In Wheat

Saudi Arabia plans to end its self-sufficiency in wheat supplies and import all of its 2.5m tons per year of needs within eight years in a bid to save water, government officials said. The government will start this year reducing purchases of wheat from local farmers by 12.5% per year, officials from the agriculture and finance ministries said. The reason is water resources. Local farmers will be banned from exporting wheat until 2016. Saudi Arabia, the world's largest oil exporter, produces 2.5 million tons a year of wheat, both durum and soft, enough to meet domestic demand. In the 1970s, the government started a program to encourage farmers to produce wheat, guaranteeing for them at the time $933.3 for every ton. Faced with criticism for overpaying farmers, the government has gradually cut the price to $267 per toe. The government is considering offering wheat farmers compensation, either through helping them switch to other crops, such as feed for livestock, or cash handouts(Various08.01)

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6: TURKISH, CYPRIOT & GREEK DEVELOPMENTS:

6.1 Turkey’s 2007 CPI Came In Below 8.5% Level

Turkey’s CPI came in at 0.2% and PPI increased by 0.15% in December, lower than market consensus of 0.4% and 0.33% respectively. Latest figures accumulate the annual CPI and PPI rates to 8.4% and 5.9%; respectively from 8.4 % CPI and 5.65% PPI of the previous month. The increase in food prices was surprising with a lower rise of 0.36% MoM. Thus, declining trend in food prices continued in December. Meanwhile, clothing and transport items decreased by 1.25% and 0.08% MoM, respectively. On the PPI front, petroleum product prices declined by 1.5% on the back of strong YTL, which was the main item driving PPI below expectations. Also agricultural prices increased mildly by 0.52%. However increasing commodity prices constitute the main risk for PPI. Since YoY inflation above the uncertainty band of 6%, Central Bank will write a letter and explain the reasons. (BGC04.01)

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6.2 Turkish Trade Balance Posted $5.3 Billion Deficit in November

According to Turkstat, Turkey’s trade balance posted a $5.3b deficit (25.5% Year-on-Year increase) in November, in line with market consensus of $5.2b. Imports were at $16.6b, with a 29% YoY increase; while exports increased 30% YoY to $11.3b. Accordingly, the January – November 2007 trade deficit increased by 14% YoY to $56.3b. The Export/Import ratio increased to 68% from the October 2007 level of 64%. (BGC02.01)

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6.3 Third Bosporus Bridge Is Expected For Highway Privatizations

It was reported that the privatization of Turkey's highways and bridges will not be completed until the route of a new bridge to be constructed over the Bosporus has been definitively determined. Turkey’s Privatization Administration has asked the General Directorate of Highways to clarify the route of the new bridge and the roads connecting it to main arteries as soon as possible since any delay in this issue could cause the privatizations to slow. Following these assessments it will be decided whether to privatize toll roads and bridges partially or in one block sale. Currently, Australia-based Macquarie Infrastructure, Abertis of Spain, the Portuguese Brisa, Japan-based Itochu Corp. and Atlantia SpA of Italy are interested in toll roads and bridges. (BGC02.01)

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6.4 Malta & Greek Cyprus Adopt Euro

On 1 January, Greek Cyprus and Malta joined the eurozone, bidding farewell to the Cyprus pound and Maltese lira, expanding the club of countries using the single European currency to 15. The eastern Mediterranean island's Greek side adopted the euro one hour ahead of Malta to the west, less than four years after both states joined the 27-member bloc. While Greek Cyprus adopted a low-key approach, with President Papadopoulos making a symbolic withdrawal of euros from a finance ministry automatic teller machine, the smaller island of Malta welcomed the euro with a spectacular fireworks display. As folk, pop and rock concerts were under way in Valletta's Grand Harbor, Prime Minister Gonzi withdrew the first euros from a cash distributor at the posh waterfront cruise liner terminal just after the stroke of midnight. The combined 1.4 million population of two of the European Union's smallest members takes the number of people in the eurozone to around 320 million. (Various02.01)

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6.5 Greek New Car Registrations Up 4.5% In 2007

New car registrations in Greece rose by 4.5% in 2007, compared with the previous year, recording the biggest percentage increase in the last three years. Total sales reached 279,794 units, up from 267,706 units in 2006, despite a 17% decline in December. Toyota maintained its leading position in the Greek market, recording an 8.6% increase in 2007 to 27,701 registrations, followed by Opel (+28.5%, 23,325 sales) and VW with a 3.8% increase to 22,056 registrations. Ford and Hyundai followed with 19,059 and 17,282 sales, respectively. Daihatsu and Mini recorded the biggest percentage increases last year (+56%) and (+62.5%) respectively, while Renault recorded the biggest annual percentage decline (-43.5%). Opel Corsa was the most popular car model in the Greek market with 9,687 sales with a market share of 12.05%. (ANA08.01)

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7: GENERAL NEWS AND INTEREST

*ISRAEL:

7.1 Tu B’Shvat Celebrated in Israel on 21/22 January

On the evening of 21 January and 22 January, Tu B'Shevat will be celebrated in Israel. The 15th day of the Jewish month of Shevat, it is a holiday also known as the New Year for Trees. The word "Tu" is not really a word; it is the number 15 in Hebrew. Tu B'Shvat is the New Year for the purpose of calculating the age of trees for tithing. The Torah states that fruit from trees which were grown in the land of Israel may not be eaten during the first three years; the fourth year's fruit is for G-d, and after that, the fruit can be eaten. Each tree is considered to have aged one year as of Tu B'Shvat, no matter when in the year it was planted. It is customary to plant trees and partake of the fruits of the land of Israel to mark the occasion. The reason for the festive mood of the New Year for Trees is that the 15th of Shevat recalls the praise of the Land of Israel, for on this day the strength of the soil of the land is renewed. With reference to the fruits of the trees and the produce of the soil, the Torah praises the Land of Israel: "A land of wheat and barley and vines and fig trees and pomegranates, a land of olive trees and honey" (Deut. 8). When it does not fall on the Sabbath, it is a regular work day and businesses will be open, though many schools and some companies and other institutions have tree plantings.

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7.2 Percentage of World Jewry Living in Israel Steadily Increasing

According to the 2007 Annual Report of the Jewish People Policy Planning Institute (JPPPI), a project of the Jewish Agency, 41% of all Jews now live in Israel. At the beginning of 2007, the total world Jewish population was 13,155,000, an overall growth rate of 0.5% over the previous year's figures. The Diaspora experienced a net decrease in population of 20,000 Jews, while Israel's Jewish population increased by 80,000 souls. The report found that, unlike their Diaspora brethren, Jews in Israel "have relatively high and steady birth rates." Israel's 1.5% increase and the Diaspora's 0.2% decrease in Jewish population "continued the well established patterns of past years," according to the JPPPI report. In 2004, the JPPPI reported that fewer than 40% of world Jewry lived in Israel, while in 2002, according to Israeli government statistics, that figure was 37%. Projecting ahead, the latest JPPPI report showed that nearly 46% of the world's Jews will be found in Israel in the year 2020. The largest single Jewish population bloc is that of North America, with 5.7 million people, according to JPPPI, but decreasing rapidly. However, there was a minor Jewish population increase in Canada by 2007. Nevertheless, assuming no radical migration changes, the North American Jewish population will be outstripped by Israel within the next decade or so, per JPPPI statistics. (INN08.01)

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*REGIONAL:

7.3 The Gregorian Year 2008 Will See Three Hijri Years

It is interesting to note that the Gregorian year 2008 will actually see three distinct Hijri years. The last nine days of Dhu Al Hijja 1428 will fall in the first days of January 2008, which will then to be followed by the Hijri year of 1429. The last days of December 2008 will see the beginning of the Hijri year 1430. This means that year 2008 will see the end of 1428, the complete year of 1429 and the beginning of 1430. Having three Hijri years in a Gregorian year happens once every 33 years, which means 2041 will have three lunar years. The Islamic year begins on the first day of Muharram, and is counted from the year of the Hegira (anno Hegirae)—the year in which Muhammad emigrated from Mecca to Medina (A.D. 622). The year 2007 translates to A.H. 1427–1428. The year 2008 translates to A.H. 1428–1429.

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7.4 Kuwait Woman Minister Grilled By Deputy

On 8 January, Kuwait's only woman minister, who angered Islamists by refusing to wear a head scarf, faced hostile questioning from an Islamist lawmaker. Education Minister Nouriya al-Subaih has been under fire from the start of her tenure after defying Islamist calls for her to cover her hair when she was sworn in last April. Newspapers said up to 20 lawmakers backed a move by Islamist lawmaker Saad al-Sharie to interrogate her in parliament over her record - a move often used to force ministers to resign before a no-confidence vote which the reports said might be scheduled. Kuwait's parliament was locked in a row with the government for much of last year. Newspapers said the latest clash could prompt the OPEC oil producer's ruler, Emir Sheikh Sabah al-Ahmad al-Sabah, to dissolve the assembly. Pressure has been mounting on Subaih, a liberal, since her ministry tried to deny an incident in which three boys were sexually assaulted by Asian laborers at a primary school, the newspapers said. The government, liberal politicians and women rights activists have dismissed the accusations against Subaih. Women in Kuwait won the right to vote and run for office only in 2005. Subaih's only female cabinet colleague, Massouma al-Mubarak, stepped down as health minister in August, bowing to pressure mainly from Islamist deputies after a hospital fire. The government has dodged previous efforts to oust ministers by reshuffling portfolios or because the ministers resigned first. (Reuters08.01)

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7.5 UAE Signs Operational Structure of Louvre Museum in Abu Dhabi

On 7 January, Sheikh Sultan bin Tahnoun Al Nahyan, chairman of the Abu Dhabi Authority for Culture & Heritage, received French Culture Minister Albanel to sign an agreement on the operational structure of Louvre museum Abu Dhabi. The agreement covers exhibition halls and special measures on selection of artifacts for the museum, as well as, fairs which will be hosted periodically by the museum. Louvre museum Abu Dhabi, which was designed by a French architect, Jean Nouvel, is one of the five cultural establishments that will be constructed at the cultural district at Saadiyat Island in Abu Dhabi. Albanel said the controversy, which flared up in France over setting up Louvre Abu Dhabi was a healthy and eventually came in favor of this world class project. (WAM08.01)

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7.6 Turkish Parliament Decides Expanding Smoking Ban To Bars & Restaurants

Turkey's parliament approved a proposal to extend the country's smoking ban to all enclosed public areas. The bill will makes smoking in bars, restaurants and coffee shops illegal. The ban has been widened to include some open-air spaces like sports stadia and playgrounds. It is already banned on planes and buses but taxis, ferries and trains would also now be included. Restaurant and bar owners could be fined up to €3,000 if they allow their customers to light up. Enforcing the existing ban on Turkey's population, who are committed smokers, has not been easy. The ban on smoking on public transport would be widened to taxis, ferries and trains in addition to planes and passenger buses, while television stations would be barred from airing shows in which people can be seen smoking.

In 1997, Turkey banned smoking in offices with more than four workers, on some public transport, and some public places including sports centers. It also curbed cigarette advertising and ordered health warnings on cigarette packs. About 40% of Turks over the age of 15 are smokers, consuming around 17 million packs a day, according to Yesilay, an organization devoted to fighting alcohol, drug and tobacco abuse. An estimated 11% of children aged 7 to 11, are also smokers, the organization says. Lawmakers from Erdogan's ruling Justice & Development Party who proposed the bill say some 160,000 people die annually in Turkey from smoking-related ailments. The measure also has the backing of opposition parties. (TNA04.01)

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8: ISRAEL LIFE SCIENCE NEWS

8.1 Teva Announces Approval of Generic Kytril Injection and Tablets

Teva Pharmaceutical Industries announced that the U.S. FDA has granted final approval for the Company’s Abbreviated New Drug Applications (ANDA) to market its generic version of Roche’s antinauseant and antiemetic agent Kytril (Granisetron Hydrochloride) Injection, 1 mg (base)/mL in 1 mL single-dose vials and 1 mg (base) Tablets. Shipment of these products has commenced. As the first company to file an ANDA with a Paragraph IV patent certification for Granisetron Hydrochloride Injection, 1 mg (base)/mL in 1 mL single-dose vials, Teva has been awarded 180 days marketing exclusivity for this product. Teva Pharmaceutical Industries (http://www.tevapharm.com), headquartered in Israel, is among the top 20 pharmaceutical companies in the world and is the leading generic pharmaceutical company. The company develops, manufactures and markets generic and innovative human pharmaceuticals and active pharmaceutical ingredients. (Teva03.01)

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8.2 BrainStorm & Rutgers Join to Identify a Cure for Spinal Cord Injuries via Stem-Cell Research

BrainStorm Cell Therapeutics has expanded its collaboration with New Jersey’s Rutgers University in an effort to cure spinal cord injuries through BrainStorm’s cutting-edge adult stem cell research. The Spinal Cord Injury Project is the first focus of the W. M. Keck Center for Collaborative Neuroscience at Rutgers University. Spinal cord injuries cause damage to the fiber tracts that carry sensation and motor signals to and from the brain. Such injuries also damage the central part of the spine, causing segmental losses of interneurons and motor neurons. The study, combined with BrainStorm’s unique differentiation process, uses stem cells derived from human bone marrow that are expanded and induced to secrete neurotrophic factors. Preliminary evidence has indicated that transplantation of differentiated (but not non-differentiated) human bone marrow derived stem cells improved motor behavior of subjects used in animal studies as measured by motor and walking analysis.

Petah Tikva, Israel’s BrainStorm Cell Therapeutics (http://www.brainstorm-cell.com) is an emerging company developing adult stem cell therapeutic products, derived from autologous (self) bone marrow cells, for the treatment of neurodegenerative diseases. The NurOwn patent pending technology allows for the differentiation of bone marrow-derived stem cells into functional neurons and astrocytes, as demonstrated in animal models. The Company holds rights to develop and commercialize the technology through an exclusive, worldwide licensing agreement with Ramot at Tel Aviv University, the technology transfer company of Tel-Aviv University. (BrainStorm07.01)

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8.3 Sol-Gel Signs $24.7 Million Deal for Dermatology Drug Delivery

Sol-Gel Technologies has entered into a development and licensing agreement with a leading U.S. pharmaceutical company for the development and commercialization of a major dermatologic product. Under the terms of the agreement, Sol-Gel Technologies will receive $24.7m, comprised of an initial non-refundable payment as well as additional payments upon the successful completion of various milestones. The U.S. partner will fund the product’s development. Sol-Gel will be entitled to receive royalties from net sales. Sol-Gel Technologies (http://www.sol-gel.com) is a private company based in Bet Shemesh, Israel. The company provides innovative drug delivery solutions and life cycle management opportunities using patented, sol-gel based encapsulation systems in silica. The technology enables new and stable combinations of Active Pharmaceutical Ingredients resulting in improved efficacy and usability. Sol-Gel’s pipeline includes a new generation of anti-acne kits, targeting the $1b acne therapy market and other dermatology products that have been significantly improved by Sol-Gel’s proprietary drug delivery technology. (Sol-Gel 08.01)

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8.4 Can-Fite Receives FDA Approval to Conduct Phase I Study With CF102

Can-Fite BioPharma is making progress with CF102, the drug it develops for the treatment of liver cancer. Can-Fite reported that an approval was granted by the FDA to conduct a phase I study with its second pipeline drug, CF102. CF102, which was developed based on Can-Fite's platform technology, is a targeted drug that binds with high affinity to the A3 adenosine receptor. This receptor is highly expressed on the surface of cancer cells but not on normal cells. CF102 binds to its target on cancer cells and triggers programmed cell death (apoptosis). Can-Fite currently intends to develop CF102 for the treatment of liver cancer and other liver pathologies. Liver cancer is highly common in patients infected with the hepatitis virus and in patients with alcohol addiction. This virus is highly prevalent in Eastern Asia, where liver cancer is the leading cause of cancer related death. According to the information available to Can-Fite, about 630,000 people worldwide are diagnosed with liver cancer each year. Can-Fite also reported receiving $0.5m from its Japanese partner SKK. This installment is part of the royalties SKK had agreed to pay under the licensing agreement for the development and marketing in Japan of CF101 for the treatment of autoimmune diseases.

Petah Tikva, Israel’s Can-Fite Biopharma (http://www.canfite.com) focuses on the development of molecule-based drugs that bind to receptors of cancerous or inflammatory cells and inhibit their development. Can-Fite's development pipeline currently has two drugs: CF101 and CF102. The company is simultaneously conducting several preclinical and clinical trials with the two drugs for various indications. CF101 is being studied for the treatment of rheumatoid arthritis, dry eye syndrome and psoriasis. (Can-Fite08.01)

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8.5 Pluristem Second Clinical Indication Revascularization Effect After PLX-PAD Therapy

Pluristem Therapeutics has identified a second clinical indication for its proprietary PLX cells and the expansion of its pipeline of PLX products. Pluristem’s PLX-PAD is expected to begin clinical trials in H2/08 in Europe for the treatment of limb ischemia associated with peripheral artery disease (PAD). Scientists have confirmed that studies in animals whose hind legs were rendered ischemic using standard industry methodologies, post-treatment evaluation using laser Doppler technology indicated revascularization of the limbs treated with PLX-PAD cells but not in those limbs not treated with PLX-PAD. Additionally, immunohistochemical analyses of those limbs treated with PLX-PAD indicated a significant increase in the number of new capillaries (vessels) supplying the limb, suggesting PLX-PAD has the ability to promote angiogenesis (new vessel formation).

Haifa, Israel’s Pluristem Therapeutics (http://www.pluristem.com) is a company dedicated to the commercialization of non-personalized (allogeneic) stem cell therapy products for the treatment of numerous severe degenerative, malignant and autoimmune disorders. The Company's first product, PLX-I, is directed at resolving the global shortfall of matched tissue for bone marrow transplantation (BMT) by improving the engraftment of hematopoietic stem cells (HSCs) contained in umbilical cord blood (UCB). Pluristem's products are derived from mesenchymal stromal cells (MSCs) obtained from the placenta, a non-controversial source, and not from embryonic stem cells. The MSCs are expanded in the Company's proprietary PluriX 3D bioreactor that imitates the natural microstructure of bone marrow and does not require supplemental growth factors, cytokines or other exogenous materials. (Pluristem 08.01)

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8.6 Yissum & Eucalyptus Develop a Small Molecule for the Treatment of Neurodegenerative Diseases

Yissum has licensed an orally–available small molecule for several biological indications including the treatment of neurodegenerative diseases to Dublin, Ireland’s Eucalyptus, Ltd. The molecule is an antioxidant that overcomes the blood-brain barrier. This invention is a breakthrough in the treatment of oxidative stress, which plays a major role in CNS disorders. Under the terms of the agreement, Eucalyptus has acquired worldwide exclusive rights to develop and commercialize the molecule and Yissum together with Ramot, the technology transfer company of Tel Aviv University, and Mor Research Applications, the technology transfer company of Clalit Health Services, will receive upfront payments, milestone payments in accordance with development progress and royalties from sales of final products.

Yissum (http://www.yissum.co.il) was founded in 1964 to protect the Hebrew University’s intellectual property and commercialize it. One billion dollars in annual sales are generated by products based on Hebrew University technologies licensed out by Yissum. Ranked among the top technology transfer companies in the world, Yissum has registered 5,000 patents covering 1,400 inventions; licensed out 400 technologies and spun out 60 companies. (Yissum08.01)

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9: ISRAEL PRODUCT & TECHNOLOGY NEWS

9.1 Robert Parker Rates Israeli Wines "Outstanding"

Israel's wine industry has received an international endorsement in the form of a review by leading wine critic Robert Parker. As reported by Globes, in a review by Parker of wines from 40 Israeli wineries, 14 wines scored over 90 points, with the 2003 Yatir Forest from the Yatir Winery and the 2005 Gewurztraminer Heights Wine Yarden from the Golan Heights Winery topping the rankings with 93 points. Also ranked among the top fourteen were wines from Tzora Vineyards, Domaine du Castel, Tulip and Clos de Gat. The significance of these rankings is that Israeli wines will now be finding their way to the shelves of wine consumers who were unfamiliar with Israeli wines until now. It amounts to potential sales on massive scale, especially for those vineyards whose wines received top rankings. This development will, without doubt, bring about a marked increase in exports of quality Israeli wines. (Globes 31.12)

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9.2 RADA Electronic Industries Receives $5.9 Million IAF Purchase Order

RADA Electronic Industries has received a $5.9m purchase order from the Israeli Ministry of Defense (IMOD) to develop and produce an advanced airborne video and data management system (Video Management System - VMS) for the Israeli Air Force aircraft. The VMS is the latest generation of RADA's Digital Video Recorders (DVR), which is one of RADA's current most-selling products worldwide and is in production for several years now. The program additional sales potential to the IMOD/IAF, estimated at over $4.5M, is expected to materialize within the next 4 years. Netanya, Israel’s RADA Electronic Industries (http://www.rada.com) is involved in the military and commercial aerospace industries. The Company specializes in Avionics systems (Digital Video Recorders, Ground Debriefing Stations, Stores Management Systems, Flight Data Recorders, Inertial Navigation Systems), Trainers Upgrades, Avionics systems for the UAV market, and Optronics (cameras for airplanes and armored vehicles). (Rada02.01)

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9.3 NICE Receives Major Orders from Leading US Banks to Address Key Business Challenges

NICE Systems announced that two of the top-3 US banks have recently placed multi-million dollar orders for NICE solutions, including NICE Perform - part of NICE SmartCenter, and for the enterprise fraud solution from Actimize, a NICE company. The solutions will be used by these leading financial institutions to deal with compliance and fraud, retain customers and gain insight into customer and market dynamics - all critical issues for these organizations. The two US banks which are among the world’s largest financial institutions will leverage the advanced capabilities of NICE Perform to improve quality of service, customer satisfaction and operational efficiency. With NICE Perform they will be able to extract vital insights from customer interactions, delivering critical information to their contact centers and the enterprise. One of these banks will also be using the Actimize enterprise fraud solution to monitorms of financial transactions and activities on a daily basis. The Actimize solution was selected for its proven ability to reduce fraud losses by orders of magnitude, increase investigators’ productivity and protect the bank’s reputation.

Ra'anana, Israel’s NICE Systems (http://www.nice.com) is the leading provider of Insight from Interactions solutions and value-added services, powered by the convergence of advanced analytics of unstructured multimedia content and transactional data - from telephony, web, email, radio, video, and other data sources. NICE’s solutions address the needs of the enterprise and security markets, enabling organizations to operate in an insightful and proactive manner, and take immediate action to improve business and operational performance and ensure safety and security. (NICE07.01)

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9.4 CopperGate Announces Highest Speed Home Networking Solution over Coax & Phone Wires

CopperGate Communications announced its CopperStream CG3210, the highest speed solution for networking entertainment data over existing coax and telephone wires. The CG3210 is the latest of CopperGate’s HomePNA 3.1 compatible solutions and supports data rates of 320 Megabits per second enabling distribution of rich digital content in buildings and homes driven by emerging applications from satellite and telco service providers such as multi-room IPTV PVRs. The CG3210 chipset raises the bar for user data throughput featuring up to 240 Megabits per second. It incorporates a complete ITU G.9954 compatible HomePNA 3.1 MAC and PHY as well as an Ethernet MAC and a powerful RISC processor capable of running the entire HomePNA 3.1 protocol stack providing powerful remote management and diagnostics capabilities and full backward compatibility with CopperGate’s previous products. The CG3210 is sampling to customers today.

Headquartered in Tel Aviv, Israel, CopperGate Communications (http://www.copper-gate.com) develops chipsets designed to revolutionize home networking and multi-dwelling unit (MDU) broadband access. CopperGate is the leading provider of standards-based technology for distributing high speed IP data throughout the home over existing wires. CopperGate works with the world's leading system manufacturers to deliver the only products that operate over both phone lines and coax cables enabling consumers to conveniently connect equipment to broadband services throughout the home. (CopperGate07.01)

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9.5 Alvarion & Bridgewater Systems Announce Joint WiMAX Deployment in Angola

Alvarion and Ottawa, Ontario’s Bridgewater Systems are providing MSTelcom, of Sonangol Group, with advanced WiMAX solutions to support IP services to be offered in key locations throughout Northern Angola. This deployment project is planned to support MSTelcom’s current services that include national satellite coverage, broadband services, terrestrial links, Internet access, national and international connectivity (telephony), and radio tracking systems. Bridgewater’s proven AAA Service Controller is provided as part of Alvarion’s OPEN WiMAX architecture, enabling MSTelcom to provide robust authentication and authorization for high speed internet and VoIP WiMAX services based on IEEE 802.16e Mobile WiMAX™ technology. The new network enables MSTelcom to optimize services used as the preferred last mile solution for residential and SOHO markets. In addition, they can maintain continuous technological evolution and enforce the building of a rural satellite-based network for telephony connectivity.

With more than 3m units deployed in 150 countries, Tel Aviv, Israel’s Alvarion (http://www.alvarion.com) is the world’s leading provider of innovative wireless broadband network solutions enabling Personal Broadband to improve lifestyles and productivity with portable and mobile data, VoIP, video and other services. Alvarion is leading the market to Open WiMAX solutions with the most extensive deployments and proven product portfolio in the industry covering the full range of frequency bands with both fixed and mobile solutions. Alvarion’s products enable the delivery of personal mobile broadband, business and residential broadband access, corporate VPNs, toll quality telephony, mobile base station feeding, hotspot coverage extension, community interconnection, public safety communications, and mobile voice and data. (Alvarion07.01)

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9.6 Sightic's SIP4000 Video DSP Power LG's New CCTV XDI Cameras

Korea’s LG Electronics and Sightic Vista announce the successful integration of Sightic's newly developed SIP4000 video processor with LG's new XDI line of high quality, high performance cameras. The SIP4000 video processor is designed to meet the highest requirements of surveillance, traffic control and law enforcement cameras. The innovative device incorporates Sightic's unique video processing capabilities that offer unsurpassed video quality at all conditions, for better detection and analysis. The LS900s series of cameras is the first of the LG's XDI - eXtreme Dynamic Image & Intelligent - line of high quality, high performance SIP4000-based cameras. The LS900s line includes the LS901, LS902, and the LS903 cameras (all available in NTSC and PAL). The cameras have wide dynamic range (WDR), higher sensitivity for low light, and enhanced resolution of 570 TVL (color). In addition, the cameras have Highlight Suppress BLC (HSBLC). Additional XDI cameras, including zoom cameras and speed-dome cameras, are expected at H1/08.

Netanya, Israel’s Sightic Vista (http://www.sightic.com) is a leading provider of image processing software and LSI cores, and has expertise in the integration of these disciplines into high quality, low cost, digital still and video cameras. The company proprietary technologies provide solutions to all key areas of electronic imaging, such as dynamic range, enhancement of sensitivity, resolution and contrast, improved digital zooming, video and still image stabilization and digital filtering for noise and compression artifact reduction. Sightic's products and imaging technologies are empowerings of multimedia mobile phones, digital still cameras, and CCTV camera products and have received recognition for excellence worldwide. (LG07.01)

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10: ISRAEL ECONOMIC STATISTICS

10.1 Israel's Auto Industry Completes Best Year Ever

Israel's automotive sector ended one of the best years in its history yesterday, with more than 190,000 new cars, including taxis, arriving in 2008. Nearly all importers saw double digit growth in deliveries, across all segments in 2007, compared with 2006, with the family vehicle segment recording exceptionally strong growth, including the niche and luxury vehicle segments. Preliminary, unofficial figures obtained by Globes state that Delek Automotive Systems broke its own sales record and is expected to end 2007 with 42,000 deliveries of Mazda and Ford cars. Automotive sector sources believe that the company's results for the fourth quarter of the year will show the best quarterly sales and profit in its history.

Hyundai Motors Israel expects 22,500 deliveries in 2007, of which 1,850 were the company's Tuscon off-road car. Toyota Israel made a record 21,700 deliveries, almost 20% more than its initial projection. The company's deliveries included 1,980 off-road Land Cruisers, worth a total of $140m. It also delivered 1,200 Prius hybrid cars, and more than 1,100 Camry saloons. Volkswagen importer Champion Motors delivered almost 15,000 cars in 2007 and saw an increase in all models. Universal Motors Israel, which imports Chevrolet, Isuzu, Saab and others is expected to end 2007 with deliveries of more than 14,000. Japanese manufacturers saw brisk growth in 2007. Subaru crossed the 10,000 deliveries level, Daihatsu added 9,500 cars, Suzuki and Honda are likely to end 2007 with more than 8,000 deliveries each, while Mitsubishi sold 9,000 new cars.

The sources believe that the deliveries in December were dominated almost entirely by vehicle fleets, and that January will be a positive month despite a marked slowdown in sales to private customers. The sources expect January to be record month with close to 20,000 deliveries, owing to the many customers waiting to take delivery of cars they purchased in the year just ended. The sources note that 2007 would have been even stronger, were it not for the difficulties in deliveries of some leading brands and delays in sea haulage, principally from East Asia. Thousands of cars ordered in advance from Israel are now awaiting shipment in ports in Japan and South Korea, as sea haulage companies struggle to cope with the backlog of new orders awaiting shipment. (Globes 01.01)

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10.2 Most Israeli Youth Use Internet

According to the biannual survey from TNS/Teleseker, there are now four million internet users in Israel (aged 13 and upward), representing a 2% increase compared with December 2006. This figure suggests that there has been a slowdown in the annualized increase in internet surfing, which now corresponds to Israel's annual rate of population growth. The figures also show a slowdown in the rate of internet take-up in Jewish households. Some 73% of these now have an internet connection compared with 72% in December 2006, of which 96% are connected to broadband internet (against 95% in 2006).

The demographic breakdown of internet usage among the Jewish population is now similar to the population average, although several unique characteristics remain. 54% of the Jewish population that use the internet are men and 46% women. Internet use is most widespread among people aged 18-49, who account for 73% of the total number of internet users, and 63% of the total population. The survey also found that the rate of internet use among youth aged 13-17 was higher than 90%, while the proportion of users aged 50 and upwards has risen to 23% of the total number of internet users, compared with just 11% seven years ago. (Globes 03.01)

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In Depth

11.1 ABU DHABI: Energy Deals With Japan

During a recent trade delegation to Japan, the Abu Dhabi National Oil Co (ADNOC) signed a $3bn loan deal with the Japan Bank for International Cooperation (JBIC). The loan will be used to build infrastructure to boost crude oil output and fund oil exploration studies. This deal is the first solid agreement since the two organizations signed a strategic partnership this spring in an attempt to further bilateral relationships in the energy sector.

JBIC, a state-owned bank, raised the money from local financial institutions, with an estimated one third coming from Mizuho Financial Group. The loan to ADNOC has been described as an advance payment for crude oil sales to Japanese oil firms. Japan is the world's third largest consumer of oil after the United States and China.

Abu Dhabi and Japan have enjoyed good economic relations for many years. The MoU signed in April aimed to increase opportunities for business development between ADNOC and Japanese companies in the oil and gas sector. According to a press release the agreement "will strengthen the relationship not only between JBIC and ADNOC but also between Japan and the UAE."

The emirate is a key partner in Japan's energy landscape; oil purchases from the United Arab Emirates (UAE) accounted for 25% of Japan's total imports in 2006 and the UAE was the largest supplier of oil from 1984 to 2004, with Saudi Arabia taking over the lead position in 2005. Analysts believe that Japan is striving to secure its sources of oil as China and India continue to compete for energy supplies to fuel their economic growth.

Hidetoshi Shioda, a senior energy analyst at Mizuho Securities, told international press, "With the UAE's oil structured into the loan, crude supplies to Japan are more assured [...] It also benefits the UAE, as Japan will take steady supply for a longer period of time."

Abu Dhabi firms are now investing in the Japanese energy sector to reaffirm their presence in the market. Abu Dhabi's International Petroleum Investment Company (IPIC) bought a 20% share of the fourth-largest Japanese refiner Cosmo Oil for $776m on October 5, becoming the company's largest shareholder.

Cosmo has also entered into a strategic alliance with Masdar, the Abu Dhabi government initiative dedicated to developing clean and sustainable energy solutions. The contract signed between Cosmo, Masdar and the Tokyo Institute of Technology aims to research and develop 'beam down' technology, a design that improves the efficiency of solar towers.

The Masdar Research Network, the international research and development arm of Masdar, will oversee the project. Solar thermal technology is a key area of study for the network and the agreement stipulates that a beam-down pilot plant will be built in Abu Dhabi by the end of 2008. Commenting on the agreement, Yaichi Kimura, president of Cosmo, said solar energy had the potential to play a major role in the company's non-oil business. (OBG02.01)

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11.2 OMAN: 2007 Year in Review

The Oxford Business Group reported that Oman had a mixed year in 2007, with strong economic growth boosted by rising energy prices, offset to some degree by natural disaster and increasing concerns over inflation. Oman's gross domestic product (GDP) grew by 11.6% in 2007, riding on the back of the far better than expected growth in oil prices, strong local demand and improvement in non-oil exports, Ahmed bin Abdulnabi Macki, the minister of national economy, announced when tabling the state budget on January 2.

Not surprisingly, having oil hovering around the $90 a barrel mark for much of the year, more than twice what Oman had estimated for in its 2007 budgetary plans, did nothing to harm the sultanate's bottom line. However, government estimates indicate Oman's oil production will continue to tail off in 2008, having fallen 3.5% last year, though the trend will be offset by high international prices.

To counteract the expected fall in production, the government announced plans to spend $10bn over a five year period to boost output from existing wells, with around $3bn dedicated to putting in place technology to enhance oil recovery. This investment, along with projects to develop new wells, is aimed at lifting production from the approximately 700,000 barrels per day level to 1m by 2012.

As with most of the countries in the Gulf Cooperation Council (GCC), debate swirled in Oman about whether the country should drop its currency peg to the US dollar. The continued linkage with the weakening greenback, resulting in higher prices for imported goods, was widely blamed for pushing up inflation in the sultanate, which reached a 16-year high at 7% late in 2007.

At the end of November, Hamud Bin Sangur Al Zadjali, the governor of the Central Bank, told a conference in Frankfurt that the currency peg would remain in place. "We're not thinking about revaluation, we're not changing our policy," Al Zadjali said. "The currencies go up and down along with a cycle and the economy in a country." Though rejecting, at least for the time being, any severing of the link with the dollar, Oman is looking at a number of measures to rein in inflation in the new year. In his budget address, Macki announced there would be a slowing down of new development projects, a step that aims to take some of the heat out of the construction sector and ease demand.

Some of that demand was caused by the biggest blow suffered by Oman, and its economy, Cyclone Gonu, which swept over the Sultanate in early June. The massive storm killed more than 60 people and left widespread damage to infrastructure, housing and businesses in its wake. Ministry of National Economy estimates put the repair bill at $3.2bn, of which $2.5bn was needed to restore infrastructure.

Though Oman's crucial oil and gas industries suffered little direct damage, the harm caused to transport infrastructure and the delays caused by having to stop exports through the country's ports was estimated to have cost at least $200m in lost revenue. The necessity of repairing the effects of the cyclone also added to the strain placed on the Omani construction industry, already overburdened by the ongoing building boom.

The country's banking sector also performed well throughout the year, and was little affected by the international credit crisis that developed from mid 2007 onwards. As of the end of November, the assets of the sultanate's commercial banks had increased by just fewer than 40%, totaling $25.4bn, according to a statement issued by the Central Bank of Oman (CBO) on January 1. Oman's commercial banks boosted their combined foreign assets portfolios to $49.6bn in the 12 months ending November 30, an increase of 22.5%, while deposits rose by 33% over the same period, reaching $16bn, the CBO said.

The local stock market, the Muscat Securities Market (MSM), ended the year on a record high, despite the trauma of Gonu and creeping inflation. Supported by high levels of liquidity and strong economic growth, the MSM's general index rose 4,023.61 points, just over 72% during 2007.

Oman's tourism sector also enjoyed a good year, contributing just over 1% to GDP, well on the way to meeting the government's target for the industry of 3% by 2020. Tourism received a boost with the announcement in late 2007 that the government was planning to build three six airports and spend $3bn to enlarge Muscat's international airport, the country's main point of entry for foreign visitors. Though inflation remains a concern and domestic demand is stretching supply in some areas, the Omani economy looks set to maintain its strong performance in the coming year. (OBG08.01)

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11.3 TURKEY: Shifting Gear

Not since the beginning of the republic has Turkey's future relied more on making education a priority. Turkey's current student body hopes to be the first generation to fulfill founder Ataturk's dream of a path that merges with that of its European neighbors in terms of educational standards. But many of today's graduates are striving to turn their educations into work opportunities.

School is not a priority for many Turkish families who live in poverty. Half of the country's youth does not finish secondary school. According to the United Nations, nearly a quarter of Turkey's 74m people are children aged six to 17 years. If the country is to prepare this enormous population for the future - in or out of the European Union - it will have to pour significant resources into a severely malnourished education system, while increasing school attendance.

State education does not exist for children before primary school. International studies conclude that the low rate of children attending pre-school in Turkey - and the lack of a plan to develop pre-schools - contributes to overall challenges in education and beyond. In European countries and in other Organization for Economic Co-operation and Development (OECD) countries, nearly all 5 and 6-year olds are in some type of state-supported school system compared to only 30% in Turkey, said the assistant director of the Mother-Child Education Foundation (ACEV.)

The average rate of schooling in the three-four age group is 67.8 % for OECD countries, but only 10% in Turkey. Turkish Education Union President Suayip Ozcan pointed out that even with limited grants from the state, the total yearly cost of kindergarten oscillates between YTL400 and 1000. Nevertheless, private pre-schools and kindergartens are becoming a particularly big business.

On any given school day, one in 10 children - 1.85m - will be found working for unregistered businesses, on the street or as seasonal agricultural workers, according to members of the educational community. Attempting to address this issue, the government provides monthly grants to poor families of $15-$20 for each child that stays in school, funded in part by a $250m World Bank program.

Thanks to a combination of cultural, religious and economic pressures, more than 640,000 girls do not attend school in Turkey and only 3% of women receive university education, Ege University's research centre for women studies (EKAM) found.

In an effort to close the gender gap, the government recently increased grants to poor families that keep their daughters in school. Unicef and Milliyet newspaper teamed up with the ministry of education to get girls to school, particularly in the poorer, rural areas. Door to door visits allowed teachers to talk directly with parents. "Send me to school, Dad" began several years ago and was successful in adding some 70,000 girls to classroom rosters. With help from the World Bank program, the government has been replacing dilapidated village schools with modern facilities.

That said, public spending is skewed toward Turkey's elite schools. The state spends two times more per pupil in the selective Anatolian high schools attended by 8% of students than it does in general high schools attended by 43% of students, according to 2006 ministry of education figures. The remaining students attend vocational and technical schools (36%), open education high schools (10%) and private schools (3%).

While industrialists are baying for greater vocational training in Turkey, the European Commission released a report in 2007 that qualified the government's plans to develop vocational education an important step toward a convergence in labor standards. Vocational training, however, is not a cure-all to Turkey's education and employment woes. Instead of increasing the number of students in vocational schools, Turkey must increase job opportunities and wages to make way for a modern labor force. Still, a good many Turks traditionally score among the world's brightest university graduates. But collectively, the state will have to chart a long-term course to extend basic education and more jobs to all. (OBG02.01)

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11.4 GREECE: Government Faces Five Major Economic Challenges in 2008

In its autumn forecasts on the economies of member states, the European Commission sounded the warning bell for the repercussions on Greek competitiveness that inflation and the continuing widening of the country’s current account deficit are likely to have. Separately, a study by the Organization for Economic Cooperation and Development (OECD) taken among 26 of its member states shows that the Greek economy is among the least prepared to face the impact of globalization.

To be sure, improving Greece’s ailing competitiveness is but one of five great challenges that the government is being called upon to face this year.

Competitiveness

The current account deficit widened 30.9% in the January-October 2007 period, year-on-year, to €23.8 billion, or 10.3% of gross national product (GDP).

Brussels partly shares the Greek government’s view that the widening of the deficit is also due to circumstantial factors, including the import of hardware for the realization of private investment plans. But it also considers that the widening is a reflection of low competitiveness, which is likely to further deteriorate due to the strong inflationary pressures that it has traditionally shown little ability to absorb.

Due to rising international fuel and grain prices, Greek inflation climbed to 3.9% in November and is estimated to stay at the same level this month. The European Commission projects the average inflation rate for 2008 at 3.1% instead of the 2.8% forecast by the Economy Ministry.

According to the OECD study, the chief reasons for the low competitiveness are that Greek exports often compete with those of low-cost developing Asian countries and are produced by “low” technology, at a rate of 40.4%. This is the worst performance in the EU-15 and the third worst in the EU-27. Just 14.8% of Greek exports are made using high technology, compared with 52.8% of Ireland’s, the 49.2% of Cyprus and the 33.8% of the UK. Also, only 6% of Greek exports are products of information and telecommunications technology.

Greece also figures as a laggard in innovation in the EU, on the basis of a combined index which takes into account spending on research and technology, education and other parameters.

Olympic Airlines

Ailing public utilities, particularly the two biggest in the transport sector, Olympic Airlines and the Hellenic Railways Organization (OSE), which are running huge deficits, will also test the credibility of economic policy in 2008. Olympic is certain to cease to exist in the form we have known it for five decades, as the Commission has launched a new probe into illegal state subsidies in the 2004-2007 period which, according to all indications, will end with new fines on the carrier. The government now has to come up with a successor scheme. Since being divided into five separate operating units, OSE has been adding a deficit of €70 million monthly to an already overblown total of €7.5 billion.

Health

The fiscal chaos in the broader public sector, particularly in the national health system and local government organizations, also demands the government’s attention. In less than three years since last being settled, hospitals’ debts to suppliers have again run up to €2.8 billion. But social insurance funds also owe about €1.4 billion to hospitals. The Finance Ministry’s top priority is to force hospitals and municipal authorities to draw up budgets and balance sheets.

Fiscal deficit

By establishing tighter control of finances in the broader public sector and hoping to achieve a spectacular improvement in revenues, the government expects to bring down the fiscal deficit from 2.7% to 1.6% of GDP without having to resort to a hike in value-added tax.

The Finance Ministry expects to collect €4 billion more in taxes from the rise in nominal GDP and €2 billion more via the fight against tax evasion, the equalization of heating and automotive diesel taxes and the introduction of a single property tax. But with the strong uncertainties in the international environment and its own poor record on tax collection, the VAT increase remains on the cards.

Privatizations

In the previous two budgets, the revenue target of €1.6 billion from privatizations was attained with relative ease. But the sources of possible privatization revenue seem to be drying up and attaining the same target looks doubtful next year. The government has now opted for an alternative model of seeking strategic investors or allies in the still publicly run companies. The privatization plan for Athens International Airport has run into problems, after the concessionaire, Hochtief, demanded an extension to its contract. The placement of Postal Savings Bank has been postponed to 2009 to await for a better valuation. So it seems that the only large source of privatization revenue remains the placement of 5-10% of ATEbank, when market conditions allow it. (Ekath31.12)

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- Israeli Shekel conversions done at a rate of NIS 4.00 = $1.00
- Turkish Lira conversions done at a rate of NTL 1.20 = $1.00
- Cypriot Pound conversions done at a rate of C£ 1.00 = $1.60
- Jordanian Dinar conversions done at a rate of JD 1.00 = $1.41
- UAE Dirham conversions done at a rate of Dh 3.70 = $1.00
- Omani Rial conversions done at a rate of OR 0.385 = $1.00
- Pakistani Rupee conversions done at a rate of Rs 60 = $1.00

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