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TOP STORIES
TABLE OF CONTENTS:
1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS
1.1 Netanyahu Sets Transport & Planning Reform As Chief Goals
1.2 Israel Extends $1.7 Billion Loan to IMF
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2: ISRAEL MARKET & BUSINESS NEWS
2.1 Radient Pharma Enters Into Distribution Agreement for Onko-Sure IVD Cancer Test in Israel
2.2 Truphatek Opens USA Subsidiary
2.3 Vcorp Announces Opening of New Office in Israel to Service Increasing International Demand
2.4 Mentor Graphics & Valor Sign Definitive Merger Agreement
2.5 Sigma Designs to Acquire CopperGate Communications
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3: REGIONAL PRIVATE SECTOR NEWS
3.1 AspenTech Opens Middle East Office in Bahrain
3.2 VASCO Reinforces Its Presence in the Middle East by Opening an Office in Bahrain
3.3 AS&E Receives $18.2 Million Order for OmniView Inspection Systems for Saudi Arabia Customs
3.4 Zhone's New MXK Terabit-Scale MSAP Selected as FTTx GPON Platform in Egypt
3.5 CIBER Wins $14 Million Security Contract With New International Port in Libya
3.6 Digital Ally Receives $3 Million-Plus Order From Turkish Police Department
3.7 Report on Fish Farming in Greece
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4: ISRAEL MACRO-DEVELOPMENTS
4.1 Wertheimer To Build Jewish-Arab Industrial Park In Nazareth
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5: ARAB STATE & PAKISTANI DEVELOPMENTS
5.1 Persian Gulf Sovereign Wealth Funds Lose $350 Billion Last Year
5.2 Persian Gulf States To Set Up New $2 Billion Agricultural Fund
5.3 Persian Gulf Rail Projects Could Exceed $60 Billion
5.4 Kuwait Calls for Delay to Gulf Single Currency Launch
5.5 Kuwait Earns Over 80% of Annual Budget In Five Months On Higher Oil Prices
5.6 Qatar's Hospitality Sector To Grow By 9% This Year
5.7 IMF Upgrades 2010 Outlook for UAE
5.8 UAE Aims For First Persian Gulf Nuclear Reactor In 2017
5.9 UAE Food Prices Seen Falling 30% With More Competition
5.10 UAE Interested in Building Nicaraguan Canal
5.11 UAE Non-Oil Foreign Trade Soars 42% in 2008
5.12 Saudi Arabia Housing Sector Outlook - 2009 Reportlinker.com Report
5.13 Egypt Inflation Reverses Downward Trend
5.14 Egypt's Suez Canal Revenue Falls 19% on Global Crisis
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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS
6.1 Turkey Achieves Privatization Successes
6.2 The Medical Device Market in Turkey - Currently the Largest Market in the Region
6.3 Greek Deficit for 2008 Closes at 5.7%
6.4 Greece's Energy Regulatory Authority is Embracing Alternative Energy
6.5 More than Half of the Greek Population Need Eye Correction
6.6 Bulgaria Unemployment Rate Passes 8% in September
6.7 Bulgarian Government Sees 0.7% Budgetary Gap
6.8 Bulgaria's 1st Garbage Processing Plant Opened Near Plovdiv
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7: GENERAL NEWS AND INTEREST
*ISRAEL:
7.1 Israeli Wins Nobel Prize in Chemistry
*REGIONAL:
7.2 Greek Elections See Papandreou and PASOK Sweep to Victory
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8: ISRAEL LIFE SCIENCE NEWS
8.1 Can-Fite Initiates Preparatory Work for Psoriasis Phase III Trial with CF101
8.2 Brainstorm Announces Milestone Towards ALS Clinical Trials
8.3 Impliant Conducts the First Two Implantations of Its New TOPS VersaLink Spinal System
8.4 Cleveland Clinic Selects Itamar's WatchPAT Technology in Top Ten Medical Innovations for 2010
8.5 Compugen & Bayer Schering Pharma to Collaborate on Oncology Target & Splice Variants
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9: ISRAEL PRODUCT & TECHNOLOGY NEWS
9.1 Microsoft's Free Antivirus Developed In Israel
9.2 Planet/LS & Yitran to Develop PLC Based Automation, Energy Management & AMR/AMI Products
9.3 Wavion Selected by TECHS Brazil, to Replace its Mikrotik Broadband Network
9.4 Kornit Digital Unveils the New Kornit 921 Breeze Entry Level Printer
9.5 Ovum Names Red Bend Software the Market Leader in Firmware Over-the-Air Updating
9.6 RADVISION Brings HD Desktop Video Conferencing to Apple's Mac OS X Platform
9.7 Plasan Announces Delivery of 750 Armor Kits
9.8 Independent Research Firm Says OpTier's BTM Technology is 'On Fire'
9.9 SPAWAR Awards Elbit Systems of America an IDIQ Contract for DMR 100W Power Amplifiers
9.10 Elbit Systems of America Presents: ETC Mark IV Rugged Tactical Vehicle Computer
9.11 Alvarion Wins a Project with Safaricom to Deploy a Nationwide WiMAX Network in Kenya
9.12 CTERA Networks Launches CloudPlug and C200 Cloud Attached Storage Appliances
9.13 Alvarion Named as a Clearwire Mobile WiMAX Solution Provider in Spain
9.14 Foris & Runcom to Expend Their WIMAX Collaboration in Mozambique
9.15 DBSophic Releases Qure Version 1.5, Performance Optimization Solution for SQL Server Databases
9.16 IAI & Gulfstream Aerospace Roll Out All-New Super Mid-Size Gulfstream G250
9.17 Adama Technologies to Launch Pilot Soil Decontamination Program in Israel
9.18 PicScout Technology Supports Ubiquitous Online Image Accreditation & Transaction
9.19 Waterfall Security Solutions Announces new Product Release: Waterfall Remote Screen View
9.20 Tower Semiconductor Selected as Preferred Foundry by C&S Technology in Korea
9.21 Siverge Networks Unveils Comprehensive Chip Solution for Mobile Backhauling Infrastructure
9.22 Ness Technologies Launches Two Systems That Help Fight Terror and Crime in Urban Areas
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10: ISRAEL ECONOMIC STATISTICS
10.1 Small Rise Expected in September CPI
10.2 Foreign Residents Invested $1 Billion in Securities In August
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11: In Depth
11.1 LEBANON: Class Act Needed
11.2 KUWAIT: Working on the Railway
11.3 BAHRAIN: Retail Steady
11.4 OMAN: Retail Resolute
11.5 Egypt's Retail Sales to Grow from $63.27 Billion in 2008 to $119.60 Billion by 2013
11.6 EGYPT: Swine Flu Heightens Fever in Christian-Muslim Relations
11.7 TUNISIA: Do Elections Have Meaning?
11.8 TUNISIA: Better Connected
11.9 MOROCCO: A Legislated Victory for Women
11.10 TURKEY: Historic Accord between Turkey and Armenia: What Lies Ahead?
11.11 GREECE: Comprehensive Report on the Pharmaceutical Market
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1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS
1.1 Netanyahu Sets Transport & Planning Reform As Chief Goals
At a meeting of the Likud party in the Knesset today, Prime Minister Benjamin Netanyahu expressed cautious optimism about the end of the global economic crisis. ”I want to be careful, but it seems that we are emerging from the global crisis in better shape than the developed economies, because we have maintained the budget framework,” Netanyahu said.
At the opening of the Winter session of the Knesset, the prime minister also commented on the major reforms that he intended to pass in the next few months. “We must continue to run the country. First and foremost, we will promote the reform that people in Israel have been waiting for 60 years, reform of the planning and building committees. Israel is 120th in the world when it comes to building permits.” Netanyahu added, “The most important reform we intend to promote is reform in transport that will lead to a fall in housing prices and will bring outlying areas closer. It is important and it touches every citizen. This is the main thing that we will promote in this session.”
The prime minister also spoke about the steps the government had taken on the economy. “Passing the two-year budget and stubborn maintenance of its framework have succeeded in stabilizing the Israeli economy. The possibility arises that Israel will merge from the global economic crisis faster than the developed countries. But in order for there to be the means to answer Israel's great needs in the coming decade, chiefly growing defense needs, and educations and science needs, which will also grow, there is only one constant source: growth. To bring about accelerated growth the obstacles to competition and economic activity must be removed.” (Globes13.10)
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1.2 Israel Extends $1.7 Billion Loan to IMF
Israel will follow in the footsteps of China, Russia, Brazil and other countries by diversifying its foreign currency reserves. On 6 October, Minister of Finance Steinitz addressed the IMF/World Bank Annual Meeting in Istanbul and said that Israel will use some of its foreign currency reserves to loan money to the IMF as part of its support for emerging markets. This is part of the G20 initiative to increase the resources available to the IMF. Steinitz said, "Israel is interested in contributing to this important task, and so we have decided to take a part in the new important financing programs that were recently announced: NAB (New Arrangement to Borrow) and the Voluntary SDR (Special Drawing Rights) Allocation. In line with its request, the IMF can receive a loan of up to $500m in SDRs, which will come from the Bank of Israel's foreign currency reserves. In addition, Israel will be committed to buy its SDR allocation, an investment which will also be executed from the foreign currency reserves." Steinitz stressed the strong position in which the Israeli economy entered the crisis including high growth, a reduction in the public's debt, relatively low budgetary deficits. (Globes 06.10)
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2: ISRAEL MARKET & BUSINESS NEWS
2.1 Radient Pharma Enters Into Distribution Agreement for Onko-Sure IVD Cancer Test in Israel
Tustin, California's Radient Pharmaceuticals Corporation, a pharmaceutical company, announced through its wholly-owned subsidiary AMDL Diagnostics (ADI) it has entered into a two-year distribution agreement with Tarom Applied Technologies for the marketing and sales of its Onko-Sure in vitro diagnostic (IVD) cancer test. Tarom Applied Technologies is an established, privately-owned distributor of products in the biomedical sector with more than 20 years of exclusive representation for OEM diagnostic systems and reagents, biotech and research products and veterinary systems. The company is the exclusive distributor to the Israeli market and sells outside of Israel to leading worldwide manufacturers in the diagnostic and biomedical fields. The company's customers include medical centers and hospitals, clinical laboratories, universities, Ministry of Health labs, and biotech and pharmaceutical companies. Tarom also works directly with the Israeli Ministry of Health on licensing issues and other related matters. (Radient 06.10)
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2.2 Truphatek Opens USA Subsidiary
Truphatek has opened a US subsidiary. The new company - Truphatek Inc.- will be based in Ashland, Missouri and will be the latest of the local wholly owned marketing and sales subsidiaries to be set up by Truphatek Holdings (1993) Limited. The company already operates profitable companies in China and India and is planning to establish its own European company during year 2010. Truphatek International Limited, Netanya, Israel is a leader in innovation and manufacture of high-quality medical devices in the field of anesthesia and emergency care products. Truphatek is currently unveiling its new Truview PCD range. This represents the most sophisticated optical laryngoscope with exciting new remote video capabilities. Truphatek International (http://www.truphatek.com) was established in 1985. It operates worldwide through 56 distributors and three wholly owned subsidiaries. Truphatek serves the hospital and pre-hospital sectors with high quality, sophisticated medical devices for management of the airway. Over 100 in staff are currently employed at the company's facilities in Israel, India and China. Truphatek International Ltd. exports from Israel over 98% of its turnover. (Truphatek 06.10)
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2.3 Vcorp Announces Opening of New Office in Israel to Service Increasing International Demand
Monsey, N.Y.'s Vcorp Services announced the opening of a new office in Israel to service increased demand for the company's turnkey corporate filing services. Israel is one of Vcorp's fastest-growing markets and this expansion will support existing demand from current international clients as well as growing demand from entrepreneurs in the prosperous Israeli market. Vcorp offers an extensive suite of services including entity formations, formation services, registered agent representation, supplemental filings, document retrieval, tax-exempt filings, UCC filings and searches, trademark applications, and more. (Vcorp Services 08.10)
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2.4 Mentor Graphics & Valor Sign Definitive Merger Agreement
Wilsonville, Oregon's Mentor Graphics Corporation and Yavne, Israel's Valor Computerized Systems (http://www.valor.com) announced that the two companies have signed a definitive merger agreement for Mentor Graphics to acquire Valor. Under the terms of the agreement, which was approved by the boards of directors of both companies, Valor shareholders will receive a combination of Mentor Graphics common shares and cash for aggregate consideration of approximately $82 million, equating to approximately $4.60 per Valor share. Subject to satisfaction of regulatory requirements and approval of Valor shareholders, as well as certain closing conditions, the transaction is expected to close during the first calendar quarter of 2010, after which Valor will become a wholly-owned subsidiary of Mentor Graphics. Shareholders owning approximately 50% of outstanding shares of Valor have committed to vote in favor of the transaction. Valor is a leading global provider of productivity improvement software solutions for the printed circuit board, or PCB, manufacturing supply chain. PCBs are the principal electronic interconnect technology used in the vast majority of electronic products sold today. Valor's solutions target three key segments in the PCB manufacturing market: design of the physical layout of the PCB, fabrication of the bare PCB, and assembly of PCB components. (Mentor13.10)
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2.5 Sigma Designs to Acquire CopperGate Communications
Milpitas, California's Sigma Designs and Tel Aviv's CopperGate Communications announced that the companies have entered into a definitive agreement for Sigma to acquire CopperGate in a cash and stock transaction with an agreed value of $160m, net of CopperGate's cash at the closing of the transaction. The combination of Sigma and CopperGate creates a leading provider of networked home entertainment semiconductor solutions. The companies have highly complementary technology platforms that form a portfolio of end to end solutions. The transaction further strengthens Sigma's position and expands its footprint with key customers, in addition to enabling cross selling opportunities. The combination of Sigma and CopperGate is also expected to yield several potential synergies including synergies from leveraging manufacturing know-how and combined wafer sourcing, further SoC integration and combined research and development.
CopperGate Communications (http://www.copper-gate.com) is the only company whose standards-based chipsets enable carrier-class distribution of broadband digital content over all three types of existing wires in the home: coax, phone and power. The company sells its technology to OEMs who build solutions for multimedia home networking and multi-dwelling unit (MDU) broadband access markets. CopperGate's chips are used in set-top boxes, residential gateways, optical network terminators and Ethernet bridges. (Sigma13.10)
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3: REGIONAL PRIVATE SECTOR NEWS
3.1 AspenTech Opens Middle East Office in Bahrain
Burlington, Massachusetts' Aspen Technology, a leading provider of software and services to the process industries, opened a Middle East office in Bahrain. The Middle East is a key region in AspenTech's growth strategy for expanding its leadership position in the process optimization market. Many Middle East-based process manufacturers already use AspenTech solutions across the globe. AspenTech also announced that effective today, AspenTech Middle East W.L.L. is no longer a reseller of AspenTech solutions. All Middle East sales, marketing and business development will be handled out of the Company's new Bahrain office. (Aspen Technology07.10)
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3.2 VASCO Reinforces Its Presence in the Middle East by Opening an Office in Bahrain
Oakbrook Terrace, Illinois' VASCO Data Security, a software security company specializing in authentication products, announced that it is reinforcing its presence in the Middle East by opening an office in Bahrain. The establishment of this new legal entity VASCO Data Security Middle East (SPC), a wholly owned subsidiary of VASCO Data Security in the Kingdom of Bahrain is in line with VASCO's three step strategy in building up a market presence. VASCO's business strategy consists of building a local market presence in the banking sector by winning a number of large customers. Once the presence in banking has been established, VASCO will enter the enterprise security market with solutions for securing remote access and application security. Finally, once the enterprise security is maturing, VASCO hires local employees, establishes partnerships with local distributors and opens a local office. The new subsidiary in the Kingdom of Bahrain will be responsible for sales and support for the Middle-East. (VASCO07.10)
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3.3 AS&E Receives $18.2 Million Order for OmniView Inspection Systems for Saudi Arabia Customs
Billerica, Massachusetts' American Science and Engineering (AS&E), a leading worldwide supplier of innovative X-ray detection solutions, announced the receipt of a $18.2 million order from Al Zamil Group, a global leader in industrial, petrochemical, and service sectors for multiple OmniView Gantry cargo and vehicle inspection systems. The order will supply OmniView Gantry systems to Saudi Arabia Customs for border security applications. The OmniView Gantry system provides 6 MeV high-energy transmission inspection for high penetration into inspected objects. The system's scanning platform operates by moving on rails past stationary vehicles and cargo. (AS&E01.10)
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3.4 Zhone's New MXK Terabit-Scale MSAP Selected as FTTx GPON Platform in Egypt
Oakland, California's Zhone Technologies, a global leader in network access solutions, announced that leading town developer, Orascom Development (OD), has selected Zhone as its end-to-end FTTx GPON equipment provider, delivering premium FTTx services to its flagship self-sufficient town, El Gouna, Egypt. Zhone provides El Gouna with a single source for a tightly integrated FTTx GPON system with RF video overlay, including Zhone's powerful MXK intelligent terabit access concentrator, zNID Optical Network Terminals (ONTs), RF equipment and the Zhone Management Systems (ZMS). Zhone's recently announced MXK platform will serve as the cornerstone of El Gouna's new FTTx network, delivering premium triple play services to a multicultural community of 15,000 residents. With over 20 years experience, OD is a leading global developer of fully-integrated towns, offering hotels, private villas and apartments, leisure facilities such as golf courses and marinas along with all related facilities and supporting infrastructure. The Swiss-based company has a strong foothold in Egypt and the Middle East and has current projects under development in Egypt, Morocco, Oman, the United Arab Emirates, Switzerland, Jordan, Mauritius and UK. OD owns and operates two fully-fledged towns, El Gouna and Taba Heights, in Egypt, offering 21 hotels with more than 5,000 rooms. (Zhone07.10)
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3.5 CIBER Wins $14 Million Security Contract With New International Port in Libya
Greenwood Village, Colorado's CIBER Federal, a division of CIBER, Inc., won a $14.1m contract with the Misurata Free Zone to design and install a comprehensive security system for Phase 1 of this new facility. The Misurata Free Zone, located in Libya, provides the north coast of Africa with a central hub for industrial, service and commercial activities. This 13.6-square-mile facility features a port for the trans-shipment of goods across the Mediterranean. CIBER's contract is to provide a port security program that delivers command and control capabilities for the access control, land/water systems and port ingress/egress systems to be installed as part of the project. CIBER will design, install and maintain this comprehensive security system. This 18-month project will deliver state-of-the-art security to the Zone as it prepares to become a major nucleus for trade activities in the region. (CIBER07.10)
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3.6 Digital Ally Receives $3 Million-Plus Order From Turkish Police Department
Overland Park, Kansas' Digital Ally, which develops, manufactures and markets advanced video surveillance products for law enforcement, homeland security and commercial security applications, has received an order from the Turkish Police department for DVM-750 In-Car Digital Video Systems valued at over $3m. Working closely with its sales representative in Turkey, Mesan Inc., Digital Ally has been awarded a contract from the General Directorate of Police. In Turkey, the police forces are responsible for law enforcement in cities and certain other locations, including airports. Traffic police are responsible for the safety of transportation and also work with the registration of vehicles. The Turkish Police also play a large role in important intelligence and counter-terrorist operations. The order for DVM-750 systems is expected to be shipped to the General Directorate of Police in Q4/09. This first substantial order from a foreign country for Digital Ally's new DVM-750 system illustrates the acceptance and appeal of the new features incorporated into the product, not only in the United States, but internationally as well. (Digital Ally07.10)
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3.7 Report on Fish Farming in Greece
Research and Markets (http://www.researchandmarkets.com) announced the addition of the "Fish Farming in Greece 2009" report to their offering. The sector under review is among the fastest-growing sectors of the Greek economy, making Greece the largest producer country of Mediterranean euryhaline fish (sea bream and sea bass). The factors that contributed, considerably, to the sector's growth, are Greece's climate and geographical conditions, which favor the breeding of euryhaline fish, the aids granted by the government and the support programs of the European Union, the reduction of fish stock and the limitations imposed on fishing over the years. Greece has one of the most important production and export activities in fish farming, given that it is the largest producer country of euryhaline fish (meaning sea bream and sea bass) in the EU. The fast and spectacular growth enjoyed by the sector in the beginning of the 90s up until 2003 has created a series of problems for fish farming units; problems that have been restricted but not eliminated. The major cause of all these problems was the massive entrance of a great deal of new companies - which had no particular plans or strategy- into the sector so they could benefit from the aids and the benign financing conditions. All these newcomers entering the sector brought about an oversupply, making prices drop while many units were forced to sell their products at a loss. Several companies, and especially small and medium-sized ones, started to face serious financial problems, while some were even forced to terminate their operations. In order to find a way out of this situation, large groups began to take charge of production, aiming either at absorbing or merging with other companies, in order to achieve economies of scale and hence avoid squeezing their profit margin. Today, sale prices continue to suffer and there is still a tendency for sector firms to come together. (R&M01.10)
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4: ISRAEL MACRO-DEVELOPMENTS
4.1 Wertheimer To Build Jewish-Arab Industrial Park In Nazareth
On 13 October, Globes reported that Israeli Industrialist Stef Wertheimer announced he will build Israel's first joint Jewish-Arab industrial park in Nazareth. He made the announcement at the opening session of the Galilee Conference in Kfar Blum. Wertheimer will build the industrial park together with Nazareth Mayor Jaraisy. Investment in the 14-dunam (3.5-acre) industrial park, which will have 18,394 square meters of built-up space, will total $20 million. The industrial park is targeting entrepreneurs from Nazareth and the Galilee. This will be Wertheimer's sixth industrial park in Israel. He has four parks in the Galilee - Lavon, Tel Hai, and Tefen, the headquarters of Iscar - and one in the Negev at Omer. Wertheimer added that in addition to the technology school opened at Lavon, together with the IDF, he will open a technology school at the Israel Navy Base in Haifa for discharged soldiers to obtain skills for jobs in the Galilee. (Globes 13.10)
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5: ARAB STATE & PAKISTANI DEVELOPMENTS
5.1 Persian Gulf Sovereign Wealth Funds Lose $350 Billion Last Year
The UN Conference on Trade and Development (UNCTAD) reported that Gulf sovereign wealth funds lost $350bn last year due to the global economic crisis. The funds of Saudi Arabia, Kuwait, Qatar and Abu Dhabi needed oil revenues injected into them to help them maintain their total asset value at the end of 2008. Most affected was Abu Dhabi Investment Authority (ADIA), which lost $183bn from the $453bn it held in 2007, according to the World Investment Report 2009. The report said that assets held by the four Gulf funds dropped to $1.115tn last year, from $1.165tn in 2007. But, government cash injections of $300bn had helped narrow losses. ADIA invested $57b into their sovereign fund, which helped it end last year at $329bn, the report said. Kuwait Investment Authority (KIA), which owns stakes in Daimler and Citigroup, lost $94bn from the $262bn it held at the end of 2007. However, $59bn invested by the government helped prop it up so that it ended the year at $228bn, the report said. Qatar Investment Authority (QIA) lost $27bn, ending last year at $66bn, while Saudi assets, run by the Saudi Arabian Monetary Agency (SAMA), valued at $501bn at the end of 2008, shed around $46bn, the report said. Gulf sovereign wealth funds have never disclosed the size of their assets nor losses. (AB29.09)
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5.2 Persian Gulf States To Set Up New $2 Billion Agricultural Fund
Persian Gulf states will pour $2 billion into a new agricultural fund in coming months to secure food supplies by buying stakes in existing agricultural firms. Persian Gulf countries, mainly reliant on food imports, have ramped up efforts to secure food supplies through buying farmland in developing nations or buying stakes in agriculture companies. The new Arab agricultural holding company will be part of the broader Arab Authority for Agriculture Investment and Development (AAAID), an organization made up of 20 Arab and African states all keen to lock in food supplies. The $2 billion fund has already been approved since January and the money basically comes from members of the Gulf states to buy listed and unlisted food companies in the Middle East and Africa. Unlike other Gulf investments in agriculture which have primarily focused on buying or leasing farmland, the new company will acquire stakes in existing food companies in Africa and the Middle East. The AAAID, launched in 1967 and headquartered in Sudan with an office in Dubai, has $400 million in capital. It already holds stakes in 25 Middle East and African food companies, including a 30% stakes in UAE food producers Al Rawabi Dairy Company, Rowadh Poultry and Fujairah Poultry. The global economic crisis, coupled with poor infrastructure in developing African countries, had forced the authority to put projects on hold in Mauritania, Tunisia and Comoros. 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. Gulf states say that without their investments, target countries simply could not afford to develop their own farmland but critics say many investors have taken advantage of poor farmers. (AB11.10)
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5.3 Persian Gulf Rail Projects Could Exceed $60 Billion
The Gulf Cooperation Council (GCC) countries' proactive approach to building railroad networks, whose estimated cost is more than $60b, may help boost cross-border trade, cut freight costs and result in faster movement of cargo and passengers. Construction of the long-awaited rail network that will link the six members of the GCC is expected to start in 2010 or 2011. The cost will be shared among the six Gulf states — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. In the UAE, the Union Railway Company has estimated it will cost up to Dh30 billion to build a countrywide network of railways by 2016, with a track length of almost 1,400km. In Dubai, the cost of building the Metro stood at Dh28 billion for the two lines. If everything proceeds smoothly, the GCC railway network, stretching 2,000km from the Kuwait-Iraq border to Oman, will come online in 2017. Union Railway leverages the strategic location of the UAE. It aims to connect the UAE to Oman and Saudi Arabia — connecting to Sohar in Oman through Al Ain, and connecting to Fujairah in the Eastern region. It will offer two routes that provide alternative access to the Indian Ocean. The railway will also connect to Saudi Arabia through the Guweifat border and greater GCC and Mena regions. Union Railway expects to transport 30 million tonnes of bulk and break bulk by 2015. At present, rail transport in Saudi Arabia is managed by the Saudi Railway Organization, which provides freight services on three main lines totaling 1,018km. There are plans to extend the network to the Red Sea port of Jeddah and eventually, to the borders of Jordan, Yemen, and perhaps all the way to Egypt. (Various13.10)
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5.4 Kuwait Calls for Delay to Gulf Single Currency Launch
On 11 October Kuwait, one of four Gulf states to sign a pact to launch a monetary union and single currency, called for a delay in the 2010 launch date, citing incomplete preparations. The Finance Ministry, however, still expressed the support of the state of Kuwait for the project. Kuwait, Saudi Arabia, Qatar and Bahrain in June signed an accord to create a joint monetary union council, a prelude to establishing a Gulf central bank and launching a monetary union and single currency. The remaining two members of the Gulf Cooperation Council (GCC), the UAE and Oman, did not sign after deciding to withdraw from the project. The UAE was upset at the selection of the Saudi capital Riyadh to host the future GCC central bank, while Oman withdrew from the monetary union saying it was not ready to meet the preconditions. Kuwait is due to host the forthcoming GCC annual summit in December which is expected to take a decision on the single currency. The GCC states have set 2010 as the target to launch the monetary union and single currency, but many experts believe that target is too ambitious and unrealistic. (AB11.10)
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5.5 Kuwait Earns Over 80% of Annual Budget In Five Months On Higher Oil Prices
Kuwait earned $23.1 billion in the first five months of its fiscal year, about 82% of projected annual income, as oil prices rose, official figures showed on 1 October. The OPEC member's oil revenues in the five months to August came in at $21.7 billion dollars, or 90% of the projected oil income for the 2009/2010 fiscal year that began on April 1, according to figures released by the finance ministry. Kuwait has projected revenues of $28.1 billion, calculating oil income at a conservative price of just $35 a barrel. Oil, however was holding above $70 a barrel in trade when the figures were released. Although actual earnings are much higher than budget projections, they are far below the income of the previous fiscal year, when oil rallied to an all-time high of $147 per barrel in July. The oil-rich Gulf emirate has projected a deficit of four billion dinars ($14 billion) in the current fiscal year but local banks are forecasting a surplus of up to six billion dinars ($21 billion dollars). This would be Kuwait's 11th straight year of budget surplus. In the past 10 years, it has accumulated around $123 billion of budget surplus based on available official data. The emirate has been investing its savings abroad through Kuwait Investment Authority, the sovereign wealth fund whose assets are estimated at around $230 billion. Kuwait says it sits on 10%. (BI-ME01.10)
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5.6 Qatar's Hospitality Sector To Grow By 9% This Year
Qatar's hospitality sector is seen to grow by 9% by the end of 2009, according to a Qatari press report. The Qatari government has earmarked more than $17bn as a fund to develop tourism facilities and infrastructure in an effort to diversify the country's economy. Up to 14,000 new hotel rooms are under construction mounting up to 30,000 rooms on stream by the end of 2012. The country aims at increasing the number of tourists to 1.5 million visitors per year, in addition to lengthening their average stay from 1.5 to four days, the Qatar Tourism Authority announced. Launched in 2000 by Emiri Decree, Qatar Tourism Authority's (QTA) role is to organize, enable, and supervise tourism industry development in Qatar, as well as represent and promote Qatar as a quality tourism destination for leisure, business, education and sport. In a report last month on the current status of the construction industry in Qatar, market researcher Proleads Global found a total of 191 "major" projects, valued at $82.5 billion, moving forward throughout the country. The projects range from real estate and civil infrastructure to leisure and entertainment and, while 82% of the projects are late, budgets have not been affected and all of them are continuing steadily. (AB02.10)
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5.7 IMF Upgrades 2010 Outlook for UAE
Higher oil prices in recent months have pushed the International Monetary Fund (IMF) to upgrade its 2010 economic growth forecasts for Middle Eastern oil exporters, including the UAE. The UAE's economy is expected to shrink by 0.2% this year, compared with an earlier estimate of a 0.6% decline, according to the IMF's World Economic Outlook. The organization expects the country to record 2.4% growth in 2010, compared with a previous estimate of 1.6%. For the group of 10 Middle East oil exporters, the IMF projected an average economic growth rate of 1.3% this year and 4.2% in 2010. Last April, the IMF projected growth of 3.7% for the group. (GN01.10)
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5.8 UAE Aims For First Persian Gulf Nuclear Reactor In 2017
The UAE aims to have a nuclear reactor - the first in the Gulf Arab states - in commercial operation in 2017 as part of a $40 billion atomic energy program. "Today we are in the advanced stage of evaluation before moving into the implementation stage and so far it is positive," Hamad Al Kaabi, the UAE's representative to the International Atomic Energy Agency (IAEA), told reporters. He said the world's third-largest oil producer had also set up a Federal Authority of Nuclear Regulation, with former IAEA technical adviser William Travers as director-general, to promote safety, security and radiological protection. The UAE has already pledged to buy the fuel it needs, in order to avoid having to carry out its own enrichment of uranium, the fuel for nuclear power plants, which if further refined can be used to make bombs. Western concerns about diversion of enriched uranium for possible bomb-making are at the heart of an international dispute over Iran's nuclear program. Iran, across the Gulf from the UAE, denies pursuing atomic weapons. Record oil revenues have driven an economic boom that has strained domestic power grids in the UAE. To keep the export cash coming in, Abu Dhabi is looking to nuclear energy to help cap fuel burned for power at home. (Reuters04.10)
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5.9 UAE Food Prices Seen Falling 30% With More Competition
Retailers in the UAE believe food prices could be up to 30% lower if there was greater competition among the importers that dominate the market. Private and co-operative food retailers claimed that measures by the government to increase competition in the wholesale market have failed, and that 20% of importers control 80% of the market. Around 200 import agents in the food sector are registered with the Ministry of Economy, but 15 to 30 of them effectively control the bulk of the market. The federal government passed a law in June 2006 to allow retailers to import products, including cooking oil, rice, flour, fish, meat, tea and cheese, without going through licensed import agencies. However, the deputy general manager of the Abu Dhabi Cooperative Society said that the impact of the new law had been limited. Attempts by the chain to strike distribution deals with international brands had failed, he said, without giving a reason. (AB08.10)
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5.10 UAE Interested in Building Nicaraguan Canal
The UAE is interested in participating in a project to build a canal across Nicaragua linking the Atlantic and Pacific oceans, foreign minister Sheikh Abdullah bin Zayed Al Nayan said on 6 October. The remarks were made after meeting with President Ortega. Ortega made a detailed presentation to the UAE delegation about the potential for outside investment in energy, ports and infrastructure, including the canal project, which China and Venezuela have expressed interest in. The idea of building a canal across Nicaragua dates from the mid-19th century, but was overtaken by the construction of the Panama Canal. In recent years, however, Nicaraguan governments have revived the concept as a way to promote development of the country, the second poorest in the western hemisphere after Haiti. (BI-ME 07.10)
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5.11 UAE Non-Oil Foreign Trade Soars 42% in 2008
The UAE's Ministry of Foreign Trade announced on 12 October that the country's foreign trade soared 42.5% in 2008, compared with 2007 as a result of a 35.2% increase in non-oil exports and re-exports volume, as well as a 45.5% surge in imports. The report said that although both export and import volumes grew at similar rates, the UAE trade balance suffered a 52.8% deficit since imports accounted for 72% of the trade exchange volume. The UAE has entered into various agreements of economic, commercial and technical cooperation intended to further develop its ties with the rest of the world, based on equity and mutual interest and in compliance with the local policies of co-signatory countries. The UAE is a member of the Arab Free Trade Zone (AFTZ) and has signed Free Trade Agreements with the Syrian Arab Republic, the Republic of Lebanon, the Republic of Iraq, the Kingdom of Morocco and the Hashemite Kingdom of Jordan. As a member of the GCC negotiation team, the UAE is helping secure free-trade agreements with a number of countries and economic blocs, including the European Union, Japan, India, China, Pakistan, Turkey, Australia, New Zealand, Korea and the MERCOSUR countries of Brazil, Argentina, Uruguay, and Paraguay. Negotiations have already concluded with Singapore and the European Free Trade Association (EFTA) countries (Switzerland, Norway, Iceland and Lichtenstein). Agreements of commercial, economic and technical cooperation have likewise been signed with 12 countries in Asia, eight countries in Africa, eight countries in Europe and two countries in South America as well as Australia. The UAE has successfully ratified several agreements aimed at protecting and promoting investment and avoiding double-taxation with a number of Arab and foreign countries in order to create an investment-friendly environment. All these efforts have led to a substantial increase in non-oil foreign trade. (BI-ME 12.10)
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5.12 Saudi Arabia Housing Sector Outlook - 2009 Reportlinker.com Report
Reportlinker.com (http://www.reportlinker.com) announced the addition of the Saudi Arabia Housing Sector Outlook - 2009 Edition research report in its catalogue. Saudi Arabia has emerged as one of the favored destinations for real estate developers to tap unexplored opportunities in housing construction sector. At present the kingdom is facing massive shortage of housing units because of huge demand-supply gap. Rising population coupled with declining household size has been fuelling the demand of housing units in the country.
Saudi housing construction industry is poised for tremendous growth ahead in the backdrop of several factors that have been discussed in the report in detail. As per data from the Ministry of Economy and Planning's 8th Development Plan (2005-2009), there is shortage of nearly 0.73 Million housing units in the kingdom besides the unmet housing demand of 0.27 Million housing units by the end of 7th Development Plan. We expect this demand to double by 2015, driven by changing industry landscape and favorable policy framework. We don't foresee any impact of global financial crisis on Saudi housing industry in near future. The demand levels within the industry will remain intact due to massive shortage in affordable housing segment. In fact we have found that housing construction industry is expected to overtake other sectors in terms of contribution to GDP growth in the coming few years. The forecast given in this report is not based on a complex economic model, but is intended as a rough guide to the direction in which the market is likely to move. The forecast is based on the correlation between past market growth and growth in base drivers, such as household size, disposable personal income, GDP growth and long-term interest rates, competitive structure, government support, contribution by housing financing industries and growing industrialization. (Reportlinker 12.10)
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5.13 Egypt Inflation Reverses Downward Trend
After a period of significant decline, Egypt's September inflation rose for the first time in 10 months, largely on the back of higher food prices. Urban headline inflation hit a low of 9% in August, but state statistics agency CAPMAS has released data this week saying that inflation bounced to 10.7% for September. Food prices for the month rose by 17.4% year on year, leading the way to higher headline inflation. Food inflation was 3.7% on a monthly basis. Recreation and culture related prices inflated by 6.3%. An increase in food consumption during Ramadan was largely responsible for the increase in prices. Since the onset of the global financial crisis, the Central Bank of Egypt (CBE), like many central banks around the world, has embarked on an ambitious campaign to slash interest rates in order to loosen the credit market and spur business. In mid September of this year, the Monetary Policy Committee (MPC) announced that it had cut two key rates by 0.25%, taking the overnight deposit rate to 8.25% and the overnight lending rate to 9.75%. The CBE has cut rates every month since February, but it has always coupled its announcements of rate cuts with a stated awareness that such cuts could reintroduce inflationary pressures to the economy.
Inflation is of special concern in Egypt because it is usually driven by increases in food prices. Since Egypt is a lower income country, food price volatility can spell disaster, as it did last year when even bread became unavailable for many of the country's poorest. But the global economic crisis largely shelved concerns about inflation, allowing the CBE to pursue a program of rate cutting. The latest increase in inflation has led some banks to speculate that rate cuts may be over. The competing need to bolster economic growth, though, may lead the bank to hold rates steady when the MPC meets on Nov. 5. (DNE11.10)
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5.14 Egypt's Suez Canal Revenue Falls 19% on Global Crisis
Egypt's revenue from the Suez Canal declined 19% in September as a result of the global financial crisis. Earnings fell to $382.5m compared with $469.6m in the same month last year, Cairo announced. Revenue rose 3% compared with August. Canal earnings have increased on a monthly basis for five months since February, dropping only in May and August. The Suez Canal is a key source of foreign currency for Egypt along with tourism and foreign direct investment. The canal generated $4.7b for the country in the fiscal year that ended in June. More than 4m barrels a day of crude oil, or 4.7% of global production, are shipped through the canal or a pipeline that runs adjacent to it, according to New York-based McQuilling Services. The number of vessels crossing the waterway fell 22% to 1,454 in September. Net tonnage dropped to 64.4m tons, compared with 80m tons in September 2008, the government said. (BI-ME 07.10)
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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS
6.1 Turkey Achieves Privatization Successes
Turkey ranks fifth among all Organization for Economic Cooperation and Development, or OECD, countries in terms of privatization. The OECD prepared the list based on the scale and scope of privatization projects its members implemented between 2000 and 2007. In OECD's “Privatization in the 21st century: Recent Experiences of the OECD Countries Report,” the organization takes an in-depth look at successful privatization policies. Japan implemented the largest volume of privatizations, according to the report. Germany followed Japan, ranking second in the world. Italy and France took third and fourth place, respectively. Turkey ranked fifth with a privatization-transaction volume of $25b. Meanwhile, the sale of Turk Telekom, Turkey's main fixed-line phone company, ranked eighth in a Top 10 list of the largest privatizations implemented by OECD countries. (Hurriyet 05.10)
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6.2 The Medical Device Market in Turkey - Currently the Largest Market in the Region
Research and Markets (http://www.researchandmarkets.com) has announced the addition of the "The Medical Device Market: Turkey" report to their offering. Turkey straddles the border of southeastern Europe and southwestern Asia and its neighbors are Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Iran, Iraq, Syria, the Mediterranean Sea and the Black Sea. It is neither considered truly European nor Middle Eastern but is somewhere in between, although formal EU accession talks are now underway. As part of Turkey's bid to join the EU, national legislation regarding medical device regulation has been aligned with that of the EU, although that process is not yet complete and the two systems are not yet identical. As a result of this alignment, the regulatory environment in Turkey is far more complex and the processes much more comprehensive in Turkey than elsewhere in the Middle East.
The government has placed an emphasis on developing its healthcare system, with the goal of establishing a Universal Healthcare System by 2013 as part of its ongoing reforms for the healthcare sector. In 2006, the government formed the Social Security Institution (SSI), which effectively merged the various social security (health insurance) organizations namely SSK, BagKur and Emekli Sandigi. The prospects for the medical device market in Turkey remain good; buoyed by strong import growth trends, for which the country relies heavily on, and the expansion of healthcare facilities coupled with rising health expenditure should see the market grow at an attractive rate of 6.5% in the 2009-2014 period. The market is currently the largest in the region and is among the top 30 in the world. (R&M30.09)
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6.3 Greek Deficit for 2008 Closes at 5.7%
The Greek economy had been sending clear signals of a sudden slowdown since last year, but the Economy Ministry only notified Eurostat recently. According to data forwarded by the National Statistical Service to its European counterpart, last year's budget deficit closed at 5.7% of GDP, compared to the figure of 5% projected by the ministry. Public debt rose to 99.8% of GDP from an estimated 97.6%. Despite the fact that the 2008 deficit was higher than expected, the ministry had insisted on an optimistic scenario for 2009, but it was hardly realistic. Its estimate for this year, as forwarded to Eurostat, envisages a deficit of 6% of GDP and debt of 107% of GDP. The ministry's estimate that the deficit rose this year by just 0.3% has generated some ironic smiles in Brussels. Based on the latest data available for the budget's execution in the first eight months of 2009, the European Commission estimates the deficit will exceed 8% this year, or possibly even 9%, while debt will reach 110% of GDP. This is vindicated by the figures for 2008. This major revision of the country's underlying financials is dealing another blow to the country's credibility, after the downward revision last month of 2008 growth from 2.9% to just 2%. (Various06.10)
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6.4 Greece's Energy Regulatory Authority is Embracing Alternative Energy.
Greece's Energy Regulatory Authority announced that it has given the "green light" for more than 5,000 investments in solar photovoltaic electricity production units. The Energy Regulatory Authority stated in a just published report that it approved 117 investment applications for production units with a total power generation capability of more than 150 kilowatts. According to the report, an additional 49 applications received a positive recommendation, 391 were awaiting environmental licenses while 313 projects received negative comments. Noting that it had approved a total of 6,840 applications for photovoltaic projects with energy production capabilities of up to 150 kilowatts, the Energy Regulatory Authority report showed that around 35% of submitted applications were rejected in the early stages of the procedure. Besides the solar projects the Energy Regulatory Authority reported that it has approved 527 wind power projects with a total energy generating capacity of 7,297 megawatts, 301 hydroelectric power stations with a total energy output of 671.5 megawatts and 24 biomass stations with a total power output of 110.3 megawatts. (ANA01.10)
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6.5 More than Half of the Greek Population Need Eye Correction
Research and Markets (http://www.researchandmarkets.com) released the "Eyewear in Greece 2009" report to their offerings. This study considers the Greek eyewear market which consists of sunglasses, vision glass frames (for near-sightedness, long-sightedness, etc), ophthalmic lenses (that are mounted on vision glass frames) and contact lenses. The sector is essentially import oriented and the majority of products sold in the Greek market comes from industries with a global presence. The sector of eyewear comprises few manufacturing companies in comparison with the relatively large number of import companies. Production activity is centered on eyeglass frames and sunglasses as well as ophthalmic lenses. Some of the sector manufacturing companies are also involved with the import of optical goods in order to expand their range of products. The latest transitions and evolution trends in the market of eyewear (ophthalmic lenses, sunglasses, eyeglass frames and contact lenses) are presented in the fifth edition of the relevant sector study recently released by ICAPs Research & Management Consultants Department.
As regards ophthalmic lenses, sector manufacturing companies acquire lenses from abroad, in an unprocessed or semi-processed form, and after that process them in order to give them the necessary degrees and layers. The domestic production of sunglasses and eyeglass frames, mainly concerns frames made from plastic material. The needs for vision correction are the ones that essentially determine the consumption of eyeglass frames and ophthalmic lenses but also of contact lenses. It is estimated that more than half of the Greek population, that is to say more than 5 million, are in need of eye correction, while almost all people after the age of 40 have long-sightedness problems as well as hypermetropia. One of the trends which is being observed in recent years is the production of sunglasses and eyeglass frames in third-party factories abroad, on behalf of Greek companies. Greek companies undertake the design of the products and the selection of raw material and control all of the phases of production. (R&M05.10)
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6.6 Bulgaria Unemployment Rate Passes 8% in September
The unemployment rate in Bulgaria has passed another psychological barrier and has reached 8.03% in September 2009. The data, presented by the National Employment Agency, was announced by the Minister of Labor & Social Works Mladenov. This is the highest unemployment rate since April 2007 when it was 8.38%, the statistics shows. As to the end of September, there were 297,500 people without job, which is 6 000 more than in August 2009. However, there is a decrease in the number of applications for mass lay-offs, the minister said. In September, there were applications for lay-offs of 1,422 employees in the field of services and in the light industry. For comparison, in August the number was 2,500. Bulgaria's Labor Ministry is going to invest about BGN 1 B on the labor market in 2010 in order to tackle the unemployment that is expected to result from the economic crisis, Mladenov said. (SMN06.10)
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6.7 Bulgarian Government Sees 0.7% Budgetary Gap
The Bulgarian government has penciled in a budget deficit of 0.7% of GDP next year but will aim for a zero gap in a bid to speed up eurozone entry and avoid a prolonged recession, a draft showed yesterday. The budget draft, obtained by Reuters, showed the new center-right government, which won July general elections, planned for a fiscal deficit of 465.7m levs ($351.2m), or 0.7% of GDP in 2010. It did however say that a reserve of 406m levs was put aside in the budget and would be spent only if unforeseen needs occurred. The poorest European Union nation has said it will apply to join the pre-euro ERM-2 waiting room next year and try to adopt the single currency by 2013. (Reuters10.10)
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6.8 Bulgaria's 1st Garbage Processing Plant Opened Near Plovdiv
On 8 October, Bulgaria's Prime Minister Borisov opened the country's first hard waste processing plant. The Prime Minister also said a similar plant would have already been built in Sofia if it had not been “sabotaged” by his predecessor, Sergey Stanishev. He stressed that his government supported all of the country's regions regardless of political affiliations. Borisov said the Plovdiv waste disposal plant would not have to process garbage from the capital Sofia. He reminded that the Plovdiv dump site recently accepted 100 000 tons of waste from the capital but the Plovdiv Municipality got a lot of money from the state for that in order to finance its other projects. The construction of the waste plant in Shishmantsi started in 2003, and was completed in June 2009. After that the factory awaited its environmental permit. A total of BGN 42 M has been invested in it; of those, BGN 32 M came from the state budget. It is initially going to work with one production line with a total capacity to process 125 000 tons of waste per year. A second production line, however, is also to be launched at a later stage. (SMN09.10)
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7: GENERAL NEWS AND INTEREST
*ISRAEL:
7.1 Israeli Wins Nobel Prize in Chemistry
Ms. Ada Yonath of Israel (with Americans Venkatraman Ramakrishnan and Thomas Steitz) was awarded the 2009 Nobel Prize for Chemistry on Wednesday for "studies of the structure of the ribosome” which translates the DNA code into life. According to the Royal Swedish Academy of Sciences, the group's work has been fundamental to the scientific understanding of life, and has helped researchers develop antibiotic cures for various diseases. The laureates successfully generated three-dimensional models that show how different antibiotics bind to ribosomes. Yonath is only the fourth woman to win the chemistry Nobel Prize and the first since 1964. The winners will split a $1.4m purse, receive diplomas, and are invited to the prize ceremonies in Stockholm on December 10, the anniversary of award founder Alfred Nobel's death in 1896. Israeli scientist Ada Yonath is a professor and head researcher in the field of structural biology and biochemistry at the Weizmann Institute of Science in Rehovot. She is the first Israeli woman to win a Nobel Prize and the ninth Israeli Nobel laureate. (IsraelNN07.10)
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*REGIONAL:
7.2 Greek Elections See Papandreou and PASOK Sweep to Victory
On 4 October PASOK leader and Greece's new prime minister, George Papandreou defeated the sitting Prime Minister Costas Karamanlis. PASOK made a triumphant return to government with a clear majority in Parliament that left New Democracy on the verge of suffering the most damaging election defeat in the conservative party's 35-year history. His PASOK party won a comfortable 160 seats in the 300-member Parliament. The result was a major turnaround for PASOK, which just two years ago had slumped to a second consecutive defeat in national elections as it saw its share of the vote decline by 2.5% to 38.10% from 2004. The center-left party saw its share of the national vote increase by more than 5% since two years ago. This turnaround also marked a personal victory for Papandreou who, following the 2007 defeat, saw his leadership challenged both by segments of the media and some members of his own party.
Apart from being a victory for PASOK and Papandreou, who will become the third member of his family to govern Greece after his grandfather and father, the result of this election was a shattering defeat for New Democracy, which saw its share of the popular vote decline from more than 45% in 2004, when it was first elected to power under the leadership of Costas Karamanlis, to just over 35%.
On 6 October Prime Minister Papandreou, 57, announced a 100-day action plan to address the country's economic woes with a stimulus package of up to €3b ($4.42b), tax reforms and infrastructure investment. Speaking to his Cabinet, the U.S.-born prime minister pledged to crack down on corruption, increase government accountability and promote environmentally friendly development. Papandreou has promised above-inflation salary rises for civil servants, and says he will boost state revenues by increasing taxes on the rich and fighting widespread tax evasion. A major challenge will be to reduce the public debt, expected to exceed 100% of economic output in 2008, and a budget deficit that could reach 10% of GDP. (Various07.10)
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8: ISRAEL LIFE SCIENCE NEWS
8.1 Can-Fite Initiates Preparatory Work for Psoriasis Phase III Trial with CF101
Can-Fite BioPharma announced the initiation of preparatory work for a Phase III trial with CF101 in Psoriasis. This is based on the successful conclusion of a Phase II dose-response clinical study with CF101 to treat patients with moderate to severe Psoriasis; the study successfully met its primary objective of efficacy and safety. The Phase II study confirmed that CF101 had a clean safety profile, a clear efficacy signal with dose-response data and an excellent therapeutic index. Among the 3 dosages that were used, CF101 at 2 mg had a statistically significant response, according to the Psoriasis Area Severity Index score and was the dose with the best performance. Can Fite will submit an IND to the Dermatology division at the FDA followed by an end of Phase II (EOP2) meeting to discuss registration planning and Phase 3 protocols. The success in psoriasis adds to the success in a recently announced clinical study in dry eye patients. In both these studies the patients were treated with CF101 as a stand-alone treatment. Psoriasis, as well as dry eye disease is inflammatory diseases. The success in both these studies points to the efficacy of CF101 in treatment of inflammatory diseases, with very large market potential. Furthermore and most importantly success in these studies validates the technology platform of the company.
Petah Tikva's Can-Fite Biopharma (http://www.canfite.com) is a public company traded on the Tel Aviv Stock Exchange. The Company was founded on the basis of scientific findings made by Prof. Pnina Fishman and focuses on the development of small molecule-based drugs that bind to receptors of cancerous or inflammatory cells and inhibit their development. (Can-Fite 30.09)
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8.2 Brainstorm Announces Milestone Towards ALS Clinical Trials
BrainStorm Cell Therapeutics announced that bone marrow cells taken from ALS patients were capable of differentiating into nerve-supporting cells. The company tested ALS patients' bone marrow stem cells in order to confirm that these stem cells could undergo BrainStorm's differentiation procedure to secrete NeuroTrophic Factors (NTF) and used for treatment by back transplantation into the patients. The experiments performed at BrainStorm Cell Therapeutics' research laboratories showed that the stem cells isolated from bone marrow of healthy donors and ALS patients were similar, as indicated by all the morphological and biochemical parameters tested. In addition, the cellular expansion potential of stem cells from the healthy donors and from the patients was comparable. Most important, cells from both, the healthy donors and the patients, secreted NeuroTrophic Factors (NTF) after applying Brainstorm's unique differentiation protocols. BrainStorm will now complete all of its preparations for pre-clinical trials to be followed by clinical trials based on the company's proposed stem cell therapy.
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's current focus is on ALS and Parkinson's, although its technology has promise for treating several others diseases including MS, Huntington's disease and stroke. (BrainStorm05.10)
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8.3 Impliant Conducts the First Two Implantations of Its New TOPS VersaLink Spinal System
Impliant announced that it conducted the first two implantations of its TOPS VersaLink System, the newest addition to its product portfolio. The system is comprised of the company's flagship TOPS Total Posterior Arthroplasty device, a motion-sparing posterior implant designed to treat moderate to severe lumbar stenosis with or without spondylolisthesis and facet arthrosis, attached to the company's recently-developed VersaLink Fixation System. By combining the two devices, the TOPS VersaLink System allows the surgeon to treat different stages of spinal degeneration at two or more adjacent vertebral segments. Surgical treatment of patients with advanced multi-level spinal degeneration has traditionally consisted of a fusion device that spans all of the diseased segments following decompression of the patient's pain generators. However, the TOPS portion of the TOPS VersaLink System restores near-normal motion to its segment and may thereby reduce the potential for adjacent segment degeneration that may accompany conventional fusion-only constructs. Impliant's TOPS System, a mobile posterior device, is designed to stabilize but not fuse the L3-4 or L4-5 vertebral level to alleviate pain stemming from spinal stenosis with or without degenerative facet arthrosis and spondylolisthesis. Following a laminectomy and medial facetectomy, the device is affixed to the spine via four pedicle screws using a standard posterior surgical approach.
Netanya's Impliant (http://www.impliant.com) is a privately-held company engaged in the development of novel spine arthroplasty solutions for some of the most prevalent pathologies of the spine. The company's flagship product is the TOPS System, which has the longest clinical history in the Total Posterior Arthroplasty market segment, dating to January 2005. Impliant is also developing the VersaLink Fixation System, the TOPS-SP System and several other next-generation and multi-level technologies to further increase its addressable market. (Impliant 09.10)
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8.4 Cleveland Clinic Selects Itamar's WatchPAT Technology in Top Ten Medical Innovations for 2010
Itamar-Medical's WatchPAT technology has been selected to The Top 10 Medical Innovations for 2010 at the seventh annual Cleveland Clinic Medical Innovation Summit. In developing the Top 10, Cleveland Clinic enlisted the expertise of AlixPartners, an independent international management advisory firm in order to develop a consensus perspective on the Top 10 Medical Innovations for 2010. The basic technology, which evolved into the WatchPAT technology, originated at the Technion Institute of Technology. In the late 1990's Itamar-Medical acquired the base technology, developed it and introduced the WatchPAT device targeted at the Ambulatory Sleep Testing market. Itamar-Medical has been granted 40 patents related to the underlying technology and products. Caesarea's Itamar Medical (http://www.itamar-medical.com) is utilizing PAT (Peripheral Arterial Tone) signal technology and applications. The PAT signal is a non-invasive "window" to both the cardiovascular and autonomic nervous systems. (Itamar Medical12.10)
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8.5 Compugen & Bayer Schering Pharma to Collaborate on Oncology Target & Splice Variants
Compugen has signed a collaboration agreement with Bayer Schering Pharma AG, Germany (Bayer) covering the further evaluation of a Compugen discovered tumor target and its splice variants. Following an initial six month joint research stage, the agreement provides Bayer with an option for an exclusive worldwide royalty bearing license for development of monoclonal antibodies and other therapeutic agents addressing these novel target molecules. The existence of the target and its splice variants was initially predicted in silico by Compugen through the use of its Monoclonal Antibody (mAb) Targets Discovery Platform; the predicted molecules were then validated experimentally. The newly discovered tumor target and its splice variants are previously unknown splice variants of a known cancer target for which therapeutic agents are currently in pre-clinical development by other organizations. Like the known cancer target, this protein molecule and its variants are all trans-membrane proteins. However, each of the Compugen molecules has a unique sequence at the extracellular domain of the protein that enables the development of monoclonal antibodies specific to each of the respective splice variants. Therefore each splice variant could represent a novel target for monoclonal antibody therapy.
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. (Compugen13.10)
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9: ISRAEL PRODUCT & TECHNOLOGY NEWS
9.1 Microsoft's Free Antivirus Developed In Israel
On 29 September, Microsoft Corporation announced that it will allow free downloads of its new Microsoft Security Essentials antivirus program for registered private customers. The beta version of the program has been available for several months. Development of Microsoft Security Essentials began in December 2008 at the Microsoft Israel R&D center in Herzliya Pituah. Owners of legal versions of Microsoft Windows can download Microsoft Security Essentials without registering. The program also works on thin hardware such as Netboxes. (Globes 30.09)
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9.2 Planet/LS & Yitran to Develop PLC Based Automation, Energy Management & AMR/AMI Products
Korea's LS Industrial Systems, through its recent acquisition of Planet System Corporation, and Yitran Communications have entered into a cooperative agreement for a line of PLC based products designed for Home command and control, Energy management and AMR/AMI systems. LS Industrial Systems, the leading partner in forming the Smart Grid standard in Korea, will use Yitran's IT700, designed for HomePlug Command and Control (C&C), in their PINS (Powerline Integrated Network System) line of products. The agreement is an extension of Yitran's long time cooperation with Planet/LS, in supplying a line of PLC based controllers to LG for 12 of LG's white goods appliances. LS/Planet will also promote and sell Yitran IT700 components and reference designs to the Korean market. By signing this agreement LS/Planet demonstrates its support to the HomePlug C&C standard (based on Yitran's IT800 transceiver technology) and commitment to promote this as part of the Korean Smart Grid initiative. Yitran's leadership in PLC began with IT800 (7.5Kbps), which was selected by HomePlug as the baseline technology for the HomePlug C&C open standard. Yitran also recently announced that its next generation PLC IC, DCSK Turbo (IT900) at 500Kbps. IT900 will feature a full protocol stack and will provide more than 40 times greater throughput than the IT800/IT700 series and provides upper layer support for SE1.0, IP and SE2.0. Beer Sheva's Yitran (http://www.yitran.com) designs, develops and markets high performance, low cost PLC modem chips that provide extremely robust, reliable communication over existing electrical wiring, suitable for the demands of the Smart Grid market. (Yitran30.09)
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9.3 Wavion Selected by TECHS Brazil, to Replace its Mikrotik Broadband Network
Wavion and TECHS Technology Hardware and Software, a leading Wireless Internet Service Provider (WISP) in Brazil, announced the successful deployment of an upgraded wireless broadband access network, based on Wavion's solution, in the city and the region of Araraquara, Brazil. TECHS's network was formerly based on Mikrotik's equipment. Wavion's solution, based on its advanced WBS-2400 base station with its exceptional performance and ease of installation – all in one unit which includes the radio, modem and antennas and requires no assembly - enabled TECHS to rapidly and cost effectively deploy the network and seamlessly migrate its existing customers from their former Mikrotik equipment. Wavion's unique and powerful WBS-2400 spatially adaptive beamforming base stations provide extended range, higher throughput with NLOS coverage. As a result, unlike more conventional equipment, it does not require costly high towers and can be easily installed on rooftop and still provide very good coverage and indoor penetration. Moreover, its flexible architecture built around two types of base stations – omni-directional and sector – and its ruggedized and weather-proof (IP67) enclosure add significantly to its unique value proposition to WISPs.
Yokneam's Wavion (http://www.wavionnetworks.com) is transforming the metro Wi-Fi and rural markets with a new category of spatially adaptive base stations. The company's digital beamforming and SDMA technologies are the first and only to resolve the significant performance, penetration and profitability challenges facing large scale metro and rural deployments. Wavion is privately held and backed by world-class investors including Tel Aviv-based Elron Electronic Industries and BRM Capital. (Wavion30.09)
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9.4 Kornit Digital Unveils the New Kornit 921 Breeze Entry Level Printer
Kornit Digital, a leading-edge company that develops, manufactures and markets high-speed industrial digital inkjet printers, superior pigmented ink and unique chemistry solutions for the garment & apparel decorating industry, unveils the Kornit 921 Breeze - its new entry-level Direct-On-Garment printer for small and medium level production businesses. The printer will be presented for the first time at SGIA 2009, October 7th-9th in New Orleans, booth # 1655. Engineered to provide affordable printing with high quality performance, and the latest technology under the bonnet, the Kornit 921 Breeze industrial and yet small D.O.G printer is designed to allow garment decorators to use high-end technology benefits at entry-level costs. Upholding its exclusive, value-added industrial design, this new digital unit is capable of printing on both dark & light garments and includes an automatic pre-treatment system integrated into the machine. Moreover, Kornit continues its partnership with Spectra by featuring again its unique ink system that includes 6 industrial print heads (CMYK and white), 256 nozzles included in each. The Kornit 921 Breeze is easy to operate and to maintain. The printer can be hooked up to any computer, desktop or laptop, without the need for an air compressor, and can basically be operated from almost any site - office, shop or factory. The printer uses Kornit's proprietary pigmented ink and the Kornit QuickP Ripping application. Kornit 921 Breeze will be offered to the market for sale at the beginning of 2010.
Rosh-HaAyin's Kornit Digital (http://www.kornit-digital.com) is a dynamic, leading edge company that develops, manufactures and markets state of the art solutions for the garment & apparel decorating industry. Founded in 2003, Kornit Digital is a privately held and venture backed company that operates a wide marketing and support network around the world. With a globally installed base, Kornit Digital is dedicated to providing its customers cutting-edge solutions that assure high-quality, innovative and profitable results. (Kornit Digital 01.10)
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9.5 Ovum Names Red Bend Software the Market Leader in Firmware Over-the-Air Updating
Red Bend Software announced that Ovum, a leading independent market research firm, released a new study this month that names Red Bend the market leader in firmware over-the-air (FOTA) updating. Red Bend increased its market share to 64% of FOTA clients shipped in mobile handsets during Q4/08. This number is more than three times its closest competitor. Red Bend also increased its market share to 54% of FOTA-enabled handsets in active use. The study examines data from more than 1,300 mobile handsets launched worldwide since 2003. This report is the sixth iteration of a series of quarterly studies focusing on three technologies based on standards from the Open Mobile Alliance (OMA): FOTA, OMA CP (client provisioning) and OMA DM (device management). These technologies are increasingly being adopted by global operators and handset manufacturers for remote configuration, defect fixing, diagnostics and software management of mobile handsets. Ovum states year-end 2008 shipments totaled 431 million FOTA-enabled handsets (representing 35% of global shipments), 743 million OMA CP-enabled handsets (representing 60% of global shipments) and 410 million OMA DM-enabled handsets (representing 33% of global shipments).
Hod HaSharon's Red Bend Software(http://www.redbend.com), the leader in Mobile Software Management (MSM), provides software solutions for managing firmware, applications and devices over the air. The company's award-winning MSM products enable device manufacturers, mobile operators and software developers to increase revenues, reduce support costs and achieve faster time to market by remotely managing their software assets on mobile devices. (Red Bend Software 30.09)
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9.6 RADVISION Brings HD Desktop Video Conferencing to Apple's Mac OS X Platform
RADVISION unveiled its High Definition (HD) SCOPIA Desktop video conferencing client for Apple's Mac OS X platform. SCOPIA Desktop is the award winning desktop video platform that makes it easy to extend video conferences to remote users, allowing them to fully participate in meetings no matter where they are: at their desk, at a customer location, or in a hotel in another part of the world. This innovative, Web-based desktop conferencing solution, now available for the Mac platform, allows users to share full voice, video and data, with traditional room systems, telepresence systems, mobile devices and PC desktops all in one conference. RADVISION (http://www.radvision.com) is the industry's leading provider of market-proven products and technologies for unified visual communications over IP, 3G and IMS networks. With its complete set of standards-based video networking infrastructure and developer toolkits for voice, video, data and wireless communications, RADVISION is driving the unified communications evolution by combining the power of video, voice, data and wireless – for high definition video conferencing systems, innovative converged mobile services, and highly scalable video-enabled desktop platforms on IP, 3G and emerging next-generation IMS networks. (RADVISION05.10)
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9.7 Plasan Announces Delivery of 750 Armor Kits
Plasan announced the delivery of 750 armor kits for the U.S. Army's MRAP All Terrain Vehicles (M-ATV) as a subcontractor to Wisconsin-based Oshkosh Defense. This delivery meets the latest production milestone in the contract awarded by U.S. Department of Defense to produce 4,296 M-ATVs for deployment in Afghanistan. In July, the U.S. Department of Defense awarded a $1.05 billion contract awarded to a team led by Wisconsin-based Oshkosh Corporation and Plasan North America to produce 2,244 M-ATVs for deployment in Afghanistan. In August, Plasan won an additional contract for the delivery of 1,700 armor kits as an Oshkosh subcontractor. In September, Plasan and Oshkosh were awarded an additional order for 352 more M-ATV armor kits. Plasan credits this rapid delivery capacity to the application of its modular Kitted Hull concept. Under this concept, developed by Plasan, all armor parts and components are sent to the vehicle's manufacturer where they are applied to the vehicle at the assembly line, thereby allowing for future upgrades and more efficient manufacture. Kitted Hull technology enables manufacturers to better use subcontractors for the rapid and cost-effective assembly of armored vehicles, responding quickly to increases in production volume as the needs of the end-users change.
Kibbutz Sasa's Plasan (http://www.plasansasa.com) provides customized survivability solutions for tactical wheeled vehicles, aircraft, naval platforms, civilian armored vehicles and personal protection. A recognized global leader and industry veteran, Plasan's survivability solutions offer the optimal combination of protection, payload, and cost by combining in-house R&D, design, prototyping and manufacturing capabilities. Plasan combines innovative survivability engineering and design with advanced armor materials development. Its unique development process is based on continuous interaction between the R&D and the Design & Prototyping departments. During this process, Plasan combines computer-generated analysis and simulations with real-time calibration and ballistic test data. The effective combination of test and simulation data enables improved simulation accuracy and performance, resulting in the optimal survivability solution. (Plasan 05.10)
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9.8 Independent Research Firm Says OpTier's BTM Technology is 'On Fire'
A 5 October report issued by independent firm, Forrester Research, says OpTier represents the next step in the evolution of next generation BSM tools. The research report titled, "Tech Horizons: OpTier, A Step Towards Business Service Management (BSM) 2.0," outlines the benefits of the company and its CoreFirst product. Forrester Tech Horizons reports evaluate technologies using four main criteria, or heat factors -- market potential, technology adoption, product implementation and company background. Based on the analysis conducted by Forrester Research, OpTier was categorized as being "on fire" with a total heat factor of 93% out of a possible 100%. The Forrester report states, "the CoreFirst BTM concept is an answer to the end-to-end transaction management requirements that have been nagging IT operations for a long time." It goes on to note that while today's BSM and APM solutions have not been able to prioritize transactions that are business significant and pinpoint performance issues quickly and accurately, "the convergence of these disciplines into BTM embodied by CoreFirst seems to be the solution." The report also commends OpTier for its granular transaction view and ease of implementation noting that while some APM solutions are capable of monitoring and tracking transactions, "they rarely provide a quick and accurate root cause analysis" and "the cost of implementation and maintenance do not compare to CoreFirst." As part of the research, Forrester interviewed one of OpTier's customers, a Fortune 100 company, which is using CoreFirst on its large and complex new trading platform. "Once you have it, you want it everywhere," the customer notes.
Ramat Gan's OpTier (http://www.optier.com) harnesses the power of real business transactions with its unique Business Transaction Management (BTM) software solutions. Their CoreFirst product assures that business transactions flow smoothly within IT applications and infrastructure without bottlenecks or outages, for improved end-user experience and reduced cost. (OpTier 05.10)
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9.9 SPAWAR Awards Elbit Systems of America an IDIQ Contract for DMR 100W Power Amplifiers
Elbit Systems of America, a wholly owned subsidiary of Haifa's Elbit Systems, announced award of an indefinite-delivery/indefinite-quantity, firm-fixed-priced contract, to provide 100W power amplifiers (PA) for the Digital Modular Radio (DMR) program. The contract has a potential value of up to $11.4m over a five-year period. The DMR is a compact, multichannel standard software-defined radio that provides several radio communications waveforms and multilevel information security for voice and data communications. Digital modular radios operate aboard the Navy's surface and subsurface vessels, fixed sites and other DoD communication platforms using frequencies ranging from 2MHz to 2GHz SPAWAR is awarding the 100W DMR PA contract on behalf of its organizational partner, the Navy's Program Executive Office for Command, Control, Communication, Computers and Intelligence Systems. Elbit Systems of America will perform the work on this program at its facilities in Tallahassee, Florida and the contract is expected to be completed in September of 2014.
Elbit Systems of America is a leading provider of high performance products and system solutions focusing on the commercial aviation, defense, homeland security and medical instrumentation markets. Haifa's Elbit Systems (http://www.elbitsystems.com) is an international defense electronics company engaged in a wide range of defense-related programs throughout the world. The Company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance (C4ISR), unmanned air vehicle (UAV) systems, advanced electro-optics, electro-optic space systems, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and radios. The Company also focuses on the upgrading of existing military platforms and developing new technologies for defense, homeland security and commercial aviation applications. (Elbit05.10)
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9.10 Elbit Systems of America Presents: ETC Mark IV Rugged Tactical Vehicle Computer
Elbit Systems of America, a wholly owned subsidiary of Elbit Systems, unveiled its newest tactical computer, the ETC Mark IV, designed to deliver powerful computer capabilities within cramped vehicle conditions. The ETC Mark IV features a brilliant daylight-readable 10.4" touch-screen display, built-In keyboard, Windows XP or Linux operating system capability, ergonomic design, Intel Dual Core 1.66MHz processor, 2GB DDR2 memory, flash memory for rugged use, two radio modems, 1GBps LAN interface and many enabling interfaces that allow the unit to replace multiple legacy systems with one computer. The computer is designed for comfortable use as well as ease of operation, and twelve programmable function keys make it an ideal platform for custom applications. The ETC Mark IV is the newest in a series of tactical vehicle computer systems produced by Elbit Systems, more than 13,000 of which are in use by various military and coalition forces around the world. The ETC Mark IV will be available with embedded military SAASM or commercial GPS as well as two radio interfaces and options for other interfaces such as FBCB2, CAN Bus, 1553 Bus or other customized user interface requirements.
Elbit Systems of America is a leading provider of high performance products and system solutions focusing on the commercial aviation, defense, homeland security and medical instrumentation markets. Haifa's Elbit Systems (http://www.elbitsystems.com) is an international defense electronics company engaged in a wide range of defense-related programs throughout the world. The Company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance (C4ISR), unmanned air vehicle (UAV) systems, advanced electro-optics, electro-optic space systems, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and radios. The Company also focuses on the upgrading of existing military platforms and developing new technologies for defense, homeland security and commercial aviation applications. (Elbit05.10)
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9.11 Alvarion Wins a Project with Safaricom to Deploy a Nationwide WiMAX Network in Kenya
Alvarion was selected by leading Kenyan mobile services provider Safaricom for a three-year turnkey WiMAX project to deploy high-speed broadband services throughout Kenya. Using Alvarion's BreezeMAX solution at 3.5 GHz frequency band, the WiMAX network, will enable wireless broadband for residential and corporate users, rural areas, municipalities, banks, schools and universities. Safaricom, the largest mobile carrier in Kenya and East Africa, provides integrated data and voice communication solutions. The Safaricom WiMAX project will augment the Kenyan undersea fiber optic cable that now connects East Africa to international communications networks. The buildout of this fiber network is aimed at improving the broadband infrastructure in the country. Safaricom is also among several companies participating in this government initiative to bring fiber connectivity to Kenya. With the commercial implementation of WiMAX, Safaricom will be able to expand into new markets and offer enhanced broadband wireless services to enterprises, residential subscribers, community broadband initiatives, local government connectivity and a multitude of other value added applications.
Tel Aviv's Alvarion (http://www.alvarion.com) is the largest WiMAX pure-player with the most extensive WiMAX customer base and over 250 commercial deployments around the globe. Committed to growing the WiMAX market, the company offers solutions for a wide range of frequency bands supporting a variety of business cases. Through its OPEN WiMAX strategy, superior IP and OFDMA know-how and ability to deploy end-to-end turnkey WiMAX projects, Alvarion is shaping the new wireless broadband experience. (Alvarion06.10)
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9.12 CTERA Networks Launches CloudPlug and C200 Cloud Attached Storage Appliances
CTERA Networks announced the general availability of the company's first two Cloud Attached Storage devices: the CTERA CloudPlug and the CTERA C200, seamlessly combining the performance of local network-attached storage (NAS) with the reliability of online backup. The CTERA CloudPlug is a small plug computing device that transforms any USB or eSATA hard drive into network-attached storage (NAS) with integrated online backup. Ideal for small offices and high-demand consumers, the CloudPlug is extremely easy to install (plug in an external drive, plug into the network, plug into a wall), and very simple to manage via an online portal - no desktop software required. The CTERA CloudPlug is powered by Marvell Sheeva CPU technology. For more demanding small businesses and branch offices, the CTERA C200 is a two-bay RAID-capable network storage appliance with automatic online backup. The C200 supports dual hot-swappable SATA hard drives, and automatically backs up network computers and servers to secure cloud storage. In addition, CTERA also today announced that Rackspace, the world's leader in hosting and cloud computing has agreed to promote and market the CloudPlug via online and channel programs.
Petah Tikva CTERA Networks (http://www.ctera.com) revolutionizes storage and data protection for small businesses and SOHO users by introducing Cloud Attached Storage, a hybrid solution that combines fast local network storage with cloud services – including secure online backup – using an appliance-based approach with no software installation required. CTERA empowers service providers to deliver value-added services to their subscribers with complete infrastructure for hosting and remotely-managing subscriber data protection. (CTERA 06.10)
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9.13 Alvarion Named as a Clearwire Mobile WiMAX Solution Provider in Spain
Alvarion has been selected by Clearwire International, a holding entity of Clearwire Corporation, to supply its mobile WiMAX 802.16e solution for an initial deployment in Spain. Clearwire plans to offer innovative 4G services there in selected urban areas during 2010, such as high-speed internet, VoIP and video to consumers and businesses. Under the agreement, Alvarion will supply Clearwire, its 4Motion Mobile WiMAX 802.16e solution that incorporates the WiMAX Forum Certified BreezeMAX platform for the 3.5 GHz frequency band. BreezeMAX is designed to optimize network efficiency and enable superior coverage. The network will be built using an all-IP, open WiMAX architecture to allow Clearwire to leverage its global ecosystem of best of breed partners and solutions. Alvarion's BreezeMAX family of radio access products is based on fourth generation OFDM radio innovation that provides state of the art 4G functionality in one of the industry's most deployed WiMAX platforms, with more than 250 commercial deployments in service today around the globe.
Tel Aviv's Alvarion (http://www.alvarion.com) is the largest WiMAX pure-player with the most extensive WiMAX customer base and over 250 commercial deployments around the globe. Committed to growing the WiMAX market, the company offers solutions for a wide range of frequency bands supporting a variety of business cases. Through its OPEN WiMAX strategy, superior IP and OFDMA know-how and ability to deploy end-to-end turnkey WiMAX projects, Alvarion is shaping the new wireless broadband experience. (Alvarion06.10)
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9.14 Foris & Runcom to Expend Their WIMAX Collaboration in Mozambique
Foris Telecom and Runcom Technologies announced that they will enhance their collaboration in Mozambique, by substantially deploying additional quantities of Base Stations and User Terminals. The Foris WiMAX Network in Maputo was recently connected to the SEACOM Fiber Cable system that substantially increases the capacity available for the subscribers and enables the addition of more subscribers to the Network. Rishon LeZion's Foris Telecom (http://www.foristel.com) is a leading global operations company which builds and operates next generation wireless broadband networks. These networks enable fast, reliable and affordable internet communication in areas which would otherwise have none. Foris Telecom offers wireless broadband network coverage with a focus on developing countries, covering entire communities and delivering high-speed internet. Runcom (http://www.runcom.com) is a technology company pioneering OFDMA based end to end solutions for operators worldwide. Runcom's offering includes User Terminals, Base Station, ASN Gateways, Mini NOC, etc that comply with the IEEE802.16e-2005 standard for WiBro and Mobile WiMAX applications. (RunCom 06.10)
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9.15 DBSophic Releases Qure Version 1.5, Performance Optimization Solution for SQL Server Databases
DBSophic announced the release of Qure 1.5, the latest version of its flagship product, Qure. Qure is DBSophic's solution for performance tuning of Microsoft SQL server (2005 and 2008) databases. It is an innovative software solution for automatic analysis, identification and resolution of slow performance issues in databases. Qure 1.5 is a valuable tool that helps significantly reduce operational costs associated with managing the performance of mission critical databases, increasing operational efficiency and reducing unwarranted expenses, thus granting organizations a rapid return on investment (ROI). The new version includes an improved trial feature. It can be downloaded from the company's website - free of charge. The trial version presents multiple benefits -it performs a quick, yet thorough, analysis of the database, and provides a clear view of all database activities, sorted by their resource consumption metrics (Duration, CPU and I/O). In addition, Qure's free demo provides accurate measurements of the improvement potential of all analyzed batches, a sample of the generated recommendations for several batches and their corrective scripts, in order to allow the user to experience Qure's ease of use and effectiveness.
Jerusalem's DBSophic (http://www.dbsophic.com) develops innovative software solutions for database performance optimization. DBSophic provides comprehensive, fully automated yet simple solutions for performance tuning and optimization of database systems. DBSophic previously released for the SQL Server community a Trace Analyzer tool, which can be downloaded - free of charge - from the company's website. (DBSophic 06.10)
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9.16 IAI & Gulfstream Aerospace Roll Out All-New Super Mid-Size Gulfstream G250
Israel Aerospace Industries (IAI) and Gulfstream Aerospace, a wholly owned subsidiary of General Dynamics, rolled out the all-new, super mid-size Gulfstream G250 at Ben Gurion International Airport in Israel. First announced in October 2008, the large-cabin, mid-range G250 remains on schedule for customer deliveries in 2011. Some 600 people gathered at the manufacturing facility for the aircraft's debut. The audience included certifying authorities, supplier representatives and members of the Gulfstream G250 development team, many of whom worked in Tel Aviv with IAI to oversee the building of the all-new Gulfstream G250 aircraft. The G250 offers the largest cabin and the longest range at the fastest speed in its class. It is capable of traveling 3,400 nautical miles at 0.80 Mach and has a maximum operating speed of 0.85 Mach. With an initial cruise altitude of 41,000 feet, the G250 can climb to a maximum altitude of 45,000 feet. In terms of passenger comfort, the G250 features the largest cabin in its class, with 17% to 35% more floor area than any other super mid-size business jet. The additional space provides for a larger lavatory, an improved galley and increased storage. The aircraft also features 19 panoramic windows, industry-leading sound levels, a vacuum toilet system and in-flight access to 120 cubic feet of usable volume in the baggage compartment.
IAI (http://www.iai.co.il) has gained worldwide recognition as a leading developer of aviation and aerospace technology in both military and civilian markets. IAI provides the Israel Defense Forces (IDF) and its foreign customers with unique, high-quality technological solutions that meet a wide range of needs on the ground, in the sea, in the air, in space and in the field of homeland security. IAI is a world leader in a wide range of advanced technologies, including the development, production, renovation, upgrading, repair and maintenance of aircraft, missiles, launchers, communications satellites, observation satellites and ground services, electronic systems, avionics systems, advanced radar, precision-guided munitions, and unmanned aerial vehicles. (IAI06.10)
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9.17 Adama Technologies to Launch Pilot Soil Decontamination Program in Israel
Adama Technologies Corp. has been approved to conduct a major pilot of its patented Molecular Bond Solution (MBS) Technology in Israel in conjunction with the country's Ministry of the Environment. Adama will utilize MBS technology to remediate approximately 3,000 tons of contaminated soil on a brownfield that previously housed a battery manufacturing plant. The soil on the site is contaminated with large quantities of heavy metal waste materials. The pilot represents the first time MBS technology will be approved for use outside of the United States. The technology has already been tested and approved for use by the United States' Environmental Protection Agency. Tel Aviv's Adama Technologies Corp. (http://www.adama-tech.com) acquires, decontaminates and revitalizes brownfields using patented Molecular Bond Solution (MBS) Technology. The Technology has successfully completed the site testing program of the Environmental Protection Agency, and is ready for commercial use. (Adama 07.10)
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9.18 PicScout Technology Supports Ubiquitous Online Image Accreditation & Transaction
PicScout launched a services platform and a new product that enables client image monetization opportunities across the global landscape of the internet. For the first time, users of web-viewed images will be made immediately aware of images' rightful owners or licensors and afforded an easy connection with them. PicScout is bringing both users and purveyors of images together online and on-the-fly to contract for legitimate image downloads for authorized usage on or offline. While the consensus is that the photo license industry is a $2b market, most also agree this estimate represents only a part of the true market size when factoring in all image uses, both legitimate and non-legitimate. By giving credit to every online image and facilitating immediate use and/or purchase, PicScout engenders a much larger and more apparent marketplace. With today's announcement unveiling the industry's opportunity to have every licensable image appear with licensor information, PicScout moves to a Services Platform designed to utilize the company's proprietary image fingerprinting recognition technology to inform, equip, and deliver a suite of products- the first new product being ImageExchange, which facilitates connections between image owners and image buyers. With the news, PicScout complements a previously established reactive model for non-legitimate usage with a proactive one that enables immediate recognition of licensable images.
Herzliya's PicScout (http://www.picscout.com) is the worldwide leader in image tracking and enabler of client image monetization services. Through its proprietary and highly scalable image recognition technology, PicScout created the image copyright protection marketplace through its widely used ImageTracker product and is now leading the way for image commerce to become a legitimate Internet economy. The company's products ImageTracker and ImageExchange utilize the company's Image IRC service platform which is based on its proprietary image recognition technology for its index, metadata registry and API connection to provide a wide variety of solutions involving image protection, ownership, identification, commerce, as well as business intelligence. (PicScout07.10)
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9.19 Waterfall Security Solutions Announces new Product Release: Waterfall Remote Screen View
Waterfall Security Solutions announced the release of a new product named Waterfall Remote Screen View. The product, based on Waterfall's unique hardware and software technology, provides Real-time unidirectional replication of workstation or server display screens, to external networks or locations. Waterfall Remote Screen View enables Utilities and Critical Infrastructures to securely relay Control Room screens and SCADA display systems, in real-time, to external networks, business networks and 3rd parties. Waterfall Remote Screen View adds a new dimension to remote assistance and maintenance in industrial or critical networks - being able, for the first time, to securely provide workstations or servers display screens to remote technicians, vendor specialists and other experts, at external networks and in remote locations and at the same time ensure a physical segregation between the critical network and all other networks Waterfall Remote Screen View supports all regulatory compliant requirements, such as NERC, NRC and NIST, by maintaining the total segregation of critical networks, yet enhancing overall system stability and availability by enhancing remote assistance and maintenance capabilities.
Rosh HaAyin's Waterfall Security Solutions (http://www.waterfall-security.com) is the leading provider of Unidirectional Security Gateways for Process Control systems, SCADA systems, Remote Monitoring and Segregated Networks. Waterfall's products have been deployed in many homeland security agencies, critical national infrastructures and mission critical organizations in North America, Europe and Israel, and include security solutions for the OSIsoft PI Historian, GE Proficy Historian, OPC, Modbus, DNP3 and additional applications and protocols. The Company is expanding globally through channels, OEM and technology partnerships. (Waterfall Security 08.10)
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9.20 Tower Semiconductor Selected as Preferred Foundry by C&S Technology in Korea
Tower Semiconductor selected by C&S Technology in Korea as its preferred foundry to manufacture its power automotive devices. C&S Technology, the official automotive device supplier of multimedia solutions (audio and video systems) for Hyundai & Kia Motor Company, will now supply a power device to the automotive manufacturer. The device can integrate multiple ICs that are typically independent within the vehicle, resulting in a more cost-effective solution. As this IC is being designed for current models of automobiles, the volume ramp will be several years sooner. This customer engagement for Tower is one of several recently announced in Korea as momentum grows for its advanced Bipolar-CMOS-DMOS (BCD) power management process. This strong focus on utilizing the innovation and accumulated design capabilities prevalent in the Korean fabless community allows Korea to strengthen their competitiveness in both the automotive and IC markets, reducing its reliance on overseas suppliers.
Migdal Ha'Emek's Tower Semiconductor (http://www.towersemi.com) is a global specialty foundry leader and its fully owned subsidiary Jazz Semiconductor, a Tower Group Company is a leader in Analog-Intensive Mixed-Signal (AIMS) foundry solutions. Tower and Jazz manufacture integrated circuits with geometries ranging from 1.0 to 0.13-micron and provide industry leading design enablement tools to allow complex designs to be achieved quickly and more accurately. Tower and Jazz offer a broad range of process technologies including Digital, Mixed-Signal and RFCMOS, HV CMOS, BCD, Non-Volatile Memory (NVM), Embedded NVM, MEMS, and CMOS Image Sensors. (Tower12.10)
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9.21 Siverge Networks Unveils Comprehensive Chip Solution for Mobile Backhauling Infrastructure
Siverge Networks announced a low-cost, high-performance, Wireless Universal Gateway chip solution for next generation mobile backhauling infrastructures. The new offering, known as the SivGate, extends Siverge's Griffin family of products and consists of an ASIC and a powerful FPGA core, enabling a unique combination of high performance, reduced power, accelerated time to market and a lower TCO. As carriers and service providers struggle to create profitable businesses with bandwidth intensive data services, many organizations are looking for solutions that can increase their capacity, evolve their infrastructure and improve their margins. Particularly, on the long way towards all-IP networks, the inevitable co-existence of multiple networks for 2G, 3G and emerging LTE supported by multiple backhauling infrastructures is creating substantial Capex and Opex overheads and increasing inefficiency. Up until now, wireless and backhaul equipment manufacturers were forced to use a combination of framers, mappers and complex processor designs which could not deliver the bandwidth, scalability and integration levels needed to meet the demands of performance and profitability.
Herzliya's Siverge Networks (http://www.siverge.com), a pioneering provider of networking chip solutions, creates powerful hardware technology that enables low-cost, high-speed communication systems for the Wireless Backhaul and Carrier Networks. The company's patented technology re-defines the limits of networking devices, integrating 10x more functionality, capacity and channel/port density. (Siverge Networks 12.10)
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9.22 Ness Technologies Launches Two Systems That Help Fight Terror and Crime in Urban Areas
Ness Technologies announced the launch of two systems that help fight terror and crime in urban areas. The first system is ASM - Area Smart Monitoring, and the second is The Sixth Sense - a system that identifies suspicious persons in an urban scene. ASM builds intelligence situation pictures for urban areas. The system is based on a real-time data fusion and sensor management engine that integrates information acquired in real-time with analyzed intelligence information. The system monitors urban areas and helps enhance urban security, creating a real-time urban situation picture that provides critical information to homeland security, law enforcement and public safety agencies. ASM identifies and tracks suspicious activities of individuals or groups, and helps prevent terror and criminal acts, as well as capture suspects after an event has occurred. The system generates alerts when suspected activities are detected. The real-time information is received from various sources, such as cellular location systems, license plate recognition systems, video cameras equipped with automatic content analysis algorithms, GPS location systems and human observers.
Ness Technologies (http://www.ness.com) is a global provider of IT and business services and solutions with specialized expertise in software product engineering; system integration, application development and consulting; and software distribution. Ness delivers its portfolio of solutions and services using a global delivery model combining offshore, near-shore and local teams. (Ness Technologies 12.100)
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10: ISRAEL ECONOMIC STATISTICS
10.1 Small Rise Expected in September CPI
The pundits are predicting that September's CPI, which the CBS will publish on 15 October, will rise by up to 0.2%. This follows several months of higher rises in the CPI. The CPI rose 0.5% in August due to a 1.2% rise in the price of housing and a 7% rise in the price of water du to the drought tax. The CPI rose by 3.7% in the first eight months of 2009. With September's rise, this means that inflation is far above the top ceiling of the government target of 3%. The drought tax will again substantially influence the CPI rise because only half of the levy was charged in July and August, whereas from September the full tax is being charged. Economists attribute nearly half of the rise in the CPI this year - 1.5% - to government measures such as the drought tax and raising VAT from 15.5% to 16.5%. Without these taxes, inflation would be within the government's target range. (Globes 13.10)
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10.2 Foreign Residents Invested $1 Billion in Securities In August
On 13 October the Bank of Israel announced that foreign residents had a net investment of $440m in shares on the Tel Aviv Stock Exchange (TASE) in August and an additional net investment of $540m in government bonds. This follows a net sale of shares by foreign residents on the TASE in June and July. The most popular shares purchased by foreign residents in August were in the communications, chemicals and pharmaceuticals sectors. On the other hand, foreign residents recorded $200m in net sales of Israel shares traded overseas. Foreign residents also sold $120m in August in corporate bonds sold abroad, while investing $65m in corporate bonds sold in Israel and abroad. Direct investments by foreign residents in Israel in August through the country's banks amounted to $260m. Most of these investments were in high-tech. The Bank of Israel also reported that Israelis invested $670m in shares traded overseas in August. As in previous months most of this amount was by institutional investors (mainly provident funds and advanced-training funds). Israeli residents invested $120m in foreign bonds. Direct foreign investments by Israelis through banks amounted to $15m in August. (BoI13.10)
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11: In Depth
11.1 LEBANON: Class Act Needed
According to many key indicators, Lebanon's education system receives excellent marks, ranking among the best in the Middle East and North Africa (MENA) region. The country has some of the highest retention rates throughout primary and secondary levels, some of the region's best student-to-teacher ratios, and university enrolment levels far above the MENA average, World Bank figures show.
However, increasingly it is the private sector that can claim responsibility for this success, with standards of state schools apparently slipping, despite most of the 10% of budgetary expenditure being directed to the public component of the system. Lebanon is failing to gain full value from its schools, with a lack of faith in state-provided learning and little cooperation between the public and private sectors combining to weaken the system. The latest national human development report issued by the UN Development Program (UNDP) cited a number of problems with Lebanon's education system, in particular the public segment. These included high dropout rates of 10.7% at basic education levels and repetition rates of between 20% and 24% in public schools.
The report, titled "Towards a Citizen's State" and released at the end of June, said there were significant disparities when it came to comparing state and private education in Lebanon, reflecting problems of equity and efficiency. Importantly, the report said that many poor students dropped out of school because they believed that they would occupy the same level of jobs irrespective of their educational achievements. "This is not to say that all private schools are superior to public ones, as there are differences in the quality of education provided by private institutions as well," the report said. "However, overall as a sector, it seems to be functioning more efficiently."
The apparent loss of faith in the public education system has seen a further shift to private schools, always popular in Lebanon due to the multicultural nature of society and the right of religious-based learning enshrined in law. Though there was a slight shift back to public education in the years following 1990, a reflection of a strengthened state, this trend was soon reversed. Having peaked at 34.5% of enrolments at the primary school level in 2000, the most recent World Bank studies show that student numbers at Lebanon's state schools have now slipped to 32.4% of total enrolments. By contrast, some 67% of primary students in Jordan, 95% in neighboring Syria and around 90% in more affluent Saudi Arabia attend state schools.
While state secondary school enrolment rates in the country are closer to those of the private sector, accounting for around 46% of the total as of 2007, roughly the same as seven years before, it still means that well under half of all Lebanese school students benefit from the massive outlays by the state. The gap between public and private is far wider at the tertiary level, with just one of the Lebanon's 41 higher education facilities being a public institution. Though public and private education at the primary and secondary levels is supposed to be carried out under a standardized curriculum, there are widespread deviations from the regime issued by the Education Ministry. Added to this has been the inability of various factions to agree to universal textbooks on some subjects, such as history.
According to the economist Charbel Nahas, the Lebanese government has failed to delineate a strategic vision for education. In a paper dealing with the issue of financing higher learning in Lebanon, published in April, Nahas said the country's education system was theoretically structured around a dualist system, under which both the private and public sectors were supposed to work hand in hand to bridge the gaps in the overall education of the country. However, this was far from the case, with no real partnership having been established between these two systems to put in place institutional bridges and allow cooperation to take place, he said.
"Consequently, the most accurate description of 'adjacent sectors' is more exact than a 'dual system', since the two sectors function independently from one another, with minimum bridges and coordination," Nahas wrote. Given that private education is the preferred choice of the majority of families in Lebanon, if the government wants to make the dual system work, the provision of services in the public sector needs to be enhanced. (OBG09.10)
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11.2 KUWAIT: Working on the Railway
Kuwait was one of the first countries in the region to float the idea of a metropolitan rapid transit network, and attention is once again returning to public transport projects in the country. While there has long been talk of developing a rapid transit system in Kuwait, the proposal has been taken further by the private Kuwait Overland Transport Union through a detailed feasibility study completed last year that included setting out routes and estimating the cost of the project. The plan called for a four-line metro grid to be built, with some two-thirds of the network to be elevated and the remainder below ground. According to government projections, when the 165-km network is fully operational, it will carry 69m passengers a year.
However, the scheme was soon sidetracked, even though there had been an announcement that tenders would be called for the project before the end of 2008. In January, the government said it would conduct a comprehensive study of Kuwait's land transport needs, with the metro project to be incorporated into a wider national transport strategy.
Enthusiasm for the rail network may have got a timely boost from the opening of the initial stage of Dubai's metro network on September 9, the much-touted answer to the emirate's traffic congestion and pollution problems. In its first two weeks of operations, more than 1m passengers rode the Dubai metro. Although it will be some time before a full assessment of the Dubai metro can be made, the launch and apparent popularity of the line could encourage Kuwait to push ahead with its own project.
Supporters of the Kuwaiti scheme say the transit system will reduce pollution and traffic congestion in Kuwait City, encourage more decentralized residential development and promote economic growth in outlying areas that will be opened up by quick rail access. Though all this will likely be true, as is the case with most such major public transport schemes, there are almost as many cons as there are pros. In particular, the cost of constructing and operating the metro could weigh against the project.
While the development should ease Kuwait's traffic congestion and could prove popular with commuters, it is unlikely to turn a profit. In its current form, the metro grid is expected to cost around $7bn. While this may change following the broad review of the country's transport needs and the type of rail system needed - underground, raised or ground level - the outlay will be high.
Added to this is the fact that there is little chance this initial outlay will be recovered though earnings once the network is up and running. Even with the projected 69m passengers a year, in order to make a return on investments and then turn a profit, ticket prices will have to be high, defeating the objective of a low-cost transport system.
Most of the proposals put forward for the metro scheme involve a mix of public and private capital to fund the project. One version of the partnership arrangement put forward by the Ministry of Communications would see the state providing 24% of the project funding, contractors putting in 26% and the remaining 50% coming via an initial public offering (IPO). Another suggested funding breakdown has the state contributing 50% of the capital required and the other half coming from the private sector, with several companies to be set up to undertake different parts of the projects, each being subject to an IPO. Though these formulas would restrict the state's exposure to the project and serve to encourage greater private participation in the economy, the question remains as to whether either the lead contractor or other investors would commit to a scheme that is a potential loss-maker.
However, at least some of the running costs of the metro could be offset by the lower use of subsidized petrol by commuters. With Kuwait having some of the cheapest fuel in the world, there is less inducement for locals to find an alternative to the automobile to get around. Raising the price of petrol at the pump could induce some motorists to abandon their cars and adopt the metro as their transport of choice, with the higher cost of fuel and more revenue from ticket sales combining to reduce any potential losses.
While the slow pace of the metro project may be frustrating for some, there could be advantages to adopting a methodical approach. By not being the first train out of the station, Kuwait's planners will be able to learn from the experiences of Dubai and other cities, taking the best and avoiding the worst in the planning and construction process and also developing a sound funding model acceptable to all. By all accounts, it is not a case of if but when for Kuwait's urban rail transit network. The extended planning and development process may well result in a project that can combine versatility and popularity with profitability, a rare combination in public transport. (OBG08.10)
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11.3 BAHRAIN: Retail Steady
The Oxford business Group observed that though activity in Bahrain's retail sector may have slowed due to the global financial crisis, the cash registers are still ringing as the economy seems set to avoid recession and post growth this year. The past decade has witnessed the face of the retail industry get a radical makeover, with the shift away from stand-alone stores, more traditional bazaars or small shopping centers to large-scale malls in urban areas.
Thanks to a highly concentrated population, with more than 90% of those living in Bahrain residing in the country's two main urban centers - Manama and Al Muharraq - retailers have been able to focus on their markets, rather than having to spread their operations across a wider area to obtain high footfall levels.
This concentration of major outlets also brings with it another advantage. As tourism is one of the main contributors to the retail sector - with the vast majority of foreign visitors coming from neighboring Gulf states - tightly focused retail areas mean tourists can spend their cash quickly, without having to spend time travelling between far flung shopping centers.
Thanks in part to the continued flow of tourists, in particular from Saudi Arabia, Bahrain's retail sector should enjoy measured growth for the next four years, with total sales rising from the $4.3bn recorded in 2008 to $4.8bn in 2013, according to a recent study by economic analysis firm Research and Markets.
One reason Bahrain's retailers will be looking to overseas visitors is that the Kingdom's own population is expected to remain around current levels for the next few years - the less vibrant economic conditions meaning fewer foreign workers coming to or remaining in Bahrain. Broader policy issues may also impact retailers' bottom lines. Calls by the IMF for Bahrain to cut state spending by reducing subsidies, as well as the introduction of a more broad-based tax system to offset a dependence on hydrocarbons, may not be welcomed by the Kingdom's retail sector.
Any measure that could reduce the spending power of customers, either through requiring Bahrainis to pay more for stable goods or higher tax rates, would result in less disposable income available for non-essential shopping and entertainment, the backbone of the retail sector.
According to the IMF's latest report on Bahrain, released in early September, prudent macroeconomic policies and strong financial oversight have contributed to the Kingdom's robust performance in the face of the global downturn, with the economy forecast to expand by 2.6% this year.
While the Bahrain economy may be set to expand, consumer confidence is somewhat less resilient. The most recent Bayt.com/YouGov consumer confidence survey, which covers the three months up to the end of May, shows that though there had been some improvement in sentiment, it was still below a positive response. Though growth in the sector may have slowed, and consumer sentiment somewhat bruised by recent economic storms, new investments have not dried up.
In late August, Bahraini lender Eskan Bank and real estate firm Seef Properties announced a joint venture to develop a $66.3m shopping complex in the Saar district. Unlike many of its predecessors, the new mall will be outside of the main built-up regions, with its developers looking to take advantage of Bahrain's future urban sprawl rather than add to the congestion of the existing market.
Sabah Almoayyed, the general manager of Eskan Bank, said the project, scheduled to be completed within two years, would help promote economic development and provide job opportunities in residential areas. "The idea behind establishing this shopping complex is to respond to the continuous demand in that area, especially since Saar is one of the new places that is undergoing noticeable economical progress," she said. With limited space for new developments, and the retail sector nearing saturation point in existing urban and business districts, it is understandable that those looking to invest in the sector will look to when the economy picks up and consumers regain their confidence. (OBG30.09)
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11.4 OMAN: Retail Resolute
The Oxford Business Group noted that positive monetary news and the announcement of continued investment have come as a boost to Oman's retail sector, as retailers enjoyed their customary seasonal boom during the Eid Al Fitr holiday. Figures released by the Central Bank of Oman in September demonstrate a fall in the rate of inflation from 2.88% in June to 1.82% in July. The latest figures are a major improvement from Oman's 2008 inflationary peak of 14%, prompted by high oil prices and fiscal loosening at the US Federal Reserve (the Omani Rial has been pegged to the dollar since 1973, with only one adjustment to the exchange rate in 1986).
The positive inflationary outlook was reflected in Oman's Consumer Price Index (CPI), with the CPI rising only one-tenth of a point to 128.8 for July. The Food, Beverage and Tobacco index, which accounts for 30.4% of the weight of the CPI, in fact fell two-tenths of a point to 149.4, reflecting a more stable price outlook for the country's retail sector in particular.
This continued improvement in Oman's inflationary outlook has coincided with a more general improvement in industrial, consumer and retail demand, with money supply also growing again as investors and consumers alike take renewed confidence from stabilized prices. A further reflection of confidence came from US credit rating agency Fitch, which reaffirmed the long-term issuer default rating (IDR) of four Omani banks, despite noting their exposure to high leverage through increased retail lending in a market report earlier in the year. While the individual ratings of three of the banks were downgraded, the reaffirmation of their long-term IDR demonstrates that a stable outlook has returned to Oman's economy.
This confidence has been echoed by recent announcements of new investment in the Sultanate's retail sector. UK-based retailer Matalan chose Oman for the opening of its first regional presence in June of this year, while global furniture giant IKEA recently announced plans to expand into Oman. Existing players in the local market are also keen to expand, with Landmark intending to increase its Emax electronics stores over the next 24 months, and add an additional 15,000 sq ft of warehouse capacity in Muscat.
Continued interest in Oman's retail sector reflects the increasing sophistication of the market, particularly in Muscat. While geographical particulars can make Oman logistically challenging - it is a large country with a fairly dispersed population - market concentration levels are nonetheless the highest in the region, with the country's top five retailers expected to achieve combined market share of nearly 50% by 2012. Moreover, Oman's consumers are embracing new retail technology and services with vigor. Some 40.2% of Oman's internet users spent a total of $236m on e-commerce in 2008, according to Arab Advisors.
Such strong fundamentals make Oman an ideal location for expansion from neighboring states. UAE retailers Lu Lu, Safeer and KM Trading have all expanded their operations into neighboring Oman in recent years, with Al Maya Group joining them in 2009. The company plans to open seven supermarkets in the Sultanate by the end of the year, investing around $2.6m.
With a recent report from Dubai-based research firm Proleads revealing that the global crisis has not yet resulted in the cancellation of any of Oman's planned retail projects, it would seem that the Sultanate has successfully weathered the storm. One of the key factors in ensuring that has been Oman's more measured approach towards expansion during the boom times - the Sultanate's 95 projects currently under construction or bidding are worth an estimated $38bn, as opposed to the $900bn total in neighboring UAE. In the absence of such a heavy drag from real estate, retail has managed to avoid a crash landing, and maintain a steady outlook. (OBG07.10)
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11.5 Egypt's Retail Sales to Grow from $63.27 Billion in 2008 to $119.60 Billion by 2013
Research and Markets (http://www.researchandmarkets.com) has announced the addition of the "Egypt Retail Report Q4 2009" report to their offering.
The Egypt Retail Report for Q4/09 predicts that the country's retail sales will grow from $63.27bn in 2008 to $119.60bn by 2013. Key factors behind the forecast growth in Egypt's retail sales are an extremely large and youthful population, the emergence of a more affluent middle class, a vibrant tourism industry and the growing acceptance of modern retail concepts.
Egypt's nominal GDP was $161.39bn in 2008, with growth set to slow to a respectable 4.7% in 2009 as the economy is hit by the global economic downturn. Average annual GDP growth of 4.6% is forecast between 2008 and 2013. With the population increasing from 76mn in 2008 to an estimated 83mn by the end of the forecast period, GDP per capita is predicted to rise by more than 81% by that time, reaching $3,829. Egypt's substantial population makes it the largest market in the Arab world, with the population of the Cairo area alone standing at over 15mn people in 2008. Alexandria is also a very sizeable city, with a population of over 4mn. In 2005, 63.3% of the Egyptian population was described by the UN as economically active, with 36.3% in the crucial (for retail sales) 20-44 age range. By 2010, 65.1% of the population is expected to be active, while the proportion of those in the 20-44 age band is forecast to reach 37.4%. Increasing urbanization is also contributing to growth in the retail sector.
In 2005, 42.3% of the population was classified by the UN as urban and this is forecast to increase to 43.2% by 2010. The country's retail market also benefits from high tourist spending, with official data showing that foreign tourist arrivals totaled almost 11.1mn in 2007, a 22% year-on-year (y-o-y) increase. Despite a 25% y-o-y drop in tourism income in the second quarter of FY08/09, Egypt has an enduring historical appeal that should sustain its competitiveness compared to other holiday destinations. Although the authors expect the tourist market to remain subdued over the next two years, we estimate that visitor numbers will increase further, to nearly 18mn, by the end of the forecast period.
Retail sub-sectors that are predicted to show strong growth over the forecast period include over-the counter (OTC) pharmaceuticals, with sales expected to more than double, from $0.38bn in 2008 to $0.76bn by 2013. Automotive sales are forecast to rise by nearly 97% during the period, from $9.96bn in 2008 to $19.61bn by 2013; while sales of consumer electronics are predicted to increase from $2.65bn in 2008 to $4.62bn by the end of the forecast period, a rise of nearly 75%. Retail sales for our set of MEA countries in 2008 amounted to an estimated $382bn, based on the varying national definitions.
Total consumer spending for the region based on the macroeconomic database amounts to $660.41bn. In 2008, the United Arab Emirates (UAE), Saudi Arabia, Egypt and South Africa together accounted for an estimated 79.8% of regional retail sales, and their combined share is expected to rise to 80.7% by 2013. For Egypt, the estimated 2008 market share of 16.6% is expected to rise to 21.2% by 2013. (R&M13.10)
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11.6 EGYPT: Swine Flu Heightens Fever in Christian-Muslim Relations
Vivian Ibrahim writes on the effects of the swine flu scare in Egypt. “Swine flu is more dangerous than the hydrogen bomb…it is a punishment from God,” declared a leading Muslim Brotherhood figure at a symposium held in Cairo in April 2009, a day after the People's Assembly passed a motion to slaughter 300,000 pigs. The government chose to take this measure based on Egypt's previous experience with H5N1 (avian flu), despite the evidence that humans cannot contract H1N1 (swine flu) by eating pork. The affair has re-ignited claims by some Coptic groups and human rights organizations of systematic discrimination against the Christian/Coptic community, who comprise 10-15% of the population and who are the largest breeders of pigs in Egypt.
Most pig rearing in Egypt, and particularly Cairo, takes place in informal settlements known as ashwa'yat. One of the largest such settlements, Manshiyet Nasser, is located on the Muqattam Hills in east Cairo, and is also home to the zabaleen, or rubbish collecting community. The zabaleen, who are traditionally Coptic, have for over thirty years collected Cairo's household waste, sorting and recycling it. They feed the vegetative waste to pigs, which are then slaughtered and sold as pork, mostly to upper class Cairo shops.
The order to slaughter the pigs came amidst an ongoing government campaign to modernize and privatize the collection and disposal of domestic waste, which had already angered and alienated some sectors of the Coptic community. Coptic Pope Shenouda III, who is extremely careful to cultivate good relations with the Mubarak government, has refused to participate in the debate, claiming that most Copts do not even eat pork. By contrast, Coptic groups outside Egypt, particularly in the United States, have been vociferous in their criticism of what they view as President Hosni Mubarak's many concessions to Islamists.
The slaughter of the pigs, carried out with a brutality that received broad media coverage, also created some unexpected political bedfellows. The ruling National Democratic Party found an unlikely ally in the largest opposition group, the Muslim Brotherhood, in passing the parliamentary motion. The Egyptian population in general, however, was repulsed by the slaughter, particularly after the independent newspaper al-Masry al-Youm reported in May 2009 that pigs were being thrown into a pit and covered in the caustic chemical quicklime due to the lack of facilities to dispose of such a huge number of animals. The backlash was immediate not only from animal rights activists but more importantly from the former head of Islamic law at al-Azhar University, Sheikh ‘Abd al-Moatti Bayoumi. Using Koranic verses, Bayoumi declared that all God's creatures should be treated with respect and dignity, thus calling into question the government action.
The government is also using the H1N1 outbreak as an impetus to implement a longer term strategy to relocate some of Egypt's 870 ashwa'yat away from Cairo and other metropolises, in an attempt to correct a long-term failure to deal with urban sprawl and planning. In addition, a new tax which links water and modern refuse collection accompanies this social and urban engineering. Since 2001, the government has hired five foreign waste-management companies to serve the cities of Cairo and Alexandria, a major blow to the zabaleen. The new companies dispose of their collected waste in landfills, which are less environmentally viable than the traditional zabaleen methods.
While at first glance the swine flu saga seems to epitomize government ineptitude, in reality it reveals a much broader phenomenon. The slaughter of pigs and the relocation of farms and parts of the ashwa'yat represent the systematic alienation of Egypt's poorest communities, Copt and Muslim alike, by the government. Not only are the poor being moved further from the cities where their livelihoods are located, but they are losing the lucrative business of refuse collection to private foreign companies just when unemployment in Egypt is at an all time high.
Vivian Ibrahim is currently an Honorary Historian and Post-Doctoral researcher at the University College Cork on European-Muslim identities in Ireland. She is the author of The Copts of Egypt: The Challenges of Modernization and Identity (IB Tauris, October 2010). (ARBOctober 2009)
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11.7 TUNISIA: Do Elections Have Meaning?
Hamadi Redissi writes that Tunisia will hold presidential and legislative elections on October 25, the fifth elections since Zein el Abidine Ben Ali took power in 1987 after dismissing as legally incompetent Habib Bourguiba, who had been Tunisia's president since the republic was declared in July 1957. The Ben Ali regime has tried to add a type of electoral legitimacy to a closed political system centered on individual power and backed by the hegemony of the ruling Constitutional Democratic Rally (RCD).
The current regime inherited a system in which the presidential and legislative elections were held concurrently in a single round to be won by a simple majority of votes, which facilitated the absolute monopoly of power until 1989. Furthermore, the prerequisites for presidential candidacy were biased. Since then, the Ben Ali regime has introduced some changes to the parliamentary election law and the process for nominating presidential candidates. The former required changing the electoral system. Since 1994 it has been a dual system, granting 75% of seats to the party that attains a simple majority in the elections and 25% to the other parties based on their share of the votes. In the current elections, this will amount to 161 seats for a single party - undoubtedly the RCD - and 53 seats for all other parties combined.
This system allows for an appearance of pluralism in the Chamber of Deputies without threatening the ruling party's hegemony. The opposition seats, meanwhile, are still divided among competing parties, whether pro or anti-government, which are essentially chosen by the authorities. In the upcoming round, there are nine parties vying for seats: six of them pro-government (the RCD, the Popular Unity Party, the Movement of Socialist Democrats, the Unionist Democratic Union, the Social Liberal Party, and the Green Party for Progress) and three opposition (the leftist Movement for Renewal, the liberal Progressive Democratic Party, and the social-liberal Democratic Forum for Freedoms and Labor). There is no legal Islamist party and thus no Islamist participation in the elections.
Regarding the presidential race, a constitutional amendment approved in July 2008 stipulates that the head of any political party who has been in his position at least two years may run. (Before 2008, the constitution required any candidate to obtain endorsements from 30 members of the Chamber of Deputies or mayors, a goal that was practically unattainable for opposition candidates.) For this year's election, the two-year stipulation rules out all but three candidates aside from Ben Ali. The most important is Ahmed Brahim, Secretary General of the Movement for Renewal, who is trying to run a serious campaign. The other two candidates - Mohamed Bouchiha of the Popular Unity Party and Ahmed Inoubli of the Unionist Democratic Union - are only in the elections to show (according to them) their support for the democratic course. The Constitutional Court rejected the candidacy of Mustafa Ben Jaafar of the Democratic Forum for Freedoms and Labor on September 27 because it ruled that he did not meet the two year rule.
Partisan Oversight
The current electoral model, which has been in place since the electoral code was issued in 1969, is now in the spotlight. This system transforms political competition into an administrative process wherein the Interior Ministry pulls all the strings throughout all stages of the elections, from registering voters to announcing the results. Unlike in liberal electoral systems, the legal code does not even explicitly outlaw electoral fraud. The ruling party candidate also is free to exploit the government monopoly over the audio-visual media, although a recent change in law requires the Supreme Council for Communications to preview all campaign ads. An opposition proposal to create an independent electoral commission fell on deaf ears. Ben Ali created a commission during his 1999 run for re-election, but its neutrality is compromised by the fact that its members are presidential appointees and its mandate limited to making observations rather than decisions.
Present and Future Stakes
In some ways, the Tunisian regime is little different from its counterparts elsewhere in the Arab world. The country is distinguished, however, by a dynamic economy based on domestic production and human capital unlike Arab rentier economies essentially dependent on oil income. Tunisia has not been deeply affected by the global financial crisis, although its annual GDP growth rate has been gradually slipping over the past 20 years, from 6% to an average of 4-5% more recently. Equality between men and women, in addition to a sizeable middle class, generally help the state to preserve social balance and comfortably keep its grip on civil society. Tunisia also stands out politically in the Arab world for its stability, which can be credited to the benefits of the corporate state. Since independence in 1956, there has been an enduring alliance among the ruling party, professional syndicates (industrial workers, artisans, and farmers), and women's organizations that effectively closes out any potential competition.
Thus it is inevitable that Ben Ali will win another term, but that does not mean the elections are without significance. First, a strong desire for greater freedom and for real rather than cosmetic change might allow the opposition to push back red lines and expand the margins of freedom. Second, as is the case in other Arab republics, Tunisia is running up against complications with succession at the top of the power pyramid. The Tunisian constitution does not allow the 73-year-old Ben Ali to run again for the presidency after this term, the maximum age being 75 years. This obstacle will be pivotal in reshuffling the political deck in Tunisia, raising the question of whether the regime will succeed once again in reinventing itself.
Hamadi Redissi is a political science professor at the University of Tunis. Paul Wulfsberg translated this article from Arabic. (CEARB October 2009)
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11.8 TUNISIA: Better Connected
Two recently announced projects are set to upgrade Tunisia's electricity transmission network, while further improving grid integration between Europe and the Maghreb.
Tunisia's recent strong growth has, according to IMF figures, seen its economy double in size over the past decade – from around €13.7bn at current prices in 1998 to €27.7bn last year. This major increase – much of it prompted by Tunisia's growing integration into European markets – has placed a significant strain on the nation's energy infrastructure.
To meet the growing needs of Tunisian industry, tourism and individual consumers, the African Development Bank (AfDB) agreed on September 2 to a €45.6m loan for the rehabilitation and restructuring of the national grid. The loan is intended to upgrade medium and low tension networks operated by the Tunisian Electricity and Gas Network (STEG), with the intention of creating "a more reliable and safer electricity distribution network", which will, according to the AfDB, "increase the quantity of energy sold and its turnover, and improve the safety of workers and third parties".
According to information released by the bank, current demand growth of 5% a year has led to a "saturation" of the existing network, with some existing plants and installations no longer capable of carrying the additional load. This has led to overloads, losses and high-voltage drops “sometimes in excess of 20%” – twice STEG's contractual limit of 10% for the low-voltage network, and almost three-times that of the 7% limit for the medium-voltage network. Upgrading work is planned to take place in all of Tunisia's governorates.
As well as upgrading the internal transmission network, Tunisia's expanding ties with the European economy has led to the almost simultaneous announcement of a plan to integrate the national grid with that of Italy. The €2.09bn project, a joint-venture between STEG and Italy's electricity transportation company, will see a 200-km long 1000-MW high-voltage direct current (HVDC) submarine cable link the two Mediterranean nations via El Hawaria in Tunisia and Partanna in Sicily. A 1,200-MW plant is also due to be built in Tunisia as part of the deal, which will provide Tunisia with 400 MW of energy, with the remainder expected to be transmitted through the cable to Italy. The cable flow, however, will be bidirectional, thus connecting the Tunisian grid with the rest of Western Europe.
The plan to connect Tunisia with Italy falls under a wider Euro-Med strategy to integrate the electricity and energy networks of Europe with the oil- and gas-rich Maghreb. Due to its geographical proximity to Algeria and Tunisia, Italy is proving the natural lynchpin of this strategy, with the existing Transmed gas pipeline linking it with Algeria due to be augmented next year by the planned Galsi pipeline. When pipelines to Spain are also included, gas capacity between Algeria and Europe will rise to 62bn cu meters a year within the next five years.
With supplies of gas from Russia proving volatile, it makes sense for Europe to increase its supply of Algerian gas. When it comes to off-shoring generation capacity however, the Tunisian project may well also prove to be a sign of things to come. The €400bn Desertec project, formally launched in July by German reinsurers Munich Re, foresees using North Africa's deserts to power Europe's economies. The scheme, originally a Club of Rome white paper sponsored by Jordan's Prince Hassan bin Talal, proposes the use of concentrated solar plants in the Sahara (whereby mirrors reflect the sun's rays onto a water column that powers a steam turbine, as opposed to photovoltaic cells). The electricity thus generated is then channeled to Europe via HVDC submarine cables.
Industry figures and energy analysts are currently divided as to whether Desertec offers a viable long-term, low-impact solution to Europe's energy needs. To begin with, it is estimated that up to 20 HVDC cables would be required, each costing in the order of the proposed Tunisia-Italy cable. A significant cost element in the construction of such cables – including the Tunisia-Italy cable – is the infrastructure required at either end to convert the flow from alternating current to direct current and back again (DC suffers lower degradation over long distances than AC). Given such cost concerns, the Tunisian government will no doubt hope that the expertise it will gain from the El Hawaria project will give it a competitive advantage to host more such cables, if, and indeed when, they are required. (OBG30.09)
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11.9 MOROCCO: A Legislated Victory for Women
Maati Monjib observed in the October 2009 Carnegie Endowment Arab Reform Bulletin (http://www.carnegieendowment.org) that in Morocco's June 2009 local elections, women entered the municipal councils in force for the first time in Moroccan history. Some 3,406 women were elected, making up over 12% of the total winning candidates, compared to less than 1% in 2003. Women made up 16% of the overall candidates, compared to less than 5% in the last elections in 2003.
These results reflect a strong desire on the part of the political elite to correct the huge gender imbalance within elected institutions more than a social and cultural development in Moroccan society at large. Nearly all (98%) of the women elected won within the districts set aside for women, in accordance with a change in law that took effect in January 2009. The number of women elected in the regular districts was a mere 71, or only 0.3% of the total number of winning candidates. Women still occupy a low status in the realm of Moroccan mass politics, as shown by objective measurements by international institutions; the UN Development Program Gender-related Development Index for 2008 placed Morocco in the unenviable position of 146 out of 158 countries.
Does this mean that the government decision to strengthen women's presence in the Council of Deputies in 2002, and in municipal councils in 2009, is insignificant? Certainly not. Women's visible presence in politics may well have a long-term modernizing and democratizing impact, as citizens gradually grow accustomed to seeing women managing public affairs.
Uneven Progress
Moroccans who want to change gender relations are turning to politics partly because other strategies have not worked so far. Despite the prominent role of women in pushing for Moroccan independence, whether in the nationalist movement (such as Malika al-Fassi, who struggled for Moroccan self-rule and signed the independence charter in 1944) or in the ranks of the resistance (such as Fatma al-Sakim, who played a pivotal role in the Moroccan resistance movement after the French colonial power forced Sultan Mohammed V into exile in 1953), women disappeared from political life during the first four decades after independence. Though educational and economic factors also can have a positive effect on women's status, this impact appears to be slow-acting and limited. In any case, Moroccan women's economic independence remains difficult to achieve, with their rate of integration into the labor market remains among the lowest in the world
Morocco has seen gradual improvement in the legal status of women, but that has been inadequate to make a real difference so far. Thus, despite the crucial steps realized on the level of social rights and reforms in recent years - including the reformed Family Law (2003), the granting of citizenship to children of Moroccan mothers and foreign fathers (2005), the appointment of several female ministers in the government or as governors, the launch of a national initiative incorporating the gender issue as part of its strategy (2005), and the lifting of most reservations about the Convention on the Elimination of All Forms of Discrimination against Women (2008) - still Morocco falls in the lowest third of countries on the level of human development and gender equality. It is clear that economic, social and political conditions for women in Morocco are pulling the country towards the bottom of the pile.
The Moroccan elite appear to be wagering now on politics as a means to improve gender relations and equality. The idea is that a systemic approach has a higher likelihood of success, because the various elements governing women's social status (political marginalization, social dependency and submissiveness, economic discrimination, and the symbolic belittling of their value) overlap to form an integral whole. This means that if one of these elements changes noticeably, a crisis will take place within the overall system and it will accommodate and raise women's status. That is the theory, but it is also to be expected that there will be attempts to stifle change and preserve the dominant status quo.
Maati Monjib is a lecturer and researcher at the Institute for African Studies at the University of Mohammed V, in Sousi-Rabat, Morocco. Paul Wulfsberg translated this article from Arabic. (CEARB October 2009)
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11.10 TURKEY: Historic Accord between Turkey and Armenia: What Lies Ahead?
In INSS - The Institute for National Security Studies (http://www.inss.org.il) Insight No. 136 Gallia Lindenstrauss writes that the agreement signed in Zurich on October 10, 2009 between Turkey and Armenia to establish diplomatic relations offers hope that some of the difficult problems in the southern Caucasus may soon be resolved. The two countries agreed in principle to open the border between them, closed since 1993 because of the war between Armenia and Azerbaijan, a Turkish ally, resulting from the dispute over control of Nagorno-Karabakh. Turkey chose then to close the border, and conditioned its reopening on a settlement between Armenia and Azerbaijan.
The dramatic developments that took place about a year ago when Turkish president Abdullah Gül visited Armenia are the backdrop for the most recent advance in Turkish-Armenian relations. During his historic visit in September 2008, Gül watched a soccer match between Armenia and Turkey, part of the World Cup preliminaries. “Soccer diplomacy” was the highlight of a process lasting for more than a year of secret negotiations between Armenia and Turkey over the renewal of diplomatic relations. Turkey and Armenia are still locked in bitter disagreement over Turkey's unwillingness to recognize the events of 1915 as a concerted campaign to destroy the Armenia people and that in the process of expelling the Armenian population from northeast Turkey to the south, about one and a half million Armenians were killed. Also in dispute are Nagorno-Karabakh and the Armenian occupation of nearby areas in Azerbaijan.
On April 22, after Gül's visit and before April 24, 2009, the day commemorating the Armenian genocide when the American president traditionally gives a speech – whose contents are the subject of dispute between the Turks and the Armenians – the sides arrived at a “roadmap” document towards establishing diplomatic relations, though the contents were not made public. In the speech itself, President Barack Obama, who promised during his election campaign to recognize the Armenian genocide, chose to use the Armenian expression “the great catastrophe,” but avoided using the word "genocide." Obama stressed that he had no intention of interfering in the delicate negotiations taking place between the nations.
Nonetheless, after the commemoration day, it seemed that the attempt at dialogue between Turkey and Armenia had failed. During the visits made by Turkish prime minister Recep Erdoğan and Turkish foreign minister Ahmet Davutoğlu to Azerbaijan in May, the two reiterated hard-line positions and made a solution of the Nagorno-Karabakh dispute between Armenia and Azerbaijan a precondition for renewing the diplomatic relations between Armenia and Turkey. This strengthened the Armenian suspicions that the true reason behind Turkey's attempts to forge closer relations was to prevent a revolutionary decision by President Obama to use the word "genocide."
What then led to the current agreement to establish diplomatic relations? On the immediate level, it seems that the threat by Armenian president Serge Sarkisian – that if there was no progress and the border was not reopened, he would not come to Turkey to attend the return match between Turkey and Armenia in the World Cup preliminaries, scheduled to take place October 14 – bore fruit. The Turks deny that the threat influenced them, but it seems that if Sarkisian had decided not to visit Turkey, the accusing finger would have been pointed at the Turks, and claims that Turkey has no serious intentions of resolving the conflict would once again have resurfaced. Moreover, in Turkey, which has in recent years attempted to stress its desire for rapprochement with its neighbors as part of the “zero-problem” policy initiated by Foreign Minister Davutoğlu, the cancellation of the visit might have been viewed as particularly damaging.
More broadly, it seems that the compromise between Turkey and Armenia and recognition of the 1915 genocide are preconditions for Turkey entering the European Union. Turkey's admission to the EU is a problematic issue, but since Sweden, in favor of Turkey entering the EU, has served as the rotating president of the EU since early July 2009, it seems that there is now a window of opportunity for progress on this front.
Armenia, beset by severe economic problems as a result of both the isolation imposed by Turkey and Azerbaijan and the instability in Georgia, has reportedly agreed to two major concessions. The first is Armenia's willingness to examine the events of 1915 with historians, versus its longstanding insistent opposition to such deliberations. The Armenians have claimed that most Western historians agree that these events did in fact constitute genocide, and that any such debate would only contribute to continued Turkish denials. Second, over the years the Turks were afraid that the principle of recognizing the genocide would generate possible Armenian territorial demands in eastern Turkey. Turkey's suspicions were also fueled by the fact that Armenia, since gaining independence in 1991, has refused to officially recognize the border between the two countries. Now it seems that as part of the protocols signed by the two countries, Armenia is prepared to recognize the demarcation. This concession is essentially of symbolic significance, because given that Armenia is much weaker than Turkey, it did not seem likely that it was able to present real demands regarding control of areas in eastern Turkey.
Despite the very achievement of an historic accord, some difficult problems remain. First, the agreement requires that both the Turkish and Armenian houses of parliament ratify the protocols about the renewal of relations and the nature of the bilateral relations before they take effect. The primary concern in this context is that this demand is liable to help opposition forces, especially in Armenia, oppose the move. Second, Azerbaijan is opposed to a closer relationship between Turkey and Armenia as long as the Nagorno-Karabakh issue remains unresolved; it has been claimed that this opposition was the main reason standing in the way of progress in recent months. Third, most Armenian organizations in the diaspora were, and still are, adamantly opposed to any progress in Turkish-Armenian relations as long as the Turks do not recognize the genocide of 1915, whereas the Armenian president has not presented the solution to the problem of recognition as a precondition for the establishment of diplomatic relations. Organizations of Armenians in the diaspora, which have a great deal of clout inside Armenia itself, are therefore expected to exert pressure on the Armenian parliament not to ratify the agreement.
If, however, these problems do not undermine the agreement, the establishment of diplomatic relations between the two countries may have widespread ramifications. First, it would apparently help accelerate the negotiations on solution for Nagorno-Karabakh. Beyond the effect that this conflict has on Armenian-Azeri relations, it also projects on the status of Russia, Armenia's ally, in the southern Caucasus. Resolving the conflict in Nagorno-Karabakh would have important economic and political ramifications for the construction of pipeline routes transporting natural gas and oil in the southern Caucasus. Furthermore, this would strengthen Turkey's status not only in negotiations with the EU but also as a regional mediator. To date, it has not been entirely clear why Turkey has assumed the role of mediator between Israel and Syria, Afghanistan and Pakistan, and Syria and Iraq, when Turkey itself has still not resolved its problems with some of its neighbors. Signing and implementing the agreement with Armenia would demonstrate that today Turkey has a leadership that is capable of making meaningful political breakthroughs, and this would enhance its credibility as an effective mediator with proven capabilities in solving bilateral conflicts. ((NSS12.10)
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11.11 GREECE: Comprehensive Report on the Pharmaceutical Market
Research and Markets (http://www.researchandmarkets.com) has announced the addition of the "The Pharmaceutical Market: Greece" report to their offering.
Greece is one of the less well-developed members of the European Union. Pharmaceutical consumption has, however, risen extremely fast in recent years. The country has a national health service which reimburses all approved drugs, usually subject to a 25% co-payment. Around one-third of the market is located in and around Athens, the capital. Very little is manufactured locally. There has been virtually no multinational presence for many years, and only a handful of locally-owned companies. Almost all the market's requirements are met through imports, usually shipped from elsewhere in the EU.
Greece is one of the lowest-priced markets in Europe. Since 2006, prices have been set at the average of the lowest three prices in the EU, and are also subject to periodic freeze agreements between the government and the industry. These pricing rules apply to both prescription and OTC products. These low prices have made Greece one of the leading sources for parallel trade drugs in the EU, for export principally to Germany and the UK.
Attempts made by GSK to restrict supply of drugs intended for export in this manner have been the subject of a lengthy and inconclusive legal debate at national and European level. Generics are neither popular nor widely-used in Greece. The pricing system gives no incentive for their use, and they are often seen as low quality substitutes for the branded product. (R&M30.09)
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- Israeli Shekel conversions done at a rate of NIS 4.80 = $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 83 = $1.00
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