TOP STORIES

• OKIE Agricultural Mission Completes Bountiful Tour
• Weizmann Institute Remains Among World's Best
• Yissum & BrightSource Agree to Develop New Materials for Solar Power Plants
• Saudi to Phase Out Water Intensive Crops
• Greece Scraps Its "Cash for Klunkers" Plan
• LEBANON: Pharmaceuticals and Healthcare Report Q4/2009

TABLE OF CONTENTS:

1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS

1.1 Steinitz Says Israel to Start Cutting Taxes From 2011
1.2 Israel & European Union Sign Agricultural Agreement

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2: ISRAEL MARKET & BUSINESS NEWS

2.1 OKIE Agricultural Mission Completes Bountiful Tour
2.2 Israel's Medical Device Market
2.3 Masonite Announces Acquisition of Israeli Steel Security and Safety Entry Door Business
2.4 Eltek Receives AS-9100B Quality Certification for the Aerospace Industry
2.5 Discretix Named to Deloitte Israel Technology Fast 50 for Second Consecutive Year
2.6 InfoGin Ranked 6th Among Deloitte's Technology Fast 50 Winning Companies in Israel
2.7 Telmap Named 10th Fastest Growing Technology Company in Deloitte Israel Technology Fast 50 Awards
2.8 Mellanox Ranked 20th Fastest Growing Company on Deloitte's 2009 Israel Technology Fast 50 Program
2.9 Weizmann Institute Remains Among World's Best
2.10 Synfora Signs Satris Group as Israeli Distributor

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3: REGIONAL PRIVATE SECTOR NEWS

3.1 CRA International Advises Jordan on Major Gas Development Agreement
3.2 Shaw Awarded Ethylene Plant Expansion Project in Turkey by Petkim
3.3 Organic Farming and Organic Products in Greece
3.4 AES Solar Energy Closes on €25 Million Financing for Its First Photovoltaic Project in Greece

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4: CLEAN TECH & ENVIRONMENTAL DEVELOPMENTS

4.1 Yissum & BrightSource Agree to Develop New Materials for Solar Power Plants

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5: ARAB STATE & PAKISTANI DEVELOPMENTS

5.1 UAE & Saudi Among US' Top Arms Buyers In 2009
5.2 UAE Retail Report Says Sales Will Grow from $104.14 Billion in 2008 to $142.59Billion by 2013
5.3 Dubai Maps 2020 Olympic Bid Strategy
5.4 Oman Annual Inflation Retreats to 1.25% in September
5.5 Foreign Firms Eye Oman Power Plant Plans
5.6 Saudi to Phase Out Water Intensive Crops
5.7 Egypt Inflation Exceeds Forecasts at 13.3%
5.8 Morocco's 2009 Health Budget Programmed to Increase by 20%
5.9 The Pharmaceutical Market: Morocco
5.10 Pakistan's Medical Device Market Is Heavily Supplied by Imports, Accounting for 94% of the Market

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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS

6.1 EU Forecasts 5.8% Contraction for Turkey
6.2 Cyprus' Deflation Eases in October
6.3 Greek Construction Activity & Industrial Output Drops
6.4 Greece Scraps Its "Cash for Klunkers" Plan
6.5 Brussels to Issue Greece a Fresh Warning
6.6 Greece's Competitive Market in Office Furniture
6.7 Greece's Medical Device Market Estimated at $1.452 Billion
6.8 Bulgarian Central Bank Feels Economy To Grow By Up To 0.5% Next Year

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7: GENERAL NEWS AND INTEREST

*ISRAEL:

7.1 Israelis Have 2 Million Friends on Facebook

*REGIONAL:

7.2 Hariri Unveils Lebanese National Unity Cabinet
7.3 Sheikh Khalifa Re-Elected UAE President

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8: ISRAEL LIFE SCIENCE NEWS

8.1 Rosetta Genomics Strengthens MicroRNA Intellectual Property Position with Additional Patent
8.2 Compugen Announces Preeclampsia Biomarker Collaboration
8.3 Foamix Expands International Patent Protection for its Emollient Foam Platform
8.4 Compugen Announces Discovery of Genetic Biomarker for Predisposition to Type 2 Diabetes
8.5 BrainStorm Stem Cell Therapy Treatment More Effective Than Other Current Potential Treatments

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9: ISRAEL PRODUCT & TECHNOLOGY NEWS

9.1 Orckit-Corrigent Signed with Scandinavian Service Provider to Upgrade Metro Area Networks
9.2 YCD Multimedia Revolutionizes Retail with the Launch of its Real-Time Ad Management Platform
9.3 Altair Semiconductor Announces Immediate Availability of LTE USB ExpressCard
9.4 Portugal Telecom Selects ClickSoftware for Optimized Workforce Management
9.5 TraceSpan Launches GPON Lawful Interception System

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10: ISRAEL ECONOMIC STATISTICS

10.1 Israel's Raw Materials & Investment Goods Imports Increase
10.2 Israel's Average Wage Drops
10.3 Number of Israel's Working Poor Grows
10.4 New UK & US Carriers Boost Israel's Winter Tourism

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11: In Depth

11.1 ISRAEL: Fitch Affirms State of Israel at 'A'/'A+'; Outlook Stable Ratings
11.2 LEBANON: Pharmaceuticals and Healthcare Report Q4/2009
11.3 KUWAIT: Oil & Gas Report Q4/2009
11.4 KUWAIT: Health of the Nation
11.5 SAUDI ARABIA: Tourism Report for 2009's Fourth Quarter
11.6 OMAN: Moving Forward
11.7 TURKEY: Fitch Places Turkey on Rating Watch Positive
11.8 TURKEY: Turkish Tourism Report for 2009's Fourth Quarter

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1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS

1.1 Steinitz Says Israel to Start Cutting Taxes From 2011

Minister of Finance Steinitz told a gathering of the Friends of Tel-Aviv University that Israel is in the process of an economic recovery that accelerated in September, but this is only the beginning, and there are more challenges ahead. As reported by Globes, Steinitz said "there is room for cautious optimism, but it must be emphasized that we are not at the end of the recovery but only at the start. Unless we preserve the conditions that have brought about the improvement, we are liable to get into difficulties." The minster of finance said that the government's guiding principle during the crisis was that the crisis should be exploited to promote Israel's international standing, by taking the long-term view.

"While in Western countries there was a perception that the economy was sinking and everything was crashing, we dealt with things differently," Steinitz said. "We passed a two-year budget to cope with the crisis. If the feeling during the crisis was that it was necessary to think of the short term and do everything to save the sinking ship, we passed a two-year budget. In addition, we set fiscal deficit targets for five years ahead." Steinitz hinted that the actual deficit this year would be lower than the 6% of GDP target.

The Israel economy grew by 1% in the second quarter of this year, after two successive quarters of negative growth, and thus officially emerged from recession. The government imposed taxes in order to meet the deficit target, such as the drought levy on water and the rise in duties on fuel, while Western governments eased taxes. However, Steinitz promised that, in 2011, when elsewhere in the world taxes start to rise to deal with higher deficits, the opposite will happen in Israel. "Most countries will raise taxes from 2011 and we will lower taxes, including companies' tax, from 2011 to 2016," Steinitz said, explaining that pumping money into the Israeli economy would not have helped it. (Globes 02.11)

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1.2 Israel & European Union Sign Agricultural Agreement

On 4 November, a new agricultural agreement was signed in Brussels between Israel and the European Union. The new agreement, which updates the original agricultural agreement signed in the 1970's, is the result of lengthy negotiations led by Israel's Ministry of Agriculture and the Ministry of Industry, Trade & Labor. Since the original signing, the agreement has been updated several times in order to reflect the significant changes in the needs of both parties. Access to the markets of both sides has been greatly improved under the new agreement. In the processed agricultural products sector, over 95% of the products will be exempt from all taxes or levies. Considerable liberalization was undertaken in regards to all areas of fresh produce and approximately 80% will be exempt from all customs restrictions.

The agricultural agreement constitutes one element in the wide range of existing agreements between Israel and the EU, which include the Israel-EU Association Agreement, the Israeli-EU Action Plan as part of the European Neighborhood Policy (ENP), the Euro-Mediterranean partnership, as well as Israel's participation in a score of European programs and agencies, such as the Seventh Framework Program for Research and Technological Development. Approximately $1b of Israeli agricultural and processed food products are exported to the EU each year. Europe is Israel's most important trading partner in the agricultural field, with more than 25% of Israel's agricultural product and more than 75% of its total fresh agricultural products exported to Europe. The Ministry of Agriculture predicts that the new agreement will serve to expand agricultural exports, an important development given that more than 60% of exports to Europe come from the Arava and Negev regions. Israel uses the world's leading technologies in the intensive production of fruits, vegetables and flowers. Most of Israel's agricultural activities are conducted in periphery and desert areas. Both Israel and the EU view the existence of active and modern rural areas as essential as they are used to preserve open spaces and prevent rapid urbanization processes. (MFA 04.11)

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2: ISRAEL MARKET & BUSINESS NEWS

2.1 OKIE Agricultural Mission Completes Bountiful Tour

On 5 November, the Oklahoma Israel Exchange (OKIE) concluded a week long agricultural mission to Israel. Participants included representatives of Oklahoma's farming and agricultural research communities. The group was engaged in a fact finding tour of the Israel's greenhouse industry, specifically Israeli technology and applications for extending Oklahoma's fruit and vegetable growing seasons. In addition, mission participants also were introduced to Israeli technologies for waste water purification and utilization. The group's touring of farms was augmented by visits to Israeli boutique wineries, a local sector that stands to benefit significantly from Israeli innovations in that sector. An OKIE winery tour for Oklahoma vintners is currently planned for the fall of 2010. The OKIE visit was coordinated by Atid, EDI (http://www.atid-edi.com), a Jerusalem based consulting firm that represent's Oklahoma's trade interests in Israel and the region at large.

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2.2 Israel's Medical Device Market

Research and Markets (http://www.researchandmarkets.com) announced the addition of the "The Medical Device Market: Israel" report to their offering. Israel has the largest medical device market in the Middle East region and this is set to grow at an attractive rate of 6.1% in the medium term. Much of the market, at over 80%, is supplied by imports, and a significant portion of these in value terms are dominated by "high-end" products falling under the diagnostic imaging apparatus category. In terms of expenditure, Israel spends around 8.0% of total GDP on healthcare and per capita spending rates are considered high by regional and world standards. Much of spending is in the public sector and the government has made allowances in recent years to expand the number of services and treatment offered by public health insurance programs. The country also has a rapidly growing elderly demographic that is contributing to rising healthcare costs.

As well as being a political ally, the US is one of the leading suppliers of imports, along with Germany; the two countries shipped a combined total of $292.1 million, equal to just under half of total imports in 2007. The EU and the US are vital trade partners for Israel. Thanks to a substantial domestic production capacity, Israel exported over $1 billion worth of goods in 2007, primarily diagnostic imaging equipment, which was responsible for over half the total. The report estimates the medical device market in Israel to be worth $661 million in 2009, equal to $89 per capita. The market is expected to experience annual growth of 6.1%, taking it to $889 million, or $110 per capita, by 2014. (R&M 02.11)

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2.3 Masonite Announces Acquisition of Israeli Steel Security and Safety Entry Door Business

Mississauga, Ontario's Masonite, a world leader in interior doors and entry door systems, announced its acquisition of the assets of 7 Tech, an Israeli-based steel security and safety door business. Masonite's Israeli subsidiaries Etz Karmiel and Open Gallery will add the 7 Tech steel security and safety doors, with their attractive modern and European styling, to the company's extensive interior and exterior wood door collection, thus creating a single source of supply for Masonite customers in Israel. In addition to its growing Israeli market position, 7 Tech currently exports its products to Europe, and Masonite intends to expand the export opportunities throughout the Middle East and Europe. Masonite is a leading global manufacturer of residential and commercial doors, committed to providing the highest value door products to our customers in more than 70 countries around the world. (Masonite06.11)

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2.4 Eltek Receives AS-9100B Quality Certification for the Aerospace Industry

Eltek has received AS-9100B quality certification for the aerospace industry. The NQA certification has become essential for many companies in the aerospace industry and our receipt of this certification will provide us with an opportunity to increase our potential customer base. Eltek is now certified to manufacture and sell flex-rigid, flexible, multilayer and double-sided printed circuit boards to the worldwide Aerospace industry. The AS-9100B certification in combination with the Company's US Department of State ITAR approval (a set of US government regulations that controls the export and import of defense-related material and services) enhances Eltek's ability to sell its circuitry solutions to US defense customers. Petah Tikva's Eltek (http://www.eltekglobal.com) is Israel's leading manufacturer of printed circuit boards, the core circuitry of most electronic devices. It specializes in the complex high-end of PCB manufacturing, i.e., HDI, multilayered and flex-rigid boards. Eltek's technologically advanced circuitry solutions are used in today's increasingly sophisticated and compact electronic products. (Eltek02.11)

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2.5 Discretix Named to Deloitte Israel Technology Fast 50 for Second Consecutive Year

Discretix has been named to the 2009 Deloitte Israel Technology Fast 50, the ranking of the 50 fastest growing technology companies in Israel. Discretix has enjoyed a five-year growth record of 212%, fueled by business from existing customers along with a host of new business wins in the past year. 2009 marks the second consecutive year Discretix has attained the Deloitte Israel Technology Fast 50. Discretix earned its way into its second consecutive Deloitte Israel Technology Fast 50 due to another round of high-profile design wins; among the customers awarding contracts this year were Intel, HTC and LG. Deloitte, a leading international professional services firm, sponsors the annual Technology Fast 50, among the most well-known technology award programs. The program honors business growth, technological innovation and Israeli entrepreneurial spirit. Inclusion in the Technology Fast 50 is based on a company's percentage growth record over the previous five years.

Kfar Netter's Discretix' (http://www.discretix.com) security solutions are deployed in a wide range of consumer electronics devices enabling services and applications, while protecting the device and its contents. Discretix' products include embedded security co-processors and a broad range of security applications. The solutions are tightly integrated into the device, enhancing security without compromising the user experience. Discretix, a privately-owned company, serves the needs of some of the world's best-known semiconductor and device manufacturers and has been consistently ranked among the leaders of the embedded security market. (Discretix09.11)

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2.6 InfoGin Ranked 6th Among Deloitte's Technology Fast 50 Winning Companies in Israel

InfoGin announced that the company has ranked 6th among the Deloitte Technology Fast 50, a ranking of the 50 fastest growing technology companies in Israel. Achieving sustained revenue growth of 1,723% over five years is a tremendous accomplishment for a technology company operating in a competitive world. This is the third consecutive year in which InfoGin is being awarded in the Deloitte Fast 50 program, honoring the 50 fastest growing companies in Israel. InfoGin's commercial customers span the entire globe and include top tier mobile operators, content providers and Internet mega players. InfoGin recently opened a US subsidiary and intends to expand its business activities in North America, continuing our steady growth and increasing our market share year after year. In the near future, InfoGin plans to introduce revolutionary technology to be launched with smartphone devices such as the iPhone. Kfar Saba's InfoGin (http://www.infogin.com) is the leading provider of a complete range of online mobile solutions, enabling operators and content providers to retain full control over the mobile service ecosystem, expand service offerings, increase revenues and reduce costs, retain and build subscriber loyalty. With over nine years of research & development, InfoGin is entirely focused on how to deliver the real Web's richness to the mobile space. InfoGin's unique set of solutions ranges from the market leading content & functionality adaptation solution, traffic acceleration & optimization, and content overlay enabling mobile operators to capture smartphone users and promote premium services. (InfoGin 02.11)

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2.7 Telmap Named 10th Fastest Growing Technology Company in Deloitte Israel Technology Fast 50 Awards

Telmap announced that it has been ranked 10th in Deloitte's 2009 Israel Technology Fast 50. Telmap (http://www.telmap.com) is a world leader in location solutions. The company has established a solid reputation for providing its customers with innovative, value added mapping and navigation solutions that open new business opportunities and generate new revenue streams. Telmap has a unique end-to-end solution including a mobile location companion, a complementary web companion, robust location platform with a set of APIs to support its customers in delivering a strong LBS strategy. The company's flagship product, Telmap5 is the world's first personalized location companion integrating innovative and patented technologies including Telmap Active Interface, Telmap Active Search and Telmap Active Widgets. Telmap is the #1 choice of location solution and its technology has been selected by leading industry players Orange FT Group, Vodafone, Vodacom, SFR, O2, AOL, Pelephone, Carphone Warehouse and more. (Telmap 09.11)

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2.8 Mellanox Ranked 20th Fastest Growing Company on Deloitte's 2009 Israel Technology Fast 50 Program

Mellanox Technologies announced that it ranked number 20 on Deloitte's 2009 Israel Technology Fast 50 Program, Deloitte Brightman Almagor Zohar's ranking of 50 of the fastest growing technology companies in Israel. Rankings are based on the percentage of fiscal year revenue growth during the five year period from 2004–2008. Mellanox grew 432 percent during this period. Making the Deloitte Technology Fast 50 is a testament to a company's commitment to technology. With its 432% growth rate over five years, Mellanox Technologies has proven that its leadership has the vision and determination to grow in difficult conditions. Yokneam's Mellanox Technologies (http://www.mellanox.com) is a leading supplier of end-to-end connectivity solutions for servers and storage that optimize data center performance. Mellanox products deliver market-leading bandwidth, performance, scalability, power conservation and cost-effectiveness while converging multiple legacy network technologies into one future-proof solution. For the best in performance and scalability, Mellanox is the choice for Fortune 500 data centers and the world's most powerful supercomputers. (Mellanox 02.11)

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2.9 Weizmann Institute Remains Among World's Best

Globes reported that the Weizmann Institute of Science has been ranked the second best scientific institutions outside the US in which place to work by "The Scientist" Best Places to Work: Academia - Top 10 International Academic Institutions for 2009. Germany's Max Planck Institute of Molecular Cell Biology and Genetics topped this year's rankings. The Weizmann Institute is maintaining its standing; it has twice been ranked number one, and last year was followed by the Hebrew University of Jerusalem. The rankings are based on a survey of 2,350 readers. The annual rankings are based on several weighted categories, including collaborations, teamwork, and obtaining unique funding sources. "The Scientist" also notes figures for the academic institutions in the rankings, which underscore the differences between them, irrespective of proximity in rankings. Number two Weizmann Institute has a quarter of the full-time science researchers that the Max Planck Institute has (106 to 400). The Weizmann Institute has $16 million in government, while Max Planck Institute has $28 million. The Weizmann Institute has 4,553 papers published in the life sciences, while Max Planck Institute has 21,819 papers. The Weizmann Institute beats the Max Planck Institute in citations per paper, however, 29.76 to 28.43. In "The Scientist's" Top 15 US Academic Institutions, Princeton University was ranked the best place to work. It has 2,034 full-time researchers in the life sciences, $42 million in US federal funding, and published 3,437 papers in the life sciences, which had 33.4 citations per paper. (Globes 05.11)

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2.10 Synfora Signs Satris Group as Israeli Distributor

Mountain View, California's Synfora, a leading provider of high level synthesis tools for integrated circuit and system designers of large, complex processing applications, has appointed Satris Group as its distributor to electronics companies in Israel. Satris will provide sales, marketing and technical support for Synfora's PICO High Level Synthesis Platform products. The PICO High Level Synthesis Platform provides designers with productivity gains by creating application accelerators from an untimed C algorithm at the highest level of abstraction. "Israeli designers are among world leaders in algorithm development, and we are noticing a growing demand for the highest productivity and the best quality of results at higher levels of abstraction," said Simon Napper, president and CEO of Synfora. "Satris is known for its in-depth knowledge of the Israeli market coupled with wide-ranging technical expertise; they are ideal partners to support Synfora products in our growing customer base in Israel." Satris is the leading distributor of electronic design automation (EDA) products and advanced services in Israel, providing sales, marketing and technical support services for the products it represents. The company was set up by a group of EDA veterans with a deep knowledge of the Israeli market, its customers and its needs. (Synfora05.11)

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3: REGIONAL PRIVATE SECTOR NEWS

3.1 CRA International Advises Jordan on Major Gas Development Agreement

Boston's CRA International, a worldwide leader in providing management, economic, and financial consulting services, announced that the Company advised the National Petroleum Company of Jordan in the structuring and negotiation of an agreement that will allow BP plc to explore and potentially develop gas resources in the Risha concession in northeast Jordan. The project agreement, signed in Amman on 25 October 2009, will be submitted to the Jordanian Parliament, and subject to its approval, passed into law. The Risha field currently produces approximately 21 million cubic feet a day of gas. The reservoir's complex "tight gas" geological structure poses development and production challenges that will likely result in extraction costs being far higher than a conventional gas project. BP, which has substantial expertise in managing tight gas fields around the world, is seeking to bring its advanced technology and considerable expertise to the Risha development. If BP's exploration program identifies commercially producible gas reserves, production could potentially reach several hundred million cubic feet per day. CRA provided commercial advice to the National Petroleum Company (NPC) to develop a project agreement that enabled BP to successfully conclude a farm into the Risha project whilst maintaining the integrity of NPC's existing concession. (ODA05.11)

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3.2 Shaw Awarded Ethylene Plant Expansion Project in Turkey by Petkim

Baton Rouge, Louisiana's The Shaw Group has been awarded a contract by Petkim Petrochemical Holding to provide engineering and procurement services and additional study work for an ethylene plant capacity expansion in Aliaga, Turkey. Shaw built the original 300 kTA plant in 1986 and performed basic engineering for the previous capacity revamp to 520 kTA in 1999. The new expansion will increase ethylene production capacity by approximately 10%. The undisclosed value of the contract will be included in the Energy & Chemicals segment's backlog of unfilled orders in Q1/10. An established leader in ethylene technology, Shaw has provided technology, design, engineering and/or construction for more than 120 plants with a worldwide reputation for exceptionally high operational reliability, rapid startup and superior performance. Since 1990, Shaw technology has been selected for 35% of the world's ethylene capacity increases. Currently, Shaw is providing technology and EPC services for several other major olefins projects worldwide. (Shaw05.11)

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3.3 Organic Farming and Organic Products in Greece

Research and Markets (http://www.researchandmarkets.com) announced the addition of "Organic Farming and Organic Products in Greece 2009" to their offerings. This study considers the sector of organic foodstuffs and mostly focuses on organic olive oil, organic wine and organic citrus fruit. The Greek sector of organic foodstuffs has shown continued growth. In Greece, the organic means of production started to be used in the beginning of the 1980's when certain farmers shifted toward this direction and rejected chemical inflows. In 1993, the implementation of Community Directive 2092/91 in our country significantly motivated the conversion of many conventional type of cultivations into organic. In addition, the institution of the specific regulation created a Community framework with production, labeling and control rules which protect agriculture with organic methods - at the extent that this framework ensures fair competition between producers and impedes no-name products from entering the organic market. What is more, it provides transparency in every production and processing stage. In 1996, financial aids -through the implementation of EEC Regulation 2078/92- came to further boost organic agriculture by increasing the number of organic farmers and organically-cultivated areas. (R&M 09.11)

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3.4 AES Solar Energy Closes on €25 Million Financing for Its First Photovoltaic Project in Greece

Arlington, Virginia's AES Solar Energy, a joint venture between The AES Corporation and Riverstone Holdings, announced that one of its subsidiaries closed a €25 million non-recourse debt facility for the Iktinos project, a 4.3 MW photovoltaic (PV) facility located in Florina, Greece. The loan was extended by Landesbank Baden Wurttemberg (LBBW) of Germany in several tranches including an 18 year term tranche and three shorter term tranches. The financing has been syndicated to one other bank. When completed, the project will be the largest solar PV installation in Greece and will provide enough renewable electricity to power over 400 homes. The project is expected to reach commercial operation in early 2010. It qualifies for the favorable regulated tariff under the Renewable Energy Sources Law 3468/2006 ("RES Law") as well as a capital subsidy to support eligible project expenditures. This financing represents the largest project financing completed in Greece for solar installations to date. (AES09.11)

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4: CLEAN TECH & ENVIRONMENTAL DEVELOPMENTS

4.1 Yissum & BrightSource Agree to Develop New Materials for Solar Power Plants

Yissum Research Development Company of the Hebrew University of Jerusalem signed two research agreements with BrightSource Industries Israel (BSII) for the development of new materials for solar thermal power plants. Under the agreement, BrightSource will fund research in the laboratories of professors at the Institute of Chemistry at the Hebrew University of Jerusalem. This research collaboration is based on the knowhow of Yissum and BSII. In addition to payment of research fees, BSII will compensate Yissum upon the successful implementation of the technology in its solar power plants. Financial terms were not disclosed. The new materials may be integrated in the solar thermal power plant technology developed by BSII and implemented in new utility-scale power plants worldwide. The BSII technology generates electric power from solar energy by using a field of mirrors to reflect sunlight onto a boiler mounted atop a central tower (LPT- Luz Power Tower), where water is converted to superheated steam that drives a turbine generator.

Yissum Research Development Company of the Hebrew University of Jerusalem (http://www.yissum.co.il) was founded in 1964 to protect and commercialize the Hebrew University's intellectual property. Products based on Hebrew University technologies that have been commercialized by Yissum currently generate $1.2 billion in annual sales. BrightSource Energy (http://www.brightsourceenergy.com) provides clean, reliable and low cost solar energy for utility and industrial companies worldwide. BrightSource Industries (Israel) is a wholly-owned subsidiary of BrightSource Energy. The company, located in Jerusalem, is responsible for the development of solar thermal technology, plant engineering, and the design, engineering and supply of the solar fields for all of the BrightSource plants. These plants utilize innovative technologies based on the proven concept of high-temperature, direct steam generation, which turns a conventional turbine for the production of electricity. Since June 2008, the company has been operating the Solar Energy Development Center (SEDC) at Rotem, in the Negev desert. This operational solar field is comprised of more than 1,600 heliostats and a 60 meter tall tower topped by a 15 meter tall solar boiler. (Yissum01.11)

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5: ARAB STATE & PAKISTANI DEVELOPMENTS

5.1 UAE & Saudi Among US' Top Arms Buyers In 2009

U.S. government-to-government arms sales rose 4.7% to a record $38.1b last year and are expected to total almost as much in 2010, according to the Pentagon. The top buyers in fiscal 2009 were the UAE ($7.9bn), Afghanistan ($5.4bn) and Saudi Arabia ($3.3bn), followed by Taiwan ($3.2bn), Egypt ($2.1bn), Iraq ($1.6bn), NATO ($924.5m), Australia ($818.7m) and South Korea ($716.6m). Demand is booming, fed in part by regional tensions fanned by nuclear and ballistic missile programs in Iran and North Korea. In September, for example, the Pentagon told Congress of a possible sale to Turkey of the most modern model of its Patriot anti-missile missile in a package valued at up to $7.8bn. Many if not most of the sales pacts signed in fiscal 2009, which ended Sept. 30, are part of a boom in conventional weapons sales that started under former president George W. Bush. The sales are indicative of a drive to strengthen U.S. partners and thus boost U.S. national security. The 2009 tally was up from $36.4b in fiscal 2008 and $23.3b in 2007. Sales are expected to top $37.9b in fiscal 2010. The United States accounted for $37.8b of total worldwide arms sales, which were worth $55.2b in calendar 2008. Italy ranked a distant second with $3.7b in signed weapons deals, or 6.7% of the total, up from $1.2b in 2007, followed by Russia with contracts valued at $3.5b, down from $10.8b in 2007. (Reuters07.11)

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5.2 UAE Retail Report Says Sales Will Grow from $104.14 Billion in 2008 to $142.59Billion by 2013

Research and Markets (http://www.researchandmarkets.com) announced in its Q4/09 United Arab Emirates (UAE) Retail report forecasts that the country's retail sales will grow from $104.14bn in 2008 to $142.59bn by 2013. Key factors behind the forecast are strong underlying economic growth, increasing household consumption, growing acceptance of modern retailing concepts and expatriate wealth. The UAE's nominal GDP was $245.47bn in 2008, with a decline of 3.0% now assumed for 2009 as the economy goes into reverse. The authors predict average annual GDP growth of 4.7% between 2008 and 2013. With the population increasing from 4.7mn in 2008 to an estimated 5.4mn by 2013, GDP per capita is forecast to rise by almost 17% by the end of the forecast period, reaching $60,753. Average household spending power in the UAE stands at $14,400 per annum, according to property consultants Colliers International. Emirati households account for the lion's share of this spending, with an average of $23,000, while 'Western', 'Other Arab' and 'Asian' households have annual spending power of $19,500, $13,500 and $10,000, respectively. While Emiratis actively contributed to retail sales, the buying power of the country's expatriate residents was the major source of success, a study by India-based RNCOS researchers found. Tourism is also a massive factor in stimulating retail growth, with the UAE expecting more than 11mn tourists every year by 2010. Retail sub-sectors showing strong growth over the forecast period include over-the counter (OTC) pharmaceuticals, with sales expected to increase by 64%, from $0.15bn in 2008 to $0.25bn by 2013. Automotive sales are forecast to rise by 33%, from $10.38bn to $13.80bn, during the forecast period; while sales of consumer electronics are predicted to increase from $2.88bn in 2008 to $3.98bn by the end of the forecast period, a rise of 38%. (R&M10.11)

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5.3 Dubai Maps 2020 Olympic Bid Strategy

The committee of the 'Dubai 2020' Working Group, tasked with bringing the Olympic games to the city, held its first meeting on 2 November under the Chairmanship of the Crown Prince of Dubai, Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum. The Group members included several other members of the emirate's political elite, suggesting strong government support for a possible bid. The Japanese cities of Hiroshima and Nagasaki said they were considering bidding for the 2020 Summer Olympics in tandem with a campaign to promote a nuclear-free world. Rome and Venice are reportedly preparing to host the 2020 Summer Olympics. Other cities including Cape Town, Durban and Rabat have also been mentioned as possible candidates. The International Olympic Committee is to announce the 2020 host city in 2013. (BI-ME 03.11)

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5.4 Oman Annual Inflation Retreats to 1.25% in September

On 10 November, Oman's Ministry of National Economy announced that the annual inflation fell to 1.25% in September, after a brief uptick in August, resuming a year-long downward trend. Inflation in Gulf states has dropped sharply from last year's record highs after the global financial crisis and weaker oil prices halted a boom in the world's largest oil producing region. The Omani consumer price index (CPI) stood at 130.1 points in September, data showed. The annual inflation rate was 1.89% in August. 'The weak dollar is jacking up landed cost of imported food materials from Europe. However, moderation in rent and other services is holding the CPI from going sharply up. The annual inflation rate in Oman, which pegs its currency to the US dollar, peaked at almost 14% last year but has steadily retreated as oil prices fell from record peaks in July 2008. Oman's food, beverage and tobacco index, which has the largest weight in the overall CPI index, rose to 152.6 points in September from 151.6 points in the previous month. The rent component edged up to 141.2 points in September from 140.5 points, government data showed. The base year for the index is 2000. The International Monetary Fund expects the non-Opec oil producer to register inflation of 3.3% this year and 3.0% in 2010, well below the 12.6% seen in 2008. (MNE10.11)

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5.5 Foreign Firms Eye Oman Power Plant Plans

Foreign and local companies including General Electric Co, Mitsubishi Corp and AES Corp are interested in bidding for two power plant projects in Oman due to be tendered in December as the Gulf Arab state looks to boost generation capacity. Oman's tender board also said it had set a 7 December deadline to bid for the plants, which will provide power for projects ranging from petrochemicals to airports. Urbanization and years of growth have put Oman's existing grid under strain and prompted moves by authorities to recruit private sector investment alongside its own. Bank Muscat, the projects advisor for the state-run Public Authority for Electricity and Water, said in a report to be distributed to prospective bidders that the government would sign a 15-year power purchase agreement with investors. The build, operate and finance contracts would cover the Barka phase three and Sohar phase two power plant, where the government is planning new projects worth $12b in the industrial zone. Other firms to have shown interest include Suez Tractebel, part of France's Suez Energy International, Hyundai Heavy Industries, Galfar Engineering and Siemens. The government plans to announce the preferred bidders by February 2010 with both plants scheduled to be operational by May 15 2012. Gulf Arab oil exporters have amassed enormous surpluses from an oil price rally that started in 2002 and enabled them to invest in infrastructure at home, including power, healthcare and transportation. Non-OPEC oil producer Oman is investing heavily in electricity projects to meet demand which is growing by about 15% annually. Consumption up to June 2009 reached 3,600 megawatts, 16% more than the same period in 2008. So far the private sector operates power plants with a total capacity of 2,500 megawatts. The total cost of building these plants cost the private sector some 700 million rials ($1.8bn). (Reuters08.11)

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5.6 Saudi to Phase Out Water Intensive Crops

Saudi Arabia reportedly plans to phase out production of all water intensive crops that have depleted the desert kingdom's scarce water supplies, according to Saudi Minister of Water & Electricity Abdullah bin Abdul Rahman Al Husayen. The crops include wheat, soya beans and animal fodder, he said, declining to comment on when the crops will be phased out. Agriculture accounts for 66% of human water consumption worldwide, according to the World Water Council. In Saudi Arabia where the resource is already scarce, the government is towards more conservation in the agriculture sector. The kingdom needs around 2.6 million tonnes of wheat annually and the government said last year it would rely entirely on wheat imports by 2016. Like other wealthy Gulf states Saudi Arabia has been buying foreign farmland in Asia and Africa to secure food supplies after inflation had nearly doubled the price of food last year. So far foreign investors have acquired some 15-20 million hectares of farmland in poorer countries since 2006, according to the International Food Policy Research Institute. (Reuters 07.11)

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5.7 Egypt Inflation Exceeds Forecasts at 13.3%

Urban consumer inflation in Egypt rose to 13.3% in the year to October compared to 10.8% in September, the state statistics agency reported on 10 November, a bigger jump than analysts had forecast. The central bank started publishing its core inflation figure last month, saying it was 6.3% in September. On an annual basis, food prices rose by 22.2% in October, up from 17.4% in September, and were also up 2.6% from last month. The government said last month its target for core inflation was 6-8% and said it did not want to take any policy action that would curb growth which the government said was expected to be around 5% in the financial year 2009/10. The central bank has not announced its "comfort zone" for inflation. (DNE10.11)

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5.8 Morocco's 2009 Health Budget Programmed to Increase by 20%

Research and Markets (http://www.researchandmarkets.com) has announced the addition of the "The Medical Device Market: Morocco" report to their offering. Morocco has enjoyed nine years of consecutive economic growth since 2000 and the economy averaged an annual growth rate of 4.7% between 2004 and 2008. The government has embarked on a major overhaul of the health sector, following two decades of under-funding and mismanagement. In addition to the modernization and upgrading of existing facilities, the Ministry of Health's development program includes the provision of three new teaching hospitals in Fez, Marrakech and Oujda. Implementation of a long-awaited universal health insurance scheme, which finally began in 2005, is expected to provide substantial additional funding for the health sector. Initially aimed at salaried workers, the scheme has been expanded to cover the self-employed, while 2009 will see the extension of a pilot scheme for those on very low incomes.

In 2009, the health budget is programmed to increase by 20% in part to fund improved access to health services, particularly in rural areas. Spending on services and supplies is set to rise by 16.6% following a 72.5% increase in 2008, whilst capital investment will increase by 17.7%. In September 2008, a revised list of reimbursable medical devices was published. The new list increases the number of devices reimbursable under the universal health insurance scheme from 172 to 869. After a three-year period of stagnation, the medical market registered significant growth in 2003 and 2004 and is on course to reach $147 million in 2009. However, per capita medical device spending remains low at less than $5 and there is considerable potential for further expansion. The local medical device manufacturing industry remains at an embryonic stage, leaving most sectors of the market reliant on foreign imports, which totaled $124 million in 2007. (R&M06.11)

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5.9 The Pharmaceutical Market: Morocco

Research and Markets (http://www.researchandmarkets.com) "The Pharmaceutical Market: Morocco" reports that Morocco has entered a new phase of development with the adoption of a modern legal framework for the pharmaceutical sector. The government has embarked on a major overhaul of the health sector, following two decades of under-funding and mismanagement. In addition to the modernization and upgrading of existing facilities, the Ministry of Health's development program includes the provision of three new teaching hospitals in Fez, Marrakech and Oujda. The national health insurance scheme launched in 2005 is expected to provide substantial additional funding for the health sector. Initially aimed at salaried workers, the scheme has been expanded to cover the self-employed. The CNSS, which operates the scheme in the private sector, recently announced that it would be extending cover to ambulatory care in addition to hospital treatment. A health insurance scheme for those on very low incomes is still in the early stages of implementation and is now not expected to be rolled out on a national basis until 2010. The Ministry of Health has launched an initiative to improve the uneven distribution of healthcare resources through two new planning tools, the health map and the regional strategic plan, which aim to promote greater co-ordination and co-operation between the public and private sectors.

In 2009, the health budget is programmed to increase by 20% in part to fund improved access to health services, particularly in rural areas. Spending on services and supplies is set to rise by 16.6% following a 72.5% increase in 2008, whilst capital investment will increase by 17.7%. In September 2008, a revised list of reimbursable medical devices was published. After a three-year period of stagnation, the medical market registered significant growth in 2003 and 2004 and is on course to reach $154 million in 2009. However, per capita medical device spending remains low at less than $5 and there is considerable potential for further expansion. The local medical device manufacturing industry remains at an embryonic stage, leaving most sectors of the market reliant on foreign imports, which totaled $124 million in 2007. (R&M 09.11)

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5.10 Pakistan's Medical Device Market Is Heavily Supplied by Imports, Accounting for 94% of the Market

Research and Markets (http://www.researchandmarkets.com) has announced the addition of the "The Medical Device Market: Pakistan" report to their offering. Pakistan is one of the world's most populous countries, poverty is rife and standards of living are defined by substandard sanitation, nutrition and widespread incidence of communicable diseases. The healthcare sector is poorly funded by the government and the private sector is only affordable to a small minority of the population. Total spending on healthcare is equal to around 2.6% of GDP, which is considered low by world standards. Hospital and health centre facilities are rudimentary and poorly equipped in the majority of cases. The primary sector is underused and per capita medical personnel levels are low. Surgical instruments make up the bulk of a limited domestic manufacturing sector. This takes place in facilities in the Punjab region of Sialkot and equipment is of a high standard, although the majority is destined for export overseas.

The medical device market is heavily supplied by imports, which account for around 94% of the market. Imports have grown very strongly in recent years, rising by 3.9% in 2007, and more than doubling since 2003. In CAGR terms, growth was 22.7% from 2003-2007. The Pakistan medical device market is small, in value terms, for a country its size, but despite its ongoing socio-political problems, notwithstanding low per capita healthcare expenditure due to widespread poverty, medical device imports have continued to grow very strongly over the last few years, albeit on the back of a relatively small total. Fuelled largely by this import growth, the medical device market is expected to grow strongly, at an average 10.3% in the 2009-2014 period. (R&M 09.11)

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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS

6.1 EU Forecasts 5.8% Contraction for Turkey

Releasing its economic forecast for the autumn period, the European Commission forecasts a GDP contraction of 5.8% for Turkey this year. The report also foresees 2.8% growth for 2010 and 3.6% growth for 2011, well below the country's potential. In its "European Economic Forecast-Autumn 2009" report released on 3 November, the commission noted the devastating effect of the global economic crisis on the Turkish economy last year. Domestic factors, such as increased political uncertainty, a slowdown of reforms and tight monetary policy following the currency crisis in mid-2006 took a heavy toll on the growth dynamics. As the global crisis hit, Turkey was cornered mainly "via the trade and financial channels," the report said. In the last quarter of the year, real GDP contracted by 6.5% in annual terms as exports and investment declined by 8.5% and 17.6% respectively. Global demand shrank fast in sectors such as automotive and white goods. At the same time, "lower private external inflows and decelerating domestic credit" led to a 5.3% annual decline in private consumption, the commission said. "The combined trade and financial shock disrupted activity in the manufacturing sector, causing a 12.6% decline in industrial output in the last quarter of 2008. Overall, real GDP growth slowed to below 1% while investment growth had already turned negative by 5% in 2008." The commission said it also expected private consumption to drop by almost 5% even though this is cushioned by government fiscal incentives. The decline in global demand may lead to a double-digit decline in exports, the report emphasized. The commission forecast that the public debt-to-GDP ratio will rise to over 51% of the GDP in 2011. (Hurriyet 03.11)

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6.2 Cyprus' Deflation Eases in October

Deflation in Cyprus eased in October as consumer prices fell by only 0.8% compared with the same month of the previous year, having dropped by 1.2% year on year in September. Compared with the previous month, consumer prices rose by 1.3% in October, which the Statistical Service said was mainly owing to increases in the prices of certain clothing and footwear items, potatoes and electricity. Decreases were recorded in the prices of petroleum products. For the period January-October 2009, the CPI recorded an increase of 0.1% compared with the corresponding period of 2008. (FM08.11)

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6.3 Greek Construction Activity & Industrial Output Drops

Greek construction activity, measured by the number of new building permits, fell 14.3% year-on-year in August after a 16.9% drop in July, National Statistical Service (NSS) data showed on 9 November. Building activity in the first eight months of 2009 was down 15.7% year-on-year, reflecting the slowdown in Greece's economy. Greece is teetering near its first recession since 1993, hit by the global economic downturn. According to the latest European Commission forecasts, Greece's GDP is seen contracting by 1.1% this year. Separately, Greece's industrial output fell 9.0% year-on-year in September, contracting for the 17th consecutive month, the statistics service said. The NSS said that in the first nine months of the year, industrial production contracted 9.7% year-on-year versus a 3.0% decline during the same period in 2008. (Reuters10.11)

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6.4 Greece Scraps Its "Cash for Klunkers" Plan

The Greek government decided on 2 November to end a car scraping plan in place for older vehicles, while maintaining at high levels the road tax set by the previous government for a large number of cars in conjunction with the withdrawal incentive. At a 2 November meeting, Finance Minister Papaconstantinou and Environment Minister Birbili decided that the measure should be abandoned due to its high costs. As a result, only those who managed to withdraw their cars up until 2 November (some 70,000 owners) will enjoy the benefits of the previous government's measure. This move is certain to raise the objections of sector professionals who had based their business plans on the scheme, as well as sparking complaints from citizens who had heard Papaconstantinou in the last few days say that there would be changes to the measures, but not its abolition altogether.

Car importers and representatives had estimated that about 730,000 car owners would withdraw their vehicles by 2012. Now they will have to keep their cars and additionally pay a high road tax. Papaconstantinou attributed the decision to the heavy burden (some €400 million) the measure would have for the budget, stating that "in these difficult fiscal conditions this measure represents a great cost for the budget without contributing to the boosting of our country's production capacity. This measure serves only to boost imports and therefore exacerbates the current account deficit without supporting domestic growth and employment." The previous government had estimated the cost of the withdrawal measure at €2.5 billion and had expected it to generate some €3.3 billion through sales of new cars. Meanwhile, Birbili said that a plan for environmentally friendly vehicles only being allowed in the city center is also being withdrawn. (Ekathimerini03.11)

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6.5 Brussels to Issue Greece a Fresh Warning

The European Commission is set to estimate Greece's deficit at 12.7% of GDP this year and at 12% next year in its autumn forecasts released on 3 November. Brussels is to send a clear message to Athens that it must illustrate with deeds all its intentions to promote structural measures that will reduce the budget deficit on a permanent basis. The Commission seems reluctant to accept the estimates by Finance Minister Papaconstantinou that the deficit will slide to 9.5% next year and will intimate that the excessive deficit procedure will be much stricter in 2010. At the same time, an EFG Eurobank analysis suggested that the public debt this year will reach 114.6% of GDP before soaring to 126.5% in 2010. "The fiscal problem is now becoming a time bomb which, if not dealt with immediately, will pose a serious threat for the social and economic stability of the country," the report warned. (Ekathimerini03.11)

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6.6 Greece's Competitive Market in Office Furniture

Research and Markets (http://www.researchandmarkets.com) announced the addition of its new report "Office Furniture in Greece 2008." The Greek office furniture market is a rather competitive one. Sector companies, in order to meet the increased needs of modern office spaces, sell products which are constantly changing and improving from an aesthetic and technological point of view, providing new solutions every time. Imported products are increasing in relation to domestically-produced ones. The office furniture sectors key characteristic is the existence of a great amount of small and medium-sized companies and relatively few large companies which, however, are the ones dominating the market. This creates a highly competitive situation in which big sector companies are striving to change and innovate all the time, in order to maintain or expand their market share. The increase in imported furniture is rather evident in the category of office chairs, which entail a much higher labor cost and in which countries with a low labor cost have an advantage. As for office partitions, they are frequently used and can be combined with other office furniture according to the users demands, offering an easy solution that can have multiple uses. (R&M 03.11)

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6.7 Greece's Medical Device Market Estimated at $1.452 Billion

Research and Markets (http://www.researchandmarkets.com) announced the addition of the "The Medical Device Market: Greece" report to their offering. Greece is one of the least affluent members of the European Union, but is still considerably richer than its immediate neighbors. The economist Intelligence Unit estimates GDP to be $335.2 billion in 2009, with a 3.4% fall on the previous year, however returning to average growth by 2011. GDP per capita is projected to be $30,490 per capita in 2009. The medical device market is estimated in 2009 to be $1,452 million, equal to $132 per capita. This is a 15.4% increase on the previous year's total. Greece is showing signs of recovering from the large budget deficit incurred as a result of holding the Olympics in 2004. The deficit has been cut to a forecast of 2.5% in 2007 from the 7.9% recorded in 2004. The government's target is to reduce the deficit to less than 1.6% in 2009.

There are a large number of doctors working in Greece, providing good hospital coverage. Current primary care provision is however weak; increased government investment and spending in this area is a key objective. The majority of hospitals in the public sector are underfunded. Private clinics are well funded but the high value equipment tends to be imported in both public and private healthcare sectors. Imports supply approximately 95% of the domestic market. In 2008, total imports of medical devices amounted to $1,489.5 million, the value of imports increased by 19.1% in 2008 and by a CAGR of 19.0% between 2003 and 2008. (R&M05.11)

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6.8 Bulgarian Central Bank Feels Economy To Grow By Up To 0.5% Next Year

Bulgaria's Central Bank announced on 5 November that Bulgaria's economy will start recovering from recession next year and is expected to grow by up to 0.5%. The forecast came as the budget for next year, which envisages the economy to shrink by 2%, was approved unanimously and without any debates by the economic and financial parliamentary commissions. Central Bank Governor Iskrov said he expected the key driver of growth to be exports, but added it is still to early to track down trends. The government has set a fiscal deficit at BGN 465.7 M or 0.7% of GDP next year but will target a zero gap in a bid to speed up euro zone entry. The budget draft put spending at BGN 26 B and revenues at BGN 26.4 B, which are expected to include BGN 20,900 M in tax revenue and BGN 3,400 M in non-tax revenue. Aid, the main share of which will come from the EU budget, is planned at 2,000 million leva. The government expects the economy to shrink by 2% next year after contracting by 6,3% in 2009. Foreign investments, which collapsed this year from BGN 6,5 B to BGN 3 B, have been penciled in at BGN 3,3 B. (SMN06.11)

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7: GENERAL NEWS AND INTEREST

*ISRAEL:

7.1 Israelis Have 2 Million Friends on Facebook

Globes reported that even as Israel's Twitter community stays fairly small, social networking site Facebook is continuing to expand in Israel, and worldwide. CheckFaceBook, a country-by-country provider of Facebook statistics, reports there are two million Facebook subscribers in Israel, fewer than 1% of the 316 million subscribers worldwide. CheckFaceBook says that 53.8% of Israeli Facebook subscribers are men, and 46.2% are women. The breakdown by age group is as follows: people aged 18-24 constitute 32.4% of subscribers, people aged 25-34 constitute 37.6%, and teenagers aged 14-17 constitute 18.3%. The figures are in line with figures by TIM rating agency. The TIM survey of websites in Israel for September found Facebook in fourth place, with a weekly exposure rate of 57.2%, amounting to 2.1 million hits per week. Facebook's largest markets are in the US, with 94.7 million users, the UK, with 22.2 million users, Turkey, with 14.2 million, and France with 13.3 million. The fastest growing market is Poland, followed by Thailand and Portugal. (Globes 09.11)

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*REGIONAL:

7.2 Hariri Unveils Lebanese National Unity Cabinet

On 9 November, five months after winning Lebanon's parliamentary elections by a narrow margin, Prime Minister Hariri unveiled a newly-formed 30-member national unity cabinet. Consequently, Lebanese President Suleiman - who himself was chosen to fill the role after fierce negotiations in 2008 - declared that former prime minister Fouad Siniora's government was no longer in office and that Hariri would now begin his term as prime minister. Hariri's announcement that Lebanon's rival blocs had reached an agreement to share power came after lengthy internal struggles, negotiations and meetings between top political figures in the country. The breakthrough in negotiations between the factions came after Saudi King Abdullah discussed the Lebanese issue - for years a bone of contention between the two Arab countries - with Syrian President Assad during a visit to Damascus. The cabinet was formed in accordance with a formula which allocates 15 ministers to Hariri's "Future Movement," 10 to the Hezbollah-led, Syrian-backed opposition and five to President Suleiman. Although consensus was reached, the opposition's demand to have veto power in the government was not fulfilled. Two Hezbollah officials were named as ministers in Lebanon's new cabinet. The division of power means that no party will have veto power in the new government.

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7.3 Sheikh Khalifa Re-Elected UAE President

Sheikh Khalifa bin Zayed al-Nahyan was re-elected president of the United Arab Emirates for a second five-year term on 3 November. The Supreme Federal Council, made up of the rulers of the seven emirates in the UAE, selected Sheikh Khalifa. He first rose to the presidency as oil-rich Abu Dhabi's ruler in 2004 on the death of his father, Sheikh Zayed bin Sultan al-Nahyan, who founded the Gulf state in 1971. The federal council designates both the president and vice president. Sheikh Mohammed bin Rashed al-Maktoum, who is also the country's prime minister, defense minister and ruler of Dubai, has served as UAE vice president since 2006. As president, Sheikh Khalifa has supervised economic development, especially in the real estate and tourism sectors. He also heads Abu Dhabi's Supreme Petroleum Council. The UAE is the fourth-largest oil producer in OPEC and has an estimated 97.8 million barrels of petroleum reserves. Abu Dhabi accounts for 90% of oil production in the country. Due in part to Khalifa's conservative economic policies, Abu Dhabi managed to avoid the brunt of the world economic crisis. Sheikh Khalifa is known for his interest in sports, especially horse and camel racing. He funded the repatriation of more than 1,000 Asian and African children who were used before a 2005 ban on child camel jockeys. (BI-ME 03.11)

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8: ISRAEL LIFE SCIENCE NEWS

8.1 Rosetta Genomics Strengthens MicroRNA Intellectual Property Position with Additional Patent

Rosetta Genomics announced that the United States Patent and Trademark Office (USPTO) has issued U.S. Patent No. 7,592,441 to Rosetta Genomics. The patent relates to human microRNA miR-193b, as well as to complementary probes and vectors. This is the third patent issued to Rosetta Genomics by the USPTO. Recently it was shown that down regulation of miR-193b is associated with progression and invasion of human breast cancer (Li et al., Oncogene 2009). In addition to the three issued patents, Rosetta Genomics has received eight Notices of Allowance from the USPTO for patent applications related to human Sanger microRNAs 18b, 20b, 92b, 494, 135b, 527, 196b and 491. Rosetta Genomics has filed more than 20 patent applications worldwide to protect each aspect of its commercial diagnostic products. Many of these applications protect the specific microRNAs used in the company's products. In addition, the company is pursuing more than 50 patent applications to protect methods of detecting microRNAs and methods of diagnosing and treating diseases with microRNAs.

Rehovot's Rosetta Genomics (http://www.rosettagenomics.com) is a leading developer of microRNA-based molecular diagnostics. Founded in 2000, the company's integrative research platform combining bioinformatics and state-of-the-art laboratory processes has led to the discovery of hundreds of biologically validated novel human microRNAs. Building on its strong IP position and proprietary platform technologies, Rosetta Genomics is working on the application of these technologies in the development of a full range of microRNA-based diagnostic tools. (Rosetta Genomics05.11)

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8.2 Compugen Announces Preeclampsia Biomarker Collaboration

Compugen signed a research and license agreement with a leading diagnostic company covering CGEN-226, a novel biomarker candidate for early detection of preeclampsia. Preeclampsia is the most common of the dangerous pregnancy complications, occurring in 5-8% of all pregnancies, with potentially very serious effects for both the mother and the fetus. For competitive reasons, the diagnostic company requested that their identity not be disclosed. At present, attempts at early diagnosis of preeclampsia rely largely on symptoms which are non-specific to the disease. If the condition is not recognized, and the pregnancy is left to continue to full term, the disease will progress to eclampsia, often resulting in seizure, coma and mortality. Therefore, diagnosing preeclampsia in the early stages of a pregnancy is a field of high interest to the medical community and diagnostic industry.

CGEN-226 is a soluble splice variant of the vascular endothelial growth factor (VEGF) receptor 1 gene. This previously unknown splice variant was predicted and selected through the use of Compugen's in silico modeling of the human transcriptome and proteome for the discovery of novel molecules for diagnostic and therapeutic uses. Following its in silico prediction and selection, CGEN-226 was validated experimentally, and patent applications covering this novel splice variant were made for various diagnostic and therapeutic applications.

Tel Aviv's Compugen (http://www.cgen.com) is a leading drug and diagnostic product candidate discovery company. Unlike traditional high throughput trial and error experimental based discovery, Compugen's discovery efforts are based on in silico (by computer) prediction and selection utilizing a growing number of field focused proprietary discovery platforms accurately modeling biological processes at the molecular level. The resulting product candidates are then validated through in vitro and in vivo experimental studies and out-licensed for further development and commercialization under various forms of revenue sharing agreements. (Compugen05.11)

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8.3 Foamix Expands International Patent Protection for its Emollient Foam Platform

Foamix has been awarded Mexican Patent Registration No. 268451 entitled "Cosmetic and Pharmaceutical Foam." The patent covers Foamix's vehicles, compositions and cosmetic and pharmaceutical uses thereof based on the company's Emollient Foam technology platform. Claimed uses include the treatment of bacterial, fungal and viral infections, inflammatory conditions, and many other dermatological and mucosal disorders, including vaginal disorders. Foamix expends significant resources on protecting its intellectual property. To date, Foamix has seventeen issued patents worldwide covering its foam and OilGel technology platforms and in excess of 150 pending applications of which more than a third are filed in the United States. Rehovot's Foamix (http://www.foamix.co.il) is a leading developer of topical and mucosal foams for dermatological and gynecological applications. Foamix's state-of-the-art foams provide controlled delivery of a variety of active ingredients. Foamix is currently collaborating with pharmaceutical and cosmetic companies on a plurality of projects in the development of proprietary dermatological and gynecologic foam drugs. Additionally, the Company has an in-house pipeline of dermatological and gynecological drugs in foam presentation. (Foamix 04.11)

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8.4 Compugen Announces Discovery of Genetic Biomarker for Predisposition to Type 2 Diabetes

Compugen announced the discovery and experimental confirmation of a genetic biomarker, CGEN-40001 for predisposition to type 2 diabetes, the most common form of diabetes. This new biomarker was discovered using Compugen's GeneVa platform, which consists of an in silico database of approximately 350,000 predicted genetic variations in the human genome, with each predicted variation consisting of multiple consecutive nucleotides. Predisposition markers are of particular value in diseases like type 2 diabetes, where specific lifestyle and health factors are known to play an important role. From the approximately 350,000 multiple nucleotide genetic variations predicted by the GeneVa platform, a very small set of variations was selected as being potentially related to type 2 diabetes in Caucasians. This very small set, consisting of only 135 variations, was then tested in a genotyping experiment. In this study, CGEN-40001, a novel 15bp insertion in PFKP (a key regulatory enzyme in glycolysis), demonstrated the predicted correlation with type 2 diabetes in Caucasians. This correlation was then validated in a second study based on an independent set of samples. According to the two studies performed by Compugen, approximately 15% of the Caucasian population has at least one copy of this insertion. Furthermore, the studies showed that the presence of this insertion increases the risk of type 2 diabetes by 50-80%.

Tel Aviv's Compugen (http://www.cgen.com) is a leading drug and diagnostic product candidate discovery company. Unlike traditional high throughput trial and error experimental based discovery, Compugen's discovery efforts are based on in silico (by computer) prediction and selection utilizing a growing number of field focused proprietary discovery platforms accurately modeling biological processes at the molecular level. The resulting product candidates are then validated through in vitro and in vivo experimental studies and out-licensed for further development and commercialization under various forms of revenue sharing agreements. (Compugen09.11)

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8.5 BrainStorm Stem Cell Therapy Treatment More Effective Than Other Current Potential Treatments

BrainStorm Cell Therapeutics announced that the company's therapeutic approach for treating neurodegenerative diseases was shown to be superior to other current potential stem cell treatments. A scientific paper published in the Israel Medical Association Journal shows the migratory capacity of Neurotrophic Factor Stem Cells (NTF-SC) in animal models of Parkinson's disease and Huntington disease. The study demonstrated that in a rat model for Parkinson's disease, the efficacy of NTF-SC was superior to that of mesenchymal stem cells in terms of behavioral, biochemical and histological indices. Petah Tikva's BrainStorm Cell Therapeutics (http://www.brainstorm-cell.com) is an emerging company developing adult stem cell therapeutic products, derived from autologous (self) bone marrow cells, for the treatment of neurodegenerative diseases. The technology allows for the differentiation of bone marrow-derived stem cells into functional neurons and astrocytes, as demonstrated in animal models. The Company holds rights to develop and commercialize the technology through an exclusive, worldwide licensing agreement with Ramot at Tel Aviv University Ltd., the technology transfer company of Tel-Aviv University. The Company's current focus is on ALS, although its technology has promise for treating several other diseases including MS, Huntington's disease and stroke. (BrainStorm 09.11)

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9: ISRAEL PRODUCT & TECHNOLOGY NEWS

9.1 Orckit-Corrigent Signed with Scandinavian Service Provider to Upgrade Metro Area Networks

Orckit-Corrigent announced that a leading Scandinavian telecommunication service provider, has chosen Orckit-Corrigent's CM-4000 MPLS product portfolio to enable services migration and expansion for residential, enterprise and mobile subscribers. Tel Aviv's Orckit (http://www.orckit.com) facilitates telecommunication providers' delivery of high capacity broadband residential, business and mobile services over wireline or wireless networks with its Orckit-Corrigent family of products. Orckit-Corrigent's product lines include Carrier Ethernet + Transport (CE+T) switches - an MPLS based portfolio enabling advanced packet as well as legacy services over packet networks with a wide set of transport features, and Personalized Video Distribution systems - an advanced video distribution portfolio, optimized for IPTV, enabling multiple HD streams per home. Orckit-Corrigent markets its products directly and indirectly through strategic alliances as well as distribution and reseller partners worldwide. (Orckit02.11)

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9.2 YCD Multimedia Revolutionizes Retail with the Launch of its Real-Time Ad Management Platform

YCD Multimedia is once again transforming the way retailers communicate with their customers with the release of YCD|RAMP (Real-Time Ad Management Platform). Developed to address the real needs and challenges of retailers and marketers, YCD|RAMP introduces a unique, simple and seamless platform for the production, distribution and optimization of in-store digital media campaigns, maximizing campaign impact and reducing time-to-market. YCD|RAMP is an in-store digital media campaign management platform that emulates the real workflow between a retailer, their agency and their suppliers. In real-time, a new digital campaign can be uploaded by the ad agency or production house, approved by the corporate headquarters and distributed to screens at all or any subset of the retailer's locations. With the built in content creation tool a regional office, or individual store can customize and generate their own promotions to suit their local needs from a library of pre-approved templates. Customized approval settings ensure all campaigns receive proper review and follow corporate branding guidelines. When fully integrated with the retailer's point-of-sale system YCD|RAMP will complete the information loop by allowing for analysis and reporting on the success of each campaign and using that data to optimize the campaign, in real-time, for maximum impact and return on investment.

Kibbutz Shefayim's YCD Multimedia (http://www.ycdmultimedia.com) provides marketers with a set of tools to manage, distribute and target digital media into the retail environment. From large format displays that promote products based on real-time inventory levels, to small shelf level interactive displays, YCD's flexible platform can help retailers ensure a measurable impact on their business. YCD's end-to-end offering combines strategy, professional services and technology to increase profits, optimize product mix and enhance the customer experience. (YCD04.11)

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9.3 Altair Semiconductor Announces Immediate Availability of LTE USB ExpressCard

Altair Semiconductor announced the immediate availability of its FourGee LTE USB ExpressCard UE (User Equipment). Altair's FourGee ExpressCard UE is the industry's first LTE Category 3 ExpressCard, supporting download speeds of 100Mbps and upload speeds of 50Mbps. The early availability of the product gives carriers, system vendors and terminal manufacturers the unique opportunity to use small form UEs for FourGee product trials and development. The company's ExpressCard launch comes on the heels of the commercial availability of Altair's recently announced LTE baseband processor and LTE RF transceiver. In addition to being a trial and interoperability testing (IOT) tool, the FourGee LTE USB ExpressCard UE platform is also a reference design for terminal manufacturers working to develop commercial products based on the FourGee family of LTE chips. The product is already in use by select eNB vendors and wireless carriers in trials. Hod Hasharon's Altair Semiconductor (http://www.altair-semi.com) is the world's leading developer of ultra-low power, small footprint and high performance 4G semiconductors. The company's products provide device manufacturers integrating any 4G technology into their products with a highly power-optimized, robust and cost-effective solution. Altair's comprehensive product portfolio includes baseband processors, multi-band RF transceivers for both FDD and TDD bands, and a range of reference hardware and product level protocol stack software. (Altair 04.11)

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9.4 Portugal Telecom Selects ClickSoftware for Optimized Workforce Management

Portugal Telecom (PT), a global telecommunications operator and Portugal's largest company, has chosen a range of software solutions from ClickSoftware Technologies. The technology will help the company protect market share in its traditional telecoms business, support its rapidly expanding operations in broadband, IP television (IPTV) and cellular services and achieve its ambitious targets for the rollout of fiber to the home. Portugal Telecom is seen as one of the most innovative and integrated companies in the Telco space. As its services have expanded globally and become more technically demanding, PT has decided to implement ClickSchedule, ClickMobile, ClickLocate, ClickAnalyze and ClickPlan to balance the deployment of its field resources with greater accuracy and control across its 35 million residential and corporate customers.

When a customer contacts PT requesting a technician, ClickSchedule will provide the call centre operative with a number of appointment options for the customer to select via the Siebel CRM system. These appointment windows are based upon a number of factors including the skills required of the technician, current work commitments, customer Service Level Agreements (SLAs), customer location and parts availability. ClickSchedule can optimize these variables with far greater efficiency than is possible with a manual system. ClickSchedule communicates with workers in the field and receives work progress updates through ClickMobile, which operates on the technician's handheld devices. This reduces administration and increases time spent on strategic tasks. The mobile application will also work through a validation process for the assignment at hand, like activating and testing the line before a job can be closed off. ClickLocate will provide dispatch staff with a real-time view of PT's technicians, which, as part of a crisis management strategy, will allow them to quickly reallocate staff. ClickAnalyze will provide insight into the performance of the workforce against its strategic objectives for expansion into the quadruple play arena. ClickPlan will help PT match its resource capability with future demand for its services in the medium to long term.

Tel Aviv's ClickSoftware (http://www.clicksoftware.com) is the leading provider of workforce management and service optimization solutions that create business value for service operations through higher levels of productivity, customer satisfaction and cost effectiveness. Combining educational, implementation and support services with best practices and its industry-leading solutions, ClickSoftware drives service decision making across all levels of the organization. (ClickSoftware 09.11)

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9.5 TraceSpan Launches GPON Lawful Interception System

TraceSpan Communications announced the release of its GPON Phantom 3899, a passive Lawful Interception (LI) monitoring solution for optical fiber lines using GPON technology and deployed in an FTTx topology (Fiber to the Neighborhood, Curb, Premises or Home). GPON Phantom is a passive monitoring solution that records and stores broadband digital information on fiber lines using GPON technology. It is intended for Law Enforcement Authorities (LEA) looking to capture the data between the service provider's premises and the target. GPON Phantom allows them to monitor this information without being detected, while providing clear evidence of the tapped information. GPON Phantom adds the unique and revolutionary capability to monitor optical fiber lines to TraceSpan's family of LI products. It follows the company's field-proven monitoring solutions for ADSL, ADSL2, ADSL2Plus and VDSL2 lines, which are widely accepted and are being used by a variety of LEA worldwide.

Ra'anana's TraceSpan Communications (http://www.tracespan.com) develops and manufactures innovative broadband monitoring solutions. Empowered by patent-pending breakthrough technology, TraceSpan's performance analysis and Lawful Interception products enable non-intrusive monitoring of data in broadband networks. TraceSpan's Xpert multi-layer analyzers are accepted worldwide as the industry's first passive analyzers for vendor-independent testing of VDSL2, ADSL2Plus, ADSL2, ADSL and GPON networks. TraceSpan's Phantom product line enables passive monitoring and recording of data in broadband networks, allowing law enforcement agencies to monitor information without being detected, while providing solid evidence of the tapped information. (TraceSpan10.11)

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10: ISRAEL ECONOMIC STATISTICS

10.1 Israel's Raw Materials & Investment Goods Imports Increase

The Federation of Israeli Chambers of Commerce announced that there was a substantial recovery in imports of goods during Q3/09, compared with q2/09. Imports of goods, excluding diamonds and fuel, rose by 12% to $8.6 billion in the q3/09. Imports of investment goods, raw materials and consumer goods all rose. Imports of consumer goods rose by $203 million in the third quarter, or 11.3% compared with the second quarter; imports of raw materials rose by $449 million, or 10.6%; and imports of investment goods rose by $264 million, or 15.4%. The third quarter figures are encouraging, although the figures for January - September 2009 show that imports of goods, excluding diamonds and fuel, fell by 25% compared with the corresponding months of 2008, to $24.6 billion from $32.7 billion. (Globes 01.11)

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10.2 Israel's Average Wage Drops

On 5 November, Israel's Central Bureau of Statistics announced that the average wage for salaried employees fell by 2% in August to NIS 8,086 monthly. Nevertheless, the average salary of Israel Electric Corporation and Mekorot workers, who as usual top the salaries table, fell by more than NIS 600 between July and August. These workers (some 17,400 out of a total workforce of 2.79 million) earned on average NIS 18,401 in August, almost 3% less than the NIS 19,025 July average. Among those who took the sharpest salary falls were financial sector workers, whose average salary was NIS 13,309 in August, 9%, or NIS 1,280, less than the NIS 14,589 July average. The average salary industry fell by a similar proportion, 9%, from NIS 11,957 in July to NIS 10,847 August. (Globes 05.11)

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10.3 Number of Israel's Working Poor Grows

The 2008 Poverty Report, released by the National Insurance Institute of Israel on 2 November, indicates that the initial fall in the rate of poverty in Israel seen in H2/07 and H1/08 were wiped out in H2/08, because of the economic crisis. The dimensions of poverty in 2008 were the same as in 2007, placing Israel at the head of the ladder of developed countries with especially high rates of poverty, alongside the US and Mexico. According to the data, 420,000 Israeli families lived in poverty in 2008. Poverty affected 1.65 million people, 783,000 of them children.

One aspect of the crisis is the rise in the proportion of poor people who are in working families. In 2008, families in which at least one member is a provider represented 46.3% of all Israel's poor, compared with 45.7% in 2007. Another effect has been a worsening of the situation of poor one-parent families. Although the proportion of such families in the total fell from 29.8% in 2007 to 28.8% in 2008, those already below the poverty line became poorer. This is because the difference between the incomes of these families and the poverty line grew from 32.8% in 2007, to 36.9% in 2008. Income from work fell by 4% in real terms, while the average number of wage-earners per family fell by 1.7%. The situation of old people remained stable between 2007 and 2008, and even improved slightly according the measure of depth of poverty. The reason for this may have been a rise in welfare allowances for the old under coalition agreements, and a rise in the meager assistance for Holocaust survivors.

Overall, the rate of poverty among the elderly is still high, at 22.7%. The proportion of poor families with 1-3 children fell slightly in 2008, but this was offset by a rise in poverty in larger families. There was also a fall in the incidence of poverty among new immigrant families, but poverty deepened in immigrant families already defined as poor.

The positive news in the report comes from the Arab sector of the population. The incidence of poverty in Arab families in Israel continued to fall, from 54% in 2006, to 51.4% in 2007, and 49.4% in 2008. This fall is attributed to greater integration of the Arabs in the labor market, with a rise of 4% in the number of wage earners in the sector. The proportion of Arabs in the total poor population is still very high, at 33.8%, compared with 34.6% in 2007. (Globes 02.11)

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10.4 New UK & US Carriers Boost Israel's Winter Tourism

Israel Airports Authority predicts an 11% rise in the number of flights to Israel this winter compared with last winter. The winter tourism season officially began on 25 October. One of the main reasons for the increased number of flights and seat capacity is the approval given in recent months to six new carriers to fly to Israel. These carriers are UK companies easyJet and Jet 2, US Airways, Air Berlin and two Russian airlines. An additional reason for increased air traffic to Israel this winter is that foreign airlines have increased their number of weekly flights to and from the country. UK company bmi is the best example of this having introduced two daily flights between Tel Aviv and London in the summer. Other airlines that have significantly increased their number of flights and seat capacity to and from Israel include Lufthansa and Alitalia. In contrast Delta Airlines has reduced its number of flights between Tel Aviv and Atlanta. El Al plans increasing its number of flights during the winter by 8% compared with last winter. There will be a significant increase in the number of El Al flights to the UK and new destinations in Europe will be introduced. Arkia is planning 18 flights a week for the winter, and Israir 10 flights a week. (Globes 10.11)

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11: In Depth

11.1 ISRAEL: Fitch Affirms State of Israel at 'A'/'A+'; Outlook Stable Ratings

On 6 November, Fitch Ratings (http://www.fitchratings.com) affirmed the State of Israel's Long-term Foreign and Local Currency Issuer Default Ratings (IDR) at 'A' and 'A+' respectively with Stable Outlooks. The Short-term Foreign Currency IDR is affirmed at 'F1' and the Country Ceiling at 'AA-'.

"Israel has fared better than many other small, open economies in the recent global economic and financial downturn, suffering only a mild recession compared to rated peers in Europe and Asia," says Paul Rawkins, Senior Director in Fitch's London-based Sovereigns team. "Nonetheless, the downturn has exposed Israel's key vulnerability to shocks, namely a high public debt ratio that looks set to exceed 80% of GDP in the wake of wider fiscal deficits in 2009-10."

Fitch says an improved macroeconomic policy framework, coupled with structural reforms since the last recession in 2001-02, laid the foundations for strong growth in 2004-08, in line with the 'A' median of 5%, rendering the economy markedly more resilient to shocks. With the exception of Bahrain, China and Poland, Fitch expects Israel to be the only country in the 'A' range to escape an outright recession in 2009. This performance is attributed largely to aggressive monetary and exchange rate policies, aided by a relatively trouble-free banking sector and an absence of asset price bubbles. Structurally, Israel's high-tech manufacturing and services sectors have proved unexpectedly resilient to declining global investment demand, presaging a near record current account surplus in 2009.

Israel's high public debt ratio remains the key constraint on its sovereign ratings. The adoption of rules-based fiscal policy in the wake of the last recession has served Israel well; limits on the growth of public expenditure and a ceiling on the state (i.e. central government) deficit facilitated a contraction in general government debt to 78% of GDP at end-2008 from a peak of 100% in 2003. Even so, this ratio remains high relative to the peer group median of 37%, although it is not the most extreme ('A-' rated Greece exceeds 100% of GDP). Moreover, considering the mildness of its recession and an absence of financial sector-related support, the current external shock has taken a heavy toll on the public finances, chiefly on the revenue side. Fitch expects Israel's general government deficit to widen to 6%-7% of GDP in 2009-10, on a par with rated peers Malaysia and the Czech Republic, which have experienced much steeper recessions, while pushing general government debt up to over 84% of GDP by end-2010.

While Israel's experience with fiscal rules has been mixed, the current framework has entrenched fiscal discipline and together with signs of a strong economic recovery, suggests Israel's powerful public debt dynamics could reassert themselves by 2011, forestalling any further deterioration in the public debt/GDP ratio. The government envisages a sharp narrowing in the state deficit to 3% of GDP in 2011 (from 6% in 2009), but still hopes to adhere to tax cuts over the medium term. Fitch expects some revision to the fiscal rules, with greater prominence being given to the Maastricht public debt/GDP ratio of 60% of GDP. From a rating standpoint, a positive rating action would require a decline in the debt/GDP ratio to a level nearer to the 'A' median. Conversely, a prolonged rise in the debt/GDP ratio and/or sustained fiscal easing would prompt a negative rating action.

Externally, the Government of Israel became a net external creditor for the first time in 2008, although it still falls short of 'A' norms on this measure. Burgeoning international reserves - these have more than doubled to $60bn since end-2007 - have been the key factor behind this status change for the sovereign, facilitated by a strong current account surplus and buoyant net capital inflows. The economy as a whole also passed a new milestone in 2008, registering a surplus of external financial assets over liabilities for the first time. Israel expects its standing on the international stage to be further enhanced by OECD membership in the near future. (Fitch06.11)

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11.2 LEBANON: Pharmaceuticals and Healthcare Report Q4/2009

Research and Markets (http://www.researchandmarkets.com) announced the addition of the "Lebanon Pharmaceuticals and Healthcare Report Q4 2009" report to their offering.

We expect total drug spending in Lebanon to increase from under $500mn in 2008 to $605mn in 2013, a compound annual growth rate (CAGR) of 3.9% in US dollar terms, with 1.75% of GDP dedicated to pharmaceutical expenditure by 2013. The Minister of Health, Mohammad Jawad Khalifeh, has held the position since 2005 and has dramatically reformed drug pricing in the country, highlighting the fact that other countries in the region with similar economies were paying significantly less for medicines than Lebanon. Following a lengthy period of pressure, the government finally reduced average pharmaceutical prices by 5%, with the momentum and support gained in the process providing the impetus for other regulatory changes, including the introduction of transparency guidelines.

Public sector health provisions have been scrutinized and challenged by Khalifeh in light of high unmet demand for subsidized services. He said the budget for the Ministry of Public Health in 2005 was only 3.5% of GDP and subsequently the department ran into deficit every year. While a small population will restrict growth, we believe government subsidization will do much to boost the drug market. More affordable prices and access to hospitals will allow people to spend more on medicines instead of forgoing treatment altogether.

Despite the price differences, there is little perceivable demand for off-patent drugs outside of the public healthcare sector. However, the prescribing habits of doctors are a major factor in determining demand. The lack of transparency and registration notification to physicians for new generic drugs exacerbates this problem. While government websites aim to clarify which patented medicines have a generic equivalent in the country, the low exposure of off-patent medicines to the patient is the reason the CAGR for this sector is only 3.85% between 2008 and 2013.

The generic drug sector in Lebanon will experience slow growth over the next five years, largely due to established partnerships between the private sector and the government in determining procurement policies. Critics of the Ministry of Public Health have said that importers and wholesalers in the country cannot profit as much from selling generic medicines as patented - an obvious incentive against ordering cheaper drugs. In this sense, the pharmaceutical industry in Lebanon is not being regulated in favor of the patient.

Another key issue is that the country lacks an internationally accredited drug testing and analysis laboratory, and therefore relies on patented medicines as these are already approved by the US Food and Drug Administration (FDA) or the European Medicines Agency (EMEA). Relying on international regulatory standards is a means of assuring quality if the country does not have the means to do so itself. The expense of reopening a laboratory that closed in 2007 remains off-putting and continues to inhibit progress. However, Lebanon's pharmaceutical sector cannot progress without a centralized drug testing laboratory and as a result is set to remain restricted in terms of drug choice and market growth. (R&M 06.11)

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11.3 KUWAIT: Oil & Gas Report Q4/2009

Research and Markets (http://www.researchandmarkets.com) has announced the addition of the "Kuwait Oil and Gas Report Q4 2009" report to their offering.

The latest Kuwait Oil & Gas Report from BMI forecasts that the country will account for 2.71% of Middle East (ME) regional oil demand by 2013, while providing 10.35% of supply. Regional oil use of 8.24mn barrels per day (bpd) in 2001 rose to 11.25mn bpd in 2008. It should average 11.30mn bpd in 2009 and then rise to around 12.17mn bpd by 2013. Regional oil production was 22.87mn bpd in 2001 and in 2008 averaged 26.29mn bpd. It is set to rise to 28.01mn bpd by 2013. Oil exports are growing steadily, because demand growth is lagging the pace of supply expansion. In 2001, the region was exporting an average 14.63mn bpd. This total had risen to 15.04mn bpd in 2008 and is forecast to reach 15.84mn bpd by 2013. Iraq has the greatest production growth potential, followed by Qatar.

In terms of natural gas, the region in 2008 consumed 391.5bn cubic meters (bcm), with demand of 512.8bcm targeted for 2013, representing 31.0% growth. Production of 389.5bcm in 2008 should reach 610.4bcm in 2013 (+56.7%), which implies net exports rising to 98bcm by the end of the period. Kuwait in 2008 consumed 3.27% of the region's gas, with its market share forecast at 4.93% by 2013. It contributed 3.29% to 2008 regional gas production and by 2013 will account for 3.16% of supply.

For 2009 as a whole, we are now assuming an average OPEC basket price of $55.00 per barrel (bbl), a 41.5% decline year-on-year (y-o-y). This represents an upgrade from the $52 forecast we have stuck with during the past three quarters. Our OPEC basket assumption delivers likely Brent, WTI, Urals and Dubai prices of $56.30, $57.50, $55.60 and $55.60/bbl respectively. For 2010, we expect to see a recovery to $60.00/bbl for the OPEC price (up from our previous forecast of $58), gaining further ground to $65.00 in 2011 and to $70.00/bbl in 2012. Our post-2010 forecasts are unchanged and we are continuing to use a long-term price assumption of $70.00 for 2013-2018. In 2009, BMI is now assuming a global average gasoline price of $62.12/bbl, with the fuel having peaked in June. The overall y-o-y fall in 2009 gasoline prices is put at 40.0%. The BMI gasoil forecast is for an average price of $68.62/bbl, assuming a monthly high of $92.49/bbl in December. The full year outturn represents a 43.4% fall from the 2008 level. The annual jet price level for 2009 is forecast to be $65.17/bbl. This compares with $124.95/bbl in 2008. The 2009 average naphtha price is put by BMI at $49.06/bbl, down 43.9% from the previous year's level.

Kuwaiti real GDP is now forecast by BMI to fall by 1.0% in 2009, following growth of 6.3% in 2008. We are assuming 2.1% growth in 2010, 2.5% in 2011, followed by 3.4% in 2012 and 3.7% in 2013. We expect oil demand to rise from 300,000bpd in 2008 to 330,000bpd in 2013, lagging the underlying rate of economic expansion. State oil company Kuwait Petroleum Corporation (KPC) is responsible for all domestic oil and gas operations. In spite of the absence of near-term international oil company (IOC) investment, crude production is forecast to increase from 2.78mn bpd in 2008 to 2.90mn bpd in 2013, subject to OPEC quotas. Gas production should reach 19.3bcm by 2013, up from 12.8bcm in 2008. Consumption is expected to rise from 12.8bcm to 25.3bcm by the end of the forecast period, requiring imports of 6.0bcm.

Between 2008 and 2018, we are forecasting an increase in Kuwaiti oil production of 29.3%, with crude volumes rising steadily to 3.60mn bpd by the end of the 10-year forecast period. Oil consumption between 2008 and 2018 is set to increase by 29.2%, with growth slowing to an assumed 3.0% per annum towards the end of the period and the country using 388,000bpd by 2018. Gas production is expected to climb to almost 27bcm by the end of the period. With 2008-2018 demand growth of 204%, this provides an import requirement rising to more than 12bcm by 2018.

Kuwait still occupies ninth place in BMI's updated Upstream Business Environment rating, which is a surprising outcome in view of its vast oil and gas wealth. It is just one place ahead of Saudi Arabia, but should be safe from any immediate challenge thanks to a comfortable margin. The country's score suffers from strict government control of the upstream industry, undermining the healthy resource position. The country is in the lower half of the league table in BMI's Downstream Business Environment rating, with a few high scores and near-term progress up the rankings a possibility. It is ranked ninth, ahead only of Iraq, thanks largely to excellent country risk factors that outweigh a highly regulated and largely state controlled industry. Iran and Bahrain are immediately above it in the regional rankings, but are unlikely to pull further away during the next few quarters. (R&M06.11)

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11.4 KUWAIT: Health of the Nation

Kuwait's health sector is expected to be one of the biggest beneficiaries of a massive government development program aimed at revitalizing the local economy and strengthening the country's social support structure. The Kuwaiti parliament is currently considering a five-year development plan put forward by the government that would see up to $140bn spent on infrastructure, housing and education. The plan would also further the country's aims of becoming an international financial and commercial hub.

Though the exact details of the plan's budget or a full breakdown of projects to be funded under the scheme have yet to be released, one thing has been made clear by officials, that improving the provision of health services will be one of the central planks of the program. Through the five-year plan, Kuwait will experience a significant improvement in health services, according to Health Minister Hilal Al Sayer. Along with boosting the service capacities of state hospitals, taking advantage of technical and administrative developments will further raise the standards of the health sector, he said on October 13.

Among the measures was the proposal to build three hospitals to cater for expatiates, Al Sayer said. Located in Jahraa, Farwaniyah and Al Ahmadi, the hospitals are to be equipped to provide full services, easing the pressure on existing facilities. The minister said hospitals, clinics and other medical facilities will be electronically connected to better facilitate the rapid transfer of information and to manage the distribution of medication through proper channels.

Even without the provisions of the five-year plan, there has been continued growth in Kuwait's public health sector. By the end of this year, an additional 1,000 beds will be added to the current capacity of state hospitals, while six more laboratories had been brought on-line in the past few months. The latter move was mainly prompted by concerns over the spread of the A(H1N1) virus and the need to speed up the process of testing samples from those possibly infected with swine flu. The government has already announced that it plans to open eight new hospitals between 2014 and 2016, though it is unclear whether the budgets for these projects will become part of the larger development plan.

While the government is committed to expanding the public health sector, it faces a number of difficulties in improving the provision of services. One problem, common to other countries in the region, is retaining existing staff and recruiting new medical professionals, in particular nurses. According to figures from the World Health Organization, some 98% of all nurses in Kuwait are expatriates, and the ratio of nurses to the population is around one third of that in countries such as Norway or Finland. In mid-October, the Ministry of Health (MoH) announced it was planning to recruit at least 1500 nurses from India and the Philippines to help fill shortages of qualified and experienced health care support staff. In order to attract new staff, and to keep those already working within the health service, a new salary scale for nurses had been established, improving wages and conditions, said Dr Qais Al Duwairi, the MoH's assistant undersecretary for support services affairs.

Another problem the government may face is pushing its proposed development plan through the parliament. While there is no question of any members of parliament opposing the concept of improving health services, debate over the plan as a whole is expected to be a drawn-out process. In his address to mark the opening of the new parliamentary term on October 27, Sheikh Sabah Al Ahmad Al Sabah said that improvements in the provision of services in the health sector was one of the main priorities of the country. However, in order to achieve this and other goals, there needed to be "constructive and positive cooperation between the legislature and executive authorities," the Emir said.

An issue that could spark debate is the proposal of expanding the role of the private sector in the provision of basic services such as health, housing and education, services traditionally provided by the state. While generally supportive of the private sector, Kuwait's parliament is often wary of any move that could be construed as rolling back the social functions of the state. With rising oil prices increasing state revenue and Kuwait's economy expected to record solid growth next year, the funding required by the five-year plan should be readily available. As long as political consensus is achieved, the pulse of the health sector will likely be strengthened by an injection of capital. (OBG09.11)

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11.5 SAUDI ARABIA: Tourism Report for 2009's Fourth Quarter

Research and Markets (http://www.researchandmarkets.com) has announced the addition of the "Saudi Arabia Tourism Report Q4 2009" report to their offering.

Saudi Arabia's tourism industry is unique in that despite the limitations of strict entrance visa regulations, the industry has strong growth potential. BMI forecasts tourist arrivals to the Kingdom to remain constant in 2009, at just over 12mn and to grow by an average of 6.5% year-on-year (y-o-y) to the end of our forecast period in 2013. One of the main drivers for the tourism industry is religious tourism. Saudi Arabia is home to two of Islam's holiest cities, Mecca and Medina, and every year millions of Muslims come to Mecca for hajj, the largest annual pilgrimage in the world. Non-Muslims are banned from entering these cities. In 2009, we expect concern about the spread of the H1N1 virus (swine flu) to cause a slight decline in pilgrimage numbers. Business travel is also a growing area, given the country's position as the world's largest oil exporter, not to mention its other large industries such as defense.

The hospitality sector looks set to grow in tandem with tourist arrivals. BMI forecasts that there will be 321,000 hotel rooms in Saudi Arabia by the end of our forecast period in 2013, up from an estimated 230,000 in 2008. In 2009 alone, a plethora of international chains have opened up their first hotel in the market, including Rotana, Hyatt Hotels & Resorts, Accor Group and Raffles Hotels & Resorts; while those already present in the market are expanding. These include InterContinental Hotels Group (IHG), Al Hokair Group, Starwood Hotels & Resorts and Rezidor Group.

Saudi authorities have said they want to diversify away from their dependence on oil and the tourism industry has been a focal point. Government expenditure has focused on developing the religious tourism and business travel sectors in particular, which accounts for the decline in collective government expenditure (expenditure that cannot be assigned to a particular group of tourists) and the increase in individual government expenditure, which refers to investment in services with an identifiable individual customer.

The government is also keen to develop its domestic tourism market in an effort to capture some of the capital spent by the millions of Saudi citizens that travel abroad each year. Saudi tourists mainly travel elsewhere the Middle East. Despite efforts to keep more Saudis at home, we see the number of citizens travelling abroad increasing from an estimated 6.30mn in 2008 to a forecast 8.53mn in 2013. International tourism expenditure is also forecast to increase, reaching $10.74mn by the end of our forecast period. (R&M 02.11)

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11.6 OMAN: Moving Forward

The Oxford Business Group commented that having weathered the financial storm better than most, Oman's banks are reassessing their strategies and looking for new sources of growth. Through the global financial crisis, Omani banks have proved remarkably resilient, due to adequate provisioning and low exposure to the toxic assets that caused such turmoil elsewhere. The banking sector has a largely domestic and regional focus, sparing most institutions from the effects of collapses in North America and Europe. The cautious policy of the Central Bank of Oman regarding asset/liability management and funding, as well as its quick fire-fighting work as the effects economic crisis began to be felt, has helped shore up the system. The banking sector's transparency has long been seen as one of the its strong suits, and Omani banks have set a regional example in their clarity about exposure to bad assets, David Murray Sims, CEO of The National Bank of Oman (NBO), told OBG.

Oman is not unscathed; some key projects, most notably in hydrocarbon extraction, were put on hold as liquidity dried up. The Duqm Refinery and Petrochemicals Complex, for example, has been frozen, though recent reports suggest that it may be restarted in the near future. Banks have also become somewhat more cautious. "The global economic downturn has led a lot of institutions to review what they are doing," Sims said. "Institutions are indeed more careful about how they are lending and this is a worldwide phenomenon. Banks are going back to the basics where they do the proper due diligence before lending."

Nonetheless, initial nine-month results from those banks that have announced them suggest that, while profits have been trimmed, they remain healthy. NBO, the country's second largest bank, posted net profit of RO19.6m ($50.9m) for the first nine months of 2009, local press reported on October 27. NBO's loan book increased 12% to RO1.38bn ($3.58bn), with deposits totaling RO1.24bn ($3.22bn), up 7%. Bank Muscat, which has substantial operations abroad, including Saudi Arabia and Bahrain, made a third-quarter profit of RO19.96m ($50.6m), down 38% on the same period of 2008. Three-quarter net profit totaled RO80.4m ($208.8m), compared to RO90.1m ($234m) last year.

Sector insiders remain confident that the long-term outlook is very positive. Oman is relatively under-banked, with only one branch per 7000 people in 2008, and substantial scope for growth in both personal and commercial lending, as well as deposits. Rapid income growth and a young population bode well, while the effects of the credit crunch and recession are causing both consumers and banks alike to reassess their strategies, to the industry's benefit. "There is a demand for personal borrowing that has not abated," Sims told OBG. "Over time, we will see a more structured approach to lending. Pay raises in recent years have created more opportunities to save more, but also to spend more. Consumers still need to learn the benefits of saving for a rainy day."

Banks have been showing particular interest in lending to small and medium-sized enterprises (SMEs), which make up more than 90% of all Omani companies, but account for only 1-2% of loans, according to Salah bin Hilal Al Maawali, the director-general of SMEs at the Ministry of Commerce and Industry. With lower funding needs than big-ticket projects, smaller firms are an attractive proposition for banks. Over the longer term, institutions may look to reinforce their positions with cross-border mergers. On November 2, the Central Bank executive president, Hamood Sangour Al Zadjali, told Reuters that he was in favor of regional consolidation to strengthen the Gulf's banks in the aftermath of the credit crunch. If mergers and acquisitions come about, Oman's well-capitalized and regulated banks could be in a strong position to expand. (OBG 06.11)

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11.7 TURKEY: Fitch Places Turkey on Rating Watch Positive

On 27 October, Fitch Ratings (http://www.fitchratings.com) placed Turkey's Long-term foreign currency Issuer Default Rating (IDR) of 'BB-' and its Long-term local currency IDR of 'BB' on Rating Watch Positive (RWP). At the same time, the agency has affirmed Turkey's Short-term foreign currency IDR at 'B' and placed the Country Ceiling of 'BB' on RWP.

The rating action reflects Turkey's relative resilience to the severe stress test of the global financial crisis. Following a recent visit to Turkey, Fitch will complete a review of the sovereign rating level by the end of the year, which it believes has a strong likelihood of leading to an upgrade. The review will draw on the information revealed by the global financial crisis and other developments to reassess Turkey's underlying credit fundamentals.

Notwithstanding a sharp recession and deterioration in its public finances, Turkey has proved relatively resilient to the global financial crisis. The banking sector has not required any sovereign support and is well-capitalized with a low level of non-performing loans and a loan-to-deposit ratio of only 82%. In contrast to previous shocks, Turkey has been able to implement counter-cyclical fiscal and monetary policies to help stabilize the economy without sparking an exchange rate crisis. The Central Bank of Turkey has been able to cut its policy interest rates and the Treasury bill rate has fallen to single digits for the first time in its modern history. The recession has facilitated a rebalancing of the economy, with a marked reduction in the current account deficit and the inflation rate. GDP rebounded by 7.1% in Q209 (on a quarter-on-quarter, seasonally and calendar adjusted basis, according to TurkStat).

Sovereign eurobond issuance totaling $3.75bn during the course of 2009 underscores Turkey's international capital market access even at times of severe financial market stress. In addition, a deep domestic debt market has, so far, enabled the government to finance its wider budget deficit at record low yields. Turkey's external finances have also proved more resilient than anticipated. Despite a decline in the roll-over rate on the corporate sector's long-term debt to below 70% in January-August 2009, other financing sources have enabled foreign reserves to recover to their end-2008 levels in recent months.

Nevertheless, uncertainties over Turkey's "exit" from the global financial crisis remain, including the strength of its economic recovery and the implementation of the fiscal consolidation set out in the Medium Term Program announced in September, as well as some risks regarding external financing. (Fitch27.10)

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11.8 TURKEY: Turkish Tourism Report for 2009's Fourth Quarter

Research and Markets (http://www.researchandmarkets.com) has announced the addition of the "Turkey Tourism Report Q4 2009" report to their offering.

Tourism Overview

In the wake of a strong performance in the tourism sector in 2008 (but lower growth than in 2007), the trend of weaker quarterly growth in the number of foreign visitor arrivals during the course of last year turned sharply into negative growth in Q1/09. However, the most recent data for the Q2/09 record a small rise in foreign arrivals (excluding Turkish citizens residing outside the country) of just over 2% compared with the same period a year earlier. This followed a fall in foreign visitor arrivals of about 2% year-on-year (y-o-y) in Q1/09.

Hospitality

Latest hospitality sector data for the second quarter of 2009 show the total number of foreign and domestic tourist room nights amounted to 67.8mn nights, an increase of just over 5% y-o-y. Foreign tourist room nights - almost 78% of the total - rose by 9% y-o-y to 52.6mn nights in Q2/09. This follows a similarly strong 10% y-o-y increase in the number of foreign tourist room nights in Q1/09, to 31.1mn nights. In both quarters, growth in room nights attributed to foreign tourists was particularly favorable given the weak performance of foreign visitor arrivals over the same period.

Forecast Scenario BMI maintains the view that foreign visitor arrivals will record negative annual growth this year of 3%, which is largely unchanged compared from our previous forecast (-3.5%). Although the anticipated fall in visitors is relatively small, particularly compared with forecast declines in regional competitor countries such as Greece and Croatia, it is a sharp deterioration on the growth achieved during 2008. Modest recovery in foreign arrivals should take place next year. The background to these forecasts is the severe economic conditions this year in Turkey's major source markets, including the eurozone - especially Germany - Russia and the UK, followed by modest economic recovery in 2010. The weakness of the Turkish lira against the US dollar and the euro, as seen in 2008, which assisted the competitiveness of Turkey's tourism sector, is forecast to be reversed from H2/09 onwards. This is likely to dampen the recovery in growth of visitor arrivals from next year.

Turkish Airlines

Turkey's national airline, Turkish Airlines (THY), achieved a more than favorable performance in the first seven months of this year, with passenger numbers up nearly 10% y-o-y to 13.7mn (international business class traffic was up slightly y-o-y, while there was buoyant growth in transit passengers). As part of an ambitious expansion program announced towards the end of 2008, THY said in June it will buy 10 planes from Airbus (A330s) and seven from Boeing (777-300ERs). (R&M 02.11)

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- Israeli Shekel conversions done at a rate of NIS 3.80 = $1.00
- Turkish Lira conversions done at a rate of NTL 1.60 = $1.00
- Euro conversions done at a rate of € 1.00 = $1.40
- Jordanian Dinar conversions done at a rate of JD 1.00 = $1.41
- UAE Dirham conversions done at a rate of Dh 3.67 = $1.00
- Omani Rial conversions done at a rate of OR 0.385 = $1.00
- Pakistani Rupee conversions done at a rate of Rs 82 = $1.00

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