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TOP STORIES
TABLE OF CONTENTS:
1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS
1.1 Fischer Says Calls for Capital Movement Curbs Irresponsible
1.2 Knesset Bill Would End Free Plastic Bags at Groceries
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2: ISRAEL MARKET & BUSINESS NEWS
2.1 Intel Dedicates Fab 28 in Kiryat Gat
2.2 Tel Aviv Meets Wall Street in Stock Exchange Pact
2.3 Elbit Systems Acquires Electro Optic Research and Development Company
2.4 VMware Completes Acquisition of B-hive Networks
2.5 Zion Oil & Gas Results of Seismic Acquisition Program and Site Selection in Asher-Menashe License Area
2.6 IncrediMail and Google Sign AdSense Direct Agreement
2.7 Elbit Systems Completes Merger of Tadiran Communications
2.8 Microsoft to Gain MSN Israel Control
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3: REGIONAL PRIVATE SECTOR NEWS
3.1 Skilled Labor Shortage Crippling GCC Business
3.2 Deal Signed For $156mn Bahrain Recycling Project
3.3 Bulgaria Steel Mill Kremikovtzi Signs Contract With ArcelorMittal
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4: ISRAEL MACRO-DEVELOPMENTS
4.1 Tel Aviv Hilton Will Use Seawater for Cooling System
4.2 Hapoalim Sees Growth Slowing To 3% In 2009
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5: ARAB STATE & PAKISTANI DEVELOPMENTS
5.1 Jordan's GDP Grows by 5.3% in First Quarter
5.2 Jordan to Become Energy Exporting Country by 2030
5.3 Jordan & US Bolster Customs Cooperation To Fight Terrorism
5.4 UAE Waives Iraq's $7 Billion Debts
5.5 Kuwaiti Earns $350m Reducing Software Piracy
5.6 Qatar Raises 2007 GDP Forecast to $71 Billion
5.7 Algeria Plans Law For Nuclear Power This Year
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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS
6.1 Turkey's Strong Growth Attributable to Agriculture, Manufacturing, Trade & Transport
6.2 Turkey's Inflation Unexpectedly Slowed to 10.6% in June
6.3 Cyprus EU Harmonized Inflation Hits 5.2%
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7: GENERAL NEWS AND INTEREST
*ISRAEL:
7.1 Israel Marks 17th of Tammuz & Begins the “Three Weeks” Mourning Period
7.2 Israel Facing Worst Water Crisis in 80 Years
7.3 Lake Kinneret Approaching the 'Red Line'
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*REGIONAL:
7.4 US Provides $450m Extra Economic & Military Assistance to Jordan
7.5 New Qatar Cabinet Names Woman
7.6 Saudi - Qatar Border Deal Signifies Thawing Of Tensions
7.7 Saudi Man & Woman Face Flogging For Research
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8: ISRAEL LIFE SCIENCE NEWS
8.1 Medical Ventures Becomes Neovasc with Two Israeli Acquisitions
8.2 Applisonix Breakthrough in Ultrasound Technology for Hair Removal
8.3 PainReform Licenses a Novel Sustained Release Formulation of Ropivacaine from Encore Therapeutics
8.4 FDA Approves EVOLENCE, a New Generation Collagen-Based Facial Filler
8.5 Dental Laser Start-Up Dentaray Raises Seed Funding
8.6 BSP Integrating HyperQ Stress System Into Leading U.S. Hospitals & Academic Centers
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9: ISRAEL PRODUCT & TECHNOLOGY NEWS
9.1 Deutsche Telekom (ICSS) & VocalTec Solution for International VoIP Interconnection
9.2 EZchip Technologies Delivers Samples of the NP-3 Network Processor to Customers
9.3 CompactSafe System Certified as an Explosive Detection System at International Border Crossings
9.4 Voltaire Announces Support for IBM iDataPlex System
9.5 Software602 Licenses Commtouch Real-Time Anti-Spam for Groupware Server
9.6 Alvarion Sets Off First Mobile WiMAX Internet Service in the U.S.
9.7 Chip PC Ships Latest Windows CE 6.0 R2 & RDP 6.0 for High-End Thin Client Offerings
9.8 Tower to Launch Volume Production of QuickLogic's ArcticLink II VX Solution Platforms
9.9 EVS Wins Orders from Two Leading European & US Aerospace Manufacturers
9.10 Elbit Systems Selected by Boeing for the US Navy's T-45 Virtual Mission Training System (VMTS)
9.11 Emoze Pushes the Mobile Limits - Unique New Experience on Mass Market Devices
9.12 Check Point Provides Protection Against Microsoft Windows Safari Browser Vulnerability
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10: ISRAEL ECONOMIC STATISTICS
10.1 Israel's Electrical Goods Imports Up Sharply
10.2 Israel's Car Sales Continue to Rise
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11: In Depth
11.1 LEBANON: Controlling Food Prices
11.2 PERSIAN GULF: Surplus Wealth in the Economy:
11.3 BAHRAIN: Pearl of the Gulf
11.4 BAHRAIN: Net Losses
11.5 OMAN: Green and Clean
11.6 SAUDI ARABIA: Breaking Cover
11.7 EGYPT: Moody's Changes Outlook To Negative On Egypt's Foreign Currency Ratings
11.8 EGYPT: Economy Not so Fertile
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1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS
1.1 Fischer Says Calls for Capital Movement Curbs Irresponsible
On 3 July, the Governor of the Bank of Israel Prof. Stanley Fischer addressed the Caesarea Forum of the Israel Democracy Institute, saying, "Inflation's damage to the economy is very serious both in terms of reaching long term growth and high employment, as well as the pain inflicted on weaker classes." In his speech, Fischer spent a long time discussing the dollar. "The calls being heard (in Israel) to impose controls of any type on capital movement are dangerous and irresponsible," he said, adding that imposing those types of limitations have never helped - neither around the world nor in Israel in the 1970s and 1980s. "If we listen to them we are liable to put the Israeli economy back more than 10 years". A central banker should "never say never", Fischer answered when asked about involvement in the foreign exchange market, and he repeated that the Bank of Israel will continue its current policy. "The shekel's recent strength was not expected, and despite the fact that we don't find evidence of speculative activity, it is difficult to explain", Fischer said.
The Bank of Israel head added that "it is conceivable that the slowdown is already here, it can be assumed that energy and food prices will continue to rise throughout the year". Fischer noted that the Bank of Israel intends to "continue and focus on the interest rate to maintain price stability," adding, "That way we will succeed in getting past the period of slowdown with the least amount of damage, and return soon to rapid and continued growth." "If we deviate on spending, households, companies, and the government will pay higher interest without connection to the Bank of Israel's interest rate," Fischer said. This was in reference to calls at the Forum to raise the limit on the annual rise in government spending, which stands today at 1.7%. "In the past 4 years, it was the macro-economic approach along with fiscal and monetary policy that brought very successful results". With that, in effect, Fischer backed Minister of Finance Ronnie Bar-On, who also disagreed with recommendations of the Israel Democracy Institute, which called for public expenditure to be increased by 2.7%. (Globes 03.07)
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1.2 Knesset Bill Would End Free Plastic Bags at Groceries
On 7 July, the Knesset Internal Affairs and Environment Committee approved a bill that would prohibit stores from dispensing plastic bags for free. The bill is an amended version of a legislative proposal tabled by MK Tartman, which would have entirely banned the distribution of the ubiquitous plastic bag. If the bill becomes law, stores will be allowed to offer only non-disposable bags for sale. A NIS 67,000 fine will be levied for production or import of non-regulation plastic bags, and businesses that ignore the prohibition will be subject to a fine of NIS 27,000. The law would be enforced by the Minister of Industry, Trade and Labor. Internal Affairs and Environment Committee chair Pines-Paz announced that if following the approval, manufacturers and business owners are willing to make voluntary arrangements to sell plastic bags instead of distributing them free of charge, the committee would consider waiving the bill. A Justice Ministry representative, however, warned of constitutional conflicts as the law would impair the freedom of occupation of plastic bag manufacturers and shopkeepers, and might damage consumer rights as well. (08.07)
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2: ISRAEL MARKET & BUSINESS NEWS
2.1 Intel Dedicates Fab 28 in Kiryat Gat
On 1 July, Intel Corporation dedicated Fab 28 in Kiryat Gat in an impressive and grandiose ceremony filled with acrobats, drummers, pyrotechnics and a children's choir. Intel invested more than $3.5b in the Fab. The new Fab is next to Intel's old Fab 18, now Fab 1 of Numonyx. Fab 28 is due to employ more than 2,000 people, out of the 7,300 people Intel employs in Israel. Fab 28 will manufacture 45-nanometer technology processors and is one Intel's three most modern facilities worldwide. Intel estimates that Fab 28 will boost Israel's GDP by 2%. Intel estimates that Intel Israel had $1.54b in exports in 2007. Israel has always been considered a target for massive investment by Intel. It is estimated that the semiconductor company has invested in excess of $7b since it first arrived in Israel 35 years ago. It now has five research and development centers and three production lines in the country. (Various01.07)
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2.2 Tel Aviv Meets Wall Street in Stock Exchange Pact
The Tel Aviv Stock Exchange (TASE) and its New York counterpart (NYSE) have signed a new cooperative agreement to boost cross listing of trading. More than 100 Israeli companies, mostly in the high-tech industry, are currently traded on the NYSE, NASDAQ and other exchanges. The agreement with NYSE is aimed at encouraging more Israeli companies to list their securities in New York and Europe as well as on the TASE in order to attract international investors. The move comes on the heels of similar agreements signed last year with the London stock exchange and NASDAQ and enables the TASE to promote Israeli companies to investors. Israel's strong and stable economic growth have helped put Israel on the road to be upgraded from an emerging market to a developed market, opening up the country to more institutional investors looking for stable investments. Seven Israeli companies, such as Amdocs and Cellcom, trade their securities on the prestigious NYSE. Other companies, including the giant Teva Pharmaceuticals and Scandisk, trade their stocks on the NASDAQ, where Israel has the largest representation of stocks after the United States and Canada. The NYSE estimated the dollar value of trading in NYSE-listed Israeli firms at a staggering $6.1b compared with a paltry $320,000 in 2001. The TASE's 653 listed companies have a combined value of $208b. Tel Aviv and New York have been developing closer ties in the past two years, and an Israeli executive last November rang the traditional bell signaling the opening of the trading day in New York. (INN01.07)
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2.3 Elbit Systems Acquires Electro Optic Research and Development Company
Elbit Systems announced the acquisition of all of the shares of Electro Optic Research & Development Company (EORD) from their former shareholders, Technion Research & Development Foundation and Bynet Electronics Ltd., for a purchase price amount not material to Elbit Systems. EORD is an Israeli company, engaged in research and development of acoustic and seismic sensors and systems for military and security applications. Haifa, Israel's Elbit Systems (http://www.elbit.co.il) is an international defense electronics company engaged in a wide range of defense-related programs throughout the world. The Company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance ("C4ISR"), unmanned air vehicle (UAV) systems, advanced electro-optics, electro-optic space systems, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and radios. (Elbit Systems30.06)
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2.4 VMware Completes Acquisition of B-hive Networks
Palo Alto, California's VMware, a global leader in virtualization solutions from the desktop to the datacenter, completed the acquisition of B-hive Networks, a privately-held application performance management software company with headquarters in San Mateo, California, and principal R&D facilities in Herzliya, Israel. VMware announced a definitive agreement to acquire B-hive on May 28, 2008. Financial terms of the deal were not disclosed. With this acquisition, VMware will leverage the B-hive team and technology to enhance the VMware portfolio of application and infrastructure management products by offering proactive performance management and service level reporting for applications running within virtual machines. B-hive technology brings insight into the performance of applications and the ability to automate changes using VMware's industry-leading datacenter virtualization and management suite, VMware Infrastructure, to reallocate resources as needed to ensure service level objectives. In addition, with this acquisition, B-hive's R&D facility and team will form the core of VMware's new development center in Israel. (VMware 01.07)
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2.5 Zion Oil & Gas Results of Seismic Acquisition Program and Site Selection in Asher-Menashe License Area
Zion Oil & Gas of Dallas, Texas and Caesarea, Israel, announced that the company's geological team recently completed the processing of seven seismic lines (totaling over fifty two kilometers) acquired last winter and also the reprocessing of an additional ten seismic lines (of over one hundred and ten kilometers) in two prospective areas. The interpretation of the seismic data, coupled with geologic, gravity and magnetic data has resulted in the development of the first drillable prospect on Zion's Asher-Menashe license. A site for the new well, named the Elijah #3, has been selected on a ten thousand acre structure, comprising both Triassic and Permian targets. Zion is obligated, by the terms of its Asher-Menashe License, to commence the drilling of a well no later than July 2009 and like the Ma'anit-Rehoboth #2 well on Zion's Joseph License (scheduled to commence in September 2008), most of the long lead items for the well have been sourced, purchased and delivered and are now in secure storage, in Israel. Zion Oil & Gas (http://www.zionoil.com), a Delaware corporation, explores for oil and gas in Israel in areas located on-shore between Haifa and Tel Aviv. It currently holds two petroleum exploration licenses, the Joseph and the Asher-Menashe Licenses, between Netanya on the south and Haifa on the north covering a total of approximately 162,000 acres. (Zion01.07)
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2.6 IncrediMail and Google Sign AdSense Direct Agreement
IncrediMail has signed a direct agreement with Google, reflecting negotiated terms for the Company's participation in the Google AdSense for Search program. Additional terms of the agreement were not disclosed. The AdSense program is a significant revenue generating channel that IncrediMail has been using since the end of 2006 to monetize its user base. The program enables IncrediMail users to carry out “Google searches” and provides compensation to IncrediMail from Google for IncrediMail users' clicks on sponsored links. Tel Aviv, Israel's IncrediMail (http://www.incredimail-corp.com) is an internet content and media company founded in 1999. IncrediMail's products bring a new level of fun, personality and convenience to email, desktops and screen savers, and have been downloaded more than eighty million times. Having secured more than ten million active users, IncrediMail is now branching out into Instant Messaging, using its unique content and approach to enhance the user experience. (IncrediMail01.07)
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2.7 Elbit Systems Completes Merger of Tadiran Communications
Elbit Systems announced that all approvals required for the merger of Tadiran Communications Ltd. (Tadiran Communications) with and into Elbit Systems have been obtained, and the Israeli Registrar of Companies issued its merger order on June 30, 2008. This is further to the announcement on November 7, 2007, regarding Elbit Systems Board of Directors' approval of the merger. Pursuant to the approved merger, Tadiran Communications transferred all of its assets and liabilities to Elbit Systems, merged with and into Elbit Systems and no longer exists as a legal entity. The Merger is part of Elbit Systems' re-organization plan. It includes a merger and a vertical demerger of Elbit Systems' Land Systems and C4I Division together with most of the operations and activities of Tadiran Communications in Israel prior to the merger into a wholly-owned Israeli subsidiary, Elbit Systems Land and C4I - Tadiran Ltd. The demerger occurred immediately after the approval of the merger and as an integral part thereof. In addition, Tadiran Communications' former U.S. subsidiaries have become a part of the Elbit Systems of America companies.
Haifa, Israel's Elbit Systems (http://www.elbit.co.il) is an international defense electronics company engaged in a wide range of defense-related programs throughout the world. The Company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance ("C4ISR"), unmanned air vehicle (UAV) systems, advanced electro-optics, electro-optic space systems, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and radios. (Elbit Systems01.07)
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2.8 Microsoft to Gain MSN Israel Control
Microsoft will buy the 50.1% stake it doesn't already own in the MSN Israel Internet portal from Israeli communications company Internet Gold. Microsoft will operate the portal "independently" from October, the companies announced on 6 July, without disclosing the terms of the purchase. MSN Israel accounted for 3% of Internet Gold's revenue last year. Microsoft, which formed a partnership with Internet Gold in 2000, operates nearly all its 44 country portals without domestic partners. During the transition period the MSN Israel portal will continue to operate and both parties were working together to provide support for employees, advertisers and users throughout this period. (Various07.07)
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3: REGIONAL PRIVATE SECTOR NEWS
3.1 Skilled Labor Shortage Crippling GCC Business
A shortage of skilled labor has been identified as the single biggest impediment to companies achieving their growth targets, according to the Arabian Business “Business Confidence Survey.” Almost one out of every five respondents (19.7%) said that a lack of access to skilled labor was hampering their ability to expand. Skilled labor is a key component of productivity growth - recently highlighted as the Achilles heel of regional economies by the global research group The Conference Board. The consultancy found that while GCC economies had grown above 5% in recent years, less than 1% of that had come from productivity increases. While the GCC is still able to import materials and labor - both low down the list of obstacles to growth, the costs of securing either is becoming critical, according to the survey. Rising cost of materials was the second most voted obstacle of growth (16.9%) and cost of labor (14.3%) third. Other obstacles to growth were increasing competition (12.9%) and the cost of obtaining finance (7.8%). Perhaps unsurprisingly slowing demand for products was one of the least chosen obstacles to growth, along with shortage of unskilled labor (5.1%), accessing bank credit (4.1%) - although this issue was highlighted by smaller businesses - and lack of access to relevant equipment and machinery (2.9%). Bahrain and the UAE registered the highest levels of concern over the shortage of skilled labor and rising costs of labor and materials. The two countries were also the most pessimistic overall. They were the only two countries with a greater percentage of business people predicting deteriorating economic conditions over improving conditions in the next six months. (AB01.07)
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3.2 Deal Signed For $156mn Bahrain Recycling Project
Kuwait-based investment firm Al-Abraj Holding Co has reached an initial deal with a French company for a recycling project in Bahrain worth $156m. A company in which Al-Abraj owns a 65% stake would have a 40% share of the $600 million, 10-year deal, the firm said. Al-Abraj did not name the French company. The company's shares rose 1.6 percent after the statement. The Kuwaiti stock exchange had earlier halted the stock pending clarification of a report in daily Al-Watan about the deal. (AB07.07)
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3.3 Bulgaria Steel Mill Kremikovtzi Signs Contract With ArcelorMittal
Bulgaria's largest steel mill Kremikovtzi signed a contract on 4 July for the production of steel from all raw materials supplied by "ArcelorMittal". The production is going to be realized by the steel mill as part of the agreement. The contract also provides an obligation for investments in ecology installations and assistance when repairs of the mill equipment become necessary. Initially "Kremikovtzi" is going to produce around 60,000 tons of steel per month with this amount slated to increase with time along with the introduction of technology improvements. (SW05.07)
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4: ISRAEL MACRO-DEVELOPMENTS
4.1 Tel Aviv Hilton Will Use Seawater for Cooling System
Globes reported that the Tel Aviv Hilton will begin using seawater to cool its air conditioning system. The move will save fresh water and cut the hotel's electricity consumption by 10%, saving $300,000 a year. Hilton Hotel hired United Drilling Company to dig a 120-meter well in the hotel courtyard to obtain the seawater, which will be sent via pipes to the eco-friendly air conditioning system. The Tel Aviv Hilton Hotel's air conditioning system is 40 years old. Over the years, the wells became blocked and seawater now cools less than 3% of the system. The current water and energy crisis have revived the need for alternative sources, and the hotel decided to invest in and expand the project to maximize savings. (Globes 01.07)
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4.2 Hapoalim Sees Growth Slowing To 3% In 2009
Bank Hapoalim predicts that Israel's GDP growth will slow to 4.2% in 2008 and to 3% in 2009. In a new economic and financial survey, it is predicted that the expansion in private consumption will slow substantially as the public's purchasing power is eroded. Inflation is forecast to rise to 4% in 2008 from 3.4% in 2007, but it will fall to 2.5% in 2009. The risk has risen that the fairly high current inflationary environment will continue in the coming months due to the steady rise in energy prices. Bank Hapoalim predicts that the Bank of Israel will continue to raise the interest rate to 4.5% by the end of 2008 and keep it steady at that level next year. The bank believes that market conditions, especially the deterioration in Israel's balance of payments current accounts support a gradual fall in the exchange rate in real terms. (Globes 03.07)
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5: ARAB STATE & PAKISTANI DEVELOPMENTS
5.1 Jordan's GDP Grows by 5.3% in First Quarter
Jordan's National Accounts report issued by the Department of Statistics on 7 July indicated the economy grew in Q1/08 by 5.3% (at constant prices, neutralizing inflation), compared to the same period last year. Meanwhile, GDP growth rate at current prices, with inflation taken into consideration, was 17.9% for the same period, compared to the first three months of last year. According to the report, the transport, storage and communications sector was the largest contributor by 11.7% and contributed positively to the growth at 1.98%, followed by the personal and social services sector by 10%, while the water and electricity sector contribution to GDP was 9.5%. It was followed by the wholesale and retail trade, restaurants and hotels by 7.2%, then the finance, insurance, business owners and real estate sector, which increased by 5.9% and contributed 1.18% to the growth. GDP growth rate stood at 5.7% last year. (JT08.07)
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5.2 Jordan to Become Energy Exporting Country by 2030
Jordan's peaceful nuclear program will enable the Kingdom to become an energy exporting country by 2030, said top nuclear official. Chairman of Jordan Nuclear Commission Touqan said on 5 July that the program is a strategic option for the Kingdom and will meet the local market's needs of economic, safe and stable energy, away from the instability in the Middle East. Speaking at a meeting organized by US Chamber of Trade in Jordan, Touqan said the country will start generating financial revenues from the project within four years, through extracting uranium from phosphates. Jordan's uranium reserves are estimated at 140,000 tons and there were current contacts with US, Chinese, French and Canadian companies about setting up a nuclear plant and starting commercial production. Rising oil prices pose a great challenge for Jordan. The huge uranium reserves make it a feasible alternative to generate energy. Other challenges facing Jordan include the increasing demand for energy and the shortage of local energy resources; it imports 95 per cent of its energy needs and spends a quarter of its gross domestic product (GDP) to purchase energy. (Petra05.07)
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5.3 Jordan & US Bolster Customs Cooperation To Fight Terrorism
Jordan Customs and US Customs signed an agreement on 1 July to cooperate in fighting terrorism. Under to the agreement, the US will train Jordan Customs Department's staff to enhance trade security, facilitate international trade supply chain and increase involvement of public and private sectors in both countries. The agreement was signed by Director of Jordan Customs Department Al Zaben and Commissioner of US Customs and Border Protection Basham, on the sidelines of World Customs Organization meeting in Brussels. Zaben told reporters that the agreement aims to bolster cooperation between the two countries and approve the Jordan Customs' Golden List program and US Customs and Trade Partnership program. Basham, for his part underlined importance of setting up a joint mechanism to guarantee continuity of the two countries' programs to tackle threats of global trade. (Petra01.07)
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5.4 UAE Waives Iraq's $7 Billion Debts
On 6 July, the United Arab Emirates said it was waiving Iraq's debt of nearly $7b and also named an envoy to Baghdad during a visit by Iraq's premier to the oil-rich Gulf state. UAE President Sheikh Khalifa bin Zayed Al-Nahayan told Iraqi Premier Nuri Al-Maliki that the UAE has "decided to write off all debts owed by Iraq totaling $4 billion... plus accrued interest.” The debt and interest amounted to just under $7b. Washington has been pushing its Arab allies to send ambassadors to Baghdad and ease Iraqi debt to help anchor volatile post-Saddam Hussein Iraq in the Arab world. The appointment came a month after UAE Foreign Minister Sheikh Abdullah bin Zayed Al-Nahayan became the first high-ranking official from an Arab state in the Gulf to visit Iraq since the 2003 US-led liberation and said Abu Dhabi would soon name an ambassador to Baghdad. The announcement came shortly after Al-Maliki arrived on a two-day visit. The Sunni-ruled Arab monarchies of the region had been reluctant to upgrade ties with Iraq, not just for security reasons but also because of its Shiite-led government's perceived tilt toward non-Arab Shiite Iran. A US official said recently that Arab states had been encouraged by the crackdown on Shiite militias by Al-Maliki, himself a Shiite, and motivated by a need to check Iranian-backed power plays in Lebanon. Before the UAE announced the debt write off, the US State Department had said Iraq's debt has been reduced by $66.5b over the past three years, including a total of $42.3 billion cancelled by Paris Club members. (Various07.07)
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5.5 Kuwaiti Earns $350m Reducing Software Piracy
The Kuwaiti economy is looking at potentially adding $350m to its national economy by reducing its software piracy rate, as recent IDC studies revealed that a minimum 10% drop in the country's current piracy activity can rake in significant earnings from its booming IT market. The research showed that curbing illegal software acquisition could result in an additional $219m in local revenues and $1m in taxes. In line with this, the Kuwait Ministry of Commerce and Industry has signed a memorandum of understanding (MOU) with the Business Software Alliance (BSA), the international association that promotes a safe and legal digital world. As a founding member of BSA, Autodesk, the world leader in 2D and 3D design software for the manufacturing, building, and media and entertainment markets, has expressed its support to the extensive anti-piracy campaign, which the organization is set to launch in the GCC state within the coming months. Autodesk's contribution to the anti-software piracy movement in Kuwait is prompted by the alarmingly high piracy rate in the country, which is estimated at 62%. The company shares the goal of BSA to cut back and eventually extinguish the losses incurred from software piracy in the ME region. (Al Bawaba22.06)
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5.6 Qatar Raises 2007 GDP Forecast to $71 Billion
On 30 June, the Qatar Statistics Authority Qatar revised upward its gross domestic product (GDP) for 2007 to an estimated $71.08b, $56.82b in 2006. The latest GDP estimate will be subject to revision based on new census data, the authority said in a statement. The authority will conduct a new census on GDP estimates and the economic structure for the period 2005-2007, the results of which will be released by the end of this year, it added. The economy of Qatar, the world's largest producer of natural gas, could grow 15.5% at current prices this year, it said in March. (Reuters)
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5.7 Algeria Plans Law For Nuclear Power This Year
Algeria's government will send a bill to parliament this year to regulate nuclear power generation, as the North African country aims to build a nuclear plant in 10 years, s announced by Energy Minister Khelil at the World Petroleum Congress today in Madrid. Algeria, Africa's largest natural gas producer, will also seek to develop renewable sources of energy. The country has the potential to generate 170,000 terawatt hour of electricity from solar energy and 35,000 terawatt hour from wind energy, he said. Algeria has already found enough uranium deposits to fuel two nuclear power stations for 60 years, Khelil said in November. Algeria, a mostly desert nation that is Africa's largest by area behind Sudan, would also use nuclear power for water desalination, he said. Algeria's petroleum reserves are expected to last at least 40 years at current production rate. (Bloomberg01.07)
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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS
6.1 Turkey's Strong Growth Attributable to Agriculture, Manufacturing, Trade & Transport
Turkey's GDP growth came in stronger than expected with 6.6% in Q1/08. Growth in agriculture sector was 5.6% in Q1/08 versus a negative 6.9% in the same period of last year due to negative effects of drought. Growth in manufacturing sector was 7% in Q1/08 compared to 10.2% in Q1/07, and its contribution to growth stood at 1.8%. Similarly, mining sector maintained its pace with 8.4% in Q1/08 (Q1/07: 9.3%). Growth in construction sector was weak with 2.8% in the first quarter versus 8.4% in the same period of last year. Real estate, renting and business activities sector was among the few contracting sectors with a negative 0.5% growth. Growth in wholesale and retail sector was stronger this year with 9.9% (Q1/07: 6.3%) and they were the second largest contributor to growth with 1.4%. Financial intermediation sector grew by 8.9% with a 0.9% contribution to growth, and transportation sector grew by 7.7% with 1.2% contribution. (BGC01.07)
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6.2 Turkey's Inflation Unexpectedly Slowed to 10.6% in June
Turkish inflation has unexpectedly slowed for the first time in five months in June, easing pressure on the Central Bank to raise interest rates. Inflation fell to 10.6% from 10.7% the month before, Turkish Statistical Institute in Ankara announced. The Central Bank said two weeks ago that rising energy and food prices would drive the inflation rate higher in the next few months. The bank increased its benchmark rate in May and June and said on June 26 it was prepared to raise borrowing costs further to slow inflation. The rate is 16.25%, higher than any country in Europe. (Various04.07)
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6.3 Cyprus EU Harmonized Inflation Hits 5.2%
Cyprus's EU-harmonized inflation of consumer prices (HICP) lurched to a five-year high of 5.2% in June, its highest level since April 2003 on the back of rampaging food and fuel costs. The tracker was running at 4.6% year-on-year in May, which was just shy of a 2008 high of 4.7% in February. In June of 2007 harmonized inflation was running at 1.9% year-on-year. At 5.2%, June HICP data was considerably higher than the average in the 15-member eurozone of 4%. But the Cyprus HICP reading underperformed national consumer inflation, which climbed to a five-year record of 5.47% last month. The Finance Ministry and central bank expect inflation to moderate over the course of the year. The latest Finance Ministry projections put inflation at between 4 and 4.5% for the whole of 2008. (Kathimerini05.07)
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7: GENERAL NEWS AND INTEREST
*ISRAEL:
7.1 Israel Marks 17th of Tammuz & Begins the “Three Weeks” Mourning Period
On Sunday, 20 July, Israel and world Jewry will mark the sunrise to sunset fast of the 17th of Tammuz. That day is a particularly difficult date in Jewish history. In the First Temple Era, the priests in stopped offering the daily sacrifice on this day due to the shortage of sheep during the Babylonian siege. The next year (586 BCE), the walls of Jerusalem were breached after many months of siege by Nebuchadnezzar and his Babylonian forces. On the same day during the Jewish Great Revolt against Roman rule in 70 CE, Titus also breached the walls of Jerusalem. From that day for the following three weeks, a semi-mourning period is observed in commemoration of the destruction of the Holy Temple in Jerusalem and other calamities that befell the Jewish people. The “Three Weeks” end on the 24 hour fast day observed on the 9th of Av (9/10 August). During the Three Weeks, various aspects of mourning are observed. Observant Jews minimize joy and celebration. For example, no weddings are held, one refrains from listening to music, public celebrations are avoided, especially those which involve singing, dancing and live musical accompaniment.
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7.2 Israel Facing Worst Water Crisis in 80 Years
Israel Water Authority Director Uri Shani announced on 7 July that Israel's water supply faces "the worst crisis in 80 years, since they started keeping records." Major sources of drinking water in Israel, including Lake Kinneret (the Sea of Galilee) and the mountain aquifer are all below their red lines, Shani said at a special press conference in Tel Aviv. The coastal aquifer has fallen below the black line, indicating it could suffer rapid and possibly irreversible damage. Shani predicted that the Kinneret itself could fall below its black line by December 2008. The Kinneret's red line - below which it is not recommended to draw water from the northern lake - is at 213 meters below sea level. The red line is merely a recommendation. The government definitely tries to make sure not to reach that level, but it really has no choice but to continue drawing water even beyond the 213 mark. However, in the past few years, the government has designated a black line, at 215 meters below sea level and that is something that cannot be breached. To ameliorate the crisis, the Israel Water Authority has authorized the following emergency measures: water will be pumped from the sources of the Kinneret (water which should have reached the Kinneret in 2010); desalination plants will increase output; and polluted wells will be purified. Water use for gardening will also be limited. The price of water is expected to nearly double. (IsraelNN08.07)
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7.3 Lake Kinneret Approaching the 'Red Line'
The water level in Lake Kinneret is only 18 centimeters (seven inches) away from the "red line", the mark at which water quality is jeopardized and at which Israel declares an official water shortage. The water level will pass beneath the red line in only weeks if the lake continues to decline according to normal rates of depletion. At present, the water level is slightly more than two meters (80 inches) away from the "black line", the mark at which pumps will be above water and unable to function. If the winter rains arrive on time, the Kinneret will not reach that point – but this year, it will be dangerous close, due to the current conditions, which resulted from last year's sparse rainfall. Water management experts have said it will take at least two or three consecutive winters of higher-than-average rainfall to overcome the deficit in the Kinneret and in underground aquifers. The Ministry of Environmental Protection has produced a tip sheet on its website that lists water conservation methods to be used by members of the Israeli public. The list includes water-saving measures to be implemented at home as well as at work and on the municipal level. (INN27.06)
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*REGIONAL:
7.4 US Provides $450m Extra Economic & Military Assistance to Jordan
US President George W. Bush signed a bill on June 30 granting Jordan $450m extra economic and military assistance for 2008 and 2009. Jordan will receive an extra $200m in economic assistance and $50m in military assistance for 2008. The bill also includes an additional $100m in economic assistance and $100m in military assistance for 2009. At a joint press conference with US ambassador to Jordan Hale, Jordanian Minister of Planning & International Cooperation Al-Ali expressed Jordan's gratitude to the United States for its support and hoped that this relationship would continue to grow to meet the interests of both countries in the future. Al-Ali said that with this additional assistance, the total US economic assistance program to Jordan will reach $561.4m for 2008. Ambassador Hale said this additional assistance from the American people would support Jordan's efforts to advance its economic and social development goals, and support its security needs. He added that the additional assistance “demonstrates the commitment of the American people to the US-Jordanian relationship, which celebrates its 60th anniversary at the end of this year.” (Petra01.07)
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7.5 New Qatar Cabinet Names Woman
On 1 July, Qatar's ruler reshaped the cabinet to name a woman as top health official and create an environment ministry in the gas-exporting nation but kept key positions including energy, foreign affairs and finance unchanged. Emir Sheikh Hamad bin Khalifa Al-Thani expanded the cabinet headed by Sheikh Hamad bin Jassim Al-Thani to include 20 ministers compared with 14 in the previous government. The reshuffle introduced seven new portfolios, replaced one minister and changed the portfolio of another. One of the newcomers is a woman, a member of the ruling family, who was appointed as health minister. Her appointment increases the number of women ministers to two. Energy Minister Abdullah Al-Attiyah kept his position at the helm of the OPEC exporter's large oil and gas industry. Qatar, which relies heavily on energy revenue, is the largest exporter of liquefied natural gas. Youssef Kamal kept the portfolios of finance and economy in the Gulf nation struggling with near record inflation, but the commerce ministry which he oversaw in the previous cabinet was given to a member of the ruling family. The new ministries introduced in the decree include a ministry for environment, another for culture and a third for international cooperation. Qatar, which hosts hundreds of thousands of guest workers, said its population had almost doubled since 2004 to more than 1.4 million. Qatar, like fellow Gulf Arab nations, relies heavily on foreign laborers to power a construction boom and energy industry expansions. The economy of Qatar, like in other Gulf oil exporting nations, is booming on an almost seven-fold increase in crude oil prices since 2002. In April Qatar produced 830,000 barrels per day in April according to a Reuters survey. (Reuters02.07)
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7.6 Saudi - Qatar Border Deal Signifies Thawing Of Tensions
Saudi Arabia and Qatar have agreed to fix their borders in a deal that could unlock gas projects. The countries are to demarcate their border and set up a joint council to develop relations after years of tension. The decision was taken after two recent visits to Jeddah by Qatari Prime Minister and Foreign Minister Sheikh Hamad bin Jassem bin Jabr Al-Thani. The move is a further step towards normalizing relations between the two members of the six-nation Gulf Cooperation Council (GCC). In 1992 differences over the frontier sparked an armed clash at a border post that killed two people. The incident prompted the creation of a joint committee aimed at solving the dispute, but little progress was made. Ten years later Riyadh withdrew its ambassador from Qatar in 2002 amid fury at criticism of the Saudi royal family aired in a talk show by the Doha-based television channel Al-Jazeera. In March, gas-rich Qatar and oil powerhouse Saudi Arabia sealed a thaw in ties when Saudi crown prince Sultan bin Abdul Aziz visited Doha. Although Saudi King Abdullah had attended a Gulf regional summit in Doha in December last year, Sultan's trip was the first by a Saudi leader since 2002. The move to fix their borders, including sea border, could affect gas pipeline projects in the Gulf region.
In 2006 Saudi Arabia was reported to have raised objections to a $3.5b gas pipeline project led by the UAE's Dolphin Energy to supply Qatari gas to the UAE, sending letters to minority partners France's Total and US Occidental questioning the pipeline's route. In 2005 Saudi media said Riyadh had protested to Qatar and the UAE over plans to build a bridge linking their two states, saying it would pass through Saudi territorial waters. A gas pipeline project between Kuwait and Qatar had already been scrapped over Saudi objections. (Various06.07)
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7.7 Saudi Man & Woman Face Flogging For Research
A Saudi appeals court is due to soon review the case of a biochemist and his female student sentenced to jail and flogging after a lower court ruled their research contact was a front for a telephone affair. The man was sentenced to eight months in prison and 600 lashes and his student to four months in prison and 350 lashes last November for establishing a phone relationship that led her to divorce her husband. London-based Amnesty International says it will consider the two as prisoners of conscience if the verdicts are carried out. Rights groups and some Saudi reformers have criticized what they say is an arbitrary justice system unsuited to the needs of a country of 25 million people. Judges who are religious scholars apply the rulings of an austere version of Shari'a, Islamic law, often termed Wahhabism. The Saudi government says the system ensures justice for Muslims and non-Muslims. The hospital where the man worked in Al-Baha in the southwest of the kingdom put him in charge of the masters research the student was doing at the King Abdul-Aziz University in Jeddah in 2002. The woman obtained a divorce seven months after she was married in 2004. Her husband then raised the court case, saying the supervisor's phone calls led to the break-up. The supervisor, who asked to be identified only as Khalid, 32, told newswire Reuters that over 12 months of trial he and the woman were refused permission to use lawyers or bring witnesses to testify. The woman was represented in court by her father because Wahhabi rules require a male legal guardian. (Reuters06.07)
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8: ISRAEL LIFE SCIENCE NEWS
8.1 Medical Ventures Becomes Neovasc with Two Israeli Acquisitions
Vancouver, British Columbia's Neovasc Inc., formerly Medical Ventures Corp., a company developing and marketing innovative specialty vascular devices, announced its name change and the expansion of its product portfolio, as the company completed the acquisition of two vascular product development companies and the closing of an $8.3m private financing. With the closing of the acquisitions of Neovasc Medical Ltd. and B-Balloon Ltd., both pre-commercial stage medical device companies based in Israel, Neovasc has significantly expanded its new product pipeline. This pipeline includes a specialized stent for the treatment of refractory angina, a disabling condition with no effective therapies that affects two million patients in the U.S. alone, as well as devices designed to improve the treatment of commonly occurring ostial lesions in the coronary and peripheral arteries. (Neovasc 02.07)
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8.2 Applisonix Breakthrough in Ultrasound Technology for Hair Removal
Rehovot, Israel's Applisonix (http://www.applisonix.com) announced that the test conducted using its hair removal prototype achieved, following an initial treatment, average hair reduction of 38%, which positions its efficacy within the top professional long-term hair removal solutions. The test results indicate that the technology developed by Applisonix can be safely and effectively implemented for men and women. Compared to commercially available long-term hair removal solutions, Applisonix' solutions are planned to be safer, less painful, more affordable, and applicable to all hair and skin tones. The company intends to launch its first device, Selectif, in Q1/09, as planned. Applisonix conducted tests on men and women for a period of several months. (Applisonix01.07)
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8.3 PainReform Licenses a Novel Sustained Release Formulation of Ropivacaine from Encore Therapeutics
PainReform and Carlsbad, California's Encore Therapeutics announced that the two companies have entered into a licensing and development agreement related to Encore Therapeutics' ETI-211 product for the treatment of post surgical pain. The product, which is administered subdermally using Encore Therapeutics proprietary Phospholipid Gel technology, is currently in pre clinical testing. Under the terms of the agreement, PainReform will obtain exclusive North American rights to ETI-211 and will also obtain an option to expand the agreement to other countries including Japan and the EU. Encore Therapeutics will receive an undisclosed upfront payment, and will also receive development and sales milestones, as well as royalties on sales. PainReform will be responsible for further development activities. ETI 211 utilizes Encore Therapeutics proprietary PG technology to provide a sub-dermal depot for Ropivacaine, a long acting local anesthetic that is currently approved for human use. Tel Aviv, Israel's PainReform (http://www.painreform.com) is a specialty pharmaceutical company dedicated to pain management. PainReform licenses and develops products that are differentiated on innovative delivery systems and offer clinically meaningful benefits to physicians and patients. (PainReform 02.07)
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8.4 FDA Approves EVOLENCE, a New Generation Collagen-Based Facial Filler
The FDA announced the approval of EVOLENCE for the correction of moderate to deep facial wrinkles and folds, such as nasolabial folds. EVOLENCE is a new advanced collagen-based structural dermal filler, and a first of its kind product. The introduction of EVOLENCE marks the first dermal filler entry for the Aesthetics Group of OrthoNeutrogena. While new to the United States, EVOLENCE has been available in other markets such as in Canada, Western and Eastern Europe, Israel, South Korea and Russia since 2004. EVOLENCE will be introduced throughout the second half of 2008, in coordination with physician training, to ensure optimal patient satisfaction and outcomes. EVOLENCE represents a breakthrough in aesthetics. As one of nature's most fundamental and abundant building blocks, collagen comprises up to 80% of the dermis and it helps maintain skin strength, structure and support. Collagen naturally breaks down as a person ages, leading to the appearance of wrinkles, lines and folds. EVOLENCE, and its proprietary GLYMATRIX Technology, uses naturally sourced collagen to replace the body's lost collagen, adding volume and structural support in depleted areas, for a more naturally youthful appearance. In addition, no pre-test is needed, and GLYMATRIX Technology delivers longer-lasting durability than previous collagen dermal fillers.
EVOLENCE was developed by Herzliya, Israel's ColBar LifeScience (http://www.colbar.com), a biotechnology company specializing in reconstructive medicine and tissue engineering. The company has perfected a technique in which collagen, a main building block of living organisms, can be purified and transformed so as to create a variety of products that are structurally stable and safe for medical applications. (EVOLENCE30.06)
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8.5 Dental Laser Start-Up Dentaray Raises Seed Funding
Dental technology start-up Dentaray has raised $600,000 in seed funding from Targetech Innovation Center of Netanya, Israel. Dentaray, which joins the Targetech incubator, will focus on the development of CO2 laser technology and a laser device for dental treatments. Dentaray says its laser device will be cheaper than existing products as well as more effective. It will be able, in most cases, to treat patients with no need for anesthetization and could be used in preparation for teeth implants where there is a need to work in both soft tissue and hard tissue environments, a procedure that cannot be performed with existing laser technologies. (Globes 01.07)
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8.6 BSP Integrating HyperQ Stress System Into Leading U.S. Hospitals & Academic Centers
BSP (Biological Signal Processing) announced the incorporation of their HyperQ Stress System into leading hospitals and academic centers for cardiac care across the U.S. The HyperQ Stress System is cutting-edge technology implemented in an innovative stress test system, offering highly reliable, accurate and cost effective testing for IHD patients. The system is based on proprietary signal analysis of the high frequency components of the QRS complex in the ECG. Pilot studies will be designed to test the accuracy of the HyperQ system in the general US population for cardiac patients and in certain subgroups such as women, African-American, and diabetic patients. Tel Aviv, Israel's BSP (http://www.bsp.co.il) is dedicated to providing novel, risk free and highly reliable solutions for the diagnosis and monitoring of ischemic heart disease. More than 5000 patients in Israel, Europe and the U.S. have been examined by the HyperQ Stress System in controlled clinical studies, pilot programs and routine operation. The system has received FDA clearance (510K) and CE marking. (BSP09.07)
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9: ISRAEL PRODUCT & TECHNOLOGY NEWS
9.1 Deutsche Telekom (ICSS) & VocalTec Solution for International VoIP Interconnection
VocalTec Communications and International Carrier Sales & Solutions (ICSS), the wholesale arm of Deutsche Telekom launched an innovative solution for global VoIP Interconnection. After successfully completing test and evaluation procedures in a live network environment, the Essentra EX solution was accepted by Deutsche Telekom ICSS and is commercially available to enable IP interconnection of Deutsche Telekom's international VoIP network to other VoIP networks/affiliates. With this innovation, Deutsche Telekom ICSS can market reliable international VoIP interconnection services to its customers. Wholesale providers and Internet Service Providers (ISPs) can now utilize the Deutsche Telekom international network to carry their VoIP traffic and benefit from assured QoS, security and optimal routing plan management. This solution is part of the global network for voice minutes termination. Installed with numerous tier-1 service providers worldwide, Essentra EX offers a cost-effective solution for the interconnection of disparate VoIP networks. With full support for SIP-to-H.323 interworking, Essentra EX is a highly interoperable solution allowing service providers to quickly and efficiently meet their business objectives of customer acquisition, reducing OpEx and rapid Return-on-Investment; while ensuring quality-of-service, reliability and security. Herzliya, Israel's VocalTec Communications (http://www.vocaltec.com) is a global provider of carrier-class multimedia and voice-over-IP solutions for communication service providers. A pioneer in VoIP technology since 1994, VocalTec provides proven trunking, peering and residential/enterprise VoIP application solutions that enable flexible deployment of next-generation networks (NGNs). (VocalTec01.07)
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9.2 EZchip Technologies Delivers Samples of the NP-3 Network Processor to Customers
EZchip Technologies has begun shipping samples of its NP-3, 30-Gigabit network processor, to customers. The NP-3 is a scale-up of EZchip's highly successful NP-2 network processor, to provide higher performance and an enhanced feature set for Carrier Ethernet applications. The NP-3 is manufactured in a 90 nanometer silicon process and is pin and software compatible with the NP-2 offering customers an easy migration path to benefit from its enhancements. NP-3 is available in lead and lead-free (Pb-free) packages (RoHS compliant), and commercial and industrial temperature grades. EZchip's NP-3 provides 30-Gigabit throughput and features three 10-Gigabit ports, integrated hierarchical traffic management and dedicated hardware for Ethernet and MPLS OAM processing offload. Similar to EZchip's NP-2 network processor, in production, the NP-3 is also targeting mainly Carrier Ethernet Switches and Routers (CESR) applications. Since the NP-3 is manufactured in a 90 nanometer silicon process it offers a significant performance increase. Architecture and algorithmic enhancements further boost the NP-3 performance to provide large processing headroom and a total throughput of 30-Gigabits per second. Yokneam, Israel's EZchip Technologies (http://www.ezchip.com) is a fabless semiconductor company that provides Ethernet network processors. EZchip provides its customers with solutions that scale from 1-Gigabit to 100-Gigabit per second with a common architecture and software across all products. EZchip's network processors provide the flexibility and integration that enable triple-play data, voice and video services in access, metro and edge systems that make up the new Carrier Ethernet networks. (EZchip01.07)
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9.3 CompactSafe System Certified as an Explosive Detection System at International Border Crossings
TraceGuard Technologies announced that the Israeli Security Agency (ISA) has completed extensive testing of the CompactSafe system and has certified it to replace manual processes of explosive detection at international border crossings. CompactSafe inspects complex items at passenger and baggage screening checkpoints, and works in conjunction with security equipment currently in use to improve accuracy and efficiency in detecting explosives. The system is specifically designed to extract traces of explosives from items such as laptops, electronic devices, shoes and similar size items that are carried in carry-on luggage, and can also be adapted to improve detection for narcotics and other hazardous materials. Automating inspection processes is a key goal of security and regulatory agencies. The automatic CompactSafe system improves the quality of the inspection process, while providing better service to the public and reduces overall operating costs. The CompactSafe system has already been field tested at Ben Gurion Airport with the cooperation and participation of the Israel Airport Authority, as well as at the Western Wall in Jerusalem, with the cooperation of the Israeli police force.
TraceGuard Technologies develops innovative security technologies and solutions for enabling explosives detection through automated trace extraction. By advancing the efficacy and efficiency of trace collection, TraceGuard's product suite offers dramatic improvement in explosives detection capabilities for aviation and homeland security authorities worldwide. TraceGuard (http://www.traceguard.com) maintains a Research and Development Center in Tel Aviv, Israel and has a Sales office in New York. (TraceGuard01.07)
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9.4 Voltaire Announces Support for IBM iDataPlex System
Voltaire announced that its Grid Director 20 Gigabits/second (Gbps) switching products have been added to the IBM Cluster1350 solution portfolio, which includes support of iDataPlex, following the completion of a rigorous testing and certification process. IBM iDataPlex is new category of server that dramatically increases compute density while significantly decreasing energy consumption and associated data center costs for Internet-scale computing. Voltaire Grid Director switches provide high-performance InfiniBand connectivity and microsecond latencies to enable high-performance applications to run on distributed server, network and storage resources. Some applications gain up to a 300% performance improvement using Voltaire switches as the cluster interconnect instead of Ethernet. Moreover, the switches' power-efficient design offers lower power and cooling requirements as compared to 1 and 10 Gigabit Ethernet offerings.
Herzliya, Israel's Voltaire (http://www.voltaire.com) designs and develops server and storage switching and software solutions that enable high-performance grid computing within the data center. Voltaire refers to its server and storage switching and software solutions as the Voltaire Grid Backbone. Voltaire's products leverage InfiniBand technology and include director-class switches, multi-service switches, fixed-port configuration switches, Ethernet and Fibre Channel routers and standards-based driver and management software. Voltaire's solutions have been sold to a wide range of end customers including governmental, research and educational organizations, as well as enterprises in the manufacturing, oil and gas, entertainment, life sciences and financial services industries. (Voltaire27.06)
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9.5 Software602 Licenses Commtouch Real-Time Anti-Spam for Groupware Server
Jacksonville, Florida's Software602 and Commtouch signed an OEM licensing agreement to integrate Commtouch's Anti-Spam service into Software602's Groupware Server. Software602 Groupware Server 6 is an email collaboration suite designed for small businesses and is expected to be released next month. It includes integrated corporate instant messaging, XML RSS feeds, shared documents, calendar, contacts and a centralized email and instant message archive. An additional Internet Security Subscription will be available to provide spam-free email using Commtouch RPD technology. Netanya, Israel's Commtouch (http://www.commtouch.com) is the source of proven messaging and web security technology for scores of security companies and service providers, founded on a unique datacenter-based approach. Commtouch's expertise in building efficient, massive-scale security services has resulted in its patented technology being used to mitigate internet threats for thousands of organizations and hundreds of millions of users in over 100 countries. Commtouch's Data Centers automatically analyze billions of transactions in real-time to identify new spam, malware and zombie outbreaks as they are initiated. (Commtouch30.06)
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9.6 Alvarion Sets Off First Mobile WiMAX Internet Service in the U.S.
TEL AVIV, Israel's Alvarion (http://www.alvarion.com) announced the commercial rollout of Mobile WiMAX Internet service by DBC (DigitalBridge Communications) offered over Alvarion's WiMAX Forum Certified BreezeMAX 2.5 GHz solution. The network is already up and running with broadband internet to businesses and homes across Jackson Hole, Wyoming. As part of a popular resort area drawing thousands of tourists year round, Jackson Hole's businesses, municipal offices and residents require high-speed connectivity. DBC's new network enables wireless connectivity with full coverage for businesses and public offices, enabling employees to stay online via a mobile office in their vehicles and access to services such as video, voice and data communications on the go. New mobile internet service will offer consumers the benefits of anytime anywhere broadband connectivity using WiMAX PC cards in their laptops. Visitors at the resort can also use the service to send real-time pictures and movies while on vacation. Using a certified solution to build the network will allow the introduction of third party devices from the open market into the network. Alvarion is the largest WiMAX pure player, ensuring customers' long term success with fixed and mobile solutions for the full range of frequency bands. Based on its OPEN WiMAX strategy, the company offers superior wireless broadband infrastructure and an all-IP best-of-breed ecosystem in cooperation with its strategic partners. (Alvarion30.06)
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9.7 Chip PC Ships Latest Windows CE 6.0 R2 & RDP 6.0 for High-End Thin Client Offerings
Chip PC Technologies announced it will be shipping the high-end range of its innovative Jack PC and Xtreme PC thin clients with the latest Windows Embedded CE 6.0 R2 including RDP 6.0. Windows Embedded CE 6.0 R2 new operating system components enable devices to connect to Windows Vista and Windows Server 2008 more easily. In addition, the new OS delivers the most updated Remote Desktop Protocol (RDP) 6.0, which unfolds important advantages to users, such as support for Secure Sockets Layer/Transport Layer Security (SSL/TLS), Network Level Authentication, Server Authentication and 32-bit color graphics. Chip PC devices with Windows Embedded CE 6.0 R2 are optimized for manageability, security and straightforward deployment, together with proposing extensive USB peripherals support and RDP 6.0 value-ad of advanced display options (Wide Screen and high resolutions), Pass-through-authentication mechanism and Server Authentication Support. Driving innovation into reality, Chip PC (http://www.chippc.com) develops and manufactures advanced thin computing solutions at the forefront of server-centric and virtualization technologies including centralized management, top security and miniature green-technology desktop devices. Chip PC and its network of value-added partners combine to deliver the most secure, scalable and performance-rich solutions in the thin computing marketplace. Chip PC partners with industry leaders Microsoft, Citrix, VMware, and others to achieve this objective. Chip PC is headquartered in Tirat HaCarmel, Israel. (Chip PC01.07)
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9.8 Tower to Launch Volume Production of QuickLogic's ArcticLink II VX Solution Platforms
California's QuickLogic Corporation, the lowest power programmable solutions leader, and Tower Semiconductor entered into an agreement to manufacture volume production of QuickLogic's next-generation ArcticLink II VX solution platforms, expected to start during Q3/08. These products are manufactured at Tower's advanced Fab2. With low power and high performance, the solution platforms enable fast time-to-market, longer time in market, efficient product development through platform designs, dramatically improved visual experience for mobile internet and streaming video applications, small form factor, energy efficiency and low total cost of ownership. Migdal Ha'Emek's Israel Tower Semiconductor (http://www.towersemi.com) is an independent specialty foundry that delivers customized solutions in a variety of advanced CMOS technologies, including digital CMOS, mixed-signal and RF (radio frequency) CMOS, CMOS image sensors, power management devices, and embedded non-volatile memory solutions. Tower's customer orientation is complemented by its uncompromising attention to quality and service. Its specialized processes and engineering expertise provides highly flexible, customized manufacturing solutions to fulfill the increasing variety of customer needs worldwide. (Tower30.06)
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9.9 EVS Wins Orders from Two Leading European & US Aerospace Manufacturers
Elbit Vision Systems announced that it has a won two orders for multiple ultrasonic inspection systems, totaling $2.2m. Both are initial orders from leading aerospace manufacturers, one of which is based in Europe and the other based in the United States. Both are new customers for EVS. The Company will supply these companies with inspection systems for the mission critical task of checking for structural flaws in aircraft materials and jet-engine parts, prior to assembly. Kadima, Israel's EVS (http://www.evs-sm.com) offers a broad portfolio of automatic State-of-the-Art Visual and Ultrasonic Inspection Systems for both in-line and off-line applications, and quality monitoring systems used to improve product quality, safety, and increase production efficiency. EVS' systems are used by over 600 customers, many of which are leading global companies. (EVS02.07)
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9.10 Elbit Systems Selected by Boeing for the US Navy's T-45 Virtual Mission Training System (VMTS)
Elbit Systems has been selected by Boeing to be the supplier for the US Navy's T-45 Goshawk Virtual Mission Training System (VMTS). The VMTS, a key element in the US Navy's Undergraduate Military Flight Officer (UMFO) training modernization plan, will provide realistic training at a reduced cost in a fighter-like environment and will enable the retirement of the aging T-39 that is currently doing this job. The VMTS system simulates via data link an unclassified, mechanically scanned tactical radar that provides air-to-air and air-to-ground modes as well as simulated weapons and simulated electronic warfare. These functions can be networked between the participant aircraft and the instructor ground station that controls the mission presentation. VMTS allows a T-45 aircraft to simulate the use of radar and weapons against virtual aircraft while in flight as well as cooperate with other real and virtual aircraft.
Haifa, Israel's Elbit Systems (http://www.elbit.co.il) is an international defense electronics company engaged in a wide range of defense-related programs throughout the world. The Company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance ("C4ISR"), unmanned air vehicle (UAV) systems, advanced electro-optics, electro-optic space systems, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and radios. (Elbit Systems02.07)
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9.11 Emoze Pushes the Mobile Limits - Unique New Experience on Mass Market Devices
Simple, stylish and useable, emoze has added swivel-screens, cool theming and animated screen transitions as some of the new benefits offered to mobile users, along with extending its consumer push-mobile solution to over 800 mobile handsets using the newest Java technology. The first in the world to use the not-yet-released Lwuit technology in push communication, it offers users a preferred web-like view of email, calendar contacts and soon social networking applications. Java-users will also benefit from this advance in emoze technology as it is now available to many more mobile handsets (and no longer simply for smartphones.) With even broader handset compatibility, outstanding graphics and flexible layouts, emoze pushes the limits of the user experience, certifying a visually-smooth transition from desktop to mobile. This much anticipated emoze Java-product, will be released next month and available to mass market devices including Samsung, Sony Ericsson, Motorola and the Nokia S40.
Ra'anana, Israel's emoze (http://www.emoze.com) turns mobile phones and mobile devices in to fully functional personal communication devices with a single, simple and free download for the individual user. It delivers real-time, secure synchronization of emails, calendars, contacts and tasks - pushing data and updates to you anytime, anywhere using any mobile service provider network or WiFi and all leading brands of mobile device. Download, registration and use of emoze are all free for the individual user. (emoze02.07)
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9.12 Check Point Provides Protection Against Microsoft Windows Safari Browser Vulnerability
Check Point Software Technologies announced that users of its VPN-1, IPS-1, Connectra and InterSpect products are protected against a potentially dangerous remote code execution vulnerability in Microsoft Windows. Check Point customers who subscribe to Check Point SmartDefense Services – which provide ongoing and real-time updates and configuration advisories for defenses and security policies – received protection for the broader DLL-load Hijacking vulnerability on June 2nd. These customers are protected not only from the Safari instance of DLL-load Hijacking, but from other exploits that may try to utilize a similar vulnerability approach. Check Point's SmartDefense Services maintain the most current preemptive security for the Check Point security infrastructure. To help defenses stay continuously ahead of today's constantly evolving threat landscape, SmartDefense Services provide ongoing and real-time updates and configuration advisories for defenses and security policies. Ramat Gan, Israel's Check Point Software Technologies (http://www.checkpoint.com) is the leader in securing the internet. Check Point offers total security solutions featuring a unified gateway, single endpoint agent and single management architecture, customized to fit customers' dynamic business needs. This combination is unique and is a result of our leadership and innovation in the enterprise firewall, personal firewall/endpoint, data security and VPN markets. (Check Point02.07)
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10: ISRAEL ECONOMIC STATISTICS
10.1 Israel's Electrical Goods Imports Up Sharply
The exchange rates of the shekel against the dollar and euro are have been falling lately, prompting Israelis to buy more electrical goods, mostly televisions, refrigerators, washing machines and dish washers, according to figures released by the Israel Tax Authority on 3 July. With the exception of privately owned cars, motorbikes, scooters and VCRs, there were substantial increases in imports of all other consumer goods. The total value of electrical and goods imports rose 21% to $477m in June, compared with $394m in June 2007. Imports of new technology televisions (plasma and LCD) rose 65% in June to 58,874 units; imports of dish washers rose 77% to 3,093 units; imports of washing machines rose 37% to 24,157 units; imports of clothes dryers rose 21% to 2,800 units; and imports of refrigerators rose 8% in June to 21,000 units. (ITA03.07)
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10.2 Israel's Car Sales Continue to Rise
Israel's automobile sector continues to expand: 19,574 new vehicles were delivered in June, 9% more than in May. In H1/08, 116,313 vehicles were delivered in Israel, 25% more than in H1/07. A total of 94,457 cars were delivered, a 23% increase. Deliveries of off-road vehicles totaled 9,230 units, a 47% increase. June was a strong month despite the cancellation of the start of the new model year, and part of the increase was due to increased buying by car rental companies, in anticipation of record numbers of incoming tourists. In addition, orders from leasing companies remained brisk in June. Mazda continued to be the top brand, with 20,739 deliveries, a 48% increase compared with the corresponding period in 2009. Hyundai was in second place with 13,115 deliveries, an increase of 18%. Toyota was in third place with 12,192 deliveries, an increase of 7.5%. Chevrolet came fourth with 8,569 deliveries, an increase of 65%. Delek Automotive Systems was the top importer, with 26,661 deliveries, an increase of 25%. Delek Automotive is on course for a total of 50,000 deliveries in one year, more than the all-time record of Subaru importer Japan Auto Ltd. in the 1980s. Automobile sector sources expect to see a marked slowdown in deliveries in the fourth quarter, in anticipation of a substantial reduction in prices ahead of January. (Globes 03.07)
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11: In Depth
11.1 LEBANON: Controlling Food Prices
Lebanon's food industry is suffering difficult times, with the price of staples rising, the cost of imported foodstuffs increasing and exporters finding it harder to penetrate overseas markets. The Lebanese government decided to step in and increase state subsidies for flour after the country's bakers briefly raised the price of flat bread by 30%, from $1 to $1.33 on June 26.
On June 27, the ministry of economy and trade announced it would increase flour subsidies from $200 and $220 - depending on grades - to $250 per tonne to reduce the cost for the consumer. "With international flour prices currently around $460 a tonne, the state is meeting around half the cost of the country's daily loaf, with the ministry saying the subsidy would drain off at least $60m from the budget this year."
The government's move defused the threat of protests over rising bread prices, with the country's General Labor Confederation (GLC) calling off a planned demonstration, though the organization warned it would not hesitate to call a general strike if there were further increases in the price of bread.
While the government's decision may have eased tensions and helped keep bread on the table for now at least, Kazem Ibrahim, the president of the Union of Bakeries, warned that price support for flour was just one of the issues faced by his members, with mounting costs of power and fuel also making conditions more difficult. Lebanon is particularly susceptible to food price fluctuations on the international market, as it imports up to 70% of its food requirements.
US Department of Agriculture statistics state that Lebanon imported 300,000 tonnes of wheat in 2007. Although much lower than the 1999 peak of 459,000 tonnes, it still represents a significant expense for both the country and the government through its subsidies. To counter import-dependency, there has been a concerted push to increase local wheat production, with 50,000 ha of land now under cultivation, up from 36,000 a decade ago. However, last year's harvest of 140,000 tonnes met less than a third of the country's requirements, suggesting Lebanon's bread prices will come under more pressure from any further increase in global wheat tariffs.
It is not just the cost of putting bread on the table that is becoming an issue for the Lebanese food industry. Selling the country's agricultural produce abroad and expanding the sector is also becoming harder. According to George Nasrawi, head of the syndicate of Lebanese food industries, exports have been hit by rising health and safety standards. While there was potential for the Lebanon's agriculture sector to expand, the EU in particular should take more responsibility about the standards it sets, Nasrawi told an agribusiness conference in Beirut on June 26. It is costly to implement EU production requirements and in many cases Lebanese food industries cannot afford to meet them, he was reported as saying.
Issues of quality were also raised by Economy and Trade Minister Sami Haddad, who said it was essential to build on the international market for Lebanese agricultural products. To do this, Haddad said, the food industry had to "abide by local and international standards on food safety and quality," adding that his ministry had prepared a draft law on food safety and quality standards, which was adopted by the government and sent to parliament for ratification.
Part of the issue is that, while the EU has lowered tariff barriers on many Lebanese goods, as a result of the EU-Lebanon Association Agreement that was ratified in February 2006, it has also ramped up quality requirements, setting control and monitoring standards that the country's agriculture sector cannot meet, especially on pesticide levels. More upbeat was Ali Berro, an official with the economy and trade ministry's Quality Program, who told the conference that agricultural exports had risen in value to $454m in 2006, representing 16% of the national total, from $181m (or 10%) in 2004. Despite this encouraging increase, Berro said the 2006 figure was still well short of the 28% share of exports enjoyed by the agro-food industry in 1999. It was also well short of the $1.6bn of food imports for 2006, as estimated by the United Nations Food and Agriculture Organization (FAO).
One of the fundamental failings in the agriculture sector is a lack of investment. However, with 75% of Lebanon's farms having just one hectare of land or less, according to the FAO, most of the country's 200,000 farmers are ill-placed to upgrade technology or infrastructure in order to improve output, with 40% of farmland dedicated to subsistence farming only. Although Lebanon has large tracts of fertile land and higher than average rainfall for the region, it remains unable to take full advantage of its agriculture sector. Perhaps the underlying reasons for Lebanon's failure to capitalize on its agricultural potential are a combination of failed export reforms, reliance on imports and state subsidies to supply domestic needs. Without significant change, farmers will struggle to reap a richer harvest. (OBG03.07)
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11.2 PERSIAN GULF: Surplus Wealth in the Economy:
Qatar has caught the headlines in the world financial press, first with its selection of NYSE Euronext to help it to develop its stock exchange, and then with its bid to acquire up to 10% of Barclays Bank. These moves illustrate the vigor with which Qatar and its fellow Gulf Co-operation Council (GCC) member states are pursuing the parallel objectives of creating new financial centers in the region and building up their global assets. With the oil price continuing to set new record highs and the price of gas - Qatar's principal export commodity - following suit, this trend is likely to strengthen.
Accumulation
The aggregate current-account surpluses of the GCC member states are forecast to total some $600bn in 2008 and 2009, according to the Economist Intelligence Unit, based on assumed oil prices of $120/barrel in 2008 and $110/b the following year. Most of the risks to these oil price assumptions are on the upside, which suggests that the GCC external-account surpluses could easily be considerably higher. Even if the combination of extra Saudi oil output and a marked slowdown in global demand were to push oil prices down, the GCC's accounts are still likely to be heavily in the black. In our core forecast, the aggregate current-account surplus is equivalent to more than 30% of GDP.
Strong exports, relatively expansionary fiscal policies and robust private consumption will keep real GDP growth at an average of almost 8%. However, the GCC's economic prospects face a growing threat from the relentless rise in inflation, which is expected to average 11.7% this year, with only a modest reduction next year, on the assumption that that increased housing supply will ease price pressure in the real-estate sector and that a stronger dollar will take some of the sting out of imported inflation. At the same time, government measures aimed to mitigate the effects of inflation - notably increases in wages and subsidies - will create their own inflationary pressures over time.
The drive to develop the regional financial services industry and to increase the stock of overseas assets is part of an overall strategy of diversification. Qatar, which has only recently started to reap the benefits of its massive investment in becoming the world's largest exporter of liquefied natural gas (LNG), is making strenuous efforts to emulate, and even surpass, the United Arab Emirates (UAE), where the Abu Dhabi Investment Authority (ADIA) has been long established as the doyen of sovereign wealth funds and Dubai has set a series of benchmarks in the development of the services sector.
The Qatar Investment Authority (QIA) has been provided with the wherewithal to build up a portfolio of assets that will ultimately generate sufficient income to cover most of the country's current budgetary expenditure. QIA's initial record has been patchy, with persistent reports of friction between its chief executive, Sheikh Hamad bin Jassem al-Thani (the prime minister and foreign minister) and one of its main investment advisers. QIA suffered setbacks in its bids for J Sainsbury, EADS and Thames Water, and some of its investments in the healthcare sector are reported to have run into difficulties owing to the high level of debt involved. QIA has shown a surer touch in the financial sector. After having acquired a small stake in Credit Suisse, the Qatari SWF is poised to become the largest single shareholder in Barclays Bank as a result of its participation in a £4.5bn recapitalization. The Barclays deal looks like a good piece of business for QIA, as the price it will be paying is less than half of that forked out by Singaporean and Chinese investors for stakes that they acquired in the bank last year.
Hub rivalry
The tie-up with NYSE Euronext is just the latest episode in a long-running saga of rivalry between Qatar and Dubai in their efforts to establish themselves as regional hubs for trading in equities and derivatives. Last year Dubai Borse—which holds the Dubai government stakes in the Dubai Financial Market and the Dubai International Financial Exchange (DIFX) - came out ahead in a tussle with QIA for dominant stakes in the London Stock Exchange (LSE) and in the OMX (the Nordic exchange). Although QIA did finally emerge with 20% of the LSE, Dubai secured a valuable partner for the development of its trading platform when the combined NASDAQ OMX group took a one-third stake in DIFX. Qatar has now matched that move by bringing on board NYSE Euronext to perform a similar function on the Doha Securities Market.
The challenge that both exchanges now face is to generate significant trading volumes. The Doha market remains primarily a local affair, and the DIFX, which had aspirations to attract listings from all over the Middle East, Asia and Africa, has had an uphill struggle since its launch in 2005, although trading grew considerably last year, reaching $1.45bn, compared with only $26.3m in 2006. (EIU26.06)
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11.3 BAHRAIN: Pearl of the Gulf
Bahrain is looking to cement its place as one of the world's leading pearl grading centers, while reviving a traditional industry that was once the mainstay of the island kingdom's economy. On June 30, a new state-funded, high tech pearl and gem testing and grading laboratory was opened in Manama, part of a program to keep Bahrain at the forefront of the international pearl assaying industry.
According to Hassan Abdullah Fakhro, Bahrain's minister of commerce and industry, the new lab is among the best in the world and underscores the government's commitment to promote the natural pearl industry. The country's own natural pearl production is relatively small and the primary source of income is expected to come through testing and grading foreign pearls. The lab will also assay gemstones such as diamonds, and is authorized to issue internationally accepted certificates attesting to quality and authenticity.
Bahrain has long been a major international grading centre, with the country's first testing facility established in 1990. Pearls from around the world are sent to the Bahrain lab for testing, to authenticate whether they are natural or artificial and to assess their quality. In the early part of the twentieth century, more than 40% of the Arabian Gulf pearl trade came out of Bahrain. The economic shift away from traditional activities, and the dramatic drop in the number of pearl beds, partly due to overfishing and pollution, are all thought to be causes of the industry's decline since the 1930s.
Nevertheless, on June 28, more than 200 people took part in a cultural event aimed at rekindling interest in pearl diving. Bahrain's second annual pearl diving day, backed by King Hamad bin Isa Al Khalifa, involved a fleet of 10 boats, including six traditional dhows setting set sail from the city of Muharraq, once the centre of Bahrain's pearling industry, to dive for oysters in the Sayah region off the coast. Saleh bin Hindi, the king's adviser for youth and sport affairs, said the event was intended to raise awareness of the pearl diving industry and perhaps even kick-start a renewal of its fortunes. "We have a great treasure in our sea, we should use it and revive this traditional craft, maybe even get a company to extract the oysters from the sea again," bin Hindi told local press.
Such is the sense of pride for the resource that in May, Bahrain lodged a submission with UNESCO (United National Educational, Scientific and Cultural Organization) to have some 38,000 ha of traditional oyster beds declared cultural landscapes.
While the event at Muharraq may have served more as a cultural exposition than an economic showcase for the trade's potential monetary value to investors, the industry itself is big business. According to a report issued at the first international pearl convention held in Abu Dhabi in November, 2007, the global pearl industry is estimated to be worth $3bn by 2010, double its value at the end of 2007. With its state-of-the-art-testing facility, Bahrain has signaled its intent to gain a slice of the lucrative trade.
Bahrain is set to face competition in the lucrative pearl assessing trade, however. In February, the Dubai Multi Commodities Centre announced plans to establish a grading centre of its own, linked z to the Dubai Pearl Exchange (DPE), as part of efforts to develop into as a leading international pearl trader. The DPE launched in April 2007, and currently uses the services of the Bahrain lab for grading. The emirate is already home to the Dubai Gem Certification Services, which was the world's first gem certification service for diamonds, gemstones, pearls and jewelry.
Along with increased competition from regional and international rivals, pearl diving is still far from being an industrialized profession with most divers still amateurs. Yet Bahrain retains its reputation as the pearl of the Gulf. (OBG94.07)
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11.4 BAHRAIN: Net Losses
Bahrain's government has moved to defuse a stormy conflict pitting one of the kingdom's oldest industries against development projects. The kingdom's fishermen are up in arms over what they perceive as a series of threats to their industry, with claims being made that it could cease to exist within five years. Central to the industry's complaints is the damage being done to Bahrain's sensitive marine environment by large-scale land reclamation projects, mainly being undertaken as part of real estate developments.
According to the results of a study carried out by the Bahrain Centre for Studies and Research released in early June, 96% of fishermen surveyed said land reclamation was the main cause of falling catches. Such has been the anger of Bahrain's farmers of the sea that many have taken part in a series of strikes, leaving their boats tied up, to protest against a lack of action by authorities. These protests pushed up the price of fish in the domestic market, more than doubling the costs to consumers for some varieties.
While long since replaced as a mainstay of the island nation's economy, aquaculture represents one of the few primary industry exporters in Bahrain, though its contribution to overseas sales has dipped in recent years on the back of falling catches and increasing local demand. Exports plunged almost 90% between 2004 and 2005, with the sales of shrimp, leading the industry, falling from $11m to just $95,000, according to the United Nations Conference on Trade and Development's International Trade Centre.
The United Nation's Food and Agriculture Organization (FAO) says Bahrain's fishing industry contributes just 0.4% to the country's gross domestic product. However, from a socio-economic viewpoint, the sector is important as it provides the main form of economic activity and employment for numerous coastal villages. The FAO also warned that environmental issues were a major concern for the fishing industry in Bahrain, saying, "Extensive land reclamation, dredging and destruction of reef areas have impacted significantly on fish stocks, in addition to over-exploitation."
It seems the voice of Bahrain's fishermen is being heard. During a meeting with representatives of the Bahrain Fishermen's Society on June 21, Prime Minister Shaikh Khalifa bin Salman Al Khalifa said their complaints would be considered, though a balance had to be struck between progress and traditional lifestyles. "Development and urban projects are vital to spearhead Bahrain's progress," he said. "However, people's decent living conditions are far more important to us," he added. The prime minister said the government would look into providing compensation to fishermen whose earnings had been harmed by reclamation projects.
While Fishermen's Society President Jassim Al Jeran welcomed the premier's promise of action, he said a comprehensive package had to be developed to assist his organization's members. This should include either reducing or writing off loans taken out with the Bahrain Development Bank, and exempting the industry from new national labor laws due to come into effect in July that mandate higher minimum salaries and improved working conditions for staff, which representatives of the sector say will increase the cost of employing foreign workers. "If this land reclamation continues, we won't have any fishing areas for us in five years time," he said.
The Manama Municipal Council also stepped in and halted reclamation work being carried out on the coastal strip in the Seef district. The area has been designated a world heritage site by the United Nations Educational, Scientific and Cultural Organization. "We had to take this decision because reclamation has reached an unacceptable level," Hameed Al Basri, the chairman of the council's services and public utilities committee, told local press on June 13. "It is good that the fishermen have opened our eyes, or else VIPs would have turned this coastal areas into multi-million-dinar projects."
Fishermen have won one concession from the government, with a promise of lower diesel prices. Moreover, state officials have said a study has been carried out on providing compensation to Bahraini fishermen affected by reclamation projects, but that the details of the scheme have to be worked out with the companies carrying out the developments. Till that time, Bahrain's fishing industry will see its net profits dwindle. (OBG27.06)
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11.5 OMAN: Green and Clean
Oman is looking at going green to meet part of its growing demand for electricity, with the options of solar and wind energy being seen as highly suitable to supply the needs for the country's remote and rural regions. Oman has invested heavily in conventional generation capacity to meet the strong increase in demand, driven by rising levels of industrialization, a growing population, as well as the developing tourism industry and commercial sector. It is also considering building a nuclear power station to boost output. However, there is now a push for a greener option to supply the sultanate's electricity requirements.
On June 22, the Authority for Electricity Regulation (AER), the state body charged with overseeing the sector, released the results of a year-long study into the viability of renewable energy generation in Oman. "The government of Oman is looking at all possible energy options, including renewable, to meet the country's economic growth and environmental objectives," John Cunneen, the AER's executive director, told local press on June 23. "We believe renewable energy offers several advantages. Besides the obvious environmental benefits, renewable energy can also contribute to a more diversified fuel base."
Oman was found to be extremely suitable for the development of mass solar energy production, with the report saying the country had some of the highest levels of solar density in the world. According to the report, solar energy has the potential to not only meet the sultanate's own power needs but also offers the opportunity to make Oman a net exporter of electricity.
While Oman's coastal regions are less suitable for large-scale photovoltaic energy projects, due to the lower density of solar density, areas closer to the sea in the south and the mountains north of Salalah have significant wind energy potential. Among the proposals put forward in the report is a wind farm capable of generating up to 750 MW. However, the AER study ruled out the use of bio-gas (energy derived from waste water and agricultural waste), geothermal sources, and wave energy, due to either low levels of materials or lack of natural resources. Importantly, the study said the gap between the costs of renewable energy resources and of fossil fuels was closing, with the comparative value of the raw materials used and the environmental costs also becoming a significant factor in calculations.
A timetable for progressing the development of renewable energy was set out, with the AER set to start work with the Public Authority for Electricity and Water (PAEW) in July to lay out regulations covering competition, licensing and subsidies for new projects. The PAEW will also be in charge of coordinating policy with other government agencies to draft proposals for tax credits and investment incentives to support and encourage renewable energy investments.
The AER will be calling on the Rural Areas Electricity Company (RAEC), which provides power services to non-urban areas in Oman, to identify potential locations for pilot projects based on solar and wind energy, possibly as hybrid systems also utilizing diesel as a back up. "We want to authorize small-scale renewable projects that would provide environmental benefits and potentially reduce the cost of generation," Cunneen said. "We are hopeful that, by the end of 2008 or the first quarter of 2009, we will be in a position to approve the first set of small scale pilot projects that RAEC identifies as being in good locations and that we think will have positive environmental and financial benefits." Cunneen said rural areas had been identified as a priority for renewable energy projects as many currently relied on expensive diesel generators to supply electricity.
A greater emphasis on renewable energy sources could have some high voltage spin offs for the Om | 
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