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TOP STORIES
TABLE OF CONTENTS:
1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS
1.1 Knesset Moves to Wind Down 96 Octane Use
1.2 Jerusalem Budgets $600 Million for Water Shortage
1.3 Knesset Outlaws Unsolicited Spam, SMS, Auto-Callers
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2: ISRAEL MARKET & BUSINESS NEWS
2.1 Tower Semiconductor Implements Cost Reduction Plan
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3: REGIONAL PRIVATE SECTOR NEWS
3.1 MDI Announces $300,000 Product Order from Almana Networks
3.2 Emaar To Build One Of World's Largest Fountains
3.3 E-Monee Commences Payroll Cards in Dubai, UAE
3.4 Saks Incorporated Announces Opening of Saks Fifth Avenue Men's Store in Dubai
3.5 Maui Wowi Hawaiian Continues International Expansion via UAE Master Franchise Signing
3.6 RIT to Set Up Campus in Dubai
3.7 Dunkin' Donuts Opens Biggest Kitchen Complex In Sharjah
3.8 Pratt & Whitney Selected to Power Royal Moroccan Air Force F-16s
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4: ISRAEL MACRO-DEVELOPMENTS
4.1 Israel, Jordan and PA to Jointly Monitor Disease
4.2 Private Homes Will Manufacture Solar Power and Sell Surplus
4.3 Hi-Speed Jerusalem-Tel Aviv Line Imperiled
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5: ARAB STATE & PAKISTANI DEVELOPMENTS
5.1 Jordan Is Willing To Boost Cooperation with Iraq
5.2 Iraqi PM Maliki Asks For Debt Cancellation
5.3 Iraq Oil Revenue To Reach $70 Billion
5.4 GCC to Miss 2010 Single Currency Deadline
5.5 GCC Consumers Face Whopping 100% Tax
5.6 GCC Utility Sector Entering a Critical Phase
5.7 Kuwait Inflation Soars into Double Figures
5.8 Bahrain to Stockpile Food & Building Materials
5.9 Qatar Inflation Charges Toward 15%
5.10 Weather Defeats Doha Olympic Bid
5.11 UAE's 2007 Inflation Surges To Record 14%
5.12 Strict Green Building Laws Announced In Abu Dhabi
5.13 Dubai Among Top 10 Most Expensive Office Rents
5.14 Saudi Arabia's Average Inflation Rate Hits 5.4%
5.15 Yemen to Djibouti Bridge Part of $200 Billion Project
5.16 Egypt Inflation Hits 19-Year High
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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS:
6.1 Turkey's Government Has Decided To Sign The Kyoto Protocol
6.2 Turkey To Privatize Bosporus Bridges
6.3 Turkey Targets Informal Economy
6.4 Broadband Penetration in Greece is the Lowest in the European Union
6.5 Cyprus Set For Double Euro Zone Growth
6.6 Cypriot Energy Chief Calls for Nuclear Debate
6.7 Cyprus - Inflation
6.8 OECD Says Greece's Inflation To Slow But Stay High
6.9 Greek Inflation Soars To 10-Year High
6.10 S&P Confirms Bulgaria Credit Rating
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7: GENERAL NEWS AND INTEREST
*ISRAEL:
7.1 Hoopoe Wins Israel's National Bird Contest
*REGIONAL:
7.2 Turkey's High Court Overturns Headscarf Rule
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8: ISRAEL LIFE SCIENCE NEWS
8.1 BrainStorm NTF Cells Shows Advantage in Pre-Clinical Study for Parkinson's Disease
8.2 Pluristem Demonstrates the Potential of Its PLX Cells to Treat Crohn's Disease & Ulcerative Colitis
8.3 Teva Announces Launch of Generic Wellbutrin XL Tablets, 150 mg
8.4 Ferndale & Foamix Execute License Agreement for Atopic Dermatitis Foam
8.5 Angioslide Closes $8.6 Million Series C Financing
8.6 Endogun Receives CE Mark Approval for Marketing Next-Generation Prolapse
8.7 Kamada Announces Successful Interim Results of Phase II Deposition Study with Aerosolized AAT
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9: ISRAEL PRODUCT & TECHNOLOGY NEWS
9.1 Alvarion Receives Prestigious International Award
9.2 ImageID Among Finalists in 2008 European Supply Chain Distinction Awards
9.3 Wavion Introduces Self-Backhaul Wi-Fi – Optimal Service With No Alignments
9.4 ECI Telecom Expands Hi-FOCuS MSAN Voice Capabilities with SIP Signaling
9.5 ECtel & Amdocs Join Forces to Provide Best-in-Class Fraud Detection and Prevention Solution
9.6 AudioCodes Introduces the Mediant 1000 Multi-Service Business Gateway
9.7 Check Point VPN Secures Remote Access for Apple iPhone
9.8 Connect One Offers Lowest Price Small Form Factor Wireless Module for M2M Applications
9.9 IAI & Gulfstream Aerospace Celebrate Roll-Out of 200th Gulfstream G200 Business Jet
9.10 Rheinmetall Defence & IAI Cooperate In Wide-Area Reconnaissance
9.11 ECI Telecom Expands Hi-FOCuS MSAN Voice Capabilities with SIP Signaling
9.12 Voltaire Announces Availability of Voltaire Messaging Accelerator Software
9.13 Elbit Systems Supplies IAF F-16I Simulator System to the Israeli Ministry of Defense
9.14 ECI Telecom & Ceragon Partner to Deliver Integrated Solution for Wireless Backhaul
9.15 InkSure Wins Large Tax Stamp Order
9.16 PineApp's Mail-SeCure Selected by Geotest to Secure Email and Aggressively Block Spam
9.17 DesignArt Networks Unveils 4G Silicon Platform and Delivers Fully Integrated WiMAX SoC
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10: ISRAEL ECONOMIC STATISTICS
10.1 Unemployment Rate in Israel Falls To 11-Year Low
10.2 Israeli Car Sales Soar
11: In Depth
11.1 MIDDLE EAST: Moody's Reports Middle East Inflation Surge Sharpens Fiscal & Political Risks
11.2 MIDDLE EAST: LNG Burden
11.3 LEBANON: Dividends of Peace
11.4 KUWAIT: Looking to Gas
11.5 IRAQ: Oil Supply Savior for Economy?
11.6 BAHRAIN: Investing Abroad
11.7 QATAR: Growing Pains
11.8 ABU DHABI: Record Trade
11.9 SAUDI ARABIA: Oil's Uncertain Future
11.10 TURKEY: Seeking To Become Energy Transit Hub
11.11 BULGARIA: The Report 2008
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1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS
1.1 Knesset Moves to Wind Down 96 Octane Use
On 2 June, the Knesset Economic Affairs Committee approved the deregulation of 96 Octane fuel as part of the process of reducing its use to zero and taking it off the energy market. The move is designed to encourage motorists to switch to more environmentally friendly fuels such as 95 Octane and 98 Octane. At present, the cars that can run on 96 Octane gasoline only are models produced up to 1993, which were not fitted with converters and have outdated technology with no fuel consumption regulation. Between 2000 to 2007, use of 96 Octane fuel in Israel decreased from 39% to 7%. According to Ministry of Transport figures, there are just 7,000 cars left in Israel that run solely on 96 Octane fuel, 0.5% of all cars on Israel's roads. The Transport Ministry says that motorists using 96 Octane fuel do so, not because of manufacturing specifications, but because of the fuel additives, and the fact that it is almost the same price as 95 Octane fuel. (Globes 03.06)
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1.2 Jerusalem Budgets $600 Million for Water Shortage
Minister of National Infrastructures Ben-Eliezer says that Israel's water troubles are all but solved, now that the government has approved his two-billion shekel program. The government voted to pass the four-step program at its weekly meeting on 1 June. The four elements of the program are as follows:
1. $36.36m for water conservation activities, such as promoting water conservation awareness and a new water price schedule.
2. $277m over the next five years for water recycling
3. Increasing desalinated water to 600 million cubic meters by 2013, and to 750 million cubic meters by 2020. Currently, 138 million cubic meters are desalinated yearly in Ashkelon and environs, and a plant in Hadera is being built that can process another 100 million.
4. The establishment of a government task force staffed by members of the Finance, Infrastructures and Justice Ministries, as well as representatives of the Interior Ministry's planning administration and the Israel Lands Authority.
Following a particularly dry rainy season this past winter - rainfall was only 65% of the yearly average, and under 60% in some places - Israel's largest reservoir, the Kinneret (Sea of Galilee) is left at a dangerous low. It currently stands at 212.47 meters below sea level - 40 centimeters lower than eight weeks ago, and a full 1.3 meters lower than a year ago. If the Kinneret loses just 53 more centimeters of height, it will reach the dangerous red line, beyond which drawing water is not permitted. (INN02.06)
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1.3 Knesset Outlaws Unsolicited Spam, SMS, Auto-Callers
Israeli advertisers who send unwanted solicitations by telephone, text messages (SMS), e-mail (spam) or fax may be fined as much as $60,000, according to a bill the Knesset approved on 28 May. The new law takes effect in six months. In addition to being a nuisance for private e-mail users, spam has become a heavy burden on internet suppliers and other companies, whose bandwidth and storage capabilities need to be constantly expanded to deal with the ever-increasing bulk of spam being sent every day - estimated at more than 100b e-mails worldwide. The bill also refers to mass solicitation by fax. The law also deals with the burgeoning phenomenon of bulk SMS text messages and automatic telephone dialers, perpetrated by promotion companies that obtain large lists of telephone numbers and send out thousands of SMS messages, creating an unwanted distraction. Two basic models have been developed worldwide in attempts to contain these phenomena. One model, common in Europe, is called "opt-in," where telephone owners and e-mail owners cannot be contacted unless they have agreed specifically to receive mass solicitations. The US has adopted an "opt-out" system, where people can be called, provided they have not made a request not to be. According to figures presented in the Knesset deliberations, 74% to 87% of telephone users have opted out of automated calls. Israel's new legislation employs the stricter "opt-in" approach, with the exception that those who purchase an item and send their details to a company can be sent bulk mail if they have not specifically opted out. Another exception included in the bill allows for bulk mailing for political or charity purposes. The new law, once enacted, will allow private citizens to sue for up to $272 without proving any specific damages, or lodge a complaint with the police, who can follow up with a criminal charge leading to much stiffer penalties. (JP29.05)
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2: ISRAEL MARKET & BUSINESS NEWS
2.1 Tower Semiconductor Implements Cost Reduction Plan
Tower Semiconductor commenced the first steps of the recently announced $40m per annum cost reduction plan. Tower continues to place strong focus on cost efficiencies in order to better withstand the continuous decline in the US dollar/NIS exchange rate, foundry wafer price pressures and the overall worldwide economy. Tower additionally, has not yet received government grants relating to its cap-ex investments during 2006 through 2008, which were promised, committed and two years past due. To this end, Tower is filing a petition with the Israeli High Court of Justice targeting an approval certificate from the State of Israel for up to $80m of grants, approximately $40m of which are overdue. Migdal HaEmek, Israel's 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. (Tower Semiconductor28.05)
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3: REGIONAL PRIVATE SECTOR NEWS
3.1 MDI Announces $300,000 Product Order from Almana Networks
San Antonio, Texas' MDI announced that its MDI Security Systems Division (MDI) has received an additional $300,000 product order from international technology solutions integrator Almana Networks (Almana), based in Doha, Qatar. This product order is the seventh purchase announced this month that has been placed toward partial fulfillment of a $5m revenue commitment, made by Almana and announced by MDI on March 31st of this year. Approximately 10% of that commitment has now been fulfilled. Almana's order will be delivered to assist them in completing their network and security infrastructure project for the Barjeel Residential Tower, which is currently under construction and will be completed this year. This 64-floor skyscraper is the second largest structure in the country and is valued at $220m. The tower will house six two-story villas, two super luxury villas and the top two stories will include two world-class restaurants. MDI's Middle East office, located in the Regus Building in Doha, provides Almana Networks and its physical security and low voltage customers with sales support, sales engineering support, system design services, proposal writing, value engineering and security consulting to assist them in achieving this annual revenue commitment, which is expected to continue to generate business from new large construction opportunities in one of the world's richest and fastest growing cities (Doha, Qatar). (MDI 29.05)
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3.2 Emaar To Build One Of World's Largest Fountains
On 9 June, Emaar Properties announced plans to build one of the largest fountains in the world as the center piece of its Downtown Burj Dubai project. The developer said the fountains would be capable of shooting water over 150 meters into the air - the height of a 50-storey building - and stretch over 275 meters - the length of two football fields. The $218m project will be 25% larger than the iconic fountains at the Bellagio hotel in Las Vegas. Emaar said that like the Fountains of Bellagio its fountains would include an integral light and sound show and was expected to become one of Dubai's major tourist attractions, drawing over 10 million visitors per year. The fountains would shoot 22,000 gallons of water in the air at any given moment and feature over 6,600 lights and 50 color projectors. Being able to shoot water over 150 meters will make the fountain on the tallest in the world. However, the tallest water fountain in the world is thought to be the King Fahd's Fountain in Jeddah with a height of around 312 meters. The structure is scheduled to be operational by 2009. Downtown Burj Dubai is a $20b development that includes the Burj Dubai, Burj Dubai Lake, Dubai Mall, 30,000 homes, nine hotels, 6.2 acres of parkland and 19 residential towers. (GN09.06)
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3.3 E-Monee Commences Payroll Cards in Dubai, UAE
Boca Raton, Florida's E-Monee.com, Inc. announced the issuance of the first 11,000 payroll cards in part of the 50,000 payroll cards that are to be issued under a recently executed contract in the UAE. The payroll cards will be issued under a license obtained by E-Monee in the area and will be utilized to service the expatriate payroll program, which has been mandated by the government, which is underway in Dubai, UAE. E-Monee's program will facilitate basic financial instruments for expatriates that will secure payroll, reduce remittance costs and provide convenient access to the card holder's money. The payroll cards will be utilized at our satellite offices located in work force areas where expatriates currently reside while servicing the construction boom in Dubai. The satellite offices will also serve as the point of contact for disbursement, education, training and support of the program. The satellite offices also provide convenient access for card holders' to utilize their payroll cards and access our ATM and POS cash disbursement network.
E-Monee's core product is a hybrid that integrates technology and global telecommunications with banking. The result is a Global Electronic Treasury System which facilitates the instantaneous and affordable collections, movement, disbursement and deposit of funds for individuals and companies located worldwide. Within the dynamic electronic payments arena E-Monee is penetrating untapped niche markets which are in need of replacing cash, checks and antiquated systems. (E-Monee04.06)
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3.4 Saks Incorporated Announces Opening of Saks Fifth Avenue Men's Store in Dubai
Building upon its two other successful ventures in the Middle East, retailer Saks Incorporated announced the opening of a 15,000 square foot Saks Fifth Avenue men's store at The Walk at the Jumeirah Beach Residences in Dubai, United Arab Emirates. The new men's store will complement an existing 80,000 square foot full-line Saks Fifth Avenue store located in the prestigious Bur Juman Centre in the thriving port city of Dubai in the UAE which opened in 2004. Saks Fifth Avenue in Riyadh, Saudi Arabia opened in 2001. The Dubai men's store is congruent with the Saks Fifth Avenue men's departments and separate men's stores in the United States in both product and service, while catering to local tastes and preferences. The unique store includes distinctive offerings from established and emerging American and international designers and presents a sought-after collection of fine designer apparel, shoes and accessories catering to customers with an appetite for advanced fashion as well as those who prefer more classic lines. Saks Fifth Avenue is known for its extraordinary personalized customer service, and the Dubai men's store will offer the Fifth Avenue Club (its complementary trademark personal shopping service), luxurious fitting rooms and a lounge with wireless internet connectivity.
A group of well-established businesses in the Middle East, Al Mana Group, Chalhoub Group, Damas Jewellery and Kapico Group, formed Style Avenue Middle East in 2003. Style Avenue Middle East has exclusive rights to own and operate Saks Fifth Avenue stores in the United Arab Emirates, Qatar, Kuwait and Bahrain under the license agreement with Saks Fifth Avenue. Al Mana Retail W.W.L, a group of diversified companies with interests in automotive, retail, investments and real estate. The Chalhoub Group, which is synonymous with luxury brands throughout the Middle East. This group owns and operates free-standing boutiques including Louis Vuitton, Chanel, Christian Lacroix and Ralph Lauren. They are the largest distributor and retailer of cosmetics and fragrances in the Middle East. Kapico Group, a partnership of the Al Ghannam and Handa families of Kuwait, with interests in automotive, engineering and construction, healthcare, and retail. (Saks04.06)
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3.5 Maui Wowi Hawaiian Continues International Expansion via UAE Master Franchise Signing
Denver, Colorado's Maui Wowi Hawaiian, the premier destination for authentic Hawaiian products on the mainland, announced it has expanded its worldwide corporate “ohana” (family) to the United Arab Emirates (UAE) through the signing of a new master franchise agreement with Dubai Enterprises LLC. The agreement extends the Maui Wowi Hawaiian brand to an exciting new region of the globe and further strengthens the reach of one of the best-known smoothie, coffee and Hawaiian product franchises. Dubai Enterprises, led by Partner and General Manager Yahya Almazrouei, is a diversified real estate development firm ($20m portfolio) that also owns and operates franchises and distributorships in a number of industries. Maui Wowi exhibited at the U.S. Franchise Development Conference which took place in Cairo, Egypt on October 24-25, 2007. The objective of the conference, sponsored by the U.S. Commercial Service and Egypt's International Economic Forum, was to introduce new American franchise concepts to countries in the region. Dubai Enterprises intends to open its own chain of Maui Wowi retail outlets as well as to sell its own sub-franchises to entrepreneurs throughout the UAE. The first locations are anticipated to open on Sheikh Zayad Road in the heart of Dubai's business and hotel district, and in the Emirates Mall. Future locations under consideration include the Dubai Mall and Metro Dubai train stations. (Maui Wowi 05.06)
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3.6 RIT to Set Up Campus in Dubai
Rochester Institute of Technology (RIT – US), one of the world's leading universities, will establish a campus at the Dubai Silicon Oasis under a deal signed on 9 June. Dr Destler, president of RIT, signed the agreement on behalf of the US-based private university of higher education while Sheikh Ahmed bin Saeed Al Maktoum, chairman of Dubai Silicon Oasis Authority, represented DSO. The agreement establishes RIT Dubai as a world-class university with an unwavering commitment to academic excellence. The university will open in August 2008. Dubai Silicon Oasis has allocated around 3 million sq ft of land for the development of a fully fledged Academic Complex comprising the university campus, an academic centre, dormitory, and recreational facilities for students and the faculty. Furthermore, RIT will provide academic content, oversee the management of the university and provide its internationally recognized and certified degrees. The development of RIT Dubai will be undertaken in two phases; the first will offer Masters Degrees at the DSOA Headquarters, while the second will offer Bachelors degrees within the university campus in the Silicon Oasis. (TradeArabia 09.06)
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3.7 Dunkin' Donuts Opens Biggest Kitchen Complex In Sharjah
Dunkin' Donuts has opened the company's largest commercial kitchen and warehouse complex in the Middle East region in Sharjah. The complex, built on an area of 30,000 sq ft, is the company's biggest facility of its kind outside the US. Sharjah's new $5.17m Dunkin Donuts kitchen and warehouse complex will produce the full range of donuts in 50 different varieties and currently has the capacity to produce 50 million donuts per year. Citing a recent customer survey, Dunkin' Donuts stated that nearly half (47%) of its clientele in the UAE comprised UAE nationals and Arab expatriates while Asians accounted for around 23% of its customer base. Today, Dunkin' Donuts is the world's largest coffee and baked goods chain, serving more than three million customers per day. (TradeArabia 05.06)
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3.8 Pratt & Whitney Selected to Power Royal Moroccan Air Force F-16s
East Hartford, Connecticut's Pratt & Whitney F100-PW-229 engine has been selected by the Royal Moroccan Air Force to power their new fleet of F-16 Block 52 aircraft. The engine program, sold through the U.S. Government's Foreign Military Sales program, is valued at approximately $170m and is scheduled for delivery in 2010 and 2011. Pratt & Whitney is a United Technologies Corp. company. The F100-PW-229 engine offers the Royal Moroccan Air Force a lower total cost of ownership and an outstanding record of safety. Incorporating the latest technologies, this propulsion system provides advanced, dependable power for F-16 fighter aircraft around the world. To date, the F100-PW-229 powered aircraft fleet has logged more than 963,000 flight hours in more than 16 years of operational service. The Royal Moroccan Air Force becomes the 22nd international customer to select the F100 engine family. Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines. United Technologies, based in Hartford, Conn., is a diversified company providing high technology products and services to the global aerospace and building industries. (UT09.06)
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4: ISRAEL MACRO-DEVELOPMENTS
4.1 Israel, Jordan and PA to Jointly Monitor Disease
A new system to share medical information and follow infectious disease outbreaks will be used in Israel, Jordan and the Palestinian Authority. The system was developed by IBM Haifa labs. IBM, in collaboration with the Middle East Consortium on Infectious Disease Surveillance (MECIDS), created a unique technology that standardizes the method of sharing health information and automates the analysis of infectious disease outbreaks, in order to help contain diseases and minimize their impact. MECIDS is made up of private health leaders, as well as public and academic institutions, all located in Israel, Jordan and the Palestinian Authority. The secure on-line system, the Public Health Information Affinity Domain (PHIAD), is being deployed in the Middle East first, and the partners are pushing for wider deployment. MECIDS was a partner in the development of PHIAD and will be an early adopter of the technology. PHIAD uses near-real time information to facilitate fast response and enables the secure exchange of data on both national and international levels with appropriate protection of privacy at all levels. This can facilitate an effective response to infectious disease outbreaks even across geographic and political boundaries. (Globes 03.06)
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4.2 Private Homes Will Manufacture Solar Power and Sell Surplus
Starting on 1 July, every Israeli will be able not only to manufacture his own electricity, but to sell what he doesn't need to the Electric Company. The Israel Electric Company (IEC) is hoping to encourage consumers to install solar panels, and is willing to pay them NIS 2.01 per kilowatt of "clean" electricity. This is approximately four times the amount that consumers pay the company for their electricity. Installing the solar panels is expensive, however, and begins at $18,000. Adequate roof space is also required. Experts say that those who are willing to make the investment will be able to make back their money in ten years. Unlike Germany and Spain, Israel's government does not yet subsidize consumer solar panels.
Meanwhile, the IEC is preparing for record demand this summer. Together with the Ministry of National Infrastructures, the company held a country-wide drill last week to prepare for such eventualities and to practice the regulation of kilowatt shortages. When demand exceeds available supply, the general practice is to cut back electricity in random neighborhoods until the situation stabilizes. The exercise left officials confident that the IEC is prepared to deal with the summer demands. Attention is now being turned to educating consumers regarding the need to cut back, and informing them that they might find themselves blacked-out for short periods. The IEC is currently able to produce 11,400 MW, with available capacity at 10,877 MW. Demand is expected to reach 10,300MW, 100MW more than the record set during the cold wave this past January - leaving a reserve of only 5%. (IsraelNN05.06)
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4.3 Hi-Speed Jerusalem-Tel Aviv Line Imperiled
The high-speed Jerusalem-Tel Aviv light rail project is in danger after the construction inside Jerusalem continues to surpass budget and time benchmarks. The Knesset Finance Committee approved the budgeting of an additional $45.5m toward the Jerusalem light rail recently, due to delays in the project. An additional $10m were approved for ongoing work costs. The additional allotment brings the cost of the project to $1b so far. The winner of the tender to construct the light rail, CityPass, will absorb the rest of the $1m cost of the delays. The Jerusalem light rail project is currently running 18 months behind schedule. Government delays in expropriating land, assigning staff from the Antiquities Authority to perform the requisite inspections of earth excavated and general foot-dragging by Jerusalem city engineers have been blamed. (IsraelNN29.05)
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5: ARAB STATE & PAKISTANI DEVELOPMENTS
5.1 Jordan Is Willing To Boost Cooperation with Iraq
On 29 May, Jordanian Foreign Minister Salah Bashir participated in an International Conference on Iraq held in Stockholm to follow up the decisions of the international convention stemming from the Sharm El-Sheikh conference held last year in Egypt. Jordan, Bashir said in his speech in the conference, is keen to strengthen its cooperation with Iraq in balanced relations to achieve common interests for both countries. He added that Jordan also is keen to work with Iraqi government to develop economic, trade and investment ties and cooperate with it to establish joint ventures. The annual audit report, the Minister said, shows that there are many accomplishments had achieved in various fields, valuing the Iraqi government's efforts in this regard. The Minister had met with Iraqi Deputy Prime Minister Saleh and Arab League Secretary General Musa and a number of foreign inserters taking part in the conference and discussed with them an array of issues of common interest. (Petra29.05)
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5.2 Iraqi PM Maliki Asks For Debt Cancellation
On 29 May, Iraq renewed a call to foreign creditors to cancel about $60b in debts and asked that compensation payments imposed after Saddam Hussein's invasion of Kuwait be scrapped. Iraqi Prime Minister Nuri al-Maliki made the call at an international conference convened in Stockholm to assess progress in a five-year plan to rebuild Iraq. About $66.5b of Iraq's $120.2b foreign debt has been forgiven, according to US State Department estimates. More than half of the outstanding debt is owed to Gulf Arab states, mainly Saudi Arabia and Kuwait. Iraq is pushing for an end to the billions of dollars it pays in compensation for Saddam's 1990 invasion of Kuwait. At present it is required to set aside 5% of its oil revenues, which Iraq says will amount to $3.5b this year. Maliki made a similar debt relief call at a conference of Iraq's neighbors in Kuwait in April, with Iraqi officials noting at the time that while many of Iraq's major creditors had cancelled its debts, its Arab neighbors had not followed suit. The Stockholm conference is the first annual review of the International Compact with Iraq agreed in the Egyptian resort of Sharm el-Sheikh last year, which committed Iraq to implement reforms in exchange for greater international support. (Various29.05)
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5.3 Iraq Oil Revenue To Reach $70 Billion
Iraq has raised oil exports to a post-war high, earning billions of dollars to fund reconstruction after Baghdad cracked down on sabotage of its strategic pipelines, oil minister Hussein Al-Shahristani said. The minister expects oil revenue to reach $70 billion this year if crude prices stay high and output flows remain stable. Iraqi oilfields are pumping more than 2.5 million bpd, he said, the highest since the 2003 US-led liberation. Iraq will produce up to 2.9 million bpd by the end of 2008, he said. Shahristani declined to comment on export levels for June, but Iraqi oil officials said last month shipments would run slightly higher because of extra Kirkuk sales from the north. He was optimistic Iraqi forces would keep security tight at oil facilities and raise the confidence of foreign investors discouraged by sectarian violence, al Qaeda and Shiite militants who had a grip on Basra, home to Iraq's biggest oilfields. Iraq, whose primary source of revenue comes from oil, needs huge amounts of investment to rebuild after years of sanctions and war battered the OPEC member's economy. Sky-high oil prices have raised the prospects of a quicker recovery. Strong prices could also improve Iraq's chances of meeting goals set out in a 10-year plan to raise production and exports.
The US military says violence in Iraq is at a four-year low following crackdowns by US and Iraqi forces on Shiite militias in southern Basra and Baghdad and on al Qaeda in the northern city of Mosul, its last major urban stronghold. Starved of access to oil and gas prospects by governments who increasingly favor development by their state oil companies, Western oil companies are eager to invest in Iraq, home to the world's third biggest oil reserves. However, the security situation and an uncertain legal framework have deterred the majors from making significant investment. But Baghdad expects to see activity this summer. Iraq is negotiating six short-term service contracts with international oil companies, each aimed at boosting production by 100,000 bpd. Five of the deals under discussion are with oil majors Royal Dutch Shell, Shell in partnership with BHP Billiton, BP, Exxon Mobil and Chevron in partnership with Total. Iraq is also in talks with a consortium of Anadarko Vitol and Dome for a sixth contract on the Luhais field. (Various03.06)
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5.4 GCC to Miss 2010 Single Currency Deadline
Gulf Arab central bankers agreed to create the nucleus of a joint central bank next year in a major step forward for monetary union but signaled that a new common currency would not be in circulation by an agreed 2010 target. Confronting record-high inflation that threatens to derail the project, central bank governors from the GCC on 9 June laid out a roadmap leading toward common monetary institutions before 2010. The timetable calls for the central bank draft proposal to be approved by finance ministers at a meeting in September and for Gulf rulers to sign a final deal in November. Each Gulf state would have to ratify the deal before the monetary council begins operations. The council would not have monetary policy decision-making power but would eventually be converted into the Gulf central bank. Inflation threatens to ravage the Gulf countries, whose loose monetary policies and windfall profits from record-high oil prices have driven price increases to unprecedented levels and threaten to destabilize their booming economies. Ahead of the meeting, one leading central bank governor warned that skyrocketing prices had led to disagreements about the launch. The currency plan has already been thrown into disarray twice after Oman decided in 2006 not to join and Kuwait severed its dollar peg in May 2007. Inflation has been hitting record or near-record peaks across the world's biggest oil-exporting region, where most states peg their currencies to the ailing US dollar, driving up import costs. (Various10.06)
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5.5 GCC Consumers Face Whopping 100% Tax
Consumers already reeling under record inflation and nervously looking ahead at the introduction of value added tax (VAT) were dealt a further blow 2 June with the news that the GCC plans to introduce a 100% tax on luxury goods. The move would see the cost of items such as private planes, luxury cars, yachts and "harmful items" such as cigarettes go through the roof. The introduction of yet another tax in the GCC is sure to unnerve expatriates in the region, who flock to work in places such as Dubai to take advantage of the tax-free salaries on offer and high living standards. The GCC's head of studies and integration said it had commissioned a team to list items that could be liable to the new tax, which could come into force from 2012. Although a 100% tax on items such as private planes, luxury cars and yachts would only hit the very rich, tens of millions would be impacted if the price of cigarettes were to double. UAE smokers could face a double whammy of taxes as just last week a Health Ministry official said the price of cigarettes could double every two years, part of efforts to slash smoking rates in the Gulf state. If it goes ahead the 100% tax would come on top of VAT, which is being introduced in the UAE early next year and across the rest of the Gulf within the next five years. The GCC has already set 2012 as the deadline for the Gulf-wide implementation of VAT. VAT will be imposed at a single rate of between 3% and 5% on consumer goods and services and will replace customs duties, which are being phased out as the UAE looks to finalize free trade agreements (FTAs) with economic powers including the US and EU. (AB03.06)
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5.6 GCC Utility Sector Entering a Critical Phase
Research and Markets released a comprehensive overview of recent developments in the power and water generation sector and assesses the outlook for the sector up to 2015. The GCC utility sector is entering a critical phase. Four years of strong economic growth has fueled demand growth of about 10% a year for electricity and 8% a year for desalination. A lack of investment in the first half of the decade has meant that reserve power capacity has fallen significantly in all bar Abu Dhabi, raising the prospect of power shortages especially in Kuwait, Dubai and parts of Saudi Arabia. With little prospect of a regional economic slowdown, as a result of oil prices and investment levels remaining high, the GCC is facing an unprecedented capacity building program. An estimated 60,000MW of new capacity, representing 80% of current installed capacity, will be required by 2015, while desalination capacity will have to double to over 5,000 million gallons a day (g/d) to meet the projected demand. The actual capacity requirements will be even greater if planned decommissioning of existing capacity takes place on account of its age. In relative terms, Dubai faces the biggest new-build program, with both power and desalination capacity forecast to triple in size to 16,000MW and 800 million g/d by 2015. In absolute terms, the highest new investment requirements will be in Saudi Arabia, where 15,000MW and about 1,000 million g/d of new capacity will be required. Based on 2007 unit costs, the GCC power sector will require about $50bn of investment in new power generating capacity and $20bn in desalination. However, a tightening engineering, procurement and construction (EPC) market, on account of the high volume of work and the limited pool of major contractors, is likely to see unit costs continuing to rise over the short term. The role of developers will expand further, with 2008 set to be the first year that new capacity contracted from the private sector exceeds that awarded on an EPC basis. (R&M09.06)
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5.7 Kuwait Inflation Soars into Double Figures
Inflation in Kuwait, the only Gulf Arab state without a US dollar peg, rose for a third month in February to a fresh record, hitting an annual 10.14% driven by higher food costs and rents. Inflation is rising across the world's biggest oil-exporting region, reaching 10.5% in April in Saudi Arabia - the biggest Arab economy - the highest since the oil boom of the 1970s. In Kuwait, the All Items Consumer Price Index advanced to 127.1 points in the year to the end of February from 115.4 points. Inflation was 9.5% in January and 7.54% in December. Housing costs - which account for 27% of the index's weighting - rose 16.1%, the same as the month before, the data showed. Food costs gained 9.22% and beverages and tobacco 14.9%. Though it tracks a basket of currencies, Kuwait has barely kept up with the dollar's tumble on global markets because the US currency comprises the largest weighting in its basket. The dinar has risen about 9% against the dollar since Kuwait severed its peg on May 20, 2007, part of a strategy to lower the cost of some imports. Kuwait pays for about a third of its imports in euros. The central bank has been trying to restrain inflation by tightening restrictions on consumer lending, measures which took effect at the end of March. In addition to supply constraints in the property market, Kuwait's money supply, an indicator of future inflation, has been expanding rapidly - growing at an annual rate of 21% in April as more money was saved and private lending rose despite the central bank measures. (Various01.06)
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5.8 Bahrain to Stockpile Food & Building Materials
Bahrain plans to set up an import company to stockpile foods in a bid to ease shortages and dampen rising prices. Bahrain's cabinet also agreed to review fees on the handling of goods, and ordered the construction of a port specializing in importing and storing large stocks of construction materials. Bahrain and other Gulf states blame a global rise in food prices - among other factors - for stoking regional inflation. Building materials are also increasingly in short supply as a boom in construction. Inflation in Bahrain accelerated to 6.2% in April, compared with 5.24% in March, on the rising cost of food, drink and tobacco. (Various02.06)
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5.9 Qatar Inflation Charges Toward 15%
Annual inflation in Gulf oil producer Qatar rose for a third quarter running in March to a near record of 14.75%, the country's state Planning Council said on 2 June, amid a surge in food & commodity prices and rents. The Consumer Price Index reached 166.87 points at March 31, the council said on its website, without giving year-earlier data. The index was at 145.42 points on March 31 last year. Inflation at the end of December was 13.74%. The last time it was higher was on March 31 last year when it was 14.81%. As in other Gulf Arab oil producers, Qatar's economy is booming due to a near seven-fold surge in oil prices in the last six years, while it has to lower interest rates because of its currency peg to the dollar. This is fuelling speculation that the country might drop the link in favor of a basket of currencies. On a quarterly basis, food, beverage and tobacco prices surged the most in Qatar, up 7.81% over December 31. Rents and energy prices rose 4.76 %, and transport and communications 4.33%, spurred mainly by more expensive airline tickets, the council said. (Various03.06)
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5.10 Weather Defeats Doha Olympic Bid
On 5 June, while Chicago, Tokyo, Madrid and Rio de Janeiro were named as candidate cities to host the 2016 Olympic Games, Doha, Qatar was eliminated from the shortlist. Doha, which was rated by the IOC's working group as the third best overall bid, Azerbaijan's Baku and the Czech capital Prague fell at the first hurdle. It was said that weather was the main reason for their loss. Doha planned to stage the Games in October instead of the usual summer months, due to the soaring desert heat. The IOC Executive Board unanimously decided not to grant this exception as it conflicts with the international sporting calendar and would therefore be bad for the athletes and for sports fans. Some members argued the city of about 500,000 was too small to deal with an event of such magnitude despite staging successful Asian Games in 2006. Tokyo, hosts of the 1964 Games, topped the IOC working group's overall technical evaluation with Madrid second. Chicago and Doha tied for third with Rio in fourth place. (Reuters05.06)
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5.11 UAE's 2007 Inflation Surges To Record 14%
Inflation in the United Arab Emirates surged to a record 14% last year, spurred by rent, food and fuel prices, according to statistics from the Abu Dhabi Chamber of Commerce. Higher fuel prices boosted construction costs and helped encourage landlords to raise rents. Inflation in 2006 was 9.5% and less than 4% the year before. Gulf states, most of which peg their currencies to the dollar, are struggling to control inflation, fuelled by a more than six-fold increase in oil prices during the last six years and lower interest rates that have spurred economic growth. – (ADCC29.05)
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5.12 Strict Green Building Laws Announced In Abu Dhabi
Abu Dhabi's Urban Planning Council on 28 May said that all buildings in the emirate will have to adhere to a green standard that will eventually make it "a world leader". The new measures are set to transform the way all buildings in Abu Dhabi, Al Ain and Al Gharbia are designed, the planning council said. Sanctions could be enforced upon developers who fail to comply with the new regulations, which are still in development, and the council would refuse to give planning to permission to any new building plans which do not comply with the green standard. Owners of existing buildings will also have to eventually apply the regulations in order to make them more environmentally-friendly. Abu Dhabi Urban Planning Council general manager Falah Ahabi said laws would be set in place within five years, although work on changing the existing buildings with continue past this year. The Estidama program - named after the Arabic word for sustainability - would make Abu Dhabi into “an ecological emirate”, Ahabi said. The Abu Dhabi Municipality will issue green licenses to developers and inspect all buildings to ensure they reach the required standards. The guidelines are the first significant step towards implementing Plan Abu Dhabi 2030, the long-term vision for the capital. The Abu Dhabi Urban Planning Council is responsible for implementing The 2030 plan which calls for Abu Dhabi to become a sustainable and environmentally-friendly city. The project is seen as a way of replicating the vision provided by Masdar - the world's first environmentally-friendly city outside Abu Dhabi - in the capital. (AB28.05)
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5.13 Dubai Among Top 10 Most Expensive Office Rents
Dubai was ranked number 10 on a list of the world's most expensive office markets in the year to March 31. London's West End has easily retained its position as the most expensive, but Vietnam's Ho Chi Minh City saw the sharpest hike in rental costs, according to research compiled by CB Richard Ellis, the world's largest property services firm. Dubai's annual occupancy cost was $128.49 per sq ft, while Vietnam's Ho Chi Minh City office rents rocketed by 94% to $85.84 per sq ft. That rise is just ahead of Moscow -- the world's second most expensive office market -- where rents soared 93% to $232.37 per sq ft over the period, reflecting increased tenant demand. But at $299.54 per sq ft, rents in London's West End once again eclipsed those in Moscow and other international business hubs. Overall, EMEA (Europe, Middle East and Africa) dominated the list of markets with the fastest growing occupancy costs, accounting for five of the top 10 and 19 of the top 50 markets. Singapore and Dubai were newcomers to the top 10. Singapore ranked ninth, with an occupancy cost of $139.31 per square foot. (Reuters 29.05)
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5.14 Saudi Arabia's Average Inflation Rate Hits 5.4%
The average inflation rate in Saudi Arabia during the 12 months ending March 2008 rose by 5.4% while the average inflation rate during the preceding five years (April 2002 – March 2007) was 1%. Between April 2007- March 2008, inflation rates of goods and services exceeded their levels recorded in the preceding five years, a recent report by the Saudi Arabian Monetary Agency has indicated. Costs for renovation, rent, fuel and water (housing & accessories) rose by (10.7%), food & beverages (8.0%), goods & other services (6.8%), medical care (5.6%), education & entertainment (0.7%) and transport & telecommunications (0.3%). However, fabric, apparel and shoes costs fell by 2.3%. Meanwhile, the general wholesale price index recorded an increase of 9.0% during Q1/08 compared to Q1/07, basically due to a rise in the groups of other commodities by 36.2%, chemicals by 21.5%, animal and vegetable oils and fats by 10.1%, food and live animals by 9.3%, and manufactured goods by 9.1%. (Mena Report 28.05)
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5.15 Yemen to Djibouti Bridge Part of $200 Billion Project
A property firm owned by a Saudi businessman from the bin Laden family plans to spearhead a $200 billion project next year to connect Africa to the Arabian Peninsula with a bridge across the Red Sea, the region's largest infrastructure project by far. Dubai-based Middle East Development, in which Osama bin Laden's half brother Tarek owns a majority stake, will begin work in 2009 on the project to build two cities in Djibouti and Yemen and a 28.5-kilometre bridge. The group will invest at least $10b in the project and seek to raise the remainder from other investors and financial institutions. The bridge, to be the development's centre piece, will carry vehicles, trains, natural gas and water. The bridge aims to provide a safe route between the Arabian Peninsula and the Horn of Africa region as the waterway between them is highly dangerous due to Somali pirates. Somalia has been without an effective central government since the 1991 toppling of a military dictator, allowing anarchy and violence to flourish. Denmark's Cowi, the consultant on the world's longest, planned causeway linking Qatar with Bahrain, is advising on the bridge. The bridge will cost $14b, with construction of the entire scheme completed in phases over seven to 15 years. The project has attracted interest from companies including US firms Bechtel and Hewlett-Packard, Sweden's Ericsson and Veolia Environnement of France. The company aims to house as many as five million people in Yemen and 1.5 million in Djibouti under the project. Yemen, one of the world's poorest countries, has faced unrest over unemployment and rising prices in the south and renewed fighting between government forces and Shiite Muslim rebels in the north. (Various02.06)
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5.16 Egypt Inflation Hits 19-Year High
Consumer prices in urban parts of Egypt rose 19.7% in the year to May, a 19-year high for inflation The inflation rate compared with 16.4% in the year to April, itself a three-year high. Sharp rises in the prices of fuel, transport and certain foodstuffs were among the main factors behind the new figure. The government raised fuel prices by between 35 and 57% in the first week of May. The fuel price hikes were to raise the revenues needed to give public-sector employees a 30% salary increase, itself a response to earlier inflation. High prices, especially of food, have been the government's biggest headache throughout the year. It has responded by making more cheap food available on a ration-card system. Food prices were a factor in riots in April in the Nile Delta town of Mahalla, a centre for the textile industry. Prices in the country as a whole rose 21.1% in the year to May, compared to 15.8% in the year to March. In the countryside prices rose 22.9%, compared to 17.6 in the year to March. The rural and whole-country indexes are updated only every other month, so economists focus on the monthly urban index. The statistics agency said that urban food prices rose 2.7% in the month to May and transport costs across the country rose 13% in the two months to May. In the one year to May, the prices of bread and grains rose 50.8%, edible oils by 51.2%, fruit by 24.9% and vegetables by 27.6%. Food inflation has hit the poor especially hard because many of them spend more than half of their income on food. (TA10.06)
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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS:
6.1 Turkey's Government Has Decided To Sign The Kyoto Protocol
Turkey's ruling AKP government has adopted in principle the ratification of the Kyoto Protocol and will send a bill to parliament for approval. The government feels that if Turkey does not ratify the protocol, it will not be able to negotiate effectively in the post-Kyoto era, when the Kyoto Protocol expires in 2012. As a reminder, Turkish President Gul gave hints about signing Kyoto protocol at World Wildlife Fund (WWF) conference in Bodrum held on May 24, stating that climate change affects all of us and Turkey is now preparing to undertake its responsibilities. Turkey had previously rejected signing the U.N. protocol, saying it needed to complete its industrial development first. But the country is under EU pressure to improve environmental standards. The Kyoto Protocol binds 37 developed nations to cut greenhouse gas emissions by an average of 5% below 1990 levels by 2012. (BGC03.06)
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6.2 Turkey To Privatize Bosporus Bridges
Turkey's Finance Minister Unakitan said that the "Bogazici" and "Fatih Sultan Mehmet" bridges of Istanbul would be privatized. Lawmakers were discussing the draft law envisaging the privatization of highways and bridges in Turkey. Speaking at the meeting Unakitan said such privatizations were of great importance taking into consideration the economic structuring and transformation process Turkey was going through currently. The Finance Minister defended the privatization efforts saying that privatization of highways and bridges would have numerous positive effects such as the transfer of high-technology, increase in productivity, decrease in traffic accidents, time and fuel saving and prevention of environmental pollution. (TNA29.05)
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6.3 Turkey Targets Informal Economy
Turkey's Labor & Social Security Ministry has set up a telephone help-line to help cut the unregistered economy to below 10% in the next three years and clamp down on welfare fraud. Labor & Social Security Minister Celik said 9.92m Turks, including 5.023m in the non-farm sector, are estimated to work in the black economy. Turkish Statistics Institute data show that the number of registered workers in Turkey in February was 20.162m. As an example of welfare fraud, Celik said health benefits had been claimed for 10 births by the same woman in a single year. The help-line is part of a broader government plan to cut the size of the unregistered economy after it passed a long-awaited social security reform package, which raised the retirement age, and an employment package which cut the social security premiums of employers earlier this year. (Various29.05)
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6.4 Broadband Penetration in Greece is the Lowest in the European Union
Research and Markets announced that broadband penetration in Greece is the lowest in the European Union. The delayed introduction of regulation has been cited as a major cause for Greece's position, as well as the incumbent's past delay in promoting services. However, the incumbent has since supported broadband rollouts, leading to very strong growth although much more needs to be done if the country wishes to catch up with the rising EU average. Convergence services are growing in prevalence due to the increasing broadband user base and IPTV services have been launched. Unlike other European countries, the lack of cable operators presents significant opportunities in the country's underdeveloped pay TV market. Triple play initiatives are being spearheaded by ISPs in the absence of cable TV operators. (R&M31.05)
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6.5 Cyprus Set For Double Euro Zone Growth
The Cypriot economy is projected to grow by more than double the euro zone average over the next two years, the European Commission's spring forecast revealed on 29 May. While the euro zone expects average growth to fall to 1.7%, the Cypriot economy is forecast to grow by 3.7%, a slight deceleration compared to 2007, when growth reached 4.5%. In 2008 and 2009, economic growth is projected to decelerate from the exceptionally high rate of 2007, yet to grow solidly at 3.7% against an adverse external environment. The report said economic activity would be exclusively driven by domestic demand, while the external sector would continue to weigh negatively on GDP growth. Disposable income, supported not only by sustained wage and employment growth but also by the second phase of the enacted personal income tax reform, will keep private consumption growing robustly, although at a slower pace than in 2007 on account of tighter credit conditions. The report, however, said that due to the hike in commodity prices, especially oil and food, inflation would continue to accelerate in 2008 and reach an average of 3.75%. Eurozone inflation in 2008 is projected to be 3.6%. But Cypriot inflation is set to decline to 2.5% in 2009 against a background of moderating oil prices and domestic demand. The EU has also forecast that construction would slow in 2008 and 2009 and said levels had been “exceptionally high” in recent years. (Cyprus Mail 30/04/08)
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6.6 Cypriot Energy Chief Calls for Nuclear Debate
Cyprus' Energy Service is to prepare a study looking into the possible construction of a nuclear power station on the island. Director Kassinis said that using nuclear energy is a lot more acceptable now, following years of technological progress following the Chernobyl disaster in the former Soviet Union in 1986. He added that the risk of a nuclear accident was very low. The issue of disposal methods for nuclear waste was one of the most pressing problems the international nuclear industry faced when trying to establish a long-term energy production plan, yet there was hope it could be safely solved. According to Kassinis, even in areas susceptible to earthquakes, including Cyprus, construction can be such as to minimize danger, “as seen using the examples of Turkey and Japan”. Companies interested in building a small nuclear reactor have already approached the Energy Service, which is part of the Commerce Ministry, and preliminary talks revealed that they are willing to build, operate and own a station at no cost to the government. Kassinis said a nuclear power station in Cyprus would have as its main role the production of electricity, which it would sell to the government. This would result in a consumer paying less than one cent per kilowatt as opposed to the current price of 15 cents. (Cyprus Mail 16.05)
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6.7 Cyprus - Inflation
The Statistical Service announced that Cyprus' inflation rose to 4.9% for May 2008 compared to 4.6% in April 2008 and 2,2% in May 2007, according to the figures released today by Cyprus Statistical Service. The Consumer Price Index for May 2008 increased by 0.89 units or 0,81% to 110.19 units compared to 109,30 in April 2008. This was mainly due to increases in the prices of certain fresh fruit, petroleum products and certain clothing and footwear items. Decreases were recorded in the prices of certain fresh vegetables and potatoes. For the period January-May 2008, the CPI recorded an increase of 4.7% compared to the corresponding period of 2007. (SS04.06)
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6.8 OECD Says Greece's Inflation To Slow But Stay High
Greece's inflation rate is expected to decelerate next year due to a drop in oil prices but will remain well above eurozone levels, weighing on the country's competitiveness, the Organization for Economic Cooperation and Development (OECD) said on 4 June. The Paris-based group said in its biannual economic outlook that Greek EU-harmonized inflation is expected to fall back to 3.2% year-on-year in 2009 from an estimated 4.2% this year. Inflation is expected to pick up to more than 4.6% in May, the highest levels seen in about six years, on the back of soaring oil and food prices. The spike in consumer prices is a trend seen across the eurozone, where inflation is seen at 3.4% this year, having jumped from 2.1% in 2007. Despite currency appreciation, upward price pressures are strong and it is only toward the end of 2009 that inflation is expected to revert to 2%, the OECD pointed out. It also repeated its call for reforms in the economy, saying that strict implementation of the recent pension reform is vital, along with other changes. Greece earlier this year passed a series of reforms through Parliament involving the merger of tens of pensions funds into just a handful, in a move aimed at helping to make the system more viable. The reforms were met with strong opposition by workers who launched weeks of strike action. On the upside, the Greek economy is seen as continuing to grow strongly, but at a slower pace, as private consumption drops. The OECD said it expects gross domestic product (GDP) to expand by an annual 3.4% next year from a targeted 3.5% rate this year. (Kathimerini05.06)
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6.9 Greek Inflation Soars To 10-Year High
Greece's consumer price index jumped in May by a higher-than-expected 4.9% year-on-year, the highest in 10 years, with a considerable slowdown not expected until late in the year. The National Statistics Service (NSS), Greece's statistics office, said consumer prices accelerated to 4.9% from 4.4% in the previous month on the back of rising oil and food prices. Apart from rising oil prices pulling transport costs sharply higher, food prices continued to rise steeply in May. NSS data showed that flour and butter prices soared by 20% and 30%, respectively. Seed oil leapt 37%. Greek inflation is one of the highest in the eurozone and has been harming the country's competitiveness for a number of years. Eurozone inflation surged to a historic peak of 3.6% on an annual basis in May. Development Minister Folias has been in talks with supermarkets recently in a bid to contain price hikes but retailers are laying the blame on producers. Economists expect the figure to average out to about 4.2% for the year with a dip not expected until the last few months of 2008. Greece's EU-harmonized inflation figure hit 4.9% on an annual basis from 4.4% in the previous month. (Kathimerini10.06)
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6.10 S&P Confirms Bulgaria Credit Rating
The credit rating agency of Standard & Poor (S&P) confirmed on 5 June the long-term rating of Bulgaria as 'BBB+' and the short-term as 'A-2'. The prospective is stable according to the evaluation of the Bulgarian Finance Ministry. According to Standard & Poor's credit analysts, the rating acknowledges the government's serious attempt to coordinate the fiscal policy, the management policy and the policy for reduction of public debt along with the stable perspective for mid-term growth, relatively good trade balance and the country's membership in the EU. Those strong sides are however compensated to a certain level by the great current deficit and the inflation pressure due in some regard to the salaries' increase. The prognosis for budget surplus of 3% of the Gross Domestic Product (GDP) and its realization would additionally contribute to the reduction of the gross debt to around 14% of the GDP by the end of the year. Standard & Poor's Ratings Services also expect that the deficit would slightly decrease in 2008 while the net deficit coverage from direct foreign investments would remain at over 75%. When taking into account the Monetary Council and the already significant budget surplus it would be very important to accelerate structural reforms so that the country could increase its growth potential, further stabilize its economy and remain attractive for foreign investors, according to S&P. The agency warns that continuing economic imbalance combined with a long period of high inflation and loss of external competitiveness could affect the country's credit rating in the future. (Sofia05.06)
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7: GENERAL NEWS AND INTEREST
*ISRAEL:
7.1 Hoopoe Wins Israel's National Bird Contest
The Jewish state's national bird is the hoopoe (duchifat in Hebrew), after being chosen in a six month long national election process initiated by the Society for Protection of Nature. The hoopoe, a crested bird with a unique appearance that is mentioned in Jewish legends about King Solomon and the Queen of Sheba, is common throughout Israel. According to legend, the hoopoe is capable of cutting through stone and is referred to as " mountain chiseler” in the Talmud. Legend also has it that when its beak breaks, the hoopoe can continue chiseling through rocks with its folded crest - hence its name duchifat, which means "two beaks" in Aramaic. Ethiopian Jews called it the "Moses Bird" and believed it would carry them to Jerusalem one day. The hoopoe is unafraid of human beings, but when in danger, it makes a hissing sound and secretes a foul-smelling liquid. The final contestants who made it through the bird primaries in December 2007 also included the night owl (tinshemet), red falcon (baz adom), spur-winged plover (siksak), griffon vulture (nesher), finch (chochit), kingfisher (shaldag), bulbul, warbler (pashosh) and the honey-sucker (tzufit). The candidates were chosen out of about 540 species of birds which populate Israel's skies regularly. (IsraelNN29.05)
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*REGIONAL:
7.2 Turkey's High Court Overturns Headscarf Rule
Turkey's highest court dealt a stinging slap to the governing party of Prime Minister Erdogan on 6 June, ruling that a legal change allowing women attending universities to wear head scarves was unconstitutional. The Constitutional Court said that the change, proposed by Mr. Erdogan's party and passed by Parliament in February, violated principles of secularism set in Turkey's Constitution. The ruling sets the stage for a showdown between Turkey's secular elite - its military, judiciary and secular political party - and Mr. Erdogan, an observant Muslim with an Islamist past. The court is one of Turkey's most important secular institutions, and liberals see the ruling as largely political. It bodes ominously for Mr. Erdogan: The same court is considering a case that would ban him and 70 members of his party from politics. A decision is expected in the summer.
Turkey's political system has been controlled for generations by a powerful secular elite that has stepped in with coups and judicial decisions against elected governments. Mr. Erdogan and his party, Justice and Development, or AKP, have come the closest of any political party in Turkey's history to breaking its hold on power. In the head-scarf case, the elite establishment contended that allowing veiled women onto campuses threatened Turkish secularism, one of the founding principles of Mustafa Kemal Ataturk's secular revolution in the 1920s. Head scarves were banned from campuses in the 1990s.
Mr. Erdogan calls the case a matter of individual rights, contending that all Turks should be able to attend universities no matter what they wear or believe. But the way his party proposed it - abruptly, with little public discussion - angered the secular old guard and disappointed liberals, who support the changes, but want them to be accompanied by changes that strengthen other rights, like free speech. Some said AKP seemed to be pursuing only those changes that would please its constituency, and not the broader range that was needed to join the European Union. The head-scarf amendment is considered to be the single most important irritant that set off the case to ban Mr. Erdogan and 70 other AKP members, and it is central to the prosecution's argument that he and his allies are trying to dismantle secularism in Turkey, an accusation they strongly dispute. (Various06.06)
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8: ISRAEL LIFE SCIENCE NEWS
8.1 BrainStorm NTF Cells Shows Advantage in Pre-Clinical Study for Parkinson's Disease
BrainStorm Cell Therapeutics announced that in a pre-clinical study that was conducted with Tel Aviv University between February and May 2008, signs of impaired motor behavior in a rat model of Parkinson's improved following transplantation of BrainStorm's unique Neurotrophic Factor Cells (NTF). In this study, Tel Aviv University scientists lesion the brains of lab rats by using the 6OHDA toxin, in order to mimic the motor dysfunction of parkinsonian patients. The rats were divided into three groups: one group was transplanted with BrainStorm NTF cells, another with undifferentiated mesenchymal stem cells and the third group was used as control. The motor functions of the rats were repeatedly measured for 45 days, followed by histology. The results showed statistically significant improvement in NTF rats' motor functions, in compared to the mesenchymal cell group and the controls. Moreover, the NTF cells increased the level of the neurotransmitter Dopamine (a low amount of which causes Parkinson). The researchers also detected, 45 days post-transplantation, viable transplanted cells which migrated toward the impaired portion of the affected brain. The Company believes that this is evidence of the integration ability of BrainStorm's cells in the damaged brain. This is the second study completed using BrainStorm's cells that produced similar results.
Petah Tikva, Israel's BrainStorm Cell Therapeutics (http://www.brainstorm-cell.com) is a leading developer of stem cell technologies to provide treatments for currently incurable neurodegenerative diseases. The Company is focused on developing NTF cells from the patient's own bone marrow in order to treat, Parkinson, ALS and Spinal Cord Injury. (BrainStorm29.05)
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8.2 Pluristem Demonstrates the Potential of Its PLX Cells to Treat Crohn's Disease & Ulcerative Colitis
Pluristem Therapeutics' PLacental eXpanded (PLX) cells have demonstrated in vivo efficacy in the treatment of Crohn's Disease and Ulcerative Colitis, collectively termed Inflammatory Bowel Disease (IBD). PLX cells are Pluristem's placental-derived mesenchymal stromal cells (MSCs) that have been expanded in the Company's proprietary PluriX 3-D bioreactor. Mice and rats each received intrarectal administration of trinitrobenzene sulphonic acid (TNBS), a standard method for inducing IBD in animal models. The macroscopic and microscopic anti-inflammatory effects of the intravenous administration of PLX-IBD cells were then evaluated and compared to control animals that received only saline. PLX-IBD cell therapy significantly reduced the TNBS-induced colon lesions both in the macroscopic and microscopic evaluations compared to the control animals and to animals given therapy that is currently the standard of care in IBD. Haifa, Israel's Pluristem Therapeutics (http://www.pluristem.com) is a bio-therapeutics company dedicated to the commercialization of non-personalized (allogeneic) cell therapy products for the treatment of several severe degenerative, ischemic and autoimmune disorders. The Company is developing a pipeline of products, stored ready-to-use, that are derived from human placenta, a non-controversial, non-embryonic, adult stem cell source. (Pluristem28.05)
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8.3 Teva Announces Launch of Generic Wellbutrin XL Tablets, 150 mg
Teva Pharmaceutical Industries announced that it has begun commercially shipping Bupropion Hydrochloride Extended-Release Tablets, 150 mg, the generic version of Biovail Corporation's antidepressant Wellbutrin XL Tablets, pursuant to its March 2007 agreement with Anchen Pharmaceuticals. Wellbutrin XL Tablets, 150 mg, marketed by GlaxoSmithKline, had U.S. sales of approximately $930 million for the 12 months ended March 2008, according to IMS data. Teva Pharmaceutical Industries (http://www.tevapharm.com), headquartered in Israel, is among the top 20 pharmaceutical companies in the world and is the world's leading generic pharmaceutical company. The Company develops, manufactures and markets generic and innovative human pharmaceuticals and active pharmaceutical ingredients, as well as animal health pharmaceutical products. Over 80% of Teva's sales are in North America and Europe. (Teva30.05)
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8.4 Ferndale & Foamix Execute License Agreement for Atopic Dermatitis Foam
Ferndale, Michigan's Ferndale Laboratories and Foamix executed a license agreement for Ferndale to develop and commercialize non-steroidal foam for the treatment of atopic dermatitis and eczema. The agreement was signed following Foamix' successful development of non-steroidal foam which is designed to help skin barrier properties. Under the terms of the agreement, Foamix will be entitled to receive milestone payments upon achievement of various developments and commercial events and double-digit royalties. Atopic Dermatitis (AD) is a common chronic inflammatory skin condition, affecting 15-20% of schoolchildren and 2-10% of adults. Headquartered in Ness Ziona, Israel, Foamix (http://www.foamix.co.il) is a specialty pharmaceutical company focused on the development of topical foam products for prescription, OTC and cosmetic applications. Foamix's state-of-the-art foams provide controlled delivery of a variety of active ingredients. Foamix is a privately held company, whose business model is based on partnering with leading pharma companies to develop products utilizing its proprietary foam technologies. (Foamix02.06)
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8.5 Angioslide Closes $8.6 Million Series C Financing
Angioslide announced the closing of an $8.6 million Series C financing round. Angioslide is the developer of the unique Angioslide eXtra angioplasty balloon catheter that provides dual functionality in a single device offering balloon angioplasty with embolic protection. The device has received European CE Mark approval for lower limb use and FDA clearance is expected by end of 2008. The financing will be used to support sales and marketing efforts in the U.S. and Europe as well as for continuous development of expanded market applications. Itochu Corporation, Japan, led this second round of financing with support from Ofer Hi-Tech, Israel and Viola Partners, Israel, who both participated in the previous financing round. The Angioslide eXtra balloon angioplasty catheter offers balloon angioplasty with embolic particle capture creating a first of its kind device. When performing Angioplasty physicians typically take a two-step approach using both an embolic protection device and a balloon angioplasty catheter. The Angioslide eXtra takes this two-step, two-device process and reduces it to one single instrument, used for one single procedure, with a minimized procedure time and significantly reduced costs. Herzliya, Israel's Angioslide (http://www.angioslide.com) has developed a unique angioplasty balloon catheter that has dual functionality in a single device: balloon angioplasty with embolic protection. The Angioslide eXtra addresses an unmet need for an easy-to-use, efficient and cost-effective embolic protection solution for the peripheral vascular disease market. It is the first device of its kind to seek FDA clearance for use in lower limbs. (Angioslide02.06)
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8.6 Endogun Receives CE Mark Approval for Marketing Next-Generation Prolapse
Endogun Medical Systems has received a European CE approval to market its next-generation, single-incision, trans-vaginal EndoFast Reliant device for repair of Pelvic Organ Prolapse and Stress Urinary Incontinence (SUI). The CE Mark was received in close proximity to the U.S. FDA approval received earlier this quarter for the single-use, disposable EndoFast Reliant product. These regulatory approvals welcome Endogun into the elite community of innovative urogynecology products, aimed to reduce the invasiveness of key women's health procedures, and offering quality of life solutions in a safe and effective manner. Along with very positive clinical validation from key opinion leaders, these approvals indicate a product with a unique value proposition, which may have significant advantages over what is available today, for patients, physicians, payers and providers. Pelvic Organ Prolapse occurs in women, often following multiple births or excess weight, and develops as a result of weakening of the pelvic muscles which support internal organs (womb, bladder, rectum and vagina). Side effects of this condition include discomfort, a feeling of heaviness, and pain, and the disorder carries the risks of inflammation and infection. Endogun's product is aimed at offering a single-incision, simpler and safer procedure, which is performed entirely trans-vaginally.
HaOgen, Israel's Endogun Medical Systems (http://www.endogun.com) was founded in March 2004 to offer improved soft tissue attachment technology and products to the world of Minimally Invasive Surgery (MIS). It offers procedures that are easier for surgeons to use and safer for patients than today's options. Endogun aims to significantly improve the quality and outcome of many minimally invasive procedures in the world of urogynecology and urology. (Endogun04.06)
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8.7 Kamada Announces Successful Interim Results of Phase II Deposition Study with Aerosolized AAT
Kamada announced successful interim results in a Phase II deposition study with its Aerosolized AAT product delivered by PARI's optimized eFlow electronic nebulizer to treat Alpha-1 Deficiency and other respiratory diseases. This significant milestone demonstrates the high potential of the company's Aerosolized AAT product currently undergoing advanced clinical trials for several indications. This next generation product, Aerosolized AAT, holds numerous advantages over the currently used AAT for intravenous administration. Among these advantages are greater patient convenience, reduced treatment costs, larger treatment population and additional potential indications, all pending successful completion of the company's clinical development plan. Kamada's aerosolized AAT drug was designated by both the US-FDA and the European Agency for the Evaluation of Medicinal Products (EMEA) as an Orphan Drug for Congenital Emphysema and CF as well as for Bronchiectasis by the US-FDA. This important attribute will allow the company research funds benefits, waiver of user fees and free scientific advice by the regulatory authorities. Furthermore, if Kamada is the first company to successfully complete clinical trials and receive marketing approval in the US or the EU, the company shall gain exclusive marketing rights for the duration of seven years in the US, and for 10 or 12 years in Europe. Ness Ziona, Israel's Kamada (http://www.kamada.com) is a public biopharmaceutical company developing, producing and marketing a line of specialty life-saving therapeutics using its proprietary chromatographic purification technologies. Licensed and marketed in more than 15 countries, several of these specialty therapeutics hold registered and pending patents and are currently in advanced clinical trials. (Kamada 09.06)
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9: ISRAEL PRODUCT & TECHNOLOGY NEWS
9.1 Alvarion Receives Prestigious International Award
Alvarion announced that the WBI (Wireless Broadband Innovation) Awards panel of judges named the company Winner of Best WiMAX Product or Service for its WiMAX network deployed in the province of Castilla y Leon in Spain. Presented during the official ceremony in London, this is Alvarion's third award received from the organization. The vast and mountainous autonomous community Castilla y Leon is the largest region in Spain and Europe. Alvarion's WiMAX network was deployed by Iberbanda and has made broadband widely available, ensuring the future and economic vitality of the region. Today the network provides broadband voice and data services to 500,000 inhabitants and businesses in 3,500 populated areas and is a model for all European communities who want to bridge the gap between rural and urban areas. Tel Aviv, Israel's Alvarion (http://www.alvarion.com) is the largest WiMAX pure player, ensuring customer 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. Alvarion boasts over 200 commercial WiMAX deployments worldwide. (Alvarion29.05)
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9.2 ImageID Among Finalists in 2008 European Supply Chain Distinction Awards
ImageID has been selected as finalist in two categories – “Excellence in Technology” and “Best Value Chain Provider/Best Supply Chain Solution Provider” – in the 2008 European Supply Chain Distinction Awards. The European Supply Chain Distinction Awards publicly acknowledge organizations that demonstrated best practices and excellence. ImageID's flagship Visidot offering, based on patent-protected technology, provides comprehensive multiple asset traceability. Visidot comprises a front-end capable of accurately capturing and decoding hundreds of product tags in a matter of seconds, and applying business rules on the acquired information, complemented by seamless integration with enterprise back-end systems enabling real-time operation, Web-based management and reporting. Visidot is a reliable and uniquely cost-effective global supply chain traceability solution, successfully implemented in companies of various industries, from food to automotive. Hod HaSharon, Israel's ImageID (http://www.imageid.com) is a leading provider of large field of view, imaging-based, global SCT (Supply Chain Traceability) solutions. Visidot, the company's proven traceability solution, consistently enhances logistics and manufacturing process efficiency and reliability. It enables tracking and tracing of hundreds of thousands of assets a day with 100% accuracy, providing complete supply-chain control. ImageID's customers vary from fresh food manufacturers and RTI pullers to automotive companies and other industries. (ImageID29.05)
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9.3 Wavion Introduces Self-Backhaul Wi-Fi – Optimal Service With No Alignments
Wavion announced the release of a new SW version supporting self-backhaul based on its digital beamforming technology. The powerful digital beamforming technology of Wavion's spatially adaptive base stations has now been extended to provide self-backhaul to and from neighboring base stations. Wavion's self backhaul provides optimal service without requiring alignments of any kind, making the installation quick and simple. Wavion's beamforming technology leverages six radios and antennas to provide a high quality and robust base-station to base-station self-backhaul with unmatched characteristics. The self-backhaul feature has been successfully tested by Wavion's beta customers.
Yokneam, Israel's Wavion (http://www.wavionnetworks.com) is transforming the metro Wi-Fi and rural markets with a new category of spatially adaptive base stations. The company's digital beamforming and SDMA technologies are the first and only to resolve the significant performance, penetration and profitability challenges facing large scale metro and rural deployments. Wavion is privately held and backed by world-class investors including Tel Aviv-based Elron Electronic Industries and BRM Capital. (Wavion 02.06)
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9.4 ECI Telecom Expands Hi-FOCuS MSAN Voice Capabilities with SIP Signaling
ECI Telecom announced that its Hi-FOCuS multi-service access node (MSAN), with integrated support for xDSL, fiber access and voice solutions, now supports SIP signaling for voice-over-IP. The added protocol support gives service providers the flexibility to choose any common industry IMS voice core as they migrate from PSTN to a next generation network (NGN). This enhanced capability further extends the flexibility of ECI's recently announced 1Net framework, which focuses on the optimal transition to NGN, delivering solutions that are agnostic of specific technology or network architecture. With ECI's 1Net best-of-breed approach and the Hi-FOCuS MSAN, service providers are able to align with a true IMS multi-vendor strategy and not be locked into any one vendor's end-to-end voice solution. ECI's Hi-FOCuS MSAN next-generation voice solution provides seamless replacement for legacy Class 5 PSTN lines and has evolved to include support for the SIP protocol. As service providers migrate to NGN, they have the flexibility with ECI's voice solution to deploy IMS SIP-based or H.248-based voice services. The enhanced Hi-FOCuS MSAN voice solution, which incorporates best-of-breed access gateway functionality, can flexibly and openly interoperate with third party Call Session Control (also known as 'softswitch') IMS solutions for delivery of voice PSTN-replacement services.
Petah Tikva, Israel's ECI Telecom (http://www.ecitele.com) delivers innovative communications platforms to carriers and service providers worldwide. ECI provides efficient platforms and solutions that enable customers to rapidly deploy cost-effective, revenue-generating services. Founded in 1961, Israel-based ECI has consistently delivered customer-focused networking solutions to the world's largest carriers. The Company is also a market leader in many emerging markets. ECI provides scalable broadband access, transport and data networking infrastructure that provides the foundation for the communications of tomorrow, including next-generation voice, IPTV, mobility and other business solutions. (ECI02.06)
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9.5 ECtel & Amdocs Join Forces to Provide Best-in-Class Fraud Detection and Prevention Solution
ECtel has joined forces with Amdocs, the leading provider of customer experience systems, for the delivery of a state of the art fraud detection and prevention solution, based on ECtel's leading fraud prevention product - FraudView, and Amdocs system integration services. Communication service providers continue to be challenged by growing fraud, resulting in revenue loss. In addition, fraudulent activities can lead to increased churn as customers seek providers that can deliver a flawless service experience. Designed to meet the needs of wireline, wireless, convergent and next generation service providers, FraudView is the market's leading and most comprehensive fraud management solution. FraudView goes beyond traffic and usage monitoring, allowing advanced detection of fraudulent activity as part of customer acquisition, credit risk management and new subscriber evaluation processes. The Amdocs-ECtel offering incorporates ECtel's FraudView and I-Probe technology. FraudView provides comprehensive fraud detection capabilities such as a sophisticated real-time fraud rules engine, advanced score cards, velocity and collision engine, subscriber profiling and evaluating capabilities, advanced neural models and credit limit monitoring. When integrated with I-Probe, FraudView allows operators to enjoy unbiased and independent probe-based CDR coverage and real-time collection, with optional call blocking and in-band analysis. This provides customers with superior capabilities for real time monitoring and preventing fraud.
ECtel (http://www.ectel.com) is a leading global provider of Integrated Revenue Management solutions for communications service providers. A pioneering market leader for nearly 20 years, ECtel offers carrier-grade solutions that enable wireline, wireless, converged and next generation operators to fully manage their revenue and cost processes. ECtel serves prominent Tier One operators, and has more than 100 implementations in over 50 countries worldwide. (ECtel 02.06)
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9.6 AudioCodes Introduces the Mediant 1000 Multi-Service Business Gateway
AudioCodes introduced its Mediant 1000 Multi-Service Business Gateway (MSBG) - a modular, all-in-one, networking device that combines a Media Gateway, enterprise class Session Border Controller, Data Router & Firewall, LAN Switch, WAN access, Stand Alone Survivability (SAS) and an on-board general purpose server. The Mediant 1000 MSBG is designed to address the needs of Service Providers and Cable Operators when offering IP-Centrex and SIP Trunking services, as well as the needs of distributed Enterprises. The Mediant 1000 MSBG simplifies installations and improves manageability for Operators, by delivering a cost-effective network device at customer premises, eliminating the "finger pointing" that occurs with multiple stacked elements from different vendors where the point of demarcation is unclear. For large distributed Enterprises, the benefit of the Mediant 1000 MSBG lies in the ease of implementing secure and reliable inter-branch communication with an integrated product. For both service providers and Enterprises, the Mediant 1000 MSBG's Stand Alone Survivability (SAS) features further guarantees continuous service offering and business continuity.
Lod, Israel's AudioCodes (http://www.audiocodes.com) provides innovative, reliable and cost-effective Voice over IP (VoIP) technology, Voice Network Products, and Value Added Applications to Service Providers, Enterprises, OEMs, Network Equipment Providers and System Integrators worldwide. AudioCodes provides a diverse range of flexible, comprehensive media gateway, and media processing enabling technologies based on VoIPerfect - AudioCodes' underlying, best-of-breed, core media architecture. The company is a market leader in VoIP equipment, focused on VoIP Media Gateway, Media Server, Session Border Controllers (SBC), Security Gateways and Value Added Application network products. (AudioCodes02.06)
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9.7 Check Point VPN Secures Remote Access for Apple iPhone
Check Point Software Technologies announced Check Point VPN-1 support for the Apple iPhone, allowing secure remote access to corporate network systems. Check Point VPN-1 enables an encrypted connection between the iPhone and VPN-1 gateway, protecting in-transit data. When deploying any device for corporate use, IT faces the challenge of safeguarding the traffic in and out of the private network. Check Point VPN-1 supports the L2TP client embedded in all current and future iPhone versions, giving customers immediate IPsec virtual private network (VPN) access to corporate servers. Customers can send and receive email and utilize company resources, including internal Web portals, file servers and IP-based corporate applications, without the need for additional software on the iPhone. With VPN-1 administrators can take advantage of a shared secret password and certificates for all iPhones on the network with specific login credentials for each end user. The feature eliminates the need for IT to create separate gateway authentication keys for each device, easing the deployment of iPhones on the network. Check Point VPN-1 support for the iPhone provides customers with the ability to utilize IP-based encryption for transmitting sensitive and private corporate data. Tel Aviv, 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 Point02.03)
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9.8 Connect One Offers Lowest Price Small Form Factor Wireless Module for M2M Applications
Connect One released Mini Socket iWiFi, a new embedded serial-to-WiFi module that quickly and easily connects embedded devices running machine-to-machine (M2M) applications to 802.11b/g wireless LANs with minimal programming. Mini Socket iWiFi's extremely compact size, battery save modes, and advanced roaming features make it an ideal solution for mobile M2M devices. Based on Connect One's iChipSec CO2128 Internet Protocol (IP) communication controller chip, Mini Socket iWiFi includes a full suite of internet protocols and applications, enabling immediate and full-featured connectivity for embedded solutions. Mini Socket iWiFi includes the latest wireless and SSL encryption algorithms and serves as a firewall, protecting the embedded application from the internet. The Mini Socket iWiFi's compact size (only 31x41 mm, antenna connector integrated onto the module) and advanced features makes it an ideal solution for mobile, battery-operated embedded devices. To facilitate mobility, Mini Socket iWiFi supports seamless roaming between access points. With several sleep modes and the ability for the host application to turn off WLAN, power requirements are kept to a minimum. In deep sleep mode, the Mini Socket WiFi's power consumption is only 30 micro-amperes, allowing battery operated devices to use the module for extremely long periods of time. Kfar Saba, Israel's Connect One (http://www.connectone.com) is widely regarded as the device networking authority, with many innovative firsts to its credit. The company manufactures semiconductors and device servers that facilitate secure, reliable and robust Internet Protocol-based communication for everyday devices. (Connect One03.06)
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9.9 IAI & Gulfstream Aerospace Celebrate Roll-Out of 200th Gulfstream G200 Business Jet
The 200th Gulfstream G200 was rolled out at the Israel Aerospace Industries (IAI) manufacturing Division at Ben Gurion International Airport, Israel. The “green” business jet now moves to the Gulfstream Center of Excellence completion facility for mid-cabin business aircraft in Dallas, Texas, where it will be outfitted and painted. The G200 was introduced in 1997 and was the first true super mid-size business jet to enter the marketplace. The aircraft received its Federal Aviation Administration (FAA) Type Certificate in December 1998 and entered service in January 2000. The G200 joined the Gulfstream fleet in June 2001. Since then, Gulfstream has made significant improvements to the aircraft. Within the first year, the company redesigned the business jet's interior, reducing the aircraft's weight by some 450 pounds. It installed a sound-proofing package that sliced cabin sound levels three to five decibels. Gulfstream revamped the aircraft's scheduled maintenance program, decreasing the number of required scheduled tasks while retaining the highest level of safety standards as defined by Federal Aviation Regulations (FARs). The G200 has proven performance and the lowest operating costs in its class. Its 12-month dispatch reliability rate of 99.77 percent matches those of larger aircraft in the Gulfstream fleet. The aircraft continued to demonstrate its performance earlier this year when it set seven city-pair records in just 10 days. Those records join 11 others the G200 has set since 2001. To date, some 180 G200s are in service around the world. (IAI04.06)
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9.10 Rheinmetall Defence & IAI Cooperate In Wide-Area Reconnaissance
Dusseldorf, Germany's Rheinmetall Defence and Israel Aerospace Industries (IAI) announced their new cooperation agreement on the marketing of the Heron TP UAV reconnaissance system for long-range operations in the Bundeswehr program SAATEG (“imaging surveillance system for the depth of the deployment theatre”) during the Berlin Air Show ILA 2008. This program has the task of contributing towards a comprehensive situational awareness within the scope of networked command & control, both over land and on the high seas or at the coasts. At present, the German armed forces do not yet have a MALE (Medium Altitude Long Endurance) drone system that can be deployed for missions abroad in all the corresponding environmental conditions worldwide and on a 24/7 basis. The key requirements for the new system are capabilities for wide-area realtime surveillance and situation reconnaissance, target acquisition and battle damage assessment – including object and target tracking – as well as competence for precise identification. The German need must be met in the near-term, i.e. the initial operating capability (IOC) is already planned for 2010. For this program, Rheinmetall Defence and IAI are offering the long-range UAV system “Heron TP” – an advancement of the pr | 
News & Updates 
