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TOP STORIES
TABLE OF CONTENTS:
1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS
1.1 Bank of Israel Intervention Strengthened Dollar
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2: ISRAEL MARKET & BUSINESS NEWS
2.1 Google Acquires Israeli Start-Up Quiksee
2.2 Makhteshim Drops Bid to Acquire US Company
2.3 Elbit Systems Signs Agreement to Acquire Mikal's Holdings in Soltam, Saymar and ITL
2.4 Egged To Provide Free Internet On Buses
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3: REGIONAL PRIVATE SECTOR NEWS
3.1 Economic Zones World to Build New Facility in US
3.2 Yogen Fruz Celebrates Opens First UAE Location
3.3 Portugal's Sonae Opens Four Saudi Stores
3.4 US Hardwood Imports to Egypt Hit $6 Million
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4: CLEAN TECH & ENVIRONMENTAL DEVELOPMENTS
4.1 Ormat & Solar Millennium Collaborate On Ashelim Bid
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5: ARAB STATE & PAKISTANI DEVELOPMENTS
5.1 Lebanon Draft Budget Calls For 12.7% Increase in Spending
5.2 Jordan's National Economy to Perform Well in 2010
5.3 Jordan's Annual Inflation Rate Falls To 4.7% in August
5.4 Cyber Crime Law in Jordan
5.5 Jordan & Japan Sign Nuclear Cooperation Agreement
5.6 Iraq to Compensate US Victims of Saddam
5.7 Fifteen US Companies to Join Historic Trade Mission To Iraq in October
5.8 Japan & Kuwait Agree Nuclear Energy Cooperation
5.9 Qatar is One of the World's Largest Water Consumers
5.10 Saudi Inflation Increases For Seventh Month in A Row
5.11 Saudi Arabia to Change 127 Volt Power For 230 Volts
5.12 Egypt's Inflation Accelerates To 10.9% In August
5.13 Egypt's Balance Of Payments Moves Into Surplus
5.14 Suez Canal August Revenue Up 7.3% From July 5.15 Morocco Raises 2010 Growth Forecast to 4.1%
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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS
6.1 Turkish Economy Grows 10.3% In Second Quarter
6.2 Turkish Inflation Rises 0.4% in August
6.3 Cypriot Inflation Rises to 3.2% in August
6.4 Cypriot Deficit Increases in 2010
6.5 Prime Minister Says Greece Will Meet Targets
6.6 Greek Recession Deeper Than Thought As Second Quarter GDP Shrinks by 3.7%
6.7 Greek Sales Down Despite Discounts
6.8 Greece's Jobless Rate Rises To 11.6% in June
6.9 Bulgaria Annual Inflation Rises To 2.7% in August
6.10 Bulgarian Budget Deficit Narrows
6.11 Bulgaria's Unemployment Down To 9.14% in August
6.12 Bulgaria Oil & Gas Report for 2010's Third Quarter
6.13 WEF Says Bulgaria Rises To Rank 70 in Competitiveness List
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7: GENERAL NEWS AND INTEREST
*ISRAEL:
7.1 Israel's Jewish Population Nears Six Million
7.2 Yom Kippur – Holiest Day in the Jewish Calendar – Falls on 17/18 September
7.3 Sukkot Holiday Celebrated
7.4 Israel Sees the Arrival of 17,880 Immigrants in 5770
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*REGIONAL:
7.5 Turkish Voters Approve Key Referendum On Constitutional Changes
8: ISRAEL LIFE SCIENCE NEWS
8.1 iDent Imaging & Objet Geometries Offer Surgical Guide Solutions for Implant Dentistry
8.2 Nasvax Begins Treating Patients in Liver Disease Study
8.3 TransPharma Successfully Completes Phase 1a Clinical Trial of ViaDerm-GLP1
8.4 Atox Bio Announces Dosing of the First Subject in Its Phase 1 Study of AB103
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9: ISRAEL PRODUCT & TECHNOLOGY NEWS
9.1 Tvinci Powers Novebox Pay-Over-The-Top Service for MSN
9.2 World Economic Forum Picks Israel's Takadu as one of its 2011 Technology Pioneers
9.3 Dropico Solves the Real Problem of Photo Sharing
9.4 RED-C Amplifies for Low Latency Links
9.5 Orca's COMPASS TRAX Engages Viewers in the Content Discovery Experience
9.6 Advantest & OptimalTest Offer Test Management on T2000 SoC Test Platform
9.7 N-trig DuoSense Pen & Multi-Touch Enriches Educational Classroom Experience
9.8 BroadLight Announces its Unified Software Platform with its Latest GateMakerPro Release
9.9 RED-C Introduces the Hybrid Raman-EDFA for Coherent Networks
9.10 RAD Unveils Price-Busting Carrier Ethernet NTU for SLA-Enabled EPL/EVPL Ethernet Services
9.11 Altair Announces Commercial Availability of Digital Dividend (Band 20) Reference Design
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10: ISRAEL ECONOMIC STATISTICS
10.1 Israel Rises in Global Competitiveness Ranking
10.2 Israel's Growth Rate Forecast to Reach 4.1% in 2010
10.3 Israeli Car Sales Growth Among World's Fastest
10.4 Israeli Teachers Earn 40% of OECD Average
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11: IN DEPTH
11.1 ISRAEL: Retail Report for Third Quarter, 2010
11.2 ARAB MIDDLE EAST: Fitch Says Sovereigns Show Resilience to Financial Crisis
11.3 QATAR: Infrastructure Report for Third Quarter 2010
11.4 SAUDI ARABIA: Agribusiness Report For the Fourth Quarter
11.5 EGYPT: Gamal Mubarak and the Discord in Egypt's Ruling Elite
11.6 EGYPT: Agribusiness Report for Fourth Quarter 2010
11.7 EGYPT: Information Technology Report for 2010's Third Quarter
11.8 TUNISIA: IMF Executive Board Concludes 2010 Article IV Consultation
11.9 PAKISTAN: Defense and Security Report for Third Quarter
11.10 GREECE: IMF Completes First Review Under Stand-By Arrangement
11.11 BULGARIA: Mining Report 2010 - 5.8% Annual Growth by 2014
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1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS
1.1 Bank of Israel Intervention Strengthened Dollar
The Bank of Israel issued a report that stated a change in the Bank's foreign currency market policy in March 2008, July 2008 and August 2009 resulted in devaluation in exchange rates. According to the report from the Bank's research department, which analyzed the effect of the intervention in the foreign currency market on the nominal shekel/dollar exchange rate, the most prominent impact on the exchange rate occurred in August 2008, after the bank increased its involvement in the foreign currency market. An analysis of the effect that the Bank of Israel purchase of dollars had was conducted by comparing the projected exchange rate derived from the economic-statistical model and the actual exchange rate during the period of the bank's intervention. Prior to conducting the comparison, the quality of the economic-statistical model's projection capability was analyzed and was found to be good (given the actual values of the exogenous variables in the model).
The study also found that the strongest impact on the exchange rate occurred after July 2008, when the level of purchasing increased and the exchange rate's actual deviation from its projected value was upwards of 10%. At the end of 2008, the Bank of Israel's influence on the exchange rate began to decline, and during the first half of 2009 the gap between the actual exchange rate and its expected level closed, without the central bank's intervention. (Ynet 07.09)
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2: ISRAEL MARKET & BUSINESS NEWS
2.1 Google Acquires Israeli Start-Up Quiksee
It was announced that Google has acquired Israel-based Quiksee, which develops interactive video mapping technologies based on user-filmed videos. A spokeswoman for Google said it was a small deal. However, the acquisition is estimated at several millions of dollars. This is Google's second acquisition in Israel in six months. It acquired web gadgets provider LabPixies in April for an estimated $25 million. Quiksee was founded in 2007 by several entrepreneurs. Upon its establishment, the company was part of the Naiot technological incubator owned by the Ofer group. Its investors include Docor International and private angels. Quiksee was founded in 2007. The company's software allows internet users to turn a simple video clip into an interactive video clip. Users can photograph any location where they are with a digital camera or mobile device, upload the file to Google Maps, and take part in the dynamic mapping of the world. Quiksee's software turns the clip into an interactive one, by allowing people to wander through and get a real visit experience, without physically being there. Essentially it allows anyone to create location based media. (Various 14.09)
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2.2 Makhteshim Drops Bid to Acquire US Company
Makhteshim Agan Industries has terminated its negotiations to acquire US generic agrochemicals rival Albaugh Inc. Makhteshim said that the due diligence uncovered findings that presented a material deviation from the data based on which the company decided to enter the letter of intent. Makhteshim approved the letter of intent in late June. Missouri-based Albaugh is the world's largest private agrochemicals producer. Makhteshim was due to acquire Albaugh for $785 million, with $340 million in cash and $455 in a seven-year loan. (Globes 02.09)
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2.3 Elbit Systems Signs Agreement to Acquire Mikal's Holdings in Soltam, Saymar and ITL
Elbit Systems signed an agreement to acquire all the shares of Soltam Systems, Saymar ITL Optronics, which are currently held by Mikal and its subsidiaries. The signed agreement provides for the acquisition of Mikal's interests in the above mentioned Mikal subsidiaries, which are synergetic to Elbit Systems, rather than the acquisition of Mikal itself, as was contemplated in Elbit Systems' prior announcements. Upon completion of the acquisition, Elbit Systems will hold a 100% interest in Soltam and Saymar, and an 87.85% interest in ITL. The balance of ITL's shares, which are traded on the Tel Aviv Stock Exchange, is held by the public. Simultaneously, Elbit Systems will sell its existing holdings in Mikal (approximately 19%) to the other Mikal shareholders. The consideration to be paid by Elbit Systems for the acquisition will be approximately $87 million. The consideration to be paid to Elbit Systems for its 19% holding in of Mikal's shares will be $18 million. In addition, the agreement contains a provision for possible future payments to Mikal subject to the acquired subsidiaries achieving certain business goals.
Haifa's Elbit Systems (http://www.elbitsystems.com) is an international defense electronics company engaged in a wide range of 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 aircraft systems (UAS), 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, developing new technologies for defense, homeland security and commercial aviation applications and providing a range of support services. (Elbit 02.09)
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2.4 Egged To Provide Free Internet On Buses
The Egged Israel Transport Cooperative Society is experimenting with WiFi internet infrastructure in an attempt to provide the service on all buses traveling between two cities or more. Twenty buses belonging to lines between Jerusalem and Tel Aviv, the Galilee and the Golan Heights have already been equipped with the system, at a price of around $25,000. Egged's passengers will be able to surf the internet for free, allowing anyone with a laptop computer or a cellular phone with WiFi connection to check up on news, watch movies, study or work. The bus company plans to follow up on the use its customers make of the service and their level of satisfaction in order to plan for its installment in additional bus lines. Egged currently plans to install the system in all 1,500 of its inter-city buses over the next few years, racking up costs of almost $2m. It is the second bus company in Israel to install free internet in its vehicles, the first being Metropolin, which already provides the service in dozens of its buses in the Sharon region and the south. (Various 09.09)
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3: REGIONAL PRIVATE SECTOR NEWS
3.1 Economic Zones World to Build New Facility in US
The Dubai-based Economic Zones World will construct a multi-purpose training facility in its US-based, 1,324-acre logistics and distribution hub, Jafza Magna Park located in Santee, South Carolina. The 20,000 sq ft multi-use facility, the first project in the park, will consist of shared office facilities, training labs and general warehouse space known as Leased Industrial Units. Economic Zones World acquired over 1,300 acres just outside of the town limits of Santee in Orangeburg County in the fall of 2007. Since then Jafza has pursued and received all the necessary regulatory requirements to begin development including site certification from the South Carolina Department of Commerce. The initial land development will be done in three immediate phases which include the construction of the mixed-use training facility and the development of 42 and 76 acres of plots respectively. The project is expected to attract about $1.2 billion in private investment and generate an estimated 8,000 to 10,000 jobs over a decade. In addition to the US Industrial park project, Economic Zones World is currently engaged in numerous development projects across Asia (India, Malaysia, China), Africa (Djibouti), the Middle East (UAE) and Europe (Belgium, UK, Germany, Poland, Italy, Spain, France). The company's current portfolio includes Jafza, one of the world's largest free zones; Gazeley, a global developer of highly efficient, carbon positive logistics and industrial spaces; TechnoPark, a research driven business and industrial park, and Dubai Auto Zone, a comprehensive market place for the auto industry. (TradeArabia 05.09)
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3.2 Yogen Fruz Celebrates Opens First UAE Location
Toronto, Ontario's Yogen Fruz, a leading frozen yogurt conglomerate, announced the signing of the Master Franchisee for the United Arab Emirates region and the grand opening of its first UAE locations in Dubai and Kuwait, with five more Dubai locations opening soon. To celebrate the openings of multiple UAE locations, Yogen Fruz will treat customers to special promotions including 2-for-1 frozen yogurts and 10% of for the employees of the malls where the Yogen Fruz stores are located. The company signed Arcology Investments as its master franchisee for the United Arab Emirates territory. Yogen Fruz is available as low-fat, non-fat and no-sugar-added flavors, which can be custom blended with a large assortment of fresh fruit right in front of the customer and topped with a variety of fresh fruit and/or sweet crunchy toppings in a cup or blended into a nutritious fat-free, ice-free dairy or non-dairy smoothie. (Yogen Fruz 05.09)
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3.3 Portugal's Sonae Opens Four Saudi Stores
Sonae, the biggest retailer in the Portuguese market, has opened four stores in Saudi Arabia, starting its expansion in the Middle East. The stores, part of Sonae's Zippy chain selling children's clothing, opened in Riyadh, Jeddah and Dhahran. Sonae announced in July that it plans to open 70 Zippy stores through 2014 in nine countries stretching from Egypt to Kazakhstan, through a franchising agreement with Riyadh-based Fawaz Abdulaziz Alhokair. Headquartered in Maia, Portugal, Sonae is a conglomerate, and is primarily engaged in the operation of retail stores. The company also operates other businesses including real estate development, communication and information technology services, tourism services and other related activities through its various subsidiaries. (AB 03.09)
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3.4 US Hardwood Imports to Egypt Hit $6 Million
The total value of US hardwood lumber shipped to Egypt from January to June 2010 rose 113% to $6.1 million compared to the first half of last year, according to the American Hardwood Export Council (AHEC). At the same time, shipments of American hardwood veneer to the market grew by 25% to $3.1 million, as a result of which Egypt has emerged as the top destination for American hardwood lumber and veneer in the MENA region. Joining Saudi Arabia and the UAE as the largest consumers in the region, Egypt imported 9,240 cubic meters of American hardwood lumber, marking an 80% rise during the January to June period of this year. Demand for American hardwood veneers in the MENA region has picked up during the first six months of this year, with total direct shipments reaching a value of $9.3 million, or 41% higher than during the same period in 2009. Specifically, in the Middle East, US hardwood veneer shipments remain dominated by red and white oak. Furthermore, direct exports of American hardwood flooring rose substantially during the same period, with shipment figures showing an increase of 109% to reach $700,000 and were mainly destined for Egypt, Kuwait and Turkey, with a more limited amount going to the UAE. (TradeArabia 14.09)
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4: CLEAN TECH & ENVIRONMENTAL DEVELOPMENTS
4.1 Ormat & Solar Millennium Collaborate On Ashelim Bid
Ormat Technologies and Germany's Solar Millennium have agreed to collaborate on a bid in the $1.5b Ashelim tender to build solar power plants. A notice of the joint bid was sent to the tenders committee. According to the notice, the two companies agreed to form a special purpose company (SPC). Ormat will own 67% of the company, and Solar Millennium will own 33%. Signing a deal with Ormat boosts the chances of success of the Ashelim tender, since it may lead to re-establishing the bidding consortium which included Solar Millennium. That group fell apart after the departure of Electra and Minrav Holdings. The Ashelim solar energy venture is Israel's flagship alternative energy project. The government is looking for two thermo-solar power plants, generating 100-125 MW each, and a photovoltaic power plant generating 30 MW. Ormat Technologies has made a move recently to expand beyond geothermal energy and into solar energy, including a plant in Arizona that uses its turbine. (Globes 12.09)
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5: ARAB STATE & PAKISTANI DEVELOPMENTS
5.1 Lebanon Draft Budget Calls For 12.7% Increase in Spending
On 7 September, Lebanon's Finance Minister el-Hassan sent a draft 2011 budget to the Cabinet, calling for a 12.7% increase in expenditure. Fiscal spending will rise to $13.7b, while revenue is projected to increase 16%. The subsequent deficit is equivalent to 8.6% of expected GDP, down from a revised 8.9% this year. The initial shortfall forecast for this year was 10.7%. Once approved by the Cabinet, the proposals will be sent to parliament for discussion. The Cabinet on 19 June approved the draft budget for 2010, which has yet to be ratified by parliament. If approved, it would become the first ratified budget since 2005 because of political disagreements, a month- long war with Israel and internal civil strife. Lebanon's economic growth will accelerate to 5% next year from an initial forecast of 4.5% in 2010, according to the draft budget. In May the ministry had forecast 4% growth for next year. The budget forecasts that inflation will slow to 2.8% in 2011 from the IMF's 5% estimate for this year. The IMF estimates inflation will be 3.4% in 2011. Moody's Investors Service rates Lebanon's local and foreign currency bond ratings at B1, four levels below investment grade. Standard & Poor's rates Lebanon at B, five levels below investment grade. (BI-ME 08.09)
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5.2 Jordan's National Economy to Perform Well in 2010
The Jordan Times, quoting a Business Monitor International report, said Jordan's recovery in the private sector is fuelling a rebound in the Kingdom's economy despite sluggish global demand and weak performance in the world's major economies, an international analysis and research firm reported recently. BMI predicted that Jordan's economy would grow 3.2% this year, just below the IMF's estimate of 3.4%, but still well above the 2.3% growth registered last year.
BMI wrote that recent reforms had spurred economic growth this year, citing measures undertaken by the government to liberalize trade, privatize state-owned companies and reduce fuel subsidies, along with increased foreign investment and falling unemployment. It was also noted that Jordan's economy has been protected to some degree from the effects of the global economic downturn, saying that the Kingdom has been "less exposed to the fortunes of the troubled economies of the euro zone" with 51.2% of its exports during the first five months of 2010 directed at less-affected Arab countries.
In the report, BMI cited Jordan's stability and security, as well as its proximity and strong ties to Iraq, as assets making the country attractive to investors. The firm also listed the expanding tourism industry, the "robust health" of the banking sector, and improvements in the business environment among the Kingdom's strengths. Jordan's opportunities include the discovery of oil shale, efforts to connect the Kingdom's cities by rail, and the continued perception of the country as a "safe haven in a turbulent region", which BMI said bodes well for tourism as well as foreign investment.
The report stressed that corruption has fallen significantly over the past decade, as has the use of wasta or favoritism in business, but pointed out that the Kingdom still has room for improvement in this regard, citing Transparency International's Corruption Perceptions Index 2009, in which Jordan dropped two places from 47th to 49th. Other weaknesses highlighted in the report include high youth unemployment, limited natural resources and the lingering challenges of unemployment and poverty. "Government promises of an improved welfare system and job creation have proven slow to materialize," BMI added. Among potential threats to Jordan's continued economic growth, the research firm named low Internet connectivity - with only 24 internet users and two broadband users per 100 inhabitants - vulnerability to fluctuations on global oil markets due to a lack of conventional reserves, and dependence on foreign aid, as well as the possibility of reignited regional conflict. (JT 14.09)
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5.3 Jordan's Annual Inflation Rate Falls To 4.7% in August
On 13 September, Jordan's Department of Statistics announced that year-on-year consumer price inflation (CPI) fell to 4.7% in August from 4.8% in July. Annual inflation, which rose into double digits in 2008 following record oil and commodity prices, has picked up again after falling to 3.9% in January this year. Inflation in the oil-importing kingdom ran at around 5% in H1/10, buoyed by rising energy costs. Economists expect it to hover around 6% this year while the government still hopes it will stay in a 3 - 4% range. (DoS 13.09)
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5.4 Cyber Crime Law in Jordan
Jordanian authorities released a draft cyber crime law in early August, spurring an outcry from online journalists and watchdog organizations. The bill included several provisions that increased government powers to limit the space for debate and to punish those who criticize authorities. In response to the criticisms, the Jordanian Cabinet amended the law and approved it on 29 August. Journalists welcomed the amendments as a step in the right direction. The law now requires the King's signature to take effect as a temporary law until the parliament is in session again, after which it is expected to be ratified as a permanent law. (CARB 01.09)
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5.5 Jordan & Japan Sign Nuclear Cooperation Agreement
On 10 September, Jordan and Japan signed a nuclear cooperation agreement (NCA) paving the way to for the latter to build a nuclear reactor in the country. The treaty, signed by Chief of Jordan Atomic Energy Commission Touqan and chief of Japanese delegation, Charge d'Affaires Asako, also seeks to forge closer bilateral cooperation in mining and extracting uranium, designing, constructing and operating nuclear reactors, and protection of the planned nuclear installations. This agreement will pave way for Japan to sell its nuclear technology to the country, underscoring importance of Tokyo's step to help boost the country's economic development. Asako, meanwhile, said the agreement will provide the framework for bilateral nuclear cooperation in a stable manner, adding "it will enable Japan to export nuclear materials to Jordan". The Hashemite Kingdom currently has nuclear cooperation agreements with eight countries including France, Spain, China, South Korea, Canada, Russia, the UK and Argentina. (Petra10.09)
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5.6 Iraq to Compensate US Victims of Saddam
In an agreement signed on 2 September, Iraq has agreed to financial compensation for Americans who say they were mistreated by executed dictator Saddam Hussein's regime during the 1990-91 Gulf war. The US Embassy could not confirm the size of the settlement, but the Christian Science Monitor reported that Baghdad had agreed to hand over $400m in compensation. The deal was signed between Iraqi Foreign Minister Zebari and US Ambassador to Baghdad Jeffrey. Iraq's August 2, 1990 assault on neighboring Kuwait was rapidly met with a concerted international military response that pushed Saddam's forces out of the emirate and eventually ended in his ouster by a US-led coalition in 2003. Several US citizens were held by Saddam's regime during the war over Kuwait and used as human shields to deter coalition attacks, with some claiming they were mistreated and tortured by Saddam's forces. Iraq's foreign ministry said the deal was part of efforts to "end the provisions of Chapter 7" of the UN Charter, which currently regards Iraq as a threat to international security and requires that sanctions be imposed upon it. Since 1994, when the United Nations set up a reparations fund, Iraq has repaid $30.15b to Kuwait, with a further $22.3b in compensation still due. Baghdad is required to put 5% of its oil and gas revenues into the fund. Those obligations remain crippling to a country where infrastructure and the economy are in dire need of rebuilding after having been hammered by years of violence and sanctions. (BI-ME 12.09)
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5.7 Fifteen US Companies to Join Historic Trade Mission To Iraq in October
Francisco Sanchez, UA Under Secretary of Commerce for International Trade, will lead a trade mission to Baghdad, Iraq, in October. Sanchez will accompany representatives from 15 U.S. companies on the department's first trade mission to Iraq since the end of the U.S. combat mission in Iraq. This trade mission will connect American and Iraqi companies in a partnership to rebuild the Iraqi economy. The interest generated by last October's U.S.-Iraq Business and Investment Conference held in Washington, D.C., and the activities of the U.S.-Iraq Business Dialogue have demonstrated that there is great opportunity for increased trade and investment in the region. Iraq's GDP has more than doubled since 2006, soaring from $57 billion to $112 billion in 2009. Iraq's government has budgeted more than $80 billion for infrastructure development, focusing on a number of large projects relating to construction, highways, railways, telecommunications, and security and defense. Iraq's private sector also offers a vast array of business opportunities for U.S. firms in many industries, including oil and gas (specifically oil field and upstream equipment, technology, and services); construction (specifically engineering, architecture, transportation, and infrastructure); and information and communications technology.
The following companies were selected for participation in the trade mission:
1. America Cargo Transport Company
2. Bell Helicopter Textron, Inc.
3. Bond Building Systems, Inc.
4. CSECO
5. Flatter & Associates
6. General Electric
7. ICON Global Architectural Engineering
8. KT Engineering
9. Newport Global Group, Ltd.
10. Omnitrans Corporation
11. Sallyport Global Holdings
12. Target Engineering Group, Inc.
13. Ted Jacob Engineering Group
14. The Boeing Corporation
15. Wamar International Inc.
The mission will provide U.S. participants with first-hand market information and access to government decision makers. Additionally, one-on-one meetings will be arranged with potential agents, distributors and partners. The Commerce Department's International Trade Administration (ITA) has representation across the globe to help businesses start exporting, increase their exports and find business opportunities in foreign countries, leading to job creation in America. ITA also helps ensure a level playing field globally for U.S. businesses. (BI-ME 02.09)
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5.8 Japan & Kuwait Agree Nuclear Energy Cooperation
On 8 September, Japan and Kuwait agreed to cooperate in capacity building for the peaceful use of nuclear energy generation, raising the prospect of lucrative deals for Japanese companies. Kuwait, the world's No.4 oil exporter, is facing rising energy demand and agreed with France in April on cooperation in developing nuclear energy. Japan, the world's third-biggest nuclear power generator after the United States and France, is stepping up efforts to tap the nuclear power development market after a Japan-U.S. consortium lost out to South Korea in a deal to build and operate nuclear reactors for the United Arab Emirates (UAE) in December. Japan has not yet won a project-based package like the UAE deal in the nuclear energy sector.
Developing and operating nuclear power plants abroad is a growth strategy in Japan, where electricity demand is expected to stay flat or rise slightly at best due to industries shifting abroad and the graying of society. In July, a consortium of six Japanese utilities and nuclear power machinery makers set up a working group to create a venture this autumn aimed at winning orders to build nuclear power plants overseas. Japan made a similar government-to-government agreement with Malaysia earlier this month. (AB 08.09)
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5.9 Qatar is One of the World's Largest Water Consumers
Research and Markets (http://www.researchandmarkets.com) "Qatar Water Report Q3 2010" says that though Qatar is a small country in terms of population, it is one of the world's largest water consumers on a per capita basis. More than half of the country's water goes to the agricultural sector, but increasing demand is coming from the country's growing urban population. It is a country with limited and declining groundwater resources, and the state is therefore investing heavily in desalination plants. It has one of the longest-standing desalination programs in the Middle East and so has garnered much experience in the sector. Much of the expansion in Qatar's desalination program is being achieved through independent water and power projects (IWPPs). The largest of these is the Ras Girtas project currently under construction in the Ras Laffan industrial complex. A further IWPP is said to be under consideration, and the country is also widening its technological horizons, with a pilot reverse osmosis desalination plant due to be built and solar-powered desalination plants under consideration. Qatar has been open to foreign investment for several years and is regarded as a relatively safe investment destination, with major international companies currently active in the sector. The $3.9bn Ras Girtas project managed to achieve its funding goals in mid-2008, despite the already rocky state of international capital markets, indicating investor confidence. The global economic downturn has hindered the pace of development since then to some extent, but signs of improvement in the regional investment climate will benefit the sector. (R&M 13.09)
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5.10 Saudi Inflation Increases For Seventh Month in A Row
Saudi Arabian inflation accelerated for a seventh month to reach 6.1% in August, as the costs of food and rent rose. Consumer prices increased 0.5% from July. Rent, fuel and water prices gained an annual 8.9% while the costs of food and drinks rose 8%. The central bank in Saudi Arabia, the Arab world's biggest economy, said last month that it expects inflationary pressures to persist in the third quarter as growth accelerates. The government is forecasting economic expansion of more than 4% this year after growth of 0.6% in 2009. The central bank cut the repurchase rate to 2% last year, the lowest since 2004 and the reverse repurchase rate to 0.25%. (Various 08.09)
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5.11 Saudi Arabia to Change 127 Volt Power For 230 Volts
On 30 August, Saudi Arabia decided that it will switch from its current 127 volts electricity to the more common 230 volts, bringing it in line with the rest of Arab Gulf states. The decision was taken at a council of ministers meeting and the switch should be completed over the next 25 years. Saudi Arabia and Libya are the only countries in the Middle East and North Africa which have stuck to 127 volts, which is not strong enough to power European and Asian-standard appliances. However some Saudi homes and many larger buildings feature both 127 and 230 volt wiring. The move will bring Saudi Arabia in line with its partners in the six-nation Gulf Cooperation Council (GCC) which launched a joint power grid in 2009. The grid links Kuwait, Saudi Arabia, Bahrain and Qatar and will soon bring in the other two GCC partners, the United Arab Emirates and Oman. (Various 02.09)
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5.12 Egypt's Inflation Accelerates To 10.9% In August
Egypt's inflation accelerated in August. The urban inflation rate, the main indicator monitored by the central bank, rose to an annual 10.9% from 10.7% in July, according to the website of the Cairo-based Central Agency for Public Mobilization and Statistics (CAPMAS). Egypt's economy expanded at a 5.9% annual rate in the second quarter of 2010. For the fiscal year that ended in June, the economy grew 5.3% compared with 4.7% the previous year. Core inflation, which excludes the costs of fruits and vegetables as well as regulated prices, accelerated to 7.08% in July from 6.7% in the previous month. The measure probably accelerated to 7.2 in August, according to the median estimate of economists in the survey. Prices rose 2.9% in the month, the highest monthly increase since at least 2005, according to CAPMAS data. (CAPMAS 08.09)
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5.13 Egypt's Balance Of Payments Moves Into Surplus
Egypt's Central Bank announced on 6 September that its balance of payments swung sharply into surplus in the financial year to end-June as portfolio investments in the country surged. The strong figures, which indicate the government is in a solid position to defend the Egyptian pound exchange rate, reflect solid Suez Canal revenue, tourism and remittances from workers abroad. The balance of payments surplus for 2009/10 was $3.36b versus a deficit of $3.38b in 2008/09. This implies a balance of payments surplus for the April-June quarter of $249.7m versus a deficit of $1.04b a year earlier. Net portfolio investment, which consists mainly of investments in equity and Treasury bills and bonds, leapt to $7.88b from a net outflow of $9.21b in 2008/09. The surplus for the April-June quarter was $768.1m versus a $154.9m deficit a year earlier. The 2009/10 portfolio investment figure included $5b in foreign purchases of Egyptian Treasury bills, the central bank said. The current account deficit shrank to $4.32b from $4.42b in 2008/09, the bank said. For the quarter, the deficit widened to $1.71b from $994.1m.
The pound has hit a series of lows against the dollar in the last four months as the slowing U.S. economy caused investors to shed riskier assets globally and buy U.S. treasury bonds, seen as a safe haven in times of economic uncertainty. Traders say authorities often step in indirectly to help manage the exchange rate within the pound's managed float. Net foreign direct investment during the year fell to $6.76b from $8.11b. This included $3.6b in investments in the petroleum sector, down from $5.4b in the previous year. The country's trade balance narrowed to $25.12b from $25.17b, the central bank said. Private transfers from abroad, mainly remittances from Egyptian working overseas, soared to $4.19b in the April-June quarter from $1.78b a year earlier, a 78% jump and the highest level in at least two years. Private transfers from abroad for the full year rose to $9.51b in 2009/10 from $7.63b in 2008/09, the bank said. (BI-ME 06.09)
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5.14 Suez Canal August Revenue Up 7.3% From July
Revenue from Egypt's Suez Canal rose 7.3% to $436 million in August, the Suez Canal Authority said in a statement on 1 September. It was also reported that a Russian ship explored a new marine route to reach China instead of passing through the Suez Canal. The new route is 5 nautical miles shorter and saves around $1 million in fuel costs, according to Russian experts. Only Russia and China will benefit from this route, according to an Egyptian official in the Suez Canal Authority. The waterway is a vital source of foreign currency in Egypt, along with tourism, oil and gas exports and remittances from Egyptians living abroad. (DNE 01.09)
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5.15 Morocco Raises 2010 Growth Forecast to 4.1%
Morocco raised its forecast for economic growth for 2010 to 4.1%, citing the strength of mining, manufacturing, construction and higher state spending. That would be slower than last year's expansion of 5% but faster than a 3.5% official forecast made early this year, suggesting Morocco is weathering the impact of the global slowdown better than envisaged. The global economic slowdown has frustrated Morocco's efforts to create more jobs in manufacturing and services to reduce its reliance on farming, and tackle mass youth unemployment and poverty. Economic growth accelerated from 2.7% in 2007 to 5.6% in 2008 when the downturn began to hit exports and inward investment. The government has lowered taxes and raised state salaries and spending since then to prop up domestic demand and spur growth. Most of this year's economic expansion will come from strong domestic consumption, manufacturing, mining and energy sectors, offsetting a decline in the key farming sector. Agriculture is expected to shrink by 5.3% this year as the cereals crop slumped to around 7.5 million tonnes from a record 10.2 million tonnes last year that powered the sector to 26.6% growth. Agricultural output swings sharply in Morocco because of cyclical drought. Farming employs almost half of the country's workforce and accounts for up to 17% of its GDP. The non-farming growth of the economy is due to recover in 2010 to expand by 5.9% instead of the 1.6% rise seen in 2009. Manufacturing, mining, energy and construction are due to expand by around 5.1% in 2010 compared to a decline of 2.8% last year and 3.6% in 2008. The government plans to increase spending by 20.4% this year to $19.50 billion to keep growth on track by energizing domestic demand. (BI-ME 04.09)
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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS
6.1 Turkish Economy Grows 10.3% In Second Quarter
Turkey's economy grew 10.3% in Q2/10, above expectations, boosting prospects that the government target for the whole year would be doubled. It was the third quarter of growth in a row and followed an 11.7% increase in the first quarter of the year. In seasonally adjusted terms, gross domestic product expanded by 3.7% in the second quarter Turkstat, the state statistics institute said. GDP had contracted by 7.6% in the same period last year when the Turkish economy plunged into a severe recession that caused an annual slump of 4.7%. The government had set its target for 2010 at 3.5%. Economic recovery is vital for Prime Minister Erdogan ahead of general elections next year, in which his business-friendly Justice and Development Party, or AKP, will seek a third straight term in power. Turkey's relatively fast recovery from the global crisis owes much to stability in its financial sector, which underwent a drastic overhaul in the early 2000s under tight IMF-sought reforms. Recovery began in Q4/09, with GDP increasing 6% after year-long recession. (Hurriyet 14.09)
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6.2 Turkish Inflation Rises 0.4% in August
Turkish consumer prices rose 0.4% on the month in August, more than expected and driven by rising food prices, although analysts dismissed the rise as a one-off. Analysts had forecast inflation of 0.18%. Producer prices rose 1.15% on the month, exceeding a forecast of 0.23%, and were up 9.03% from a year earlier. The CPI index was up 8.33% on the year. Food and energy costs contributed to a higher-than-expected inflation rise. But the core inflation, monitored by the central bank, is negative. (Various 04.09)
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6.3 Cypriot Inflation Rises to 3.2% in August
Cyprus' annual inflation rate rose in August by 3.2% over the year earlier, surpassing July's 2.6% increase over 2009's level. Compared with the previous month, prices increased by 0.82%. The Statistical Service said that this was mainly owing to increases in the prices of certain fresh vegetables, fresh fruit, bread and electricity. Decreases were recorded in the prices of air fares, petroleum products and certain clothing items (because of the summer sales). For the period January-August 2010 the CPI recorded an increase of 2.4% compared with the corresponding period of 2009. Meanwhile, the EU-harmonized rate of inflation (HICP) rose to 3.4% in August from 2.7% in July 2010 and deflation of 0.9% in August 2009. For the period January-August 2010, the HICP recorded an increase of 2.5% compared to the corresponding period of 2009. (FM 07.09)
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6.4 Cypriot Deficit Increases in 2010
Cyprus's Finance Ministry announced that the central government deficit widened 5.7% in the first seven months of 2010. The gap grew to €453.3m ($579 million), or 2.6% of GDP, from €429 million euros, or 2.5% of GDP, a year earlier. Revenues rose 7.3% to €3.5 billion as non-tax revenues climbed 55% to €567 million. That outstripped the 1.2% increase in tax revenues, which totaled about €3 billion, according to the ministry. Expenditures rose 7.4% in the seven months through July to €4 billion, mainly due to a 9.5% increase in current transfers to €1.1 billion and a 10% gain in social security payments to €709.8 million, the ministry said. Total pensions and gratuities jumped 23% to €257 million, while salaries advanced 1.6% to just over €1 billion. (Bloomberg 02.09)
6.5 Prime Minister Says Greece Will Meet Targets
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Greek Prime Minister George Papandreou said on 13 September that Greece will have met its targets for curbing its huge debt burden by the end of the year, despite a shortfall in tax collection revenues, as officials of the European Commission and the International Monetary Fund arrived in Athens to check his government's progress in pushing through reforms.
Speaking at a joint conference by the IMF and the International Labor Organization in Oslo, Papandreou said the reforms introduced by his government since it came to power would have taken most administrations years to achieve. "In 11 months, we did a decade's worth of work," he said.
Papandreou added that his administration had great hopes for its crackdown on tax evasion, even though it has fallen short of its target in revenue collection so far. He feels if Greece stamps out tax evasion, it will not need any new loans and will emerge much more quickly from the current crisis. However the Greek premier also acknowledged the existence of spreading public discontent in Greece, though he seemed to suggest that this depression was the cause rather than the result of the current recession. In Athens, the Finance Ministry received officials from the EC, IMF and European Central Bank who are to conduct a fresh audit of Greek finances ahead of the scheduled disbursement of 9 billion euros in December, the third installment of a loan package. (Kathimerini 14.09)
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6.6 Greek Recession Deeper Than Thought As Second Quarter GDP Shrinks by 3.7%
Greece's austerity-hit economy shrank at a faster pace than previously thought in the second quarter, casting doubt on government hopes that the future path of a protracted recession will be relatively mild. The GDP in the debt-laden country declined at an annual pace of 3.7% in the second quarter, compared with a previous flash estimate of 3.5%, statistics service (ELSTAT) said on 8 September. The economy shrank 1.8% quarter-on-quarter, by far the biggest quarterly decline since it began contracting Q4/08. Markets are watching closely for signs of a steeper downturn that may undermine Greece's aims of slashing the budget deficit to below 3% of GDP in 2014 from 13.6% last year and to return to markets for funding sometime next year.
The GDP reading, following a 2.3% year-on-year decline in the first quarter, suggests the EU/IMF's forecast of a 4% recession this year is more realistic than the Greek government's hopes that recession will be shallower than that, between 3% - 4%, analysts said. Household spending eroded at a record annual clip of 4.2% in the second quarter, hurt by wage cuts and tax hikes adopted in exchange for a €110b EU/IMF bailout. Greece has cut public sector wages by 15% and pensions by 10%. At the same time, value-added tax has risen by 4%age points to 23% and other consumption taxes by a third as the government struggles to plug its budget holes. Investment dropped by 18.6% as firms, especially in construction, slash projects and shed workers to cope with the downturn.
European recovery is doing little to help Greek exports and tourism receipts, ELSTAT's figures showed. Exports of services, mainly receipts from foreign tourists, dropped in value by 7% while sales of products abroad declined by 2.3% as Greek firms continue to suffer from low competitiveness vis-à-vis foreign rivals. The slump would have been even deeper had austerity not also hurt imports, which declined by 13.5%. (BI-ME 09.09)
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6.7 Greek Sales Down Despite Discounts
Revenue figures from the summer sales season in the retail sector were disappointingly low, according to data provided by trade groups on 1 September. Encouraging signs arising from increased shopper traffic lasted for just the first 15 days of the sales season, according to the National Confederation of Greek Commerce (ESEE), which said turnover this year fell by an average of 25% from 2009 levels. The sales period ran from mid-July until the end of August. More shoppers visited retailers over the sales period but there was no increase in revenues, despite the lower prices. In Athens, the drop in revenues reached between 25 and 35% compared to the same period a year earlier, while in Piraeus the drop was about 25%. In other parts of Greece, the figures painted an even bleaker picture. An initial drop of 10% in revenues during the first two weeks of the sales season was considered to be satisfactory by store owners but this soon gave way to an even sharper drop-off. In the two-month period leading up to the sales, many retailers had reported 23% lower turnover. Data showed that eight in 10 store owners reported a drop in revenues, with the remainder saying revenues were at last year's levels. (Kathimerini 02.09)
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6.8 Greece's Jobless Rate Rises To 11.6% in June
On 10 September, the Hellenic Statistics Authority (ELSTAT) announced that Greece's unemployment rate rose to 11.6% in June from 8.6% in the same month a year earlier, as austerity policies aimed at slashing the budget deficit led to job cuts. Unemployment dropped month-on-month from 12% in May, as the tourism season kicked in and companies hired temporary workers. Greek jobless figures are not adjusted for seasonal factors. A total of 582,364 people were out of work in June, about 143,000 more than in June 2009. Greece's total work force numbers 4.42m people. Employment is expected to suffer as the Greek economy goes through its deepest recession in almost 40 years, partly due to draconian austerity measures to shore up the country's finances and avoid a debt default, in exchange for a €110b bailout from the European Union and IMF. Greece's jobless rate was the fourth highest in the 16-member eurozone after Spain, Slovakia and Ireland and 1.6% above the bloc's average. The EU and the IMF expect unemployment to rise to nearly 15% next year, with the economy suffering its third consecutive year of contraction. (ELSTAT 10.09)
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6.9 Bulgaria Annual Inflation Rises To 2.7% in August
Bulgarian consumer price inflation increased to 2.7% in August on an annual basis from 1.9% a month earlier, due to a surge in tobacco and fuel prices. On a monthly basis the index inched up 0.1% , down from a 0.4% increase in July. Meanwhile, the harmonized index of consumer prices stood at 3.2% on a yearly basis in August and 0.2% on a monthly basis. August is the second month in a row, in which Bulgaria's CPI increase on an annual basis. Food prices in August went up by 0.4% on a monthly basis, non-food prices fell 0.1% mainly because of a decrease in prices of clothes. A falling GDP and increasing inflation rates have recently raised concerns that Bulgaria may face the risk of stagflation. Such fears were fueled by the rise in producer prices and consumer price index since the beginning of the year, except for a few summer months, alongside with the contraction of the Bulgarian economy. Double-digit inflation and a growing current account deficit have prevented Bulgaria from joining the ERM II, so-called waiting room to the eurozone, since it joined the European Union in 2007. The center-right government dropped its plans for applying for ERM II after raising the alarm that the 2009 budget gap was 3.7% of gross domestic product rather than the 1.9 % due to unaccounted procurement deals. Bulgaria's economy contracted by 3.6% on an annual basis in the first quarter of 2010 from 5,9% in the previous quarter, but the government hopes for a 1% economic growth for this year as recovering exports bolster the expansion. (SMN 14.09)
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6.10 Bulgarian Budget Deficit Narrows
Bulgaria's budget deficit narrowed to 1.2 billion levs ($775.7 million), or 1.8% of GDP, in the first seven months of the year after the country received European Union funds in July, the government announced on 1 September. The deficit for January-July of 1.8% of expected GDP fell from a deficit of 2.2% of GDP for January-June. Revenues dropped in the first seven months of the year by 8.4% from a year ago to 13.5 billion levs, as a drop in imports depressed receipts from value-added tax and excise duties, the Finance Ministry said. Spending edged down 2.6% on an annual basis to 14.7 billion levs following government austerity measures including cutting funds for almost all ministries and transfers to municipalities. (Various 01.09)
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6.11 Bulgaria's Unemployment Down To 9.14% in August
On 5 September, Labor Minister Mladenov announced that in August 2010, Bulgaria had an unemployment rate of 9.14%, The Minister pointed out on Sunday that after the Bulgarian unemployment peaked in February 2010 at 10.2%, it has been decreasing slowly but steadily in the last 6 months, with 40 000 Bulgarians starting new jobs in that period. In July, Bulgaria's unemployment rate was 9.23%. Mladenov said 9,000 people will be appointed as personal assistants to people with disabilities as of October 1. He promised to table a proposal for the increase of the minimum salary in the country from BGN 240 to BGN 270 as of January 1, 2011, to the government's economic development council. (SMN 06.09)
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6.12 Bulgaria Oil & Gas Report for 2010's Third Quarter
Research and Markets (http://www.researchandmarkets.com) "Bulgaria Oil and Gas Report Q3/10 forecasts that the country will account for 1.90% of Central & Eastern European (CEE) regional oil demand by 2014, while making no meaningful contribution to supply. CEE regional oil use of 5.42m barrels per day (b/d) in 2001 rose to an estimated 5.81m b/d in 2009. It should average 6.03m b/d in 2010 and then rise to around 6.69m b/d by 2014. Regional oil production was 8.88m b/d in 2001, and in 2009 averaged an estimated 13.35m b/d. It is set to rise to 14.57m b/d by 2014. Oil exports are growing steadily, because demand growth is lagging the pace of supply expansion. In 2001, the region was exporting an average of 3.46m b/d. This total had risen to an estimated 7.54m b/d in 2009 and is forecast to reach 7.88m b/d by 2014.
Azerbaijan and Kazakhstan have the greatest production growth potential, although Russia will remain the key exporter. In terms of natural gas, the region in 2009 consumed an estimated 668.5b cubic meters (bcm), with demand of 780.0bcm targeted for 2014, representing 13.7% growth. Production of an estimated 830.3bcm in 2009 should reach 1,025.7bcm in 2014, which implies net exports rising from an estimated 162bcm in 2009 to 246bcm by the end of the period. Bulgaria's share of gas consumption in 2009 was an estimated 0.55%, while it has no significant share of production. By 2014, its share of demand is forecast to be 0.71%. (R&M 06.09)
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6.13 WEF Says Bulgaria Rises To Rank 70 in Competitiveness List
Bulgaria's competitiveness slightly improved from last year but continues to lag behind most Central and Eastern European countries and EU member states, an annual ranking by the Switzerland-based World Economic Forum showed. The country ranked 70th out of 139 economies in the Global Competitiveness Report 2010-2011, better than its 76th place in last year's report. But most Central and Eastern European countries continue to outperform Bulgaria – Romania (63), the Czech Republic (36), while Estonia, which is scheduled to join the eurozone next year, comes in at 33.
Among European Union member states, Bulgaria manages to over-leap only Greece, which marks a sharp fall by 12 spots down to number 83, a downturn brought about by the deepening fiscal crisis and the recession. Bulgaria garnered the highest score in the technological readiness and macroeconomic environment section, where it rose up three places to 42 in comparison with last year. Earlier this year the European Union's executive opened a budget discipline procedure against Bulgaria after official data showed its fiscal deficit exceeded the bloc's ceiling. The European Commission said Bulgaria should reduce its deficit to beneath 3% of GDP next year from 3.8% expected in 2010. (SMN 10.09)
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7: GENERAL NEWS AND INTEREST
*ISRAEL:
7.1 Israel's Jewish Population Nears Six Million
The Central Bureau of Statistics announced that at the Rosh HaShanah (Jewish New Year), the number of Jewish citizens in Israel numbers 5,770,900, an increase of nearly 67,000 over the previous year. The remainder of the total population of 7,645,000 includes 1,559,100 non-Jews, an increase of 23,000. The Jewish birth rate rose to 2.9% from 2.88, while the Muslim birth rate dropped from 3.84 to 3.73. The 1.7% growth in the Jewish population was mostly internal, as the once-massive number of new immigrants from the former Soviet Union has dwindled over the past several years. Despite this, the number of new immigrants during the past year was 14,572, a 65% increase over the previous year. The Muslim population grew by 2.8%, while the Christian population increased by only 1%.
The State of Israel, now 62 years old, remains a young country, with nearly 28% of its residents under the age of 15, providing a base for continued economic growth as opposed to the aging population in other countries such as the United States. Life expectancy also remains high in Israel, where Jewish men live on average to the age of 80.5 years and Jewish women reach an average of 83.9 years. (CBS 06.09)
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7.2 Yom Kippur – Holiest Day in the Jewish Calendar – Falls on 17/18 September
On the eve of 17 September and until after sunset on 18 September, Israel and world Jewry will observe Yom Kippur, or the Day of Atonement. The holiest day on the Jewish calendar, falling on the tenth of Tishri, it is a day marked by fasting, prayer and penitence for one's sins against their fellow man and G-d. Yom Kippur atones only for sins between man and G-d, not for sins against another person. To atone for sins against another person, you must first seek reconciliation with that person, righting the wrongs you committed against them if possible. That must all be done before Yom Kippur.
Yom Kippur is a complete Sabbath; no work can be performed on that day. It is a complete, 25-hour fast beginning before sunset on the evening before Yom Kippur and ending after nightfall on the day of Yom Kippur. The Talmud also specifies additional restrictions that are less well-known: washing and bathing, anointing one's body (with cosmetics, deodorants, etc.), wearing leather shoes and engaging in sexual relations are all prohibited on Yom Kippur. As always, any of these restrictions can be lifted where a threat to life or health is involved. In fact, children under the age of nine and women in childbirth (from the time labor begins until three days after birth) are not permitted to fast, even if they want to. It is customary to wear white on the holiday, which symbolizes purity and calls to mind the promise that our sins shall be made as white as snow. The day long fast is widely observed even among Israel's secular public and most of the country's Jewish population attend all or part of the day's synagogue services. The fast is concluded with a shofar blast and rejoicing.
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7.3 Sukkot Holiday Celebrated
The Jewish festival of Sukkot begins at sunset on Wednesday, 22 September until nightfall on 30 September 2008 (in Israel). The festival ends on day later outside of Israel. The holiday begins on the Hebrew date of 15 Tishrei, the fifth day after Yom Kippur. The word "Sukkot" means "booths" and refers to the temporary dwellings that Jews are commanded to live in during this holiday. The commandment to "dwell" in a sukkah can be fulfilled by simply eating all of one's meals there or by actually living in the sukkah as much as possible, including sleeping in it. The holiday commemorates the forty-year period during which the children of Israel were wandering in the desert, living in temporary shelters. There are intermediate days during the week, which begins and ends with a holiday, referred to as Chol Ha-Mo'ed.
Another observance related to Sukkot involves what are known as the Four Species (arba minim in Hebrew) or the lulav and etrog. Jews are commanded to take these four plants and use them to "rejoice before the L-rd." The four species in question are an etrog (a citrus fruit native to Israel), a palm branch (in Hebrew, lulav), two willow branches (arava) and three myrtle branches (hadas). The six branches are bound together and referred to collectively as the lulav. The etrog is held separately. With these four species in hand, one recites a blessing and waves the species in all six directions (east, south, west, north, up and down, symbolizing the fact that G-d is everywhere).
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7.4 Israel Sees the Arrival of 17,880 Immigrants in 5770
Some 17,880 new immigrants arrived in Israel during the Hebrew year 5770, an increase of 2,700 people from the year before, according to data released by the Jewish Agency. The biggest rise in numbers came from immigrants from the former Soviet Union. This year 7,340 people moved from CIS countries to Israel in comparison to 6,340 the previous year. The number of new immigrants (olim) from English-speaking countries stayed roughly the same. Over the last 12 month period 5,130 people came from North America, the UK, South Africa and Australia as opposed to 5,030 the year before. Arrivals from France also rose with 2,420 arriving this year, up by almost 400 olim a year. While most olim came from countries with established Jewish populations some came from unexpected countries including Japan, New Caledonia, Angola and Uganda. (03.09)
*REGIONAL:
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7.5 Turkish Voters Approve Key Referendum On Constitutional Changes
On 12 September, Turkish voters approved divisive constitutional changes to reshape the judiciary and curb the military's powers, handing the Islamist-rooted government a major political victory. Prime Minister Erdogan said provisional results showed that some 58% of the voters backed the amendments in the referendum, hailing the outcome as a "turning point" for Turkish democracy. The government said voter turnout was between 77% - 78%. The overall turnout in the referendum was around 77%, an indication that the pro-Kurdish Peace & Democracy Party, or BDP's, call to boycott the vote was influential.
The outcome came as a huge boost for Erdogan's Justice and Development Party (AKP) ahead of general elections next year, in which the Islamist party will seek a third straight term in power. The secularist opposition had campaigned against the amendments, charging that they masked an AKP quest to take control of the judiciary and assert an authoritarian grip on power.
While the AKP has said it would seek a compromise with the opposition for further constitutional reforms, pundits have warned that the substantial "no" vote (some 42%) confirmed that Turkey remains deeply polarized and prone to political tensions. The main opposition Republican People's Party (CHP) withheld an immediate reaction on the vote, while the second opposition force, the Nationalist Action Party, said Turkey was "entering a dark period full with risks and dangers" and urged early elections.
The referendum fell on the 30th anniversary of the 1980 coup, one of four military interventions that have unseated elected governments in Turkey since 1960, which produced the current constitution. The opposition argued the AKP - its democratic credentials already under mounting criticism - designed the amendments to propel its cronies to senior judicial posts, control the courts and dilute Turkey's secular system. The 26-article package aims to restructure the higher echelons of the judiciary, a secularist bastion at loggerheads with the government. The most controversial provisions modify the make-up of the Constitutional Court and the Higher Board of Judges and Prosecutors, and the way their members are elected. The package also curbs the powers of the once-untouchable military, already humbled amid sprawling probes into alleged plans to unseat the AKP that have landed dozens of soldiers in court.
The AKP narrowly escaped being outlawed by the Constitutional Court for undermining Turkey's secular system in 2008. Top courts have also often blocked AKP-sponsored legislation, including a bill that would have abolished a ban on the Islamic headscarf in universities. Other provisions limit the powers of military courts and abolish an article providing a judicial shield for the 1980 coup leaders. The package also gives civil servants the right to collective bargaining, but not the right to strike, and emphasizes women's and children's rights. (BI-ME 13.09)
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8: ISRAEL LIFE SCIENCE NEWS
8.1 iDent Imaging & Objet Geometries Offer Surgical Guide Solutions for Implant Dentistry
iDent Imaging of Foster City, California, a leading provider of 3-D surgical planning software and surgical guides for dental implants, has teamed with Objet Geometries to improve the quality of dental implant placement. Objet systems provide iDent Imaging with the ability to rapidly manufacture customized surgical guides generated by their Scan2Guide(TM) software using Objet's Eden 3D Printers. 3D-printed surgical guides guarantee surgeons a level of precision in the placement of dental implants that is difficult to achieve using freehand surgical techniques. iDent provides implant dentists with medical imaging software for the virtual planning of the optimal placement of dental implants based on dental CT scans, and iGuide surgical guides that ensure the translation of the virtual treatment plan into accurate surgery. Objet's rapid manufacturing 3D printers enable iDent to supply dentists with highly accurate, customized guides for predictable, prosthetically driven implant surgery.
Rehovot's Objet Geometries (http://www.objet.com), the innovation leader in 3-Dimensional printing, provides 3-D printing systems that enable manufacturers and industrial designers to reduce cost of product development and dramatically shorten time-to-market of new products. (iDent 02.09)
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8.2 Nasvax Begins Treating Patients in Liver Disease Study
NasVax announced that after the Helsinki (ethics) committee at Jerusalem's Hadassah Medical Center, as well as the Ministry of Health, previously approved a Phase IIa clinical trial to study one of its treatments for liver disease, the company has begun delivering the treatment to patients. Nasvax will conduct the trial to study its oral anti-CD3 immunotherapy treatment against non-alcoholic steatohepatitis or fatty liver (NASH) in patients who also have diabetes. Oral anti-CD3 immunotherapy treatment is based on a licensed monoclonal antibody (MAb) which is used in preventing transplant rejection when given by injection. The company hopes the oral version can treat certain inflammatory and autoimmune diseases, including immune-mediated hepatitis, NASH, type-2 diabetes, type-I diabetes, lupus, colitis, arthritis, and others. Ness Ziona's Nasvax (http://www.nasvax.com) began operations in August 2004, aiming to develop improved vaccines through applications of its VaxiSome adjuvant / delivery system technology. The Company's lead candidate is in clinical trials and is an improved formulation for influenza vaccine that has been shown in preclinical studies to be significantly more immunogenic and protective than commercial influenza vaccine. Preclinical studies with hepatitis B, avian flu and anthrax vaccines also are ongoing. (Nasvax12.09)
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8.3 TransPharma Successfully Completes Phase 1a Clinical Trial of ViaDerm-GLP1
TransPharma Medical announced the successful completion of a Phase 1a trial of ViaDerm-GLP1 agonist which is being developed for the treatment of diabetes mellitus type II. The Phase 1 study was a three-way cross over study designed to evaluate the pharmacokinetic (PK) profile and assess safety and tolerability of two doses of ViaDerm-GLP1 agonist in healthy volunteers, as compared to a subcutaneous injection of Exenatide (Byetta). Each volunteer received all three treatments with a washout period of one week between treatments. The results of the study demonstrate ViaDerm-GLP1 agonist to be safe and well-tolerated with a preferable extended PK profile compared to an injection of Exenatide (Byetta). Transdermal application of ViaDerm-GLP1 agonist resulted in therapeutic GLP1 blood levels for approximately 13 hours compared to 6 hours of the injected form. In addition, ViaDerm-GLP1 agonist was demonstrated to be biologically active based on changes in glucose levels during the treatment. TransPharma has initiated enrollment of Type II diabetic patients to a phase 1b clinical trial using its dry form, extended release state-of-the-art patch formulation of GLP1 agonist.
TransPharma's ViaDerm drug delivery system incorporates a handheld electronic device, which creates microscopic passageways through the outer layer of the skin allowing for transdermal delivery of a wide variety of drugs from a patch. The system provides a cost-effective, easy-to-use, self-administered solution that enables the safe, reproducible and accurate delivery of a broad range of product candidates, including hydrophilic small molecules peptides and proteins.
Lod's TransPharma Medical (http://www.transpharma-medical.com) is a specialty pharmaceutical company focused on the development and commercialization of drug products utilizing its proprietary active transdermal drug delivery technology. The company aims to develop multiple drug products through strategic partnerships with leading pharmaceutical companies and through independent product development. TransPharma currently has 3 drug products in clinical trials: ViaDerm-hPTH (1-34) product for the treatment of osteoporosis developed in collaboration with Eli Lilly currently in Phase 2b clinical studies; ViaDerm-GLP1 agonist for the treatment of type II diabetes currently in phase 1b testing and the ViaDerm system combined with an undisclosed peptide currently undergoing phase 1b clinical trials. (TransPharma 14.09)
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8.4 Atox Bio Announces Dosing of the First Subject in Its Phase 1 Study of AB103
Atox Bio successfully completed the dosing of the first subject in its phase 1 clinical study of AB103, a novel therapy for the treatment of severe bacterial infections and sepsis. The trial is designed to evaluate the safety, tolerability and pharmacokinetics of AB103. It is a double blind, placebo controlled study that includes up to 38 healthy volunteers receiving escalating single doses of AB103, with one group receiving multiple doses. The study is being conducted at the University of Maryland in Baltimore. Growing resistance to antibiotics among gram-negative and gram-positive pathogens in hospitalized patients and in the community is of major concern. Therapeutic options for such pathogens are extremely limited, creating a clear unmet and urgent need to develop novel and alternative therapy for infections. AB103, a novel immunomodulator, offers a unique approach in the treatment of infectious diseases by modulating but not abrogating the host immune system. This approach of targeting the host immune response rather than the pathogen precludes the rapid generation of drug resistance and provides a multisystem solution for bacterial infections with broad-spectrum coverage, independent of pathogen type.
AB103 inhibits immune over-reaction early in the inflammatory cascade, allowing for attenuation of disease before it advances to severe and irreversible stages, while preserving normal immune responses. It provides protection from bacterial superantigen toxins and from lethal bacterial infections in experimental models of a wide range of bacterial pathogens, both gram positive and gram negative, and blocks symptoms of disease in sepsis and infection models as well as in models of inflammatory/autoimmune diseases. The phase 1 study is supported by a grant from the Israel-U.S. Binational Industrial Research and Development (BIRD) foundation.
Established in 2003, Rehovot's Atox Bio (http://www.atoxbio.com) is a clinical stage biotechnology company that develops therapeutics for diseases mediated by an excessive inflammatory response. Atox Bio focuses on novel modulators of the immune response that act broadly to attenuate excessive cytokine responses underlying disease, with therapeutic applications ranging from infectious to inflammatory/autoimmune diseases. These applications represent areas with major unmet medical need. Atox Bio is a spin-off of Yissum, the technology transfer company of the Hebrew University of Jerusalem. (Atox Bio 14.09)
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9: ISRAEL PRODUCT & TECHNOLOGY NEWS
9.1 Tvinci Powers Novebox Pay-Over-The-Top Service for MSN
Tvinci announced that Novebox has selected the Tvinci video platform to create a subscription/pay-on-demand service for Spanish language MSN portals. The Novebox service, which will be rolled out progressively across Latin America and the Hispanic market in the US over the next 5 months, will feature rich content related to Latin series and films from across Latin America. For the first time, new primetime programs will be streamed online before they are broadcast on TV. Tvinci's MediaHub and MediaStore have been deployed by Novebox to manage video assets, business rules for subscriptions and ads, user experience and video players. MediaStore is an environment in which the content, business model and payment method offered fit the interests and consumption habits of the viewer, thereby maximizing sales of content. It operates in full synchronization with the MediaHub, providing media companies, pay-TV and multi-play operators a complete solution for intelligently and efficiently serving users' pay-content to internet devices. Tvinci's complete Pay-OTT video platform has been developed to meet the industry need for a new monetization layer to OTT video content through direct payments (Pay Per View, subscriptions, coupons etc). The platform enables content owners and network operators to offer a consistent content consumption experience across any internet enabled device: PC / Mac, Connected TV, STB, games console, smartphone and iPad.
Tel Aviv's Tvinci (http://www.tvinci.com) is a Pay-OTT video platform provider that enables the management of content and the enhancement of the user experience. The company specializes in solutions for content owners, pay-TV & multi-play operators that aim to generate revenues online from premium content displayed on any internet connected device. Tvinci has been operating since 2007 and has an established reputation among leaders in the field of providing technology for content distribution Over-the-Top. (Tvinci 02.09)
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9.2 World Economic Forum Picks Israel's Takadu as one of its 2011 Technology Pioneers
The World Economic Forum in Davos selected thirty-one companies from 13 countries and five continents to receive an award for visionary accomplishments in the fields of clean tech, health and information technologies/new media. The companies were selected by a committee of leading academics, journalists, technologists and venture capitalists from around the world.
This year's winners included a higher number of clean tech companies, Amongst the 31 companies to receive the honor is Israeli startup Takadu (http://www.takadu.com), creator of a SaaS product for water distribution networks through the adoption of a grid approach. Takadu's product enables utility companies to detect leaks, bursts and equipment failures as well as alerting personnel of any problems through email and SMS. Takadu's business model consists of charging a monthly fee from its clients, which already include the Thames Water company and other utility companies in Israel and Asia Pacific. The Yehud based company was founded in 2009 and its investors include Gemini Israel Funds and Giza Venture Capital. (VC Cafe 01.09)
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9.3 Dropico Solves the Real Problem of Photo Sharing
Dropico announced the launch of a new Firefox extension that allows users to drag and drop their photos from their social networks and photo sharing services (Facebook, Flickr, Picasa) directly to Gmail, Google Docs, Wordpress and other web-based editors. Have any one of you photo enthusiasts ever wanted to share one of your Flickr photos with your Facebook friends or e-mail it to a friend and found it to be a very long and cumbersome process? First you had to download the photo from Flickr to your computer, upload it to Facebook or Gmail and then send it, not to mention having to do this for multiple photos. With Dropico this process is simple and fast. Some of its features include drag and drop photos from Facebook, Flickr, Picasa and many others directly to Gmail, Yahoo Mail, Hotmail, Wordpress, Blogger and any other Webmail, Blog or web-based editor. Herzliya's Dropico (http://www.dropico.com) is an exciting new service that uses a simple drag and drop mechanism to easily manage, organize and edit your photo collection across social networks and photo sharing services - anytime, anywhere. After a simple, fast and free registration for a Dropico account, an easy-to-use wizard shows you how to configure all your social networks and photo sharing services including Picasa, Flickr, Facebook, Twitter and more. Dropico's easy-to-use drag and drop mechanism allows you to simply drag photos from one service to another (e.g. Picasa to Facebook) in one simple drag and drop motion. Dropico uses powerful cloud technology to assure fast and reliable service for photo-sharing enthusiasts. You can copy up to 100 photos in 50 seconds! The company's platform can be utilized on any mobile phone, Internet TV and with any cellular provider - as a white label application. (Dropico 02.09)
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9.4 RED-C Amplifies for Low Latency Links
RED-C Optical Networks announced the launch of its new amplifier suite for low latency links. This suite addresses the two main contributors to signal latency - the time required to cross the optical path between transmitting and receiving terminals, and the time required for electrical processing of the signal. The low latency suite includes an UltraSpan Raman Amplifier. The use of distributed Raman amplification improves system OSNR and thus reduces or even eliminates the need for FEC and O-E-O regeneration, and their associated latency. In addition, the distributed Raman gain decreases the need for discrete amplification along the link, consequently reducing the optical path length. The UltraSpan Raman amplifiers can be used in both co- and counter- propagating configuration. The UltraSpan Power Booster allows the increase of the launch power into a link by as much as 6 dB, thus improving OSNR margins and reducing the need for FEC and electronic regeneration. RED-C's low latency solutions are available as modules or as network interfaced units which can be integrated easily and rapidly within existing system designs. All products incorporate unique RED-C features, such as laser safety mechanisms, uniform GUI and operating procedures, and multiple communication interfaces.
Tel Aviv's RED-C Optical Networks (http://www.red-c.com) is a leading provider of state-of-the-art EDFAs, Raman amplifiers and optical monitoring devices for all network segments (long haul, regional, metro and access) and for all network applications (telecom, cable and enterprise). Beside a broad variety of EDFA and Raman modules, RED-C offers innovative and comprehensive solutions for some of the industry's most difficult technological challenges today, such as 100 Gb/s and 40 Gb/s coherent transmission, ultra-long repeaterless links, and low latency networks. (RED-C 06.09)
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9.5 Orca's COMPASS TRAX Engages Viewers in the Content Discovery Experience
Ra'anana's Orca Interactive (http://www.orcainteractive.com), a leading innovative provider of IPTV middleware and Content Discovery solutions, will launch COMPASS TRAX, a new module on top of its content discovery platform, COMPASS. The new module offers viewers an enriched experience and a compelling way of exploring content, based on a variety of content tracks. COMPASS TRAX lets users enjoy and immerse themselves in the Discovery experience on the way to finding the right content to watch. By selecting their personal Track, users will view the discovery experience through different lenses, based on personal preferences, social input, popular options, special offers, up-to-date information on their favorite actors and more. Complementing the fast retrieval of content through COMPASS' personalized recommendations and search, COMPASS TRAX offers a more leisure-like and enjoyable experience, allowing each user to spend more time exploring and learning about available content options and, in the meanwhile, creating a wealth of opportunities for operators to exploit the highly engaging experience to drive new revenues. A part of Orca's COMPASS content discovery platform, COMPASS TRAX is offered both as on Premise and as a Cloud based SaaS, making it easily scalable and thus suitable for small and large deployments. COMPASS TRAX can be integrated with value chain partners to further enrich the user experience through rich metadata and web based information for both web and premium content. (Orca 06.09)
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9.6 Advantest & OptimalTest Offer Test Management on T2000 SoC Test Platform
Tokyo's Advantest Corporation, a leading supplier of semiconductor test equipment, and OptimalTest announced the availability of OptimalTest's solutions for totally automated, integrated advanced adaptive test on Advantest's T2000 High Performance Open Architecture test platform. By enabling T2000 testers and test cells with OptimalTest's solutions, Advantest will augment the T2000's industry-recognized high performance and cost benefits for SoC production test with the ability to achieve further significant improvements in yield; early detection of product, process and operational issues; reliability; reduced test time; production quality and Overall Equipment Efficiency (OEE) while keeping test costs low. Based on Advanced Adaptive Test and other innovative core technologies, OptimalTest's comprehensive, tightly integrated modular solutions are scalable based on customer's needs, from local test floor control to test optimization of global fabless partners. They can be implemented either by a universal station controller for maximum test floor control or by deploying a light, unobtrusive software engine that can span enterprises and that can be installed to make test operations "OT-Enabled" for rapid deployment based on needs. OT-Enabled platform users can then choose to activate OptimalTest applications such as OT-Rules2, an advanced expert algorithm engine and OT-Portal, a feature-packed decision-support and visualization tool.
Established in 2005, Ness Ziona's OptimalTest (http://www.optimaltest.com) provides comprehensive, scalable test management and optimization software based on advanced adaptive test. The company's solution is unique for its breadth, incremental modularity, seamless connectivity and real-time and near-time capabilities. It allows adaptation and enhancement of test processes and operations through continuous automated learning, advanced adaptive test techniques and expertly culled data that is decision-ready, resulting in significant, measurable improvements in yield, test time reduction, reliability, and quality as well as reduced cost of test.. (10.09)
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9.7 N-trig DuoSense Pen & Multi-Touch Enriches Educational Classroom Experience
The N-trig DuoSense true multi-touch and pen solution, incorporated in various HP, Dell, and Lenovo products and soon to be available in slates and additional consumer notebooks, is providing a versatile computing environment for students and educators from elementary school through B-school. The N-trig DuoSense combines true multi-touch with more than four fingers on screen, providing an intuitive navigation and rich gesture vocabulary, together with pen input, which is extremely useful in a wide variety of scholastic-related scenarios, such as annotation and note taking. While a number of consumer devices available on the market today, such as phones, notebooks or slates have touch capabilities, DuoSense-enabled laptops and devices allow for both the creation and consumption of content. With the various true multi-touch and pen options that DuoSense provides, users can easily switch between checking their homework online, to uploading photos on their Facebook page, to creating unique artwork in PhotoShop. DuoSense is a dual mode pen and true multi-touch interface specifically designed for today's advanced computing world. The DuoSense dual-mode digitizer uses both pen and zero-pressure capacitive touch to provide a true Hands-on computing experience for mobile computers and other digital input products over a single device. DuoSense offers greater mobility and usability in the next generation of computing devices, enabling new market opportunities for OEMs and ODMs to introduce new computer products and for ISVs to develop innovative software applications that offer a more intuitive and interactive experience.
Founded in 1999, N-trig (http://www.n-trig.com) maintains a global operation with its R&D facility and corporate headquarters and management in Kfar Saba, Israel, sales, OEM and ISV support in Austin, Texas and San Jose California, and ODM, operations and supply chain support in Taipei and Tokyo. (N-trig 09.09)
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9.8 BroadLight Announces its Unified Software Platform with its Latest GateMakerPro Release
BroadLight released its unified software platform supporting a single development base for all GPON and Ethernet Gateway applications. GateMakerPro R2.2 allows developers to easily add a variety of applications and seamlessly port them across BroadLight processors. The consolidated software elegantly enables a unified API framework that supports the 2nd and 3rd generation BroadLight fiber access processor families, and leverages the investment in the qualified traffic model, Gateway middleware and voice plane interoperability. Features of the GateMakerPro (GMP) include: Native IPv6, WiFi Acceleration, enhanced classification engine, advanced scheduling, IPTV and MAC table scaling. Ramat Gan's BroadLight (http://www.broadlight.com) is a fabless semiconductor company supplying processors to equipment vendors for fiber access applications around the globe. BroadLight enables service delivery with its highly integrated processors and software for central office and customer premises equipment. A worldwide leader in fiber access semiconductor and software, BroadLight powers all the GPON deployments worldwide. (BroadLight 14.09)
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9.9 RED-C Introduces the Hybrid Raman-EDFA for Coherent Networks
RED-C Optical Networks launched the Hybrid Raman-EDFA module, a key enabling technology for 100/40 Gb/s coherent networks. The Hybrid module consists of a counter-propagating Raman pump unit tightly integrated with a variable gain EDFA, to provide exceptionally low noise figure and excellent gain flatness, two imperative parameters for ultra-long haul and high bit-rate systems. The unique combination of low NF (1.5-3 dB) and gain flatness (<0.7 dB pk-pk) allows the link reach to be at least doubled in comparison to systems based on traditional EDFAs. The optimization and tight integration of the Raman pump unit and the variable gain EDFA in a single module allows for improved performance compared to using two separate modules, in addition to the cost and space savings achieved by combining the two units together. Furthermore, the integrated Hybrid control circuitry operates in advanced AGC mode so that the combined Raman and EDFA gain is accurately controlled, including fast transient suppression. This is achieved by measuring the actual Raman gain in real time and adjusting the EDFA gain accordingly. The module operation and interface are similar to those of a traditional variable gain EDFA, and therefore requires no special system adaptations. The module also incorporates laser safety mechanisms, ensuring that both the Hybrid Raman-EDFA module itself and the network in which it is installed can be classified as Class 1M products with respect to laser safety.
Tel Aviv's RED-C Optical Networks (http://www.red-c.com) is a leading provider of state-of-the-art EDFAs, Raman amplifiers and optical monitoring devices for all network segments (long haul, regional, metro and access) and for all network applications (telecom, cable and enterprise). Beside a broad variety of EDFA and Raman modules, RED-C offers innovative and comprehensive solutions for some of the industry's most difficult technological challenges today, such as 100 Gb/s and 40 Gb/s coherent transmission, ultra-long repeaterless links, and low latency networks. (RED-C 14.09)
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9.10 RAD Unveils Price-Busting Carrier Ethernet NTU for SLA-Enabled EPL/EVPL Ethernet Services
RAD Data Communications has unveiled a feature-rich Carrier Ethernet NTU for MEF-certified SLA-enabled Ethernet services. The ETX-203A is based on the company's newly developed EtherAccess Carrier Ethernet ASIC, which enabled setting the product's price at $400 for high-volume orders. The ETX-203A supports a licensing based, pay-as-you-grow model. This means service providers can minimize CapEx during initial deployment and upgrade key service parameters as their customers' requirements change. The ETX-203A intelligent demarcation device supports MEF-9 and MEF-14 certified services for EPL and EVPL. It enables service providers to sell excess bandwidth and increase the top line while decreasing OpEx by using its 15 tools for OpEx reduction and SLA management. RAD's EtherAccess Carrier Ethernet ASIC has powerful hierarchical traffic shaping and policing tools per EVC.cos, a complete standards-based hardware-embedded Ethernet OAM suite for wire speed and highly accurate end-to-end performance monitoring capabilities. Other functionality includes a RFC-2544 test generation engine for efficient throughput measurement, always-on Layer 1, 2 and 3 diagnostic loopbacks to ensure rapid service troubleshooting as well as uplink resiliency and EVC path protection per ITU-T G.8031.
Founded in 1981, Tel Aviv's RAD Data Communications (http://www.rad.com) has achieved international recognition as a major manufacturer of high quality access and backhaul equipment for data communications and telecommunications applications. These solutions serve the data and voice access requirements of service providers, carriers and enterprise networks. (RAD 13.09)
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9.11 Altair Announces Commercial Availability of Digital Dividend (Band 20) Reference Design
Altair Semiconductor announced the commercial availability of its Digital Dividend (Band 20) reference design, one of the world's first such designs and the only one that has already completed rigorous IOT testing with tier-one infrastructure vendors. Altair's Digital Dividend reference design features the company's proven FourGee LTE chipset and interoperability-tested software stack. It can be used in a wide range of products, including USB dongles, CPEs and routers, all of which are expected to be market-ready by the end of 2010. Due to excellent propagation characteristics, Digital Dividend spectrum will become especially important for use in rural-broadband installations. Additionally, according to the GSMA, it is approximately 70% cheaper to provide mobile broadband coverage over a given geographic area using Digital Dividend spectrum than with the 2100MHz spectrum widely used for 3G services today. Digital Dividend is UHF spectrum that, until now, has been used for analog television broadcasting. As a greater number of consumers switch from analog to digital televisions, this spectrum has become available for use in carrying mobile broadband signals.
Hod HaSharon's Altair Semiconductor (http://www.altair-semi.com) is the world's leading developer of ultra-low power, small footprint and high performance 4G semiconductors. The company's products provide device manufacturers integrating 4G LTE technology into their products with a highly power-optimized, robust and cost-effective solution. Altair's comprehensive product portfolio includes baseband processors, multi-band RF transceivers for both FDD and TDD bands, and a range of reference hardware and product level protocol stack software. Based on a novel, proprietary Software Defined Radio (SDR) processor, codenamed "O2P", Altair's products are the smallest and most highly power optimized in the industry, offering an unmatched combination of flexibility and performance. (Altair 14.09)
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10: ISRAEL ECONOMIC STATISTICS
10.1 Israel Rises in Global Competitiveness Ranking
Israel rose 3 spots to 24th in the 2010/11 World Economic Forum's global competitiveness report. This is especially significant as over the past three years, Israel had fallen 13 places in the ranking. This year's ranking was led by Switzerland, which led the previous year's ranking as well, Sweden (2009: #4), Singapore (2009: #3), the US (2009: #2), Germany (2009: #7) and Japan (2009: #8). Israel was followed this year by the United Arab Emirates at 25 (2009: #23) and Malaysia at 26 (2009: #24). According to the report, some of the problematic areas for doing business in Israel were the level of effectiveness of government bureaucracy, quality of infrastructures, and tax burden. The report also said that Israel should emphasize raising its quality of education. The top Middle Eastern country was Qatar at #17. (Globes 12.09)
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10.2 Israel's Growth Rate Forecast to Reach 4.1% in 2010
The Central Bureau of Statistics predicts that Israel's GDP will grow by 4.1% in 2010 compared with 0.8% in 2009. GDP growth of 4.1%, if realized, will be considerably higher than the projected overall average annual growth of 2.7% in OECD member countries. The Central Bureau of Statistics sees business output rising 4.5% in 2010 compared with 0% in 2009. The Central Bureau of Statistics forecast is higher than the growth forecast of the Bank of Israel of 3.7% in 2010. However, the Bank of Israel is expected to revise its growth forecast upwards. The Central Bureau of Statistics sees a 13% rise in exports in 2010 compared with last year and an 11% rise residential construction. In addition, there is a 5% rise in consumption predicted for 2010 compared with a rise of 1.7% in 2009 with private consumption per capital, also known as the "standard of living" rising 3% in 2010 compared with a fall of 0.2% in 2009. (CBS 06.09)
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10.3 Israeli Car Sales Growth Among World's Fastest
Globes reported that an examination of vehicle deliveries in H1/10 shows that the Israeli market had one of the fastest rates of growth in the world. Israel did not even need a cash for clunkers program to boost sales, which helped boost sales in some Western markets in the past year. While Israel does have a similar program, it is not thought to have had a significant effect on the market. August was a very good month for vehicle deliveries in Israel, despite the summer vacations and heavy heat. Preliminary unofficial figures show nearly 19,000 new vehicle deliveries, 12% more than in August 2009. The figure is also in line with the monthly average of recent months, and is another step toward the record deliveries expected for 2010. (Globes 02.09)
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10.4 Israeli Teachers Earn 40% of OECD Average
The annual starting salary of an Israeli elementary school teacher was $18,199 in 2008, 60% less than the OECD average of $28,949, says the OECD in its "Education at a Glance 2010" report. The salary in 2008 of an Israeli elementary school teacher with 15 years seniority was $19,868, less than half of the OECD average of $39,426. The report also shows that the salary of an Israeli teacher with 15 years seniority is much less than people with higher education in other professions, perhaps explaining the problem in recruiting good teachers. The OECD found that Israel's spending per pupil (in purchasing power terms) rose 8% in 2006-07, a fraction of the OECD average growth of 42%. Israel spent an average of $5,060 per pupil in 2007, compared with the OECD average of 6,741.
Israel spent 4.1% of GDP on schools in 2007, less than the 4.4% of GDP it spent in 2006, but above the OECD average of 3.6%. In most of the countries covered, with the exception of Australia and Spain, spending on education as a percentage of GDP was unchanged or rose in 2000-07, but Israel's spending declined, after peaking in 2002. However, it is necessary to take into account that Israel has more children as a proportion of total population than most OECD countries, and other countries covered in the report.
Israel's classrooms are crowded. The average elementary school class is 28, compared with the OECD average of 22. However, Israel's average hours of teaching per pupil is one of the highest among the countries surveyed, at every age. Reasons include a six-day school week, compared with five days in most countries, how class hours are calculated, the splitting of classes, and support for weak pupils. The number of hours per teacher in Israel is lower than the OECD average: 755 hours of frontal teaching for primary education in 2008, compared with the OECD average of 786 hours; and 541 hours frontal teaching in secondary education, compared with the OECD average of 661 hours.
The OECD also found some strong points in Israel's education. Israel has one of the highest proportions of people with higher education in the world, at 44% in 2008 and 90% of pupils finish 12th grade compared with the OECD average of 80%. Some 60% of high school graduates go on to university, above the OECD average of 56%. (Globes 07.09)
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11: IN DEPTH
11.1 ISRAEL: Retail Report for Third Quarter, 2010
Research and Markets (http://www.researchandmarkets.com) "Israel Retail Report Q3/10" forecasts that the country's retail sales will grow from $36.82b in 2010 to $42.20b by 2014. Key factors behind this growth are Israel's underlying economic growth, sophisticated consumption habits, its growing population and rising disposable incomes. Israel's nominal GDP is predicted to be $219.4b in 2010. GDP growth is forecast to accelerate to 3.4% in 2010 from 0.7% in 2009 as the economy slowly begins to recover. Average annual GDP growth of 2.9% is predicted by BMI between 2010 and 2014. With the population increasing from 7.6m in 2010 to 8.1m over the forecast period, GDP per capita is predicted to rise to $35,237 by 2014.
The Jewish tradition of offering gifts to relatives and friends at festivals during the year - Hanukah in December, Passover in March/April and Rosh Hashanah (Jewish New Year) in September - generates healthy demand for products such as consumer electronics, fashion goods and accessories, jewellery and other quality goods. Also, with about 30% of the Israeli population under 14, the youth market presents great potential for toy and game retailers. In 2005, 63.3% of the Israeli population was described by the UN as economically active, with 35.5% in the 20-44 age range important for retail sales. In 2010, 64.3% of the population is expected to be economically active, but the proportion of those in the 20-44 age band is forecast to fall slightly to 35.3%.
A very high level of urbanization is also contributing to retail growth. In 2005, 91.7% of the population was classified by the UN as urban, and this is forecast to increase to 92.0% by 2015.
In terms of retail sub-sectors, Central Bureau of Statistics (CBS) data indicate that in 2006, 3.9% of the Israeli household budget was spent on furniture and household equipment. Some 3.4% went on clothing and footwear, 1.3% on cosmetics and 0.4% on jewellery and watches.
According to BMI data, retail sub-sectors that are likely to show strong growth over the forecast period include consumer electronics, with sales predicted to rise by 22.5%, from $2.84b in 2010 to $3.48b by 2014. The over the counter (OTC) pharmaceuticals sector is forecast to grow from $0.38b in 2010 to $0.48b by the end of the forecast period, a rise of more than 25%. Food and drink sales are expected to rise from $16.83b in 2010 to $19.41b by 2014, an increase of over 15%. Vehicle sales are forecast to rise by 59.5%, from $5.60b in 2010 to $8.93b by 2014.
Retail sales for our set of Middle East and Africa (MEA) countries in 2010 are predicted to amount to $183.52b, based on the varying national definitions. Total consumer spending for the region based on BMI's macroeconomic database is forecast to reach $673.32b. For 2010, BMI predicts that South Africa and Israel will together account for an estimated 56.8% of regional retail sales, and their combined share is expected to rise to 57.2% by 2014. For Israel, its estimated 2010 market share of 20.1% is expected to decline to 17.3% by 2014. (R&M 08.09)
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11.2 ARAB MIDDLE EAST: Fitch Says Sovereigns Show Resilience to Financial Crisis
On 13 September, Fitch Ratings (http://www.fitchratings.com) issued a new report saying that the global financial crisis has had a relatively muted impact on Arab Middle East sovereign creditworthiness overall. All the region's sovereign ratings remain on Stable Outlook.
Median GDP growth slowed to 3% in 2009 from 4.5% in 2008 and will rise to 4% this year. However, oil and non-oil producers fared very differently. The large oil producers - Abu Dhabi ('AA'/Stable), Kuwait ('AA'/Stable), Libya ('BBB+'/Stable) and Saudi Arabia ('AA-'/Stable) - were hardest hit as oil prices and production fell sharply. Non-oil exporters, on the other hand, fared much better than expected, especially given their strong trade links with Europe.
Despite the adverse oil impact, all four large oil producers had substantial external assets and negligible debt, putting them in a strong position to address the challenge. Abu Dhabi and Saudi Arabia injected substantial fiscal stimulus, the former including support for Dubai. By contrast, stimulus measures in Kuwait and Libya were minimal. But in all cases, non-oil sectors continued to grow.
Oil prices in this year's $70-80/barrel range are comfortable for these countries, and all will record fiscal and current account surpluses this year, allowing them to maintain spending programs. By end-2010, none will have suffered any material reduction in foreign assets as a percentage of GDP, compared to 2007.
Bahrain - a much smaller oil exporter - was in a weaker position, with external assets less than its larger oil producing neighbors. However, it too had room for fiscal stimulus given its small debt burden. It recorded the strongest growth of the rated GCC oil producers last year, both in the non-oil sector and overall, and still recorded a current account surplus. Its budget deficit will narrow sharply this year, and although debt will continue to rise, it remains below peer group medians.
Financial sectors saw the most damage as external funding declined, credit growth ground to a halt and property prices went into reverse. Banks in the UAE and Kuwait suffered most and required infusions of official capital. By contrast, Saudi Arabia's banks emerged largely unscathed. Bahrain's retail banks did not require solvency support either, although wholesale banks needed support from foreign parents, often other GCC sovereigns. But the legacy of the crisis will be felt in subdued lending growth for a prolonged period, making the recovery more dependent on government infrastructure programs.
Recent events confirm the relatively high macro volatility of the oil producers, especially compared with rated peers. This is mainly due to fluctuating oil prices and production. But in the prelude to this crisis, dollar pegs dictated strongly negative real interest rates which played a part in the lending and house price boom and subsequent bust. With US interest rates likely to remain low for a prolonged period, and inflation ticking up, especially in Saudi Arabia, that policy conflict may re-appear relatively soon.
Among non-oil producers, Egypt's ('BB+'/Stable) growth of 4.7% in 2009 and 5.3% in the year to June showed its increased resilience after recent reforms. It too found room for fiscal stimulus, a testament to its reduced debt burden. Nevertheless, the debt burden remains high and with growth momentum increasing, attention is re-focusing on fiscal consolidation. Morocco ('BBB-'/Stable) and Tunisia ('BBB'/Stable) approached the crisis with a manageable debt burden, also leaving room for fiscal stimulus. However, desired economic growth will be harder to achieve with EU trading partners growing slowly.
Lebanon ('B'/Stable) fared extremely well, with its banks attracting strong non-resident deposit inflows, triggering a virtuous circle of rising reserves, improved confidence, strong growth, and improved debt dynamics, explaining the rating upgrade in February.
Risks for the oil exporters are renewed oil price weakness and for the non-oil exporters, a weaker-than-expected global economic outlook, especially in Europe. It should be noted that the region's oil producers are more dependent on Asia than Europe and oil price dynamics are now driven as much by emerging market as developed country demand. (Fitch 13.09)
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11.3 QATAR: Infrastructure Report for Third Quarter 2010
Research and Markets(http://www.researchandmarkets.com) "Qatar Infrastructure Report Q3 2010" report says that the newly revised data shows that Qatar's construction industry grew at an exceptional rate between 2006 and 2008. However, despite the historic high growth trend, Qatar's construction industry contracted in 2009, with industry value falling to $7.08b, a real contraction of 21.78%.
Despite these figures, BMI is still optimistic that Qatar will outperform other countries in the region in the short term, the low base effects from 2009 will drive high growth in 2010 (forecast at 17% y-o-y). Over the next five years, growth is expected to average 9.9% between 2010 and 2014. Our optimism is grounded on a number of factors:
Government investment plans: 36.9% of 2010/2011 fiscal budget ($11.9b) has been allocated for major capital projects, with infrastructure set to account for the majority of this QAR35.5b ($9.7b). The country's comfortable fiscal position will enable it to continue to allocate large sums to the infrastructure sector; Large infrastructure projects are under way and upcoming: $9b New Doha International Airport, $7b New Doha Port project, $13b Qatar-Bahrain Causeway, $17b development of a national rail network and a handful of power and water plants, including the $3.9b Ras Laffan C the largest power and water plant in the region;
Attitude of construction industry players to the market: Saudi Binladin Group set up a joint venture (JV) with Qatari Diar Real Estate Investment Company in March 2010, to target Qatari construction projects, the UAEs Al Habtoor Leighton and Drake & Scull International have been eyeing up the sector; and,
Strong Project Finance and Infrastructure Business Environment Ratings means the country will continue to attract private investors to its infrastructure sector. Qatar scores in the 60s for both, indicating an attractive and safe project finance environment and a stable business environment with numerous opportunities.
Government support for infrastructure projects is probably the biggest fundamental driver of growth in the sector. The government is in a comfortable position to afford capital investment outlays allocated in the budget. In April 2010, the government of Qatar announced its budget for the 2010/2011 fiscal year (April 1 to March 31). Capital projects will eat up 40% of the budget equal to $11.9b, with infrastructure accounting for the vast majority of that with $9.7b allocated.
This support illustrates that the government is committed to infrastructure projects. This in turn presents optimism for a number of large flagship infrastructure projects currently planned to eventuate over the medium term. Qatar is investing heavily in transport infrastructure, with a $22b national rail network planned, a new port and airport and the longest marine suspension bridge, which will link to Bahrain. In the energy and utilities sector, investments are ongoing into the power and water capacity build up. (R&M 07.09)
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11.4 SAUDI ARABIA: Agribusiness Report For the Fourth Quarter
Research and Markets (http://www.researchandmarkets.com) "Saudi Arabia Agribusiness Report Q4 2010" says government support will remain the decisive factor with regards production and consumption of agricultural commodities in Saudi Arabia over our forecast period. The wheat production industry continues its collapse, following the removal of state supports in 2008. The state is also trying to end the country's dependence on barley imports - the country is by far the world's number one barley importer - by slashing import subsidies on the grain while raising them on alternative feed crops. The poultry industry should also experience healthy growth - albeit on farms located abroad and built on the back of hefty state support, of course.
Wheat production dropped to 1m tonnes in 2009/10, according to latest figures. In 2010/11, we are forecasting wheat production to slip to 691,000 tonnes. By 2013/14, this is expected to have reached 333,000 tonnes, representing an 80.6% fall over our 2008/09-2013/14 outlook window. In 2009, corn consumption is estimated at 1.70m tonnes. With corn a popular source of poultry feed, we forecast consumption to rise to 1.88m tonnes in 2010. Over our forecast period we expect consumption to grow to 2.19m tonnes by 2014, representing strong growth of 29% over the five years.
Milk production in 2010 is forecast to increase marginally, by 1.6% year-on-year (y-o-y) to reach 1.36m tonnes. To 2014 we expect an increase in production of 12.2% to reach 1.50m tonnes. Over the same period, demand is expected to outpace supply - consumption is expected to grow 18.8% to reach 1.67m tonnes in 2014, entailing imports of around 170,000 tonnes of milk.
Real GDP growth is expected to move from 0.1% in 2009 up to 2.2% in 2010. Population is expected to grow from 25.3m to 26.0m over the same
Although government loans and subsidies encourage domestic producers to expand, most major Saudi investment in poultry production is set to take place overseas in coming years, and growth over our forecast period will be modest. Between 2009 and 2014 production is forecast is increase by a relatively moderate 9.2% to 623,000 tonnes.
While there has been talk of the country axing barley import subsidies entirely, the government must perform a balancing act of sorts. If subsidies are removed too quickly, buyers may find themselves paying a heavy financial cost if they are unable to source enough cheap alternative feed in time. We nevertheless expect that the country's barley imports, and barley consumption, will decline over our forecast period as alternative feed types begin to look more price competitive against barley. Continued foreign investment in the Saudi dairy market shows there remains much confidence in the potential for demand to grow. Most recently, Dairy Queen announced it would be opening its first store in Saudi Arabia in the first half of 2011. By 2015, the chain expects to have 15 branches in the country. (R&M 03.09)
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11.5 EGYPT: Gamal Mubarak and the Discord in Egypt's Ruling Elite
Stephan Roll wrote on 1 September 2010 in the Carnegie Arab Reform Bulletin (http://www.carnegieendowment.org/arb) that whether Gamal Mubarak will be the ruling National Democratic Party's (NDP) candidate in the 2011 presidential election is one of the most discussed questions in Egypt today.
Campaigns have sprung up in Egypt and abroad to collect signatures in support of his candidacy - an apparent attempt to counter similar campaigns in support of former International Atomic Energy Association head Mohammed ElBaradei, and perhaps to force the ruling elite's hand - but they are a side show. Much more crucial will be President Hosni Mubarak's state of health, the degree of unity within the elite regarding Gamal's candidacy, and the future course of the country. For the first time in Egypt's modern history, the business elite are playing a role in the succession question, but it is still not clear whether that role will be decisive.
The Stalled Rise of the New Guard
The new guard of businessmen affiliated to Gamal, which saw a remarkable rise inside the NDP from 2000 onward and has dominated the cabinet since 2004 under the leadership of Prime Minister Ahmed Nazif, recently seems to have peaked. Particularly in the last two years, coinciding with the global recession and increasing protests at the new guard's neoliberal economic agenda, there has been a shift inside the NDP. While President Mubarak has headed the party since 1981, the party's six-member general secretariat shows an even balance between the old guard represented by Secretary General Safwat al-Sharif, Presidential Chief of Staff Zakaria Azmi, and Minister for Parliamentary Affairs Mufid Shehab, and the new guard represented by Deputy Secretary General Gamal Mubarak, Secretary for Organizational Affairs Ahmed Ezz, and Secretary for Information Ali Hilal al-Dessouki. Old guard figures dominated the NDP congress in 2009 much more than other gatherings in recent years, and Safwat al-Sharif reportedly played the primary role in nominating NDP candidates for the June 2010 Shura Council elections. Regarding policies, old guard NDP leaders have become publicly critical of the Nazif government's reform plans, provoking a slowdown in the government's privatization course.
The old guard's motivation within this power game is transparent. The new guard stands for an economic course that benefits the business elite and restricts the role of the state within the economy. This hurts the interests of the old guard, whose most important source of power has been the state, including the inflated public sector and bureaucracy. Leading members of the old guard have resisted the rising influence of the "political businessmen" who have intensively supported Gamal Mubarak's political career. Among the prominent examples of businessmen close to the NDP who have accumulated vast wealth due to economic reforms are steel magnate Ahmed Ezz, ceramics businessman Muhammad Abul Einein, and the two tycoons Mohamed Mansour and Ahmed El-Maghrabi.
Zakaria Azmi has led the resistance to such newcomers via his various functions as presidential chief of staff, NDP deputy secretary general and member of parliament. Azmi engaged in verbal confrontations with NDP businessmen during parliamentary sessions and it was probably due to his advice that President Mubarak has so far retained certain senior government officials. They include Chairman of the Central Auditing Agency Gawdat al-Malt, who has criticized the new guard's reform agenda, and Central Bank head Farouk al-Okdah, who has remained politically independent of Gamal's group. Azmi's greatest success, however, was the weakening of the powerful Alexandrian business shilla (clique) within the cabinet, which included Minister of Transport Mohamed Mansour, Minister of Housing Ahmed El-Maghrabi (Mansour's cousin), and Minister of Industry Rashid Mohamed Rashid. According to press reports, Azmi played a decisive role in the forced resignation of Mansour as transportation minister in 2009 following a serious train accident. Azmi is also rumored to have been behind the highly publicized presidential decree cancelling a land deal that involved Palm Hills Development, a company in which the Mansour and El-Maghrabi families are the main shareholders.
The Military as Holder of the Balance of Power
So far, the military leadership has kept out of the power struggle between old and new guards inside the party and the government. In general, this neutrality seems to serve the interests of the old guard, as a positive signal by important military officers regarding the new guard and Gamal Mubarak would certainly give them a boost. There are several reasons for this neutrality. First, President Mubarak has worked assiduously at cultivating political neutrality and absolute loyalty to the president in the military for 30 years, and it has become an ingrained habit. Second, many officers might share the concerns of the old guard regarding the new guard agenda, which would lead logically to eventual limits on the power of the military and its many economic and other perquisites. Third, there are many personal connections between the old guard and the military leadership. Zakaria Azmi and Safwat al-Sharif, for example, have military backgrounds and are from the same generation as Director of General Intelligence Omar Suleiman, with whom they have worked for decades. Finally, there might well be individual ambitions within the military regarding the presidency; the name most often raised in this context is Air Marshal Ahmed Muhammad Shafiq, the former Egyptian Air Force commander and current Minister for Civil Aviation.
Gamal in the Middle
Gamal Mubarak thus faces a dilemma: if he breaks away from his current supporters to cultivate the support of the old guard, for example by cooling his enthusiasm for the neo-liberal economic course, he is in danger of turning the powerful business elite against him (as well as going against his own instincts). On the other hand, if he retains his current supporters, the resistance of the old guard and possibly the military against his presidential ambitions could intensify. The old guard and the military could push for a transitional successor to President Mubarak, for example the powerful and Omar Suleiman, who apparently enjoys some popularity due to the perception that he is not corrupt, but whether this person would vacate the position for Gamal in the future would be far from certain.
The parliamentary elections scheduled for late November will be an indication of the trend within the NDP and could change the current power configuration once again. If candidates supported by the new guard were to win a clear majority of NDP seats, this could help Gamal to marginalize the old guard and enhance his chances of becoming the ruling party candidate. Recent reports about candidate registration, however, suggest that many old guard members want to run for parliament, and their names will not be easily deleted from the nomination list. In any case, the ailing Hosni Mubarak might well decide to run again in 2011 if his health permits, keeping the decade-running battle over succession going for another year or two. Stephan Roll is a researcher with the German Institute for International and Security Affairs (SWP) in Berlin. (CARB 01.09)
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11.6 EGYPT: Agribusiness Report for Fourth Quarter 2010
Research and Markets (http://www.researchandmarkets.com) "Egypt Agribusiness Report Q4 2010" report says Egypt remains dependent on imports to meet demand in almost all agricultural sectors. In order to increase its longer-term food security, the country has been increasingly looking abroad, thereby joining the worldwide trend of import-dependent countries investing in farmland in foreign countries. In recent months, Egypt has looked to countries such as Sudan, Uganda and Ethiopia as potential sources of farmland; several deals to develop specific pieces of land have already emerged and more are expected to follow. Meanwhile, in addition to spearheading efforts to boost domestic production in key agricultural sectors, the Egyptian government remains chiefly responsible for regulating agricultural imports. As the world's largest importer of wheat, Egypt is vulnerable to international supply disruptions. In July, following prolonged drought and the outbreak of fires in Russia, a growing number of observers suggested that Russia might implement a temporary export ban on wheat exports. The potential loss of Russia as a supplier of wheat has increased the possibility that other countries will emerge as major suppliers to Egypt.
We predict that wheat production will rise by 13.2% to 2013/14. The growth in production will partly reflect government policies aimed at expanding agricultural production and decreasing import dependency. Both demand and production output are expected to recover in 2010/11, on the back of an economic recovery.
Although poultry represents the main source of meat-based protein for Egyptian consumers, demand for processed and packaged meat continues to strengthen as tastes and preferences develop. Beef consumption is forecast to increase by 17.1% to 2014. Despite the expectation of strong beef production growth, Egypt will continue to meet its considerable supply shortfall with imported beef.
We anticipate an 11.3% increase in fluid milk production to 2014. Production growth will be driven by new and ongoing investments in the dairy sector, as well as strong demand on the back of rising incomes: consumption is expected to increase by 23.8% to 2014; demand for cheese and butter is also predicted to grow.
Egypt will continue to rely on sugar imports in order to meet its supply shortfall. Despite this, strong production growth of 18.9% is predicted to 2014. Multinational firms have begun to target Egypt's sugar refining industry. Most recently, in June 2010, it was reported that Egypt's state-owned Food Industries Holding Company (FIHC) had received offers from German and Japanese companies to build a $209m sugar refinery. (R&M 09.09)
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11.7 EGYPT: Information Technology Report for 2010's Third Quarter
Research and Markets (http://www.researchandmarkets.com) "Egypt Information Technology Report Q3/10 report says Egypt's IT spending is expected to increase from $1.4b in 2010 to $2.6b by 2014. BMI forecasts that Egyptian IT market growth will remain below pre-economic crisis levels in 2010. Growth is expected to bounce back in 2010/2011 as the external and public sectors lift the Egyptian economy, but unemployment and the threat of inflation could act as an inhibitor on spending. Over BMI's five-year forecast period, Egypt will also benefit from youthful demographics and improving information and communication technology (ICT) infrastructure, despite a number of constraints and a sub-optimal distribution network outside Cairo. The Egyptian market is one of the most resilient in the region, but a steep fall in imports in 2009 provided a warning that the impact of the global slowdown on consumption may not have played out yet.
In 2010, a number of factors should help IT spending growth to recover, including new hardware and software upgrade cycles as well as sales of Microsoft's new Windows 7 operating system. Economic recovery, tenders delayed from 2009 and higher incomes boosted by pay raises for civil servants and other groups should help to keep IT sales on an upward trajectory.
In April 2010 the Bank of Alexandria signed an agreement with the International Finance Corporation (IFC) arm of the World Bank to support Egyptian small and medium-sized enterprise (SME) informatization. Under the agreement, the Bank of Alexandria will launch a localized and freely available version of the IFC's SME Toolkit web platform in both English and Arabic. The SME Toolkit offers online business management information and other interactive tools and educational resources. Meanwhile, in March, Egypt's Minister for Communications, Information and Technology Tarek Kamel announced that the government would launch a new innovation strategy later in 2010. The new strategy will mirror initiatives such as the recently established entrepreneurship and innovation centre in Smart Village, as well as the Technology Cluster and Business Park. The aim behind the strategy is for Egypt to move up the value chain from basic business process outsourcing (BPO) and call centre services. The Egyptian minister of state for administrative development said that 200 government services will soon be available online through a new e-government portal. The portal will offer 70 services in both English and Arabic. According to the Ministry for Administrative Development, more than 20 government agencies currently offer services and licenses online.
In 2009, Fujitsu Technology Solutions was the winner in a 10,000-notebook procurement by the MCIT. HP planned to roll out new retail stores in Egypt in an attempt to tap into the growing retail PC segment. The company will open outlets within malls. Acer, the notebook segment leader, has leveraged its distribution agreement with Egyptian company Interact as part of its strategy to expand its channel network in Egypt. In 2010, Microsoft hopes that sales of its Windows 7 operating system, launched in October 2009, will boost its sales in the Egyptian market. In the summer of 2009, Microsoft continued to lay the groundwork for the new operating system launch and released the enterprise version of the software in August. Indian IT services companies have increased their presence in Egypt. Mahindra Satyam, the new brand identity of Satyam Computer Services, aims to grow its consulting and outsourcing businesses by 100% in the next few years, leveraging its Global Development Centre in Cairo's Giza Smart village.
Computer Sales: Egypt's computer hardware sales are projected at $862mn in 2010 and are forecast to reach around $1.6b in 2014. Computer penetration is forecast to rise from a little above 10% currently to about 19% in 2014, and annual computer sales could increase to nearly 470,000 by the end of BMI's forecast period.
Egypt's IT market will stay hardware dominated, with spending on PCs sustained by initiatives like the Computer For Every Student and PC for Every Home programs. Hardware accounted for an estimated 61% of Egypt's IT spending last year. Households account for 20-25% of unit sales, with 1.0- 1.5 million households said to possess a computer at present.
Software: Overall spending on software remains rather low, being projected at $197mn in 2010. The estimated 14% share of total Egyptian IT spending accounted for by software reflects the relative immaturity of Egypt's IT market. However, the domestic software market is expected to grow at a compound annual growth rate (CAGR) of around 11% over the forecast period until end-2014. Access to credit remains a barrier for smaller Egyptian companies, but initiatives such as that launched by the Bank of Alexandria in April 2010 will help smaller Egyptian companies to invest in IT. One market driver has been a significant fall in software piracy, with the illegal software usage rate, as measured by the Business Software Association, falling a further 1% to 59% in 2008. While large corporations have long understood the business case for deploying technology, SMEs are increasingly beginning to see such investments as important if they are to avoid being overtaken by more tech competent competitors.
Services: IT services revenues are forecast at around $349mn in 2010, accounting for about 25% of Egypt's total spending on IT. A market CAGR of 14% is projected for the next period through to 2014. The Egyptian IT services market is dominated by demand from government, finance and telecoms sectors, which account for more than half of total spending. Vulnerable sectors include construction and real estate. Government spending, the largest segment, is projected to be maintained, or even increased, as a countercyclical stimulus to flagging domestic demand. One key driver is likely to be the continued expansion of Egypt as an international outsourcing destination.
E-Readiness: In 2008, Egypt continued liberalization of the telecoms market, with the award of a second national fixed license. This development, which followed the award of 3G licenses to three mobile telecoms service providers in 2007, is likely to drive new opportunities for IT vendors. As well as generating additional spending on IT products and services from the telecoms sector, the spread of internet should provide a boost to the PC market over the next few years.
A similar story could be told about broadband, although cost remains a big barrier to broadband subscription in Egypt. It has been well documented that private broadband subscribers often club together with two or three neighboring families to get a shared broadband subscription and Wi-Fi router. More competition in the market should hopefully bring prices down in the future and lead to subscriber growth. (R&M 08.09)
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11.8 TUNISIA: IMF Executive Board Concludes 2010 Article IV Consultation
On August 27, 2010, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Tunisia.1
Background
Thanks to sound policies and reforms implemented over the years, Tunisia entered the global crisis with strong fundamentals. The authorities' timely and adequate policy response contributed to mitigating the impact of lower external demand in 2009. Moreover, the financial sector was not affected by the global financial crisis, as banks continued to rely on steady domestic resources. As a result, real gross domestic product (GDP) growth exceeded 3% in 2009. With solid exports of services and remittances as well as lower imports, the current account deficit declined and external reserves increased to the equivalent of 6 months of imports of goods and services by end-2009. Inflation remained moderate at 3.7% on average.
Economic growth has gathered momentum since mid-2009, on the back of the recovery in exports and solid domestic demand. At the same time, with even stronger import growth, the current account deficit widened significantly and external reserves declined during the first part of 2010, while remaining at a comfortable level. For the year as a whole, as the recovery in Tunisia's main partners is expected to be modest, Tunisia's real GDP growth is projected to reach 3.8%, supported by a rebound in industrial activity and investment, while agricultural performance will likely be weaker than last year. Inflation edged up slightly to5% (year-on-year) in May 2010, due to rising food prices, but non-food price increases have remained very moderate at around 3%.
Risks to the outlook are related to the significant downside risks to growth in Tunisia's European partners, entailing a possible escalation of financial stress and contagion and a more severe impact than currently expected of the planned fiscal consolidation on still-weak domestic demand. The strength of the recovery in Europe will determine to a large extent the pace of Tunisian exports growth, tourism receipts and remittances. On the other hand, the recent depreciation of the euro could boost exports of the euro area, and could benefit Tunisian exports in sectors such as electrical and mechanical industries. The medium-term outlook is subject to similar risks, with Tunisia's traditional partners expected to be a less buoyant source of external demand than prior to the crisis.
Executive Board Assessment
Executive Directors noted that Tunisia weathered the global crisis well, largely reflecting its sound macroeconomic management and structural reforms over the last decade, and timely policy responses since the onset of the crisis. Nonetheless, Directors observed that risks to the outlook remain on the downside given the economy's high dependence on trade with Europe. Amid continued uncertainties for the external environment, they emphasized the need to maintain macroeconomic policies that support the recovery and to intensify structural reforms that would enhance competitiveness, diversify exports and promote job creation.
Directors agreed that the fiscal stance in 2010 strikes the right balance between supporting growth and preserving the significant gains achieved in reducing the level of public debt. They welcomed the commitment to resume fiscal consolidation, starting with the 2011 budget, and to further bring down the public debt. This will help maintain investors' confidence and retain sufficient fiscal space to mitigate the impact of possible future shocks. To that end, Directors stressed the importance of following through with plans to expand the tax base, reform the social security system and contain public spending on wages and food and fuel subsidies, while maintaining public investment on infrastructure.
Noting that credit to the economy continues to grow strongly, Directors concurred that monetary and exchange rate policies should be geared toward avoiding a build-up of inflationary pressures and ensuring that the recent weakening of the external balance does not persist. They considered that the authorities' medium-term objectives to move to inflation targeting, full convertibility of the dinar, and an open capital account could help the economy to adapt better to changes in the external environment. At the same time, Directors stressed that significant preparatory measures are still needed, particularly continued strengthening of the banking system, further deepening of the foreign exchange market, and improving the effectiveness of monetary policy transmission. While noting the progress achieved in strengthening the financial system, Directors encouraged the authorities to move forward with plans for further improvements, including measures that would lead to a continued reduction in the level of non-performing loans and strengthen financial sector supervision.
Directors stressed that continued structural reforms remain critical to boost growth, enhance competitiveness and address the problem of persistent high unemployment, particularly among the young. They welcomed the envisaged measures to increase productivity by improving the business environment, reforming labor market policy, increasing capital investment, and modernizing and strengthening the financial sector. (IMF 01.09)
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11.9 PAKISTAN: Defense and Security Report for Third Quarter
Research and Markets (http://www.researchandmarkets.com) "Pakistan Defense and Security Report Q3/10 report says that in June 2010, Pakistan reported an increase in its defense budget of 17%, around 5% in real terms (taking into account inflation at around 12%). Budget constraints in previous years have reduced Pakistan's normally robust training effort and this is a concern for the operational readiness of the military. In February 2010, the US proposed increasing military aid to Pakistan by $500m to $1.2b, more than in 2009. The country's well trained and disciplined armed forces are the world's eighth largest military.
Pakistan is rather at the mercy of political developments in neighboring countries. Violence along Pakistan's border regions could become a consistent feature in this politically fragile country. US drone strikes on terrorists continue through 2010 and those in North and South Waziristan have resulted in the deaths of dozens of terrorists. There was a number of suicide bombings in February 2010, including two blasts in Karachi that killed 25 people. This increase in the Defense budget of around PKR64b was considered essential in light of the intensifying battle against the Taliban insurgents.
The country's defense industry is particularly self-sufficient and is able to produce almost all of the domestic military's ordnance needs and indigenously-designed main battle tanks (MBTs). The biggest sectors in the Pakistan Defense industry are shipbuilding, with submarine assemblage capability and ordnance. The military-industrial complex is capable of producing MBTs, trainer aircraft, surface-to-air and anti-tank missile systems, surface and sub-surface naval craft, air-delivered munitions, small arms and a wide range of ammunition and explosives.
Politically, the country's situation will be largely affected by the efforts of the government to control the situation in Waziristan and in Afghanistan. A long-term strategy is necessary to prevent the Taliban, in Afghanistan, from consolidating power in regions bordering Pakistan and therefore creating a permanent safe haven for the Pakistani Taliban. The Pakistani military could therefore temporarily drive out militants from Pakistan only for them to return once Pakistani army operations have wound down.
The country's economic situation is not in any better shape. In 2008, a balance of payments crisis that required an IMF bailout together with severe political turmoil, caused real economic growth to plummet to just 2.0% in FY2008/09. Ongoing violence within the country, alongside relatively tight fiscal and monetary conditions (as required by the IMF stand-by arrangement), will unfortunately ensure that the country's economic recovery will struggle to pick up any speed. We forecast Pakistan's real economic growth at just 2.4% and 2.8% in FY2009/10 and FY2010/11 respectively. Prior to the country's descent towards political instability the domestic economy had been ticking along nicely, with growth averaging 6.8% per annum in the five years between FY2002/03 (July-June) and FY2006/07. (R&M 02.09)
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11.10 GREECE: IMF Completes First Review Under Stand-By Arrangement
On 10 September, the Executive Board of the International Monetary Fund (IMF) completed the first review of Greece's performance under an economic program supported by a 3-year, SDR 26.4b (about €30b) Stand-By Arrangement (SBA). The completion of the review enables the immediate disbursement of an amount equivalent to SDR 2.16b (about €2.57b), bringing total disbursements under the SBA to SDR 6.97b (about €8.28b).
The SBA, which was approved on 9 May 2010, is part of a cooperative package of financing with Euro area member states amounting to €110b over three years. It entails exceptional access to IMF resources, amounting to more than 3,200% of Greece's quota, and was approved under the Fund's fast-track Emergency Financing Mechanism procedures.
Following the Executive Board's discussion, Mr. Murilo Portugal, Deputy Managing Director and Acting Chair said:
"The Greek authorities have made a strong start with their economic program, and their determined implementation has started to deliver results. All quantitative performance criteria for end-June were met, and major structural reforms are ahead of schedule. It is essential to continue implementing the program rigorously, supported by the large-scale financial support of the international community, while securing public consensus for reforms.
"The fiscal strategy is on track. Continued tight expenditure control and monitoring will be key, in particular at sub-national levels. The authorities are determined to strengthen tax administration and reduce tax evasion to secure revenues and promote fairness in adjustment.
"Restoring competitiveness and boosting potential growth is critical. Impressive progress has been made in structural reforms. A far-reaching pension reform has been approved by parliament, and substantive labor market reform is underway. Priority now needs to be given to opening closed professions, moving forward with deregulation, implementing the services directive, and eliminating barriers to tourism and retail trade, where potential for growth remains high.
"Liquidity in banks remains tight but manageable, supported by the ECB and the government's guarantee program. The new Financial Stability Fund provides an important back-stop for capital adequacy. Moreover, the Greek authorities have commissioned a strategic review for the banking sector and a due diligence for state banks. Continued close monitoring of the financial sector will be important," Mr. Portugal said. (IMF 10.09)
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11.11 BULGARIA: Mining Report 2010 - 5.8% Annual Growth by 2014
Research and Markets (http://www.researchandmarkets.com) "Bulgaria Mining Report 2010" says 2010 will be a year of stagnation in Bulgaria as the economy staggers towards an export-led return to growth. Bulgaria's economy shrank by 5.1% in 2009 and forecasts for growth this year are modest at around 1%. The country's mining industry will mirror the performance of the economy, as it emerges from an 11.2% contraction in 2009 to grow by 1.4% in 2010 to be worth $760m. The government will hope that the country's mining industry will do its part in lifting exports in 2010, however. Positive indicators for the sector include an upward move in global prices for key commodities such as gold, copper, lead and zinc, while residential construction in Bulgaria is also beginning to pick up, according to the Bulgarian Chamber of Mining and Geology.
Our cautiously positive outlook is reflected by Bulgaria's Maritsa East Mines which is aiming to produce 26m tonnes of coal in 2010 and hopes to report a $5.4m profit by the end of the year, before ramping up production up to 30m tonnes in 2011. Maritsa launched a $70.1 investment plan for 2010 to purchase new mining equipment, which will help it achieve its production targets. The company was forced to slash its BGN110m investment plan for 2009 by around half, however, as a result of the global economic crisis. Nonetheless, the company reported a BGN6.5m profit for the six months to November 2009 after it managed to cut BGN23m in liabilities owed to suppliers.
Meanwhile, in a blow to foreign investment in the country, Canadian mining firm, Dundee Precious Metals plans for a new processing plant at its Chelopech gold site in Bulgaria were finally torpedoed in May 2010 when the Supreme Administrative Court of Bulgaria upheld a decision to revoke its Environmental Impact Assessment (EIA) resolution issued by the government. The EIA was issued in 2008 but was reportedly challenged because of inaccuracies in defining impacted communities, and uncertainties relating to processing technology. However, the company said that the decision will not impede an expansion to 2m tonnes per year that is under way at the site. Dundee was also successful in procuring a Commercial Discovery Certificate for its Krumovgrad gold deposit in September 2009. The European Bank for Reconstruction and Development may provide Bulgaria's largest zinc smelter KCM a $63.86m loan for a project to reconstruct and modernize its lead production line and upgrade its zinc process. The plans constitute the first of two stages in the modernization of KCM's operations and the total project cost comes to $127.71m. The project will increase yields, reduce energy consumption, reduce the need for maintenance and decrease a number of production costs.
However, although fiscal austerity measures are being put into place across Europe, Bulgaria may be particularly vulnerable in 2010 as almost a third of its banking sector is owned by Greek financial entities. The debt crisis in Greece has therefore led to a decline in investor confidence for Bulgaria, with some reports that investors are holding off the country until it is clear that it will post economic growth this year and is sufficiently insulated from the Greek economic crisis. As the economy rebounds, however, BMI believes that growth in Bulgaria's mining industry will accelerate to 6.5% in 2011 to be worth $820m. Growth levels will be maintained at 6.7% in 2012 before edging down to just below 6% in the subsequent two years. By 2014, the sector will be growing by 5.8% and will be valued at $1.07b. (R&M 07.09)
- Israeli Shekel conversions done at a rate of NIS 3.80 = $1.00
- Turkish Lira conversions done at a rate of NTL 1.60 = $1.00
- Euro conversions done at a rate of € 1.00 = $1.40
- Jordanian Dinar conversions done at a rate of JD 1.00 = $1.41
- UAE Dirham conversions done at a rate of Dh 3.67 = $1.00
- Omani Rial conversions done at a rate of OR 0.385 = $1.00
- Pakistani Rupee conversions done at a rate of Rs 82 = $1.00
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