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TOP STORIES
TABLE OF CONTENTS:
1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS
1.1 Bank of Israel Finds Israel Consolidating Emergence from Crisis
1.2 The State of Israel Chooses Computershare as Global Fiscal Agent
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2: ISRAEL MARKET & BUSINESS NEWS
2.1 EDI Outreach to New American Markets
2.2 Israel's Kosher Market Approaches $11 Billion
2.3 Oracle Buys Convergin
2.4 RADVISION to Acquire Selected Assets of Italy's Aethra
2.5 RADVISION Chosen as Video-Enabled Unified Communications Company of the Year
2.6 Vodafone, Orange & Other Leaders Influencer Marketing with Pursway's Social Network Analysis
2.7 Powermat Continues to Drive the Category with Speed, Innovation and Extensive Reach
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3: REGIONAL PRIVATE SECTOR NEWS
3.1 MyCelx Installations Successful for Saudi Basic Industries (SABIC)
3.2 Dairy Queen Continues International Expansion & Announces First Location in Egypt
3.3 Stream Continues Global Expansion with Tunisia Site Opening
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4: CLEAN TECH & ENVIRONMENTAL DEVELOPMENTS
4.1 Revolutionary Solar Power Agreement in Israel's Arava
4.2 Saudi Arabia Launches Solar Water Desalination Program
4.3 Greek Photovoltaic Solar Energy Report
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5: ARAB STATE & PAKISTANI DEVELOPMENTS
5.1 Lebanon's 8.7% 2009 GDP Growth Highest In Region
5.2 Jordan's Trade Deficit Narrows to $7.72 Billion
5.3 Jordan Scores 55 In Quality of Life Index
5.4 Kuwait's Parliament Approves $100 Billion Spending Plan
5.5 Qatar Consumer Prices Down By 4.9%
5.6 Qatar Set To Boost Foreign Investment
5.7 UAE Overtakes Saudi Arabia to Become Top Arab Exporter
5.8 UAE Has No Plans to Rejoin Currency Union
5.9 Dubai Economy Faces Tough 2010
5.10 Dubai Lends Dubai World More Than $6.2 Billion in Past Year
5.11 Egypt's Annualized GDP Grows 5.1%
5.12 Egypt's Annual Inflation Rose to 13.6% in January 2010
5.13 Egypt Tourism Fell In 2009 & Is Set To Recover 2010
5.14 Suez Canal Income Drops for Egypt
5.15 Egypt's New Mineral Wealth Law Draft Finished
5.16 High Profile US Trade Mission Heading to Libya
5.17 Libya to Let Foreigners Open Banks
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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS
6.1 Gas Deal Soon for Baku & Ankara
6.2 Turkish Jobless Rate Rises Less Than Expected In Three-Month Period
6.3 Turkey to Receive $150 Million in FDI from India
6.4 Cyprus Starts To Climb Out Of Recession in Fourth Quarter
6.5 Cyprus Consumer Price Index Drops In January
6.6 Cyprus Construction Sector Worth €3.1 Billion In 2008
6.7 Greece's Inflation Slows to 2.4%
6.8 Greece Resists EU Fiscal Demand
6.9 Greece Unveils Bill to Fix Flawed Stats Service
6.10 Bulgarian Parliament Ratifies Contract For Nabucco Gas Project
6.11 Moody's Issues Annual Sovereign Report on Malta
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7: GENERAL NEWS AND INTEREST
*ISRAEL:
7.1 Israel & World Jewry Celebrate Purim Holiday
7.2 Mawlid Al Nabi Holiday to Be Celebrated
7.3 National Insurance Statistics on Family Day Show Child Poverty
*REGIONAL:
7.4 Saudi Human Rights Group Hires Lawyer for Child Bride
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8: ISRAEL LIFE SCIENCE NEWS
8.1 Pluristem's PLX Cells May Effectively Treat Ischemic Stroke - Brain Research Journal Reports
8.2 Yissum & Makhteshim Agan Collaborate on Environmentally-Friendly Crop Protection Technologies
8.3 Rosetta Genomics Announces Issuance of Three U.S. Patents
8.4 Teva's Needle-Free Tjet Device - a Kid-Friendly Approach to Growth Hormone Treatment
8.5 Valtech Cardio Completes $17.8 Million in Series B Financing
8.6 Zetiq Reports Success in Clinical Trial for Identification of Bladder Cancer
8.7 Kamada Announces Enrollment of First Patient in Its Pivotal Study for Inhaled AAT in Europe
8.8 EDGE Receives 2010 Digital Radiography Enabling Technology Award from Frost & Sullivan
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9: ISRAEL PRODUCT & TECHNOLOGY NEWS
9.1 Shina Receives FDA Clearance for its 3Di Cloud-based Medical Imaging Solution
9.2 Waterfall Receives US Patent on its SCADA Industrial Network Security Technology
9.3 SoCalGas & SDG&E Implement ClickSoftware's Solution for Mobile Workforce Management
9.4 Xirrus Harnesses iSolve Dynamic Web Self Help in Response to Growing Demand
9.5 Plasan Announces Delivery of 25 SandCats to Bulgaria
9.6 ETSA Utilities Selects and Implements ClickSoftware's Mobility Suite
9.7 Majic Wheels Investigates Security & Military Applications for Patented Adhesive Technology
9.8 Opera & Perfecto Mobile Partner To Offer Remote Testing on Real Mobile Devices
9.9 Connect One Delivers 3G/4G Personal Mobile Hotspot
9.10 Comsys Mobile Shows Industry's First WiMAX/GSM Android Smartphone Reference Design
9.11 Kenya–Based ISP Wananchi Selects VocalTec for Its Evolution to Triple-Play Services
9.12 Red Bend Lets Mobile Service Providers Manage Software on Smartphones
9.13 Mobixell Launches New Solution to Mobilise RSS Feeds
9.14 Siklu's EtherHaul Microwave Backhaul Solution Boosts Network Performance & Reduces Costs
9.15 Comverse Helps Netcom to Offer Visual Voicemail on Sony Ericsson Handsets
9.16 Jivy Group Releases Markets Pulse, a Binary Options Platform
9.17 Utah Air National Guard to Stream up to 248 Channels with Optibase IPTV Solution
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10: ISRAEL ECONOMIC STATISTICS
10.1 Israel's CPI Drops Farther Than Forecast
10.2 Israel's Trade Gap Widens as Imports Increase
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11: In Depth
11.1 ISRAEL: IVC's Most Active Israeli Venture Capital Funds in 2009
11.2 JORDAN: Value of Drug Market to Increase to $533 Million By 2014
11.3 QATAR: Pharmaceutical Market Estimated at $204 Million in 2008, To Reach $385 Million in 2014
11.4 UAE: Abu Dhabi - Tourism Upswing
11.5 OMAN: Tourism Report for First Quarter of 2010
11.6 SAUDI ARABIA: Growth Signals
11.7 EGYPT: Pharmaceutical Pricing
11.8 LIBYA: Politics - Saif Cracking?
11.9 GREECE: Europe's Lehman Brothers Brussels Intervenes to Slow Greece's Plunge
11.10 GREECE: Debt Crisis - How Goldman Sachs Helped Greece to Mask its True Debt
11.11 GREECE: The World from Berlin - 'Lies, Damned Lies and Greek Statistics'
11.12 GREECE: Greek Milk Production Should Increase Slightly In 2010
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1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS
1.1 Bank of Israel Finds Israel Consolidating Emergence from Crisis
On 10 February the Bank of Israel released its Survey of Economic Developments for Q4/09. The Bank found that Israel has consolidated its emergence from the economic crisis, with growing exports and domestic demand, although economic activity is still less than before the crisis. The Bank of Israel says that Israel's continued economic expansion depends on how fast the world emerges from the recession. Uncertainty surrounds this point as recovery depends on massive government stimulus programs, which have greatly boosted deficits and public debt. There are also still problems in the global financial system. Despite this, initial signs show the improvement is being felt in the labor market. Job losses have slowed in the business sector and the unemployment rate has declined. The Bank also notes an improvement in the employment balance (hiring over layoffs), which was positive in Q4/09 for the first time in a year. Work-hours per employee and nominal salaries also rose while the number of jobseekers and claims for unemployment benefits fell. Employers' expectations about their business and work forces are positive. The revival of economic activity was also seen in higher tax revenues beginning in mid-year. Direct tax receipts rose with the capital market rally, the improvement in companies' profits and higher nominal salaries, and the increase in employment. Indirect tax receipts rose even faster, thanks to the increase in private consumption. (Globes 10.02)
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1.2 The State of Israel Chooses Computershare as Global Fiscal Agent
Computershare Limited, a leading financial services provider for the global securities industry, has been chosen as the sole Fiscal Agent for the State of Israel's global bond program. The State of Israel is one of the world's largest sovereign issuers of debt at over $1 billion per year. One further priority for the State of Israel is its large and intricate cash management needs. The State required the flexibility to strategically select their banking partners from a number of financial institutions, something Computershare can provide. Computershare is a global market leader in transfer agency and share registration, employee equity plans, proxy solicitation and stakeholder communications. We also specialize in corporate trust services, tax voucher solutions, bankruptcy administration and a range of other diversified financial and governance services. (Computershare 10.02)
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2: ISRAEL MARKET & BUSINESS NEWS
2.1 EDI Outreach to New American Markets
EDI (http://www.atid-edi.com), in an effort to reach out to US exporters who have not previously sought to access the Middle East market, will be conducting a series of seminars on the subject in different locations in the US during the month of March. Seminars are currently scheduled in Denver (Colorado), Portland (Oregon), New Orleans (Louisiana) and Jackson (Mississippi). In all cases the events are being promoted in cooperation with the local World Trade Center and the individual state's Department of Commerce. During the seminars, EDI will present an overview of market opportunities throughout the region with special emphasis on Israel, Turkey, Jordan, Egypt and the UAE. After the formal presentation in each city, there will be an opportunity to ask questions, as well as follow on individual meetings with EDI personnel. This is part of a long range development program for the company and similar seminars are planned for other welcoming cities throughout the balance of the year.
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2.2 Israel's Kosher Market Approaches $11 Billion
With nearly 70% of Israelis (including non-Jews) preferring kosher products, sales of kosher certified products are approaching $11 billion. A new report by the Foreign Agriculture Service of the United States Department of Agriculture, notes that Israelis also prefer imported kosher foods, which in 2009 was valued at $1.8 billion out of $14.4 billion in overall food sales. The report, prepared by the FAS offices in Tel Aviv and Cairo, notes that private label is still very much on the ground floor in Israel. It estimates that only 5% of products sold in Israel are private label products with the Shufersal supermarket marketing 1,100 such products. The Israel food industry continues to be known for its innovation, introducing 3,000 new products annually. Approximately 6,500 grocery stores serve Israel's 7.4 million people who on average spend about $7,100 for food annually. While 56% of Israelis shop in supermarkets, the country also has 470 convenient stores. Israelis are eating out more than ever, to the tune of $2.7 billion. Despite being technologically advanced, only 1% of Israelis shop on the Internet for food. FAS says that the appetite of Israelis for imported foods is an opportunity for kosher food manufacturers and distributors from abroad, particularly the US. Amongst the foods Israelis could use more of, says FAS, are dried fruits, fresh apples and pears, cereals, powdered milk, and frozen vegetables. It also took note of the country's growing interest in organic foods. (KT08.02)
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2.3 Oracle Buys Convergin
On February 10, Oracle announced it has agreed to acquire Israel's Convergin. Adding Convergin products to Oracle Communications portfolio is expected to enable customers with next-generation solutions to address network migration to an all IP core, significantly reducing integration and hardware costs. This combination is expected to accelerate deployment of next-generation pre-paid and value-added services in the communications industry. The transaction is expected to close in H1/10. Herzliya's Convergin's (http://web.convergin.com) industry-leading J2EE-based Service Broker platform enables communications service providers (CSPs) to manage services for a wide range of networks and application platforms, including pre-paid charging. The solution allows CSPs to focus on launching innovative services while modernizing to next-generation networks. CSPs are increasingly looking to transition from inflexible and costly intelligent network platforms to deliver value-added services. The combination of Oracle and Convergin is expected to provide a single carrier-grade, standards-based IT platform allowing CSPs to effectively evolve their service delivery capabilities at a lower total cost of ownership. Convergin products complement Oracle Communications' integrated product suite, including Oracle Communications Billing and Revenue Management, Oracle Communications Converged Application Server and Oracle Communications service fulfillment applications. (Oracle 10.02)
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2.4 RADVISION to Acquire Selected Assets of Italy's Aethra
RADVISION has reached an agreement to acquire selected assets of the Aethra group of companies (Aethra), of Ancona, Italy, including certain intellectual property and technology for high definition (HD) video conferencing endpoint systems. The purchase price for the assets acquired is approximately €7 million cash. In addition, RADVISION will assume certain specific liabilities related to the acquisition of approximately €3 million. The transaction is expected to be accretive starting in the Q4/10. RADVISION plans to tightly integrate Aethra's best-of-breed HD video endpoint technology with RADVISION's award-winning video network infrastructure and desktop solutions to offer a full video conferencing portfolio in response to customer demand created by rapid change and consolidation in the video marketplace. RADVISION has had an OEM relationship with Aethra since 2005, through which RADVISION video infrastructure products and technology have been included in Aethra video solutions, allowing Aethra to offer the market a complete end-to-end solution.
Tel Aviv's RADVISION (http://www.radvision.com) is the industry's leading provider of market-proven products and technologies for unified visual communications over IP and 3G networks. With its complete set of standards-based video networking infrastructure and developer toolkits for voice, video, data and wireless communications, RADVISION is driving the unified communications evolution by combining the power of video, voice, data and wireless – for high definition video conferencing systems, innovative converged mobile services, and highly scalable video-enabled desktop platforms on IP, 3G and emerging next-generation networks. (RADVISION 03.02)
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2.5 RADVISION Chosen as Video-Enabled Unified Communications Company of the Year
RADVISION has received an Editor's Choice Award for achievement in 2009 from industry analyst Telepresence (TP) and Videoconferencing (VC) Insight Newsletter. RADVISION was selected as TP and VC Insight's "Video-enabled Unified Communications Company of the Year 2009." As stated by Richard Line, Editor of Telepresence and Videoconferencing Insight, "RADVISION is the world's leading provider of video-enabled unified communications because its SCOPIA platform supports high quality, scalable and easy-to-use high definition video conferencing. The SCOPIA Elite 5000 MCU Series released in June 2009 supports 1080p high definition video processing, telepresence connectivity, dynamic resource allocation and individual video layouts for each participant. SCOPIA Elite is the first standards-based MCU to natively support advanced H.264 Scalable Video Coding (SVC) technology. The company's innovation in 2009 was outstanding and we expect it to continue in 2010."
RADVISION also introduced the SCOPIA VC240 HD video conferencing system, jointly developed with Samsung. The VC240 combines best of breed technologies by integrating advanced video conferencing from RADVISION into a Samsung high resolution multimedia LCD monitor. With an integrated HD camera, high fidelity speakers and echo cancelling microphones, the VC240 is the first product in the market to deliver all the components required for HD desktop video conferencing in a single unit with a price point at a fraction of the cost of competing systems.
Tel Aviv's RADVISION (http://www.radvision.com) is the industry's leading provider of market-proven products and technologies for unified visual communications over IP, 3G and IMS networks. With its complete set of standards-based video networking infrastructure and developer toolkits for voice, video, data and wireless communications, RADVISION is driving the unified communications evolution by combining the power of video, voice, data and wireless – for high definition video conferencing systems, innovative converged mobile services, and highly scalable video-enabled desktop platforms on IP, 3G and emerging next-generation IMS networks. (RADVISION 10.02)
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2.6 Vodafone, Orange & Other Leaders Influencer Marketing with Pursway's Social Network Analysis
Influencer marketing company Pursway (formerly Datanetis) is helping a growing number of consumer companies realize an order of magnitude improvement in the effectiveness of their customer relationship strategies, boosting customer acquisition, retention and cross-selling outcomes. On the heels of major customer wins, Pursway is expanding its operations in Europe and North America with a $6 million Series A investment from Battery Ventures. Based on a combination of patent-pending algorithms and influencer marketing expertise and success metrics developed in over one hundred customer implementations, Pursway offers the first and only solution that enables companies to leverage social influence in a scalable and measurable fashion. The Pursway solution enables companies to identify the influencers and followers for each product or offer within their customer database. They can then create campaigns that utilize this information in a measurable fashion that can be tied to success metrics. Pursway's novel approach and proprietary technology has shown to produce a multifold increase in ROI as compared to traditional data mining and customer relationship management (CRM) strategies and techniques.
Herzliya's Pursway (previously known as Datanetis - http://www.pursway.com) empowers consumer-facing organizations to close the gap between how they market and how people buy. The Pursway patent-pending technology enables companies to identify, measure, and impact how opinion leaders shape their followers' purchasing decisions. Using the Pursway solutions, leading global organizations in telecommunications, retail, and financial services are realizing 5-10x improvement in the ROI of customer acquisition, cross-sell and churn prevention efforts. Since 1983, from offices in Boston, Silicon Valley and Israel Battery (http://www.battery.com) has been investing in technology and innovation worldwide. The firm partners with entrepreneurs and management teams across technology sectors, geographies and stages of a company's life -- from start-up and expansion financing to growth equity and buyouts. (Pursway 09.02)
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2.7 Powermat Continues to Drive the Category with Speed, Innovation and Extensive Reach
Powermat will expand its reach at an ambitious rate of one global market per month through the end of 2010. The bold announcement was made in support of the unyielding appetite of partners around the world, who have called upon the wireless charging pioneer to access every market that can benefit from wireless energy. In meeting the global demand for Powermat products, the company will expand its current distribution channels to carriers, wireless agents, mobile phone retailers, specialty retail and mass market retailers throughout the North American, South American, Asian, Australian and pan-European markets. Just four months ago, Powermat launched its premiere product line in the US to great success as consumers flocked to stores with over 750,000 units shipped and widespread sell outs in just the first two months of availability. Having solidified a stronghold on the consumer market, Powermat will now introduce new supportive technology aimed at the OEM. The company will pioneer its new Adaptive ASIC (A2) chip; a breakthrough achieved by miniaturizing Powermat technology to a level that allows for seamless integration into virtually any device. Adaptive ASIC draws on infrastructure already in place by original equipment manufacturers (OEM) as a basis for adapting Powermat wireless capability to fit the need of the OEM rather than the other way around.
Neve Ilan's Powermat (http://www.powermat.com) is a complete solution for simultaneously delivering real time, wireless charging to multiple electronics including mobile phones, music players, handheld games, electronic readers, GPS devices, Bluetooth headsets, netbooks and laptops. Powermat technology has been miniaturized to a level where it can be embedded into virtually any device, as well as walls and table top surfaces. Powermat technology is fast, efficient, and safe and revolutionizes the way consumers charge and power. (Powermat 16.02)
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3: REGIONAL PRIVATE SECTOR NEWS
3.1 MyCelx Installations Successful for Saudi Basic Industries (SABIC)
Gainesville, Georgia's MyCelx Technologies Corporation announced the successful commissioning of a wastewater recycling process for Saudi Basic Industries Corporation (SABIC) in Al-Jubail Industrial City, Saudi Arabia. This SABIC installation is the first viable system of its kind for MTBE process wastewater handling. MyCelx units clean carcinogenic wastewater, a by-product of MBTE production, so it may be safely discharged or re-used. The MyCelx wastewater treatment system engineered for SABIC is a successful environmental solution for this wastewater, creating safety and health benefits for workers. MTBE (methyl tertiary butyl ether) is manufactured around the world as an additive for motor gasoline. The MyCelx multi-stage recycling process effectively handles the petrochemical facility's process fluctuations and waste with hydrocarbon contamination in the range of 10 to 500,000 parts per million (ppm). After treatment, the effluent water is more than 99% free from hazardous contaminants and carcinogenic compounds. The filtered water is pure enough to be re-used, replacing the working environment's carcinogenic water, which would otherwise be toxic to operators. (MyCelx 09.02)
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3.2 Dairy Queen Continues International Expansion & Announces First Location in Egypt
Dairy Queen has announced plans for international expansion in 2010 that will include the opening of its first location in Egypt. The move into Egypt marks the 20th country where Dairy Queen will have a presence. Boraie Development, an Egyptian, family-run company with businesses in New Jersey and Egypt, will open the first DQ Grill & Chill restaurant in Cairo this summer, which will serve the same delicious food and treats found on Grill & Chill menus in North America, with some local menu options as well. In addition to Cairo, there is the potential to open 40 to 50 restaurants throughout four to five additional Egyptian cities. With an estimated population of 83 million, Egypt is widely regarded as an important political and cultural center both in Africa and the Middle East and is enjoying a rapidly developing economy. International Dairy Queen (IDQ), which is headquartered in Minneapolis, Minn., develops licenses and services a system of more than 5,700 Dairy Queen stores in the United States, Canada and other foreign countries. (IDQ 09.02)
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3.3 Stream Continues Global Expansion with Tunisia Site Opening
Boston's Stream Global Services, a premium, global business process outsource (BPO) service provider specializing in customer relationship management services for Fortune 1000 companies, announced its continued global expansion with the opening of its fourth service center in Tunis, Tunisia. Supporting the growing demand for Stream's global BPO services, the 550-seat facility located in the town of Le Kram will serve as an offshore solution center for Stream's expanding European and French-Canadian client roster. Stream opened its first service center in Tunisia in 2004 to provide offshore French support for one of its leading European clients. Following this most recent Le Kram opening, Stream's presence in Tunisia grows to four service centers, accommodating a combined total of more than 2,000 seats with the ongoing ability to expand capacity. Multilingual service professionals in Stream's Tunis centers support Arabic and French languages for a variety of companies, such as telecommunications service providers; hardware and software manufacturers; and consumer electronics companies. With this expansion, Stream now operates 50 locations supporting 34 languages across 22 countries. The newest Tunis service center will provide technical support and customer care solutions for new and existing clients looking for high-quality, cost-effective support in an offshore location. (Stream Global Services 03.02)
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4: CLEAN TECH & ENVIRONMENTAL DEVELOPMENTS
4.1 Revolutionary Solar Power Agreement in Israel's Arava
The Arava in southern Israel has seen fifteen kibbutzim and moshavim sign long-term contracts with two renewable energy giants to develop mid-size solar fields in the Arava, the Negev and northern Israel. Most of the southern Arava kibbutzim, including Ketura, Yotvata, Lotan, Grofit, Eliphaz and Neve Harif, have already entered into agreements for the project. The first groundbreaking will be held at Kibbutz Ketura. The announcement CAME ahead of the 2010 Eilat-Eilot Renewable Energy Conference (16 – 18 February) in Eilat, where the project will make its debut. The conference, an international forum to debate policies, technology, business and investment practices, includes researchers, business leaders, government officials and academics from around the world. The solar fields will be built by a partnership of two companies, Arava Power Company (APC) and Siemens Israel. APC is a major Israeli solar energy developer specializing in mid-size solar fields and rooftop solar installations. The photo-voltaics to be built in the mid-sized solar fields by the partnership with Siemens Israel are expected to produce an average of 6.5 megawatts per field, and the total volume of all the fields is expected to reach 100 megawatts of solar energy. (IsralNN07.02)
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4.2 Saudi Arabia Launches Solar Water Desalination Program
Saudi Arabia has begun building the first solar-powered water desalination plant, the first step in a three-part program to introduce solar energy into the Kingdom. The program, launched by the King Abdulaziz City for Science and Technology (KACST), aims to help stabilize future power and water supplies inside Saudi Arabia through the creation of solar-powered desalination facilities. Water desalination is critical to providing clean drinking water around the world. Today, Saudi Arabia produces 18% of the world's desalinated water. By building water desalination plants that run on solar energy, the Kingdom can reduce operational costs and in turn, reduce consumer costs. Saudi Arabia is a prime location to harness solar energy because of its year-round sunshine. The sun in Saudi Arabia emits about 7,000 watts of energy per square meter over an average of 12 hours every day. KACST and IBM have developed a research center to determine how best to harness and repurpose this solar energy and are preparing to implement this state-of-the-art technology. (BI-ME 12.02)
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4.3 Greek Photovoltaic Solar Energy Report
The Greek solar photovoltaic (PV) market is ready for take-off, following Spain and Italy as the next interesting Mediterranean top spot. Greece is set to become one of the global top ten biggest PV markets in 2010. This optimism is driven by the generous feed-in tariff in combination with a sunny climate. Even the problems of bureaucracy seem to have been resolved after two years of struggling. In addition to the attractive feed-in tariffs, state subsidies of up to 40% are available for most commercial applications. The return on investment will be in the range of 15-30%. Smooth and relatively healthy and steady market growth is foreseen. Residential roof-top PV systems below 10 kWp will become an important market segment, with a feed-in tariff of €0.55/kWh guaranteed for 25 years. Over the last two years, potential investors have filed more than 8,000 applications for commercial PV systems, with a cumulated capacity of 3.7 GWp. Only 30 MWp had been realized by mid-2009, while the annual market for 2009 is forecast to be in the region of 35-40 MWp. Over next two to three years, the market is predicted to exceed100 MWp annually. Grid parity is not expected before 2014/18, as retail electricity prices are comparatively low in Greece. The Greek PV industry is developing rapidly (both upstream and downstream). Hundreds of PV companies are already active in Greece, including major international players. New manufacturing facilities are being built, offering highly persuasive arguments in favor of continued political support. Public and media support for solar PV is strong, especially since the introduction of the rooftop PV program in June 2009. (SolarPlaza27.07.09)
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5: ARAB STATE & PAKISTANI DEVELOPMENTS
5.1 Lebanon's 8.7% 2009 GDP Growth Highest In Region
The Institute of International Finance (IIF) revised upward its estimate for economic growth in Lebanon to 8.7% in 2009 from 6% previously. It said the new estimate is the highest growth rate in the region and is an improvement over an already impressive real GDP growth rate of 8.2% in 2008. While most emerging economies suffered sharp slowdowns in 2008 and 2009, Lebanon has enjoyed a surprisingly countercyclical growth pattern, as its economy grew faster than China and India last year. It noted that the strong performance of the Lebanese economy in 2009 was largely due to the robust capital flows from Lebanese expatriates and GCC nationals driven by regional and global market turbulence, an improved security situation and a sound banking system. In parallel, it said that contrary to official figures, the economy contracted by 1% in 2006 due to the impact of the summer war; while it grew by 5.9% in 2007, much lower than the official estimate of 7.5%. It noted that 2007 was characterized by political turbulence, plagued by assassinations and the withdrawal of an important block of ministers from the government, which kept the Cabinet paralyzed.
The IIF indicated that the strong growth in Lebanon in 2009 was driven both by domestic demand and net exports. It said real growth rates in government revenues of 19.2%, credit to the private sector (13.5%), exports of goods and services (23.4%), and imports of goods and services (15.7%) grew at a fast rate in 2009. Also, the investment proxy indicators such as cement deliveries (19.2%), imports of petroleum derivatives (16%), and imports of machinery and equipment (17%), rose at faster rates than in the previous two years. While exports of goods in nominal dollar terms decreased by 3% in 2009, they increased by about 4% in volume terms. Further, hotel occupancy rates or tourist arrivals, proxies for exports of services, increased by about 40% in an environment of global recession where most countries experienced declines in tourist arrival and/or hotel occupancy rates of 5%-10%. It added that both the external current account and fiscal deficits narrowed significantly as a share of GDP. (The Daily Star 06.02)
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5.2 Jordan's Trade Deficit Narrows to $7.72 Billion
Jordan's trade deficit narrowed by 14.8% to $7.72 billion in FY 2009 from FY 2008, helped by a lower bill for imported Saudi oil. Jordan's Department of Statistics (DOS) data showed a slump in oil prices along with a drop in consumption lowered the value of imports in 2009 by 17.1% to $14 billion, from $16.92 billion in 2008. (DOS16.02)
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5.3 Jordan Scores 55 In Quality of Life Index
Results of the annual Quality of Life Index revealed that Jordan scored 55 points out of 100 points. The 2010 ranking is set on the basis of nine criteria related to the environment, health, cost of living, economy, culture and leisure, infrastructure, risk, security and climate. According to the newly released report, Jordan and Kuwait scored 55 pts, followed by Lebanon, Morocco and Bahrain (54points), Syria (53pts), Qatar (52pts) and Egypt (51pts), while Algeria and UAE scored (50 pts). At the Arab level, Tunisia ranked highest with 83rd overall on the list. In terms of the cost of living, Jordan scored 56 out of 100, while in leisure and culture it received 60. According to the index, Jordan scored 45 in economy, 59 in environment, 33 in freedom, 80 in health, 68 in climate, 28 in infrastructure and 71 in risk and safety. The index also ranked France (82pts) as the country with the highest quality of life. Austria came second, followed by Switzerland (3), Germany (4), New Zealand (5), Luxembourg (6), the US (7), Belgium (8), Canada (9) and Italy (10). Chad, Sudan, Yemen and Somalia, represented the four countries with the lowest quality of life, according to the index. (Petra10.02)
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5.4 Kuwait's Parliament Approves $100 Billion Spending Plan
On 2 February, Kuwait's parliament passed an economic development plan that authorizes the government to spend $104 billion on mega projects over the next four years. The plan, passed with little opposition, calls for boosting the OPEC country's oil production capacity and modernizing oil facilities. Its ultimate goal is to turn Kuwait into a regional trade and financial centre and help reduce its dependence on oil revenues, which account for around 94% of total state income. The 2010-2014 plan initially projected spending of up to $129 billion but Kuwait's deputy prime minister for economic affairs told parliament the figure has been scaled down. Sheikh Ahmad Fahad al-Sabah later said the spending figures "are only estimates that could be altered in accordance with needs." The first such plan since 1986, it includes such projects as developing the new Silk City business hub at an estimated cost of $77 billion, as well as a major container harbor and a 25-kilometre (16-mile) causeway. It also includes a railway and metro system, other new cities and additional spending on infrastructure, particularly in health and education. The plan aims to boost the role of the private sector in an economy in which the public sector accounts for almost three-quarters of GDP. Parliament approved the plan just a day after the cabinet authorized capital spending of $16.6 billion in the first year of the plan. A further $7.7 billion will be spent by the private sector, according to Sheikh Ahmad. Political bickering has hampered progress on many of Kuwait's development projects over the past few years. (BI-ME 02.02)
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5.5 Qatar Consumer Prices Down By 4.9%
Consumer prices in Qatar fell by 4.9% in 2009 as the Persian Gulf state suffered its first full-year of deflation since 1993 due to a slump in property rents. Qatar's energy wealth enabled it to spend its way out of the global downturn last year and the economy grew 11%. But the global financial crisis put pressure on prices across the Gulf region, ending record high inflation which in Qatar peaked at 15.2% in 2008. Price deflation was aggravated by the end of a property boom, which sent rents sliding. Data showed that Qatar rents and utility charges, which account for 32% of the consumer price basket, dropped 12% in 2009, reversing a 19.7% jump in 2008. Transport prices, the second largest component, fell 4.4%, after rising 9.3% in 2008. Food prices rose just 1.3% in 2009, down from a 19.9% rise in 2008. Data released last month showed that Qatar's consumer prices fell for a seventh straight month in December on a monthly basis as rents continued to decline. The central bank and analysts expect prices to pick up this year as the economy accelerates. Analysts forecast the economy will surge 16% in 2010, outperforming Gulf neighbors due to new energy projects and the state's status as the world's biggest producer of liquefied natural gas. (Various16.02)
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5.6 Qatar Set To Boost Foreign Investment
Qatar is stepping up efforts to attract foreign investment as competition between Persian Gulf states is set to intensify. New laws to allow full foreign ownership in sectors such as consultancy services, information technology, entertainment and sport will relax restrictions that had limited non-Qatari ownership outside free zones to 49%. The reforms highlight a debate about the merits of liberalizing foreign residency and ownership rules to increase competitiveness as Gulf nations attempt to diversify their economies away from dependency on energy exports. The UAE proposed a draft law last year allowing foreigners 100% ownership outside the free zones that have long lured businesses with the promises of tax-free earnings. Critics say only major players will benefit from a relaxation to Qatar's ownership restrictions. But Qatar has also taken steps to ease an already light fiscal burden, last month cutting its corporate tax rate to 10%. Tax on foreign companies there was previously as high as 35%.
Qatar, the world's top exporter of liquefied natural gas, was one of the few countries worldwide to have robust growth in 2009, expanding more than 11%, and has been pouring billions of dollars into infrastructure, real estate, and education projects. Many expect double-digit growth in the cash-rich Gulf state to continue as new energy projects come on stream. Qatar's GDP could surge as much 17% in real terms in 2010. (BI-ME 13.02)
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5.7 UAE Overtakes Saudi Arabia to Become Top Arab Exporter
The UAE overtook Saudi Arabia to become the largest Arab exporter of goods and services in 2009 but the kingdom could be back on top in 2010. Despite a decline of $63 billion in its export value last year compared with 2008, the UAE was ahead of all Arab nations in export of goods and services, which stood at around $201.9 billion in 2009. It was the first time that the UAE overtook Saudi Arabia as the Arab world's largest exporter although it was already on the top of Arab importers. Saudi Arabia's exports were estimated at around $201.6 billion in 2009, far lower than its 2008 exports of about $323 billion. The decline was a result of a sharp drop in crude prices and a cut of nearly one million barrels per day in the kingdom's oil production.
The UAE was also the largest Arab importer in 2009, with a total import value of around $196.9 billion. A large part of the imports were destined for Dubai, the Gulf's main re-export and non-oil trading hub. Forecasts by IAGIC, a key Arab League financial establishment, showed the UAE's exports would climb to around $228 billion in 2010 because of an expected increase in oil prices and the country's crude output. Its imports are also projected to swell to a record $205.6 billion, indicating an upsurge in business and a recovery in the domestic economy. Saudi Arabia's exports are forecast to surge to nearly $251.6 billion and imports to around $183.9 billion in 2009.
As for the other members of the Gulf Cooperation Council (GCC), the report showed Kuwait, another major oil producer, was the third-largest exporter in the group in 2009, with a value of around $66.8 billion. The report projected them to swell to nearly $825 billion in 2010. Qatar, the world's largest LNG supplier, came fourth, with export standing at around $60.2 billion in 2009. IAIGC expected the level to jump to around $82.5 billion in 2010 due to higher oil and LNG output. Exports by non-Opec Oman stood at $28.1 billion in 2009 and those by Bahrain at $15.6 billion. (WAM05.02)
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5.8 UAE Has No Plans to Rejoin Currency Union
The United Arab Emirates is not discussing whether to rejoin the planned Gulf monetary union at this point, central bank governor Sultan Nasser Al-Suweidi said on 15 February. The second largest Arab economy pulled out of the project in May 2009, three years after Oman did the same, in protest at a decision to site the joint central bank in Saudi Arabia. Only Saudi Arabia, Kuwait, Qatar and Bahrain are now pushing ahead with the union. Kuwait, which runs the six-nation Gulf Cooperation Council this year, made bringing the UAE and Oman back a priority of its presidency. Oman has said it did not plan to come back at any time in the future. Gulf central bank governors will hold the first meeting of their joint monetary council on 30 March, the next step towards monetary union. The governors of the four Gulf states planning monetary union will discuss legal and administrative issues in order to accelerate the single currency. (GN16.02)
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5.9 Dubai Economy Faces Tough 2010
Business Monitor International predicts that Dubai's economy will remain stagnant during 2010. The research company said that while it expected the UAE to return to growth this year following an estimated 2.7% contraction in 2009, it said Dubai's share of the economy will shrink. Its UAE Business Forecast sees investment in Dubai at a virtual standstill for Q1/10 and credit markets still largely frozen. Dubai's debt problems will continue to dominate the economic agenda throughout 2010 and that Abu Dhabi's economy clearly looks in better shape than Dubai's. Abu Dhabi will expand thanks in large part to a buoyant international oil market. Bank Governor al Suweidi said the central bank expected the growth rate to be low in 2010 but better than in 2009. Last month, Shuaa Capital's UAE Vision 2010 report said the Dubai economy would contract by 0.4% year-on-year this year, following on from a 5% contraction last year. This was mainly due to declines in residential sale prices and the emirate's population, which have fallen by around 60% and 9% respectively, it said. Analysts polled by Reuters in January predicted UAE growth would be 2.5% this year - the slowest pace in the Gulf. The International Monetary Fund (IMF) also forecast last month that the UAE economy would grow zero to 1% in 2010 as the impact of Dubai's debt restructuring continues to be a drag on its performance. The UAE central bank and Abu Dhabi lent an overall $20 billion to Dubai last year to help it restructure debts. Dubai World shocked global markets on 25 November 2009, when it announced plans to request a delay on repaying $26 billion in debt linked to its main property units Nakheel and Limitless World. (BMT 09.02)
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5.10 Dubai Lends Dubai World More Than $6.2 Billion in Past Year
The Dubai government said it lent Dubai World more than $6.2 billion in the past twelve months. The money was in the form of a loan, on commercial terms, though Dubai stands ready to provide "considerably more". The Dubai Support Fund hasn't taken an equity stake in the company or taken any assets from the group. This money was made available to the DFSF on commercially reasonable terms, and the DFSF has tried to advance these funds to the company on a commercial basis. Dubai World failed to present a restructuring offer to lenders in December and declined to say when a deal could be struck. There is $4.9 billion left in the Dubai Support Fund, set up last year to support the emirate's state-owned companies, which may be available to Dubai World if it reaches a standstill agreement with creditors. The UAE's central bank bought $10 billion in Dubai government bonds last year and the emirate received a further $10 billion from the Abu Dhabi government and two Abu Dhabi based banks. (Beltone07.02)
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5.11 Egypt's Annualized GDP Grows 5.1%
Egypt's GDP increased by an annualized 5.1% in Q4/09, led by technology, construction and hotels and restaurants. The economy grew 4.9% in the previous quarter while in fiscal 2008/09, which ended in June, it grew 4.7%. The Fourth Quarter growth was spurred by a strengthening world economy, increased confidence in the Egyptian economy and business climate and continuing local consumer demand that is pushing the economy. Construction grew by 11.5%, the hotels and restaurant sector by 13.1% and the communications and information sector by 12.8%. The economy slowed sharply last year after the global crisis hit exports, investment, tourism revenues and Suez Canal receipts. In the three years before the slowdown, growth in Egypt was around 7% a year. Prime Minister Nazif said in October his government aimed to get back above 7% within two years. The central bank cut interest rates six times from February to September 2009 to encourage growth, but it has left rates unchanged at its last three policy meetings. (Various10.02)
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5.12 Egypt's Annual Inflation Rose to 13.6% in January 2010
According to data released by CAPMAS, Egypt's annual inflation rose to 13.6% in January 2010, from 13.3% in December 2009, as the change in prices of food and utilities costs accelerated, showed. Food prices rose by 24.2% annually in January 2010, from 22.3% in December, while utilities costs rose by 3.8%, compared to 1.6%. The annual change in the prices of clothing, furniture, transportation, recreation, hotels and restaurants and miscellaneous items, on the other hand, declined in January. On a monthly basis, inflation rose by 0.8%, compared to a decline in the preceding two months, as prices of food and utilities costs rose by 1% and 3.6%, respectively, compared to a decline of 2.7% and no change in December 2009. (Beltone 10.02)
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5.13 Egypt Tourism Fell In 2009 & Is Set To Recover 2010
Egypt recorded a slower-than-anticipated decline in tourism revenue last year and is targeting 6.9% growth in receipts in 2010 as economic recovery picks up, Tourism Minister Garranah said. Revenue in 2009 declined 2% to $10.76bn from $10.98bn in the previous year, while all expectations were that the decline in tourism would be 20%. Cairo aims to bring in about $11.5bn in revenue in 2010. The Egyptian economy depends on tourism, foreign direct investment and the Suez Canal for foreign currency. The economy of the most populous Arab country expanded 4.7% in the fiscal year that ended in June, beating the International Monetary Fund's forecasts. The government said it expects the economy to expand about five% in the current fiscal year. EFG-Hermes Holding, Egypt's biggest publicly traded investment bank, had forecast 2009 tourism revenue of $10.63bn. Beltone Financial, another Cairo-based investment bank, had a forecast of $10.6bn. Tourist arrivals dropped 2.3% to 12.5 million in 2009, the government said in January. The ministry aims to increase the number of tourist arrivals to 14 million in 2010, Garranah said. (AB08.02)
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5.14 Suez Canal Income Drops for Egypt
The Suez Canal generated revenues of $383.6 million in January 2010, inching down from $389.7 million in December 2009, but registering the first positive annual growth of 15% since November 2008. The annual change in revenues had been negative since December 2008, declining to a low of -26.8% in May 2009, as the effect of the global economic crisis on global trade flows ran its course. The number of vessels passing through the Canal declined to 1,418 in January 2010, from 1,452 the previous month, but again registered positive growth of 8%, following negative annual growth since December 2008. The positive annual growth was mainly due to a 9.8% rise in traffic of non-oil vessels, from a negative change of 10.6% in December 2009, reflecting the continued recovery in global non-hydrocarbon trade. (Beltone11.02)
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5.15 Egypt's New Mineral Wealth Law Draft Finished
Egypt's Ministry of Petroleum has finalized drafting the new mineral wealth law in preparation for its referral to Parliament during its current session. The new law regulates activities governing mines and quarries and exploration and economic use of minerals in Egypt. It will also apply to mining and quarrying licenses issued before its ratification, with changes in annual rents paid for the mines and quarries being applicable five years after the law's implementation. The Egypt Mineral Resource Authority (EMRA), currently under the Ministry of Petroleum, would be responsible for the regulation of mineral exploitation activities and issuance of licenses. Highlights of the law include a transfer in the authority governing mines and quarries from the governorates (municipal authorities) to the EMRA, which threatens to significantly reduce the financial resources accruing to the municipal authorities, in addition to a periodical revision of the annual rent paid for the mine or quarry and payment of a 10% fee on the production of a mine or quarry, as will be determined by the executive regulations. The Ministry of Finance opposed articles in the law pertaining to the transfer of authority, due to its negative effect on municipal authorities' resources, while the Ministry of Trade and Industry called for an inclusion of articles in the law that would allow it to impose fees on exported minerals under specific circumstances. (Beltone08.02)
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5.16 High Profile US Trade Mission Heading to Libya
A large and high profile US trade delegation due to arrive in Libya in February is signaling a further thawing of Libyan-American relations. Representatives from 25 American companies will accompany Assistant Secretary for Manufacturing & Services Lamb-Hale during the US government's first trade mission to Libya since the renewal of bilateral relations three years ago. US exports to Libya in 2008 totaled $720 million, according to the department's figures. The US embassy in Libya said that participating companies include The Boeing Company, Electrolux International, Harley Davidson Motor Company and Northrop Grumman Electronic Systems. The delegation's visit follows a gradual thaw in American-Libyan relations. In May 2007, then Secretary of State Rice removed Libya from the US list of State Sponsors of Terrorism due to Libya's stated abandonment of its weapons of mass destruction program - believed to include nuclear weapons - back in 2003. Despite removing Libya from the list of State Sponsors of Terrorism, the country remains among 14 countries, whose flights and passengers are subject to enhanced security screening when flying to the United States. (Various15.02)
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5.17 Libya to Let Foreigners Open Banks
It was announced on 16 February that Libya will allow foreigners to open joint-venture banks with local investors for the first time in 40 years. The central bank intends to grant two licenses to set up new banks in which foreign banks would hold 49% stakes and have the full rights of management, while Libyan investors would own the remaining 51% share. The central bank has set 30 March as the deadline to receive applications from would-be bidders. Libya nationalized all privately owned banks, whether owned by foreigners or locals, early in 1970 after Libyan leader Muammar Gaddafi took over in a military coup. Libya, home to Africa's largest proven oil reserves, has been carefully moving to open its archaic banking system to foreign investors since emerging from international isolation over the past seven years. The government is struggling to reform the highly centralized banking system, which is widely seen as a major obstacle to economic growth, and to lure more private investment outside the oil and gas industry. It sold 19% stakes in two banks to two foreign banks in 2007 and 2008, and government officials said they wanted to assess what benefits the country's banking system would gain from these sales before deciding whether to go further. The central bank said the foreign banks investing in the two new banks must have a good investment rating from at least one of the main rating agencies, capital of least $2 billion and a good international presence. The Libyan central bank did not specify whether the local investor must be a bank. Libya has a total of 19 banks, including four devoted to specific banking services, such as Rural Bank, which focuses on microcredits, and the Savings and Real Estate Investment Bank specializing in banking services for real estate and housing. (Jana16.02)
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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS
6.1 Gas Deal Soon for Baku & Ankara
Turkey expects its partners in Baku, Azerbaijan to accept the terms for the proposed price of natural gas shipments from Azerbaijan's Shah Deniz field. Baku is charging Ankara about 30% of what it charges its other customers for natural gas. Baku wants to raise the price for Turkey, though both sides have bickered over the terms for natural gas. The Turkish energy minister said he believes the latest round of proposals was something Baku would agree to, the Trend news agency reports. Washington supporters of the Nabucco gas pipeline for Europe see price negotiations in strategic terms. The U.S. envoy for Eurasian energy said at a recent speech in Washington that a regional partnership for energy was in the "mutual interests" of its regional allies. Turkey and Azerbaijan are positioning themselves as major players in the regional energy sector. Azerbaijan sits on some of the largest natural gas deposits in the world, with roughly 30 trillion cubic feet of reserves on hand. Turkey, meanwhile, is set to host Russia's South Stream gas pipeline and Europe's Nabucco pipeline, which could rely on Azeri gas. (UPI04.02)
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6.2 Turkish Jobless Rate Rises Less Than Expected In Three-Month Period
Turkey's unemployment rate rose to 13.1% in November 2009, a 0.8%age point increase from the same period in 2008, the Turkish Statistical Institute (TurkStat) announced on 15 February. The increase was 0.5% compared to the results of October 2009, when the country's unemployment rate stood at 13%. The rise was less then 13.4% predicted by a Bloomberg survey of economists. According to the TurkStat' Household Labor Force Survey for Q4/09, labor force participation rate was calculated as 48.1%. Unemployment rate became 15.3% in urban areas and 8.7% in rural areas. The number of unemployed rose by 233,000 people compared to same period a year earlier and reached 3.27 million. The unemployment rate in urban areas rose 1% to 15.3%, while the increase was 0.4% in rural areas. Unemployment rate in rural areas currently stands at 8.7%, according to TurkStat. Non-agricultural unemployment rose 0.7% to 16.2% in November of last year. Turkey's youth unemployment rose to at 24.4% during the period, from 24% in October 2009. Labor force participation rate, or LFPR, was 48.1% in November 2009. That was an increase of 1.1% from October 2009, which covers September, October and November. Men constituted some 70.6% of the LFPR, while women constituted 26.4% of it. (Hurriyet 15.02)
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6.3 Turkey to Receive $150 Million in FDI from India
Turkey is expected to attract three injections of foreign direct investment (FDI), worth approximately $150 million, thanks to deals reached during President Abdullah Gul's official visit to India in mid-February. According to officials from the Prime Ministry's Investment Support and Promotion Agency (ISPAT), the investments are expected to create employment for 200 workers. Among the expected investments, companies from India involved in ship construction and renewable energy have expressed the intention of investing in Turkey, the officials said. Another Indian firm operating in renewable energy has plans to produce energy from forest wastes in Turkey, they added. In addition, India's Oberoi Group plans to open a luxury hotel in Istanbul, the Foreign Economic Relations Board (DEIK) announced. ISPAT's India representative, Ravi Chaudry, said nearly 50 Indian companies, mainly interested in the mining, infrastructure, agriculture, irrigation, textile and jewelry sectors, were eager to invest in Turkey at the moment. (Zaman16.02)
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6.4 Cyprus Starts To Climb Out Of Recession in Fourth Quarter
The Cyprus economy appears to have started clambering out of recession in Q4/09, according to the latest estimate figures from the Cypriot Statistical Service. In the fourth quarter, GDP fell in real terms by just 0.3% (seasonally adjusted basis), having fallen by 0.8% in the third quarter and a much steeper 1% in the second. However, compared with the same period of the previous year, growth contracted by 2.7%, more steeply than the 2.5% recorded in Q3/09. GDP growth for the full year has not yet been reported but on the basis of the quarterly figures a contraction of around 1.5% is likely to be reported. The Statistical Service reported that the contraction of the economy during the fourth quarter of 2009 was mainly attributed to "the very negative growth rates" of construction and hotels and restaurants, as well as the negative performance of manufacturing, retail and wholesale trade, and transport activities. It said that the broad services sector was the only sector that recorded a positive growth rate, owing to financial intermediation (banking). (FM12.02)
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6.5 Cyprus Consumer Price Index Drops In January
Cyprus' Consumer Price Index for January 2010 decreased by 1.97% to 110.38 points, compared to 112.60 points in December 2009. The rate of increase of the rate of inflation for January 2010 was 2.4% compared to 2% in December 2009 and 1.1% in January 2009. This is mainly due to decreases in the prices of clothing, footwear and household furnishing items due to sale discounts as well as to decreases in the prices of potatoes. Increases have been recorded in the prices of electricity, petroleum products, water rates and certain fresh fruit. (FM04.02)
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6.6 Cyprus Construction Sector Worth €3.1 Billion In 2008
The Cyprus construction sector was worth €3.1 billion in 2008 according to the latest figures from the Statistical Service, published in its annual report, "Construction and Housing Statistics 2008". The report contains detailed data on the construction sector, including output, capital formation, inputs, new dwellings completed, building permits authorized, the labor cost index and price indices of construction materials. The construction sector continued to record a positive rate of growth, registering an upwards trend in its value added in real terms of 4.5% compared with 7.7% in 2007 and 6.8% in 2006. Gross output at current market prices rose by 9.7% and reached €3.1 billion compared with €2.788b in 2007. New residential buildings accounted for 51.1% of the gross output, new non-residential buildings (offices. shops. hotels. factories. airport buildings. etc.) for 22.9%, new civil engineering projects (roads and bridges, water supply and sewerage networks, telecommunications and electricity lines etc.) for 17.4% and repairs and maintenance for the remaining 8.5%. Employment in the sector increased from 36,758 persons in 2007 to 38,321 persons in 2008 and accounted for 10.1% of the gainfully employed population. Labor cost in construction increased by 6.0% compared with 4.6% in 2007. The price index of construction materials recorded a rise of 9.8% compared with an increase of 5.3% in 2007. The number of new dwellings completed increased by 10.3% to 18,195 dwelling units compared with 16,501 in the previous year. The cost of construction per square meter (excluding the value of land) rose from €803 in 2007 to €844 in 2008 for houses and from €727 to €767 for apartments. The dwelling stock at the end of the year amounted to 374 thousand dwelling units, of which 63.1% were in the urban areas. (FM12.02)
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6.7 Greece's Inflation Slows to 2.4%
Consumer price inflation decelerated to a 2.4% annual pace in January, lower than expected, as the economic downturn prompts companies to keep prices low, according to data released by the National Statistics Service (NSS). Economists were expecting inflation to accelerate to 2.7% year-on-year in January from 2.6% in the previous month. Consumer inflation was down 0.7% month-on-month. Despite the dip, Greece's consumer price index remained well above levels seen in the 16-nation Eurozone, where inflation rose 1% in January. (NSS10.02)
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6.8 Greece Resists EU Fiscal Demand
On 15 February, Greece was in a tug of war with the European Union over whether the government will adopt additional measures to rescue its economy, as Athens pushed for the eurozone to put together a more specific assistance package that would deter speculators. Having already announced cuts in public spending and some tax hikes, the PASOK government was prompted by EU officials to come up with more ways to reduce its public debt and deficit. Finance Minister Papaconstantinou was due to be put under more pressure when the finance ministers of the eurozone met separately on 16 February, but he insisted that no extra measures are needed at this time. Instead, he argued that following an expression of political support from eurozone members last week, more specific details about the help that Greece could expect needed to be put forward. He added that the 16 countries that use the euro need to "work out a mechanism so that, if necessary, the mechanism will be there" to help any member nation that cannot pay its debts. "I think this is the logical way of addressing the issue," said Papaconstantinou. The finance minister also played down reports that Greece had in the past used complex financial instruments in deals with Wall Street financiers to mask its real debt. He said that Greece had used currency swaps and other derivative contracts during the past decades, as had other European countries. (Various16.02)
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6.9 Greece Unveils Bill to Fix Flawed Stats Service
On 4 February, Greece unveiled legislation to make its discredited statistics service fully independent after the European Union demanded it put an end to the release of flawed economic data. The draft legislation, part of measures by the socialist government to restore the country's credibility with financial markets, aims to stop political meddling by giving to parliament - rather than the finance ministry - the task of appointing the chief of the statistics office. Greece's frequent revisions of national account data since it joined the euro zone in 2001 have irked its European Union partners, who have demanded an overhaul of the service. Its revelation in October that the 2009 deficit would be twice as big as previous estimates - and four times the EU ceiling - prompted Eurogroup Chairman Jean Claude Juncker to say "the game is over - we need serious statistics."
On 3 February, the EU launched legal action against Greece after a damning report found Greek debt and deficit data, as provided by the current National Statistics Service (NSS), were unreliable and politically influenced. The finance ministry said the draft legislation, which will establish the "Hellenic Statistical Authority (ELSTA)" as an independent body, is a major step in restoring the credibility of Greek economic indicators. The draft law fully implements EU regulations on best practices for delivering statistics. Under the new rules, the head of the new service will be selected among Greek and foreign candidates and will need to be approved by 288 out of 360 members of parliament. ELSTA will be flanked by a Statistics Council, including representatives of professional associations, labor unions, and a representative of Eurostat or of a statistics agency from another EU member country, the ministry said. (Reuters04.02)
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6.10 Bulgarian Parliament Ratifies Contract For Nabucco Gas Project
On 3 February, the Bulgarian Parliament ratified a contract for construction of the Nabucco gas pipeline. The project, involving Turkey, Bulgaria, Romania, Hungary and Austria, will carry gas from Central Asia to the EU, bypassing Russia. According to Economy Minister Traykov, the pipeline is expected to be operational after 2015 and will reach full capacity by 2020. Every political party in parliament supported the project. Nabucco will ensure access to gas from the Caspian region and the Middle East. It was initiated after the Russian gas crisis in January 2008. Hungary has also ratified the deal. (DPA 03.02)
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6.11 Moody's Issues Annual Sovereign Report on Malta
On 3 February Moody's Investors Service (http://www.moodys.com) said Malta's A1 government ratings reflect the country's high economic resiliency and its very high financial robustness. The country's primary challenge is to maintain economic competitiveness over the longer term, building on and securing its success in attracting investment in fields such as remote gaming, financial services, call centers and pharmaceuticals. Moody's said that Malta has made substantial progress towards real convergence with the rest of the eurozone. Although competitiveness in some traditional export industries is decreasing as a result of real income convergence, market liberalization and EU membership are facilitating new export-oriented activities. However, areas of weakness for Malta include an oversized and inefficient public sector, an over-reliance on public subsidies, insufficient spending on research and development, and a low female participation in the labor force. These problems will be exacerbated in coming years due to the ageing population. Analysts notes that Malta's institutional strength benefited from the EU accession process. Today, the risk of economic disruption from the political cycle is far less than it has been historically, not least because of the heavy constraints on economic policy that are imposed by Malta's membership of the EU and its adoption of the euro. Moody's also considers that Malta's susceptibility to event risk is very low. For one thing, its adoption of the euro has effectively eliminated the risk of an external financial crisis. Malta's banks also weathered the initial stage of the crisis relatively unscathed, but their concentration risk is considerable, given their high exposure to the real estate sector. The outlook on Malta's government ratings is stable. Still, Moody's sees a clear need for Malta to address its structural economic problems if it is to continue its real convergence with core eurozone countries and remain competitive over the longer term. (Moody's 03.02)
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7: GENERAL NEWS AND INTEREST
*ISRAEL:
7.1 Israel & World Jewry Celebrate Purim Holiday
On 27/28 February, most of Israel and Jewry around the world will mark the holiday of Purim. Purim is one of the most joyous and fun holidays on the Jewish calendar. It commemorates a time when the Jewish people living in Persia were saved from extermination. The story of Purim is told in the Biblical book of Esther. The heroes of the story are Esther and her cousin Mordecai, who raised her as if she were his daughter. Esther was taken to the house of Ahasuerus, King of Persia, to become part of his harem. King Ahasuerus loved Esther more than his other women and made Esther queen, but the king did not know that Esther was a Jew, because Mordecai told her not to reveal her nationality. Haman, an arrogant, egotistical advisor to the king, hated Mordecai because Mordecai refused to bow down to Haman, so Haman plotted to destroy the Jewish people. Mordecai persuaded Esther to speak to the king on behalf of the Jewish people. Esther fasted for three days to prepare herself and then went into the king. She told him of Haman's plot against her people. The Jewish people were saved and Haman was hanged on the gallows that had been prepared for Mordecai.
The Purim holiday is preceded by a minor fast, the Fast of Esther (25 February), which commemorates Esther's three days of fasting in preparation for her meeting with the king. The primary commandment related to Purim is to hear the reading of the book of Esther. The book of Esther is commonly known as the megillah, which means scroll. It is customary to boo, hiss, stamp feet and rattle gragers (noisemakers) whenever the name of Haman is mentioned in the service. The purpose of this custom is to "blot out the name of Haman." Jews are also commanded to eat, drink and be merry. In addition, they are commanded to send out gifts of food or drink, and to make gifts to charity. The sending of gifts of food and drink is referred to as mishloach manot (lit. sending out portions). Purim is not subject to the Sabbath-like restrictions on work that some other holidays are; however, some sources indicate that Jews should not go about their ordinary business on Purim out of respect for the holiday. Purim is also celebrated later (28 February/1 March) in Jerusalem.
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7.2 Mawlid Al Nabi Holiday to Be Celebrated
Mawlid al-Nabi, a celebration of the birthday of the Prophet Muhammad, founder of Islam, will be celebrated on 26 February. The day is fixed at the 12th day of the month of Rabi al-Awwal in the Muslim calendar. Muhammad was born about 570 and died in 632. During his life, he established Islam as a religion and, in doing so, replaced tribal loyalty with equality among all Muslims. At a critical point in his life, Muhammad received a vision of the angel Gabriel who called him into service as a prophet. He later received a second vision of Gabriel who told him to "magnify thy Lord." Muhammad then began to preach publicly in Mecca where he had lived for many years. Many people were receptive to his message but others ridiculed him. Because of the opposition of many citizens of Mecca and threats against him, Muhammad fled to Yathrib in 622. This journey of nearly 200 miles is known as the Hegira and is so important that the Muslim calendar begins with the year of the Hegira. The Mawlid al-Nabi was first observed around the thirteenth century and was preceded by a month of celebration. The actual day of Muhammad's birthday included a sermon, recitation of litanies, honoring of religious dignitaries, gift giving and a feast. The festival spread throughout the Muslim world and is celebrated in many countries today. However, some conservative sects (e.g., the Wahhabiyah) consider the celebration to be idolatrous.
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7.3 National Insurance Statistics on Family Day Show Child Poverty
Israel's National Insurance Institute (NII) Research Administration released a number of statistics concerning families. Over 1.01 million families in Israel have children, an average of nearly 2.39 children each, for a total of 2,416,703 children. They received monthly stipend payments totaling NIS 5.2 billion for the year, or NIS 433 million a month. Nearly two-thirds of Israel's families have one or two children under the age of 18. Specifically, 32% have one child and 31% have two children. A fifth (20%) of the families have three children, 9% have four, 4% have five and 4% have six or more. These figures take into account only children under 18 in the year 2009 and not total births per mother.
Of the country's 130,000 one-parent families, 97% are headed by a woman, and 30% of them are defined as "poor" as they earn less than half of the national average income. Of the families with children, 23.5% are considered "poor;" these families have 783,600 children, or about a third of Israel's children. One of every NIS 12 paid out by NII in 2009 went to mothers for birth costs – hospitalization, pregnancy care, birth grants and the like, for a total of NIS 4.4 billion. In 2009, 160,000 babies were born; 3,500 births were of twins, and 100 were of triplets or more. Some 80,000 families received about NIS 147 million in education grants in 2009. (IsraelNN 15.02)
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*REGIONAL:
7.4 Saudi Human Rights Group Hires Lawyer for Child Bride
Saudi Arabia's human rights commission has hired a lawyer to help a 12-year-old girl divorce her 80-year-old husband, the lawyer said, a move activists hope will lead to a ban on child marriages. Saudi Arabia, a patriarchal society that applies an austere version of Sunni Islam, has no minimum legal age for marriage. Fathers are granted guardianship over their daughters, giving them control over who their daughters marry and when. The girl from Buraidah, a conservative town near the capital Riyadh, was married to her father's elderly cousin late last year for bridal money of $22,670, her lawyer Sultan bin Zahim told the media. Activists see the divorce proceedings as a test case that could pave the way for introducing a minimum age for marriage in the world's largest oil exporter, where child marriage is common in poorer tribal areas. The child's mother had earlier filed for divorce on her daughter's behalf but withdrew without giving a reason after a second court hearing in early February, bin Zahim said. The government-affiliated rights watchdog then took over the case, again filing for divorce on the child's behalf. Zuhair al-Harthi, a member of Saudi Arabia's advisory Shoura Council, said that a draft law on banning child marriages was being studied by a government committee. But activists fear it could be a while yet before this law is passed. The girl's lawyer said he expected the judge presiding over the case to make a decision shortly. (Reuters08.02)
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8: ISRAEL LIFE SCIENCE NEWS
8.1 Pluristem's PLX Cells May Effectively Treat Ischemic Stroke - Brain Research Journal Reports
Pluristem Therapeutics announced that the results of a pre-clinical study in an animal model of ischemic stroke demonstrated that its PLacental eXpanded (PLX) cell therapy may be an effective treatment for this disorder. The study was conducted in collaboration with the Fraunhofer Institute for Immunology and Cell Therapy (IZI) in Leipzig, Germany. The authors of the study hypothesized that systematically transplanted PLX cells migrated toward the ischemic part of the brain and secreted soluble factors with considerable effects on cell death processes (apoptosis), neuron growth (neurogenesis), blood vessel growth (angiogenesis) and neuronal remodeling. The study's positive results suggest that PLX cells may increase the time interval for successful treatment in humans suffering from ischemic stroke, but the knowledge concerning modes of action and optimal treatment paradigms must be enlarged in further experiments before considering clinical application. Haifa's Pluristem (http://www.pluristem.com) is a clinical stage biotechnology company with proprietary technology for the development and manufacturing of standardized cell therapies derived from the human placenta. Pluristem's patented and scalable PLX (PLacental eXpanded) cell product candidates are developed as readily available for the treatment of critical limb ischemia (CLI) and other diseases. (Pluristem 03.02)
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8.2 Yissum & Makhteshim Agan Collaborate on Environmentally-Friendly Crop Protection Technologies
Yissum signed two research and development agreements with Makhteshim Agan, the world leader in crop protection solutions, for the development and commercialization of environmentally-friendly crop protection technologies. The first collaboration is for the development and commercialization of a novel methodology for producing slow and controlled release of herbicides. The innovative technique will minimize herbicide contamination of soil and water. The novel approach incorporates herbicides into micelles or vesicles, which are then adsorbed onto negatively-charged clay minerals. The special formulation enables a slow and controlled release of the herbicides, reducing leaching to deeper soil layers and contamination of soil and water. In addition, the herbicide is delivered close to its site of uptake, enhancing efficiency and reducing the required doses.
The second collaboration involves a novel insecticidal preparation combining a proprietary Chitin Synthesis Inhibitor (CSI) and a pathogenic fungus that kills caterpillars of night-flying moths, which are major pests of agriculture worldwide. Unlike common commercial preparations, the CSI, a mild insecticide, has minimal or no effect on non-target organisms and the fungus has any effect on beneficial insects. This approach therefore emphasizes a commitment to environmental responsibility, without compromising pest control. The novel insecticide relies on a strong synergism between the chemical and biological components involved, thereby greatly enhancing their effects. The CSI disrupts the production of cuticle, the insects' external shield, which normally envelops and protects the insect body, after which the pathogenic fungus can easily attack the weakened caterpillars. Very high levels of control can therefore be achieved with much less CSI and fungus, minimizing environmental impact by reducing the insecticide component many-fold.
Yissum Research Development Company of the Hebrew University of Jerusalem (http://www.yissum.co.il) was founded in 1964 to protect and commercialize the Hebrew University's intellectual property. Products based on Hebrew University technologies that have been commercialized by Yissum currently generate $1.2 billion in annual sales. (Yissum 02.03)
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8.3 Rosetta Genomics Announces Issuance of Three U.S. Patents
Rosetta Genomics announced that the United States Patent and Trademark Office (USPTO) has issued three patents to the company covering the composition of matter of human microRNAs. The first (U.S. Patent No. 7,655,785) relates to human miR-527; the second (U.S. Patent No. 7,642,348) relates to human miR-491 and the third (U.S. Patent No. 7,618,814) relates to human miR-135b. Human miR-527 has recently been shown to be a predictor of progesterone receptor status in breast cancer. Human miR-491 has been shown to be involved in colorectal cancer and liver necrosis. Human miR-135b is highly expressed in colon cancer specimens relative to normal colon tissues. Rosetta now has six issued patents and 11 allowed patent applications covering composition of matter of microRNAs in humans. Rosetta Genomics has filed more than 35 patent applications in the U.S. and more than 36 patent applications worldwide to protect each aspect of its commercial diagnostic products. Many of these applications protect the specific microRNAs used in the company's products. In addition, the company is pursuing more than 50 patent applications to protect methods of detecting microRNAs and methods of diagnosing and treating diseases with microRNAs.
Rehovot's Rosetta Genomics (http://www.rosettagenomics.com) is a leading developer of microRNA-based molecular diagnostics. Founded in 2000 the company's integrative research platform combining bioinformatics and state-of-the-art laboratory processes has led to the discovery of hundreds of biologically validated novel human microRNAs. Building on its strong IP position and proprietary platform technologies, Rosetta Genomics is working on the application of these technologies in the development of a full range of microRNA-based diagnostic tools. (Rosetta03.02)
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8.4 Teva's Needle-Free Tjet Device - a Kid-Friendly Approach to Growth Hormone Treatment
Teva Pharmaceutical Industries announced the availability of new resources to support the recently introduced Tjet injector system, a needle-free device designed to deliver Teva's TEV-TROPIN [somatropin (rDNA origin) for injection] brand human growth hormone (hGH) to children who have growth failure due to inadequate secretion of normal endogenous growth hormone. The Tjet device uses a needle-free delivery system that releases the same amount of TEV-TROPIN as a traditional syringe in two seconds. To help families with a growth hormone deficiency (GHD) diagnosis, Teva has launched an updated web site (http://tevtropin.com) that includes information specifically tailored for kids, teens and parents, and caregivers; instructional videos to help families learn about the Tjet device; and information about Growth Solutions, the company's comprehensive patient support program that offers training and education, as well as insurance and reimbursement assistance. As part of its commitment to pediatric patient care, Teva will also provide the Tjet device and replacement supplies free of charge with all prescriptions for TEV-TROPIN when requested by a physician.
The Tjet device works by releasing a thin stream of TEV-TROPIN that penetrates the stratum corneum (outermost layer skin) and is delivered into the subcutaneous (below the skin) tissue in two seconds through a tiny opening in the skin less than one third the size of a 30-gauge needle. With flexible dosing in increments of 0.05 mg, the Tjet device delivers the prescribed dose of TEV-TROPIN with one click of a button.
Teva Pharmaceutical (http://www.tevapharm.com), headquartered in Israel, is among the top 20 pharmaceutical companies in the world and is the world's leading generic pharmaceutical company. The Company develops, manufactures and markets generic and innovative human pharmaceuticals and active pharmaceutical ingredients, as well as animal health pharmaceutical products. (Teva 02.02)
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8.5 Valtech Cardio Completes $17.8 Million in Series B Financing
Valtech Cardio announced that new and existing investors (OXO Capital Valve Ventures LLC, NGN Biomed Opportunity II, L.P., and Peregrine VC Investments II, L.P.) recently completed a Series B financing of $17.8 million. Valtech Cardio is engaged in development of a portfolio of minimally-invasive surgical and transcatheter mitral valve repair and replacement technologies designed to correct or significantly improve mitral valve function in ways that reduce or eliminate mitral regurgitation (MR). MR is a serious heart disorder characterized by incomplete closure of the mitral valve. The valve leakage (from the left ventricle into the left atrium), often called regurgitation, reduces the amount of blood that is pumped out of the heart during each contraction and is associated with other serious medical conditions, including atrial fibrillation. MR is believed to be the most common form of valvular heart disease. Or Yehuda's Valtech Cardio (http://www.valtechcardio.com) is a privately held medical device company committed to the development and commercialization of therapies for the millions of patients afflicted with mitral valve disorders. (Valtech Cardio 02.02)
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8.6 Zetiq Reports Success in Clinical Trial for Identification of Bladder Cancer
Zetiq Technologies, a subsidiary of Bio-Light, reported the successful completion of a clinical trial, aimed at identifying and diagnosing bladder cancer in biopsies via Zetiq's proprietary CellDetect technology. The goal of the trial was to demonstrate and measure the ability of the CellDetect technology to accurately diagnose the presence of bladder cancer cells and the stage of the disease, in bladder biopsies. The study results demonstrated a perfect (100%) correlation between the CellDetect technology-based diagnosis, and the diagnosis made upon H&E staining, obtained from each pathologist. The CellDetect technology showed distinct morphological features in addition to the powerful differential staining, which showed a high correlation with the morphological features. In certain cases, suspected pre cancer regions were identified in the control study group. In these cases, the CellDetect technology showed the correct differential staining, which aided the identification of subtle morphological changes, findings that were strengthened by an independent secondary stain examination. As said, in all the examined cases, the CellDetect technology was found to correctly identify, in comparison to the current gold standard, both the disease and the disease stage. On the basis of the positive results, Zetiq intends to pursue the development of products for monitoring and diagnosing bladder cancer.
Ramat Gan's Zetiq Technologies (http://www.zetiq.co.il) develops effective cancer diagnostic tools. There is a significant medical need for early stage diagnostic tools for screening, monitoring or diagnosing cancer. Zetiq offers unique advantages in this market with its proprietary CellDetect technology for differential staining and morphological visualization to differentiate between non cancer cells and a wide variety of cancer indications. (Zetiq 09.02)
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8.7 Kamada Announces Enrollment of First Patient in Its Pivotal Study for Inhaled AAT in Europe
Kamada has enrolled the first patient into its pivotal clinical trial with its new breakthrough compound of inhaled alpha-1 antitrypsin (AAT) delivered by an Investigational eFlow Nebulizer System (PARI Pharma GmbH), in patients with alpha-1 antitrypsin deficiency. The Phase 2-3, multi-center, randomized, double-blind, placebo-controlled and international study will evaluate the efficacy and safety of inhaled, human AAT in alpha-1 deficient patients with emphysema. The trial will be conducted across several European countries. The study protocol has been designed in agreement with the EMEA under the product's orphan drug designation status. Kamada's Inhaled AAT is a high purity alpha-1 antitrypsin preparation manufactured using sophisticated, in house developed proprietary chromatographic purification methods. Inhaled AAT is delivered via an Investigational eFlow Nebulizer System and has been designated orphan drug status for the treatment of bronchiectasis, alpha-1 deficiency and cystic fibrosis, in the U.S. and the treatment of alpha-1 deficiency and cystic fibrosis, in Europe. This designation grants Kamada various benefits such as research fund support, tax incentives, reduced official fees and seven years of exclusive distribution rights, if the company's product is first on the market.
Ness Ziona's Kamada (http://www.kamada.com) is a public biopharmaceutical company developing, producing and marketing a line of specialty, life-saving therapeutics using a sophisticated chromatographic purification technology. Utilizing its proprietary know-how, Kamada manufactures more than 10 high quality biopharmaceuticals which are marketed in over 15 countries around the world. Kamada also has a number of products in development and has recently completed six clinical trials for its high-purity, liquid formulation of alpha-1 antitrypsin which is suitable for inhalation and intravenous use. (Kamada 08.02)
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8.8 EDGE Receives 2010 Digital Radiography Enabling Technology Award from Frost & Sullivan
EDGE Medical Devices has received the 2010 North American Enabling Technology Award in Digital Radiography (DR) from global research and consulting firm Frost & Sullivan. The award was given in recognition of EDGE's Plasma DR readout technology, which is used in its flat-panel detector and Universal Retrofit Kit. The technology enables EDGE to deliver both cost and performance advantages over traditional digital radiography flat-panel detectors. Frost & Sullivan's Best Practices Awards are presented each year to companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service and strategic product development. Through its Best Practices Research, Frost & Sullivan has concluded that EDGE's Plasma DR technology addresses one of the key factors that has restrained growth in the digital radiography market. Ra'anana's EDGE Medical Devices (http://www.EDGE-medical.com) is a pioneering medical technology company dedicated to developing, manufacturing and commercializing innovative, high-quality digital radiography equipment at an affordable cost. EDGE is the developer and manufacturer of Plasma DR flat-panel x-ray detector technology for digital radiography and the Quix Universal Retrofit Kit. (EDGE10.02)
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9: ISRAEL PRODUCT & TECHNOLOGY NEWS
9.1 Shina Receives FDA Clearance for its 3Di Cloud-based Medical Imaging Solution
Shina Systems announced U.S. FDA 510(k) clearance for its 3Di medical imaging advanced (3D/4D) visualization software that downloads over the internet and provides a full suite of image processing and clinical analysis applications on any PC. 3Di delivers imaging data, advanced reformatting and viewing tools, as well as powerful image processing on demand via a cloud environment. It eliminates costly dedicated 3D image processing workstations, enterprise servers and inconvenient image pre-formatting by technologists, while providing interactive advanced visualizations anytime and anywhere. With convenient software-as-a-service (SaaS), pay-per-use pricing and using existing hardware and networks, 3Di is available for use with no upfront cost whatsoever. With its cloud-based architecture, 3Di also serves as a clearinghouse for sharing medical imaging studies among hospitals, physicians and patients. Fully secure to support HIPAA compliance, 3Di allows users to upload studies from any location and share them with authorized users anywhere, essentially creating a global online medical imaging consultation platform. Depending on their expertise, users have access to a spectrum of capabilities – from basic image review to specialized diagnostic tools. The application also provides an image communication engine for electronic and personal health records (EHRs and PHRs).
Caesarea's Shina Systems (http://www.3di-imaging.com) is an advanced clinical image visualization and analysis software company. With over 15 years experience developing advanced clinical applications for various major medical imaging OEMs, thousands of installations and numerous innovation and usability awards, Shina Systems is a proven technology provider and market leader. Shina Systems' vision is to bring clear and useful medical images to the point-of-need anywhere and to any specialist or patient. (Shina03.02)
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9.2 Waterfall Receives US Patent on its SCADA Industrial Network Security Technology
Waterfall Security Solutions reported that the U.S. Patent and Trademark Office has issued Patent 7,649,452 to the company, effective January 19, 2010. The patent, entitled "Protection of control networks using a one-way link", fortifies the company's intellectual property regarding its technology and solutions for the Critical Infrastructure and Utilities' markets. Waterfall's cyber security solutions enable Utilities and Critical Infrastructures to easily and comfortably achieve compliance with NERC-CIP, NRC, NIST and other regulations as well as cyber-security policies.
Tel Aviv's Waterfall Security Solutions (http://www.waterfall-security.com) is the leading provider of Unidirectional Security Gateways for Process Control systems, SCADA systems, Remote Monitoring and Segregated Networks. Waterfall's products have been deployed in many critical national infrastructures, mission critical organizations and homeland security agencies in North America, Europe and Israel, and include security solutions for leading industrial applications (such as the OSIsoft PI Historian, GE Proficy Historian, the Siemens WinTS and the GE OSM remote monitoring platforms) and leading industrial protocols (such as OPC, Modbus, DNP3 and ICCP). (Waterfall 04.02)
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9.3 SoCalGas & SDG&E Implement ClickSoftware's Solution for Mobile Workforce Management
ClickSoftware Technologies announced that California-based Southern California Gas Company (SoCalGas) and San Diego Gas & Electric (SDG&E) are implementing ClickSoftware's ClickMobile solution to provide a mobile field service application to its natural gas and electric distribution field work crews. In late 2007, SoCalGas and SDG&E selected ClickSoftware's suite of applications, including ClickForecast, ClickPlan, ClickSchedule and ClickAnalyze, to provide greater visibility and alignment of forecasted work and resource capacity. Last year, following a thorough evaluation and consideration of their mobile strategy, they decided to choose the ClickMobile solution. ClickMobile will allow the crews in the field to access asset information as well as performing field inspections, long maintenance jobs and initiate work orders from the field. All of this information will be tightly integrated into the SAP business software infrastructure in place at SoCalGas and SDG&E.
Israel's ClickSoftware (http://www.clicksoftware.com) is the leading provider of workforce management and service optimization solutions that create business value for service operations through higher levels of productivity, customer satisfaction and cost effectiveness. Combining educational, implementation and support services with best practices and its industry-leading solutions, ClickSoftware drives service decision making across all levels of the organization. From proactive customer demand forecasting, capacity planning and shift scheduling to real-time decision making, incorporating scheduling, mobility and location-based services, ClickSoftware helps service organizations get the most out of their resources. (ClickSoftware 04.02)
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9.4 Xirrus Harnesses iSolve Dynamic Web Self Help in Response to Growing Demand
Softlib Software announced that Xirrus, the technology leader in Wi-Fi Switching, has deployed Softlib iSolve software for its online customer and partner support. iSolve now powers support.xirrus.com and allows Xirrus customers and partners to quickly and easily find the information they need without the need to call and consult an expert. This allows Xirrus to provide improved and immediate 24x7 service by leveraging the Web as a scalable Support channel. The content is delivered dynamically based on intelligent free text search and user credential level. Xirrus, the only Wi-Fi "Power-Play", manufactures the Wi-Fi Array architecture that displaces both overlay Wi-Fi offerings and switched Ethernet to the desktop. As a fast growing technology company with the desire to provide leading service to its customers and partners, Xirrus was looking for technology that could accurately provide solutions to issues presented, leveraging home grown content automatically while seamlessly integrating with existing systems such as their Service Desk system. The technology of choice also had to provide the content dynamically through natural language search and not rely on FAQ or pre-authored content in order to keep cost of ownership low and provide knowledge to end users faster. Tel Aviv's Softlib (http://www.softlibsw.com) is a leading provider of Solution Identification software, enabling customers to reduce costs substantially while improving service to end users and customers. We bring innovative solutions to the marketplace that revolutionizes the way technical support is delivered. Softlib products are used on thousands of computers worldwide. (SoftLib 02.02)
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9.5 Plasan Announces Delivery of 25 SandCats to Bulgaria
Plasan announced the delivery of 25 SandCat vehicles in cooperation with Oshkosh Defense, for the Bulgarian Ministry of Defense. Plasan was awarded this contract December 2008. During a visit to Israel earlier in February, Bulgarian Prime Minister Borisov and Bulgarian Minister of Defense Mladenov examined the SandCat up close, followed by meetings with their Israeli counterparts: Benjamin Netanyahu and Ehud Barak. The SandCat is based on an upgraded commercial off-the-shelf Ford F-Series 4x4 chassis, adapted by Oshkosh Defense for military use and fitted with Plasan advanced Metal Composite & Ceramics Composite armor. The SandCat provides a high level of protection for the crew while maintaining excellent maneuverability capabilities. The SandCat design is state-of-the-art in all aspects: exterior design, choice of materials, ergonomics, integration of advanced electronic systems, NBC safety systems, suspended/collapsible seats are part of the Blast mitigation system and the advanced composite materials against IEDs and road side bombs are providing high level of crew survivability.
Kibbutz Sasa's Plasan (http://www.plasan.com) provides customized survivability solutions for tactical wheeled vehicles, aircraft, naval platforms, civilian armored vehicles and personal protection. A recognized global leader and industry veteran, Plasan's survivability solutions offer the optimal combination of protection, payload, and cost by combining in-house R&D, design, prototyping and manufacturing capabilities. Plasan combines innovative survivability engineering and design with advanced armor materials development. Its unique development process is based on continuous interaction between the R&D and the Design & Prototyping departments. During this process, Plasan combines computer-generated analysis and simulations with real-time calibration and ballistic test data. The effective combination of test and simulation data enables improved simulation accuracy and performance, resulting in the optimal survivability solution. (Plasan 02.02)
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9.6 ETSA Utilities Selects and Implements ClickSoftware's Mobility Suite
ETSA Utilities, the primary distributor of electricity to South Australia, has selected standalone mobile business software from the ClickSoftware Mobility Suite from ClickSoftware Technologies. The suite will allow the business to extend the benefits of its existing enterprises systems, leverage its mobile workforce, improve their productivity, reduce costs and provide outstanding services to customers. ETSA Utilities focuses considerable effort upon achieving regulated requirements for high levels of service, reliability, safety and efficiency. The ETSA Utilities Field Services department is crucial to this as it is responsible for the construction, break/fix and the maintenance of the network for residential and commercial customers. ClickSoftware's Mobility Suite leverages ETSA Utilities' existing investment in technology by providing a two-way conduit that feeds important information from enterprise systems to workers on the move, whilst also collecting important operational information from their mobile devices to be fed back to the enterprise. This rapid access to applications - removing considerable administration - is particularly helpful in providing mobile workers the information they need to plan and execute their daily work. They can view the details of their next job, plan their route, perform and closeout the job.
Israel's ClickSoftware (http://www.clicksoftware.com) is the leading provider of workforce management and service optimization solutions that create business value for service operations through higher levels of productivity, customer satisfaction and cost effectiveness. Combining educational, implementation and support services with best practices and its industry-leading solutions, ClickSoftware drives service decision making across all levels of the organization. (ClickSoftware 10.02)
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9.7 Majic Wheels Investigates Security & Military Applications for Patented Adhesive Technology
MajicWheels announced that the company is intends to further investigate additional applications for its patented climbing device technology in the areas of security and military in 2010. Potential applications could include installing a digital camera on a remote controlled device, and transmitting video or photographs to security and military personnel. MajicWheels' patented technology currently enables its remote-controlled vehicles to traverse a variety of surfaces, including those that are steeply inclined, completely vertical, or even inverted altogether. MajicWheels currently holds the rights for two "climbing device" patents. A fully-approved patent has been registered to the company in Israel. A patent-pending application has similarly been filed in the United States. Ramat Gan's MajicWheels (http://www.majicwheels.com) brings innovation to the industry of radio-controlled toy cars through its groundbreaking, patented climbing device technology. MajicWheels intends to become a leading player in the climbing device radio-controlled toy car world, offering countless hours of fun to youth in the 6-12 year-old age bracket. Models will be offered in several aesthetically pleasing designs, and a variety of colors. (Majic Wheels 11.02)
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9.8 Opera & Perfecto Mobile Partner To Offer Remote Testing on Real Mobile Devices
Oslo, Norway's Opera Software and Perfecto Mobile announced a new partnership to offer mobile widget developers remote access to hundreds of real handsets, based on Perfecto Mobile's Handset Cloud service. Widget developers from around the world who download the Opera Widgets SDK will now receive seven free hours use of the Perfecto Mobile Handset Cloud service in order to test their widgets' compatibility with a variety of mobile handsets operating in live mobile networks. Developers will also be able to remotely test their Web sites in Opera Mobile and Opera Mini on various handsets. Perfecto Mobile's service currently offers handsets in the US, the UK, Canada, France and Israel. In addition to enabling quick installation and testing, the service also enables developers to collaborate with each other, showcase their application and keep a record of their tests. The Perfecto Mobile service eliminates the need to invest in obtaining many mobile devices and will thus help developers cut expenses and shorten time-to-market. Tel Aviv's Perfecto Mobile (http://www.perfectomobile.com) is global leading provider of remote access and automated testing solutions for mobile devices. The Perfecto Mobile's Handset Cloud service enables developers and testers located anywhere in the world to access, via the internet, a comprehensive range of the latest mobile handsets. Users can use the Perfecto Mobile handsets to develop, test, deploy and monitor their mobile applications and services. (Opera11.02)
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9.9 Connect One Delivers 3G/4G Personal Mobile Hotspot
Connect One unveiled Wi-REACH Classic, a compact, battery-operated, mobile, personal WiFi hotspot that delivers high-speed internet connectivity for laptops and wireless devices such as cameras, PDAs, and multimedia players. Using 3G/4G mobile network technology, Wi-REACH Classic quickly and easily provides multi-connection internet access wherever you are, whether at the beach, in the car, or on the train. Wi-REACH Classic combines the connectivity of WiFi with the excellent mobile coverage of 3G/4G cellular. This wireless broadband device transforms an existing 3G USB modem into a personal Wi-Fi cloud that can be easily shared between as many as 10 Wi-Fi devices. Wi-REACH Classic is highly portable and completely cordless, fitting easily into a pocket. Its built-in rechargeable battery delivers four to five hours in normal use and can be recharged using the built-in USB connector. Thanks to upgradeable software, Wi-REACH Classic is designed to support up and coming networks such as WiMAX and LTE. Users can migrate to 4G networks with a simple software upgrade by simply plugging their next-generation USB modem into Wi-REACH Classic. Established in 1996, Kfar Saba's Connect One (http://www.connectone.com) is widely regarded as the Device Networking Authority, with many innovative firsts to its credit. The company manufactures semiconductors, modules and products that facilitate secure, reliable and robust Internet Protocol-based communication for everyday devices. (Connect One16.02)
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9.10 Comsys Mobile Shows Industry's First WiMAX/GSM Android Smartphone Reference Design
Comsys Mobile demonstrated the industry's first multimode mobile WiMAX/GSM-EDGE Android Smartphone reference design at the Mobile World Congress. ComMAX CM1125 optimized handset reference design platforms provide a complete solution with pre-integrated ecosystem from selected partners, incorporating all the features and functionalities required of Smartphones – from antenna up to application processor. OEM/ODMs receive a complete pre-integrated form-factor solution reducing development costs and accelerating time to market. In addition to multimode mobile WiMAX/GSM-EDGE, CM1125 reference designs integrate WLAN, BT, FM radio and GPS connectivity, including multi-radio coexistence for enhanced user experience with anytime, anywhere connectivity. CM1125 reference design platforms are enabled by the CM1125 baseband, Comsys Mobile's unique multimode mobile WiMAX-GSM-EDGE processor. Optimized for handsets and other hand-held devices, the CM1125 provides seamless handover between WiMAX and GSM-EDGE, exceptionally low power operation, a highly embedded PHY/MAC, and high vehicular speed support.
Herzliya's Comsys Mobile (http://www.comsysmobile.com) is a fabless semiconductor vendor specializing in communication processors for 4G mobile devices. The ComMAX line provides comprehensive multimode solutions optimized for low power and small footprint requirements, supporting 2G-4G standards such as GSM/EDGE, mobile WiMAX, and 3GPP-LTE. ComMAX chipsets come with reference designs incorporating complete pre-integrated ecosystem for accelerated time-to-market and reduced development costs. Comsys Mobile's advanced solutions provide exceptional performance, supporting multi-radio coexistence for service continuity and enhanced user experience. (Comsys Mobile 16.02)
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9.11 Discretix to Provide Android and Windows Mobile DRM Security for Sony Ericsson
Discretix announced that Sony Ericsson has chosen Discretix' Multi-Scheme DRM Client to protect distribution and consumption of multimedia content on select mobile phones and for its PlayNow services. Discretix' Multi-Scheme DRM Client has been deployed on select Sony Ericsson mobile phones based on the Windows Mobile and Android operating systems. The embedded technology enables a wide variety of business models including subscription-based music and video services for the consumer market. Discretix' Multi-Scheme DRM Client provides an outstanding level of flexibility, security and performance, and ensures quick and simple integration of all the major DRM schemes in use today including OMA DRM V1.0/2.1, Microsoft WM-DRM 10, and i-Mode DRM including CPRM\SD-Bind and SD-Video. It can also be easily expanded to support emerging schemes such as Microsoft PlayReady. Discretix offers DRM security solutions that have been adapted and optimized specifically for the Android and Windows Mobile operating systems, to ensure fast and easy deployment with minimal effort by the OEM. Reinforced by the underlying Discretix security subsystem, the Multi-Scheme DRM Client conforms to the highest security requirements set down by network operators and content providers. The technology can support any kind of business model including purchasing, rental, subscription, preview, metering, tracking and super-distribution.
Kfar Netter's Discretix' (http://www.discretix.com) security solutions are deployed in a wide range of consumer electronics devices enabling services and applications, while protecting the device and its contents. Discretix' products include embedded security co-processors and a broad range of security applications. The solutions are tightly integrated into the device, enhancing security without compromising the user experience. (Discretix 15.02)
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9.12 Kenya–Based ISP Wananchi Selects VocalTec for Its Evolution to Triple-Play Services
VocalTec Communications announced that Wananchi, a Kenya-based Internet Service Provider (ISP), has selected VocalTec's VoIP solutions, as part of its plan to launch the country's first triple-play service. VocalTec will be providing its core Voice-over-IP solution together with a wide range of supporting applications and prepaid billing solutions. This comprehensive offering will enable Wananchi Group to provide VoIP services to both enterprise and residential users in Kenya and Tanzania, under the SimbaNET and Zuku brands. Using VocalTec's Class-5, Essentra BAX Application Server, Wananchi will be able to offer its subscribers the latest in IP telephony services, including an extensive set of applications. These include voicemail, fax, conferencing and others. The deployment also incorporates VocalTec's Essentra EX, Peering Manager, and Essentra CX, Media Gateway Controller, which provide complete Class-4 capabilities including secure interconnection between disparate VoIP networks, as well as seamless interconnection to legacy PSTN environments. Herzliya's VocalTec Communications (http://www.vocaltec.com) is a global provider of carrier-class Voice-over-IP and Convergence solutions for fixed and wireless service providers. A pioneer in VoIP technology since 1994, VocalTec develops and markets an extensive VoIP offering enabling the flexible deployment of next-generation networks (NGNs). (VocalTec 15.02)
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9.13 Red Bend Lets Mobile Service Providers Manage Software on Smartphones
Red Bend Software announced the industry's first solution for enabling mobile service providers to independently, centrally and consistently manage any type of software and application on smartphones in order to more quickly and cost-effectively deploy new revenue-generating services and features to the installed base. Red Bend's vRapid Mobile Software Management Client gives service providers control to continuously manage software and apps and to monitor inventory across open OS smartphones, beginning with Android - letting them deliver their own branded user experience across mobile platforms. vRapid Mobile Software Management Client can be independently downloaded over the air to handsets, or pre-installed in cooperation with the device manufacturer or platform owner. It is the first standards-based solution to manage both built-in and user-downloaded applications and to optimize the size of the application updates to minimize bandwidth and ensure frequent and fast installation.
Hod HaSharon's Red Bend Software (http://www.redbend.com), the leader in Mobile Software Management (MSM), provides software solutions for managing firmware, applications and devices over the air. The company's award-winning products enable device manufacturers, mobile operators and software developers to increase revenues, reduce support costs and achieve faster time to market by remotely managing their software assets on mobile devices. Red Bend's software has been deployed in more than 620 million mobile devices by 8 of the top 10 handset manufacturers, including Kyocera, LG Electronics, Motorola, Sharp, Sony Ericsson and ZTE, as well as dozens of other leading companies in the mobile, M2M and WiMAX markets. (Red Bend 15.02)
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9.14 Mobixell Launches New Solution to Mobilise RSS Feeds
Mobixell Networks announced the launch of RSS Gateway; a network centric solution which enables mobile operators to deliver RSS feed services to subscribers. The solution has been designed to offer an alternative to existing client-based RSS feed solutions and enables operators to generate additional revenue and retain a prominent position in the value-chain. The solution allows RSS feeds to be delivered to all multimedia enabled handsets without users having to install and configure a client-based mobile RSS reader. Mobixell's RSS Gateway tracks the feeds of selected websites, be it news, sports, weather, stock quotes or podcasts and sends registered subscribers the newly available content as an alert service (as a snippet with a link) via SMS or MMS. The URL to the target website is embedded in the notification message, prompting the subscriber to launch a browsing session. In this way operators can add to the range of Web 2.0 services they are able to deliver, to drive additional revenue and promote customer loyalty. For the subscriber, it's an innovative and convenient way to receive RSS feed alerts on their mobile phone. Ra'anana's Mobixell Networks (http://www.mobixell.com) provides innovative Rich Media Mobile Internet, Mobile Broadband, Mobile Messaging and Mobile Advertising solutions to mobile operators and content providers. Mobixell's solutions focus on enhancing the user experience to increase adoption, encourage customer loyalty, and build on the operators' assets to introduce new revenue streams. (Mobixell 15.02)
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9.15 Siklu's EtherHaul Microwave Backhaul Solution Boosts Network Performance & Reduces Costs
Siklu announced the launch of its EtherHaul solution, providing gigabit per second wireless connectivity at a total cost of ownership that is 80% lower than comparable solutions. With the flexibility to integrate with 2G, 3G and 4G Networks, and incorporating capabilities to support future topologies, EtherHaul enables service providers to meet today's growing traffic demands and to evolve their network to meet future requirements. In addition, Siklu's environmentally friendly design results in easier and quicker deployment and adoption. Siklu's EtherHaul solution leverages silicon-based technologies and millimeter-wave technology advantages to create a solution that is both uniquely cost effective and significantly enhances network performance. Tier one operators in Europe and Israel are currently running trials with EtherHaul.
Petah Tikva's Siklu (http://www.siklu.com) redefines wireless backhaul by optimizing every aspect of millimeter-wave system design to enable service providers to boost network capacity and performance, while dramatically reducing costs by 80%. By re-engineering millimeter-wave system components, and leveraging silicon-based technologies, Siklu provides gigabit per second wireless connectivity at the lowest price point in the industry. Siklu's solutions are easily scalable enabling service providers to evolve their networks from 2G/3G to HSPA and 4G, and incorporate capabilities to support future topologies. (Siklu15.02)
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9.16 Comverse Helps Netcom to Offer Visual Voicemail on Sony Ericsson Handsets
Comverse announced that Netcom, a leading Norwegian mobile operator, will become the first operator to offer visual voicemail service to subscribers with Sony Ericsson handsets. Comverse Visual Voicemail revolutionizes the voicemail experience with an information-rich inbox for voice messages that lets users click to hear and handle voice messages. Highly intuitive for today's internet-nurtured users, the service has already been launched by operators around the globe on more than 50 different handset models. Upon deployment, many operators have reported that the average revenue per user (ARPU) for voicemail services has increased 30 to 50%. As a result of visual voicemail's surging popularity around the world, Comverse announced last October that it was teaming up with Sony Ericsson to provide visual voicemail on its handsets for residential and business users. With visual voicemail now available on its handsets in Norway, Sony Ericsson is positioned to support the service for millions of users in other countries. Tel Aviv's Comverse (http://www.comverse.com) is the world's leading provider of software and systems enabling value-added services for voice, messaging, mobile internet and mobile advertising; converged billing and active customer management; and IP communications. The company's innovative product portfolio enables communication service providers to unleash the value of the network for their customers by making their networks smarter. (Comverse 16.02)
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9.17 Jivy Group Releases Markets Pulse, a Binary Options Platform
Jivy Group announced its launching of Markets Pulse, a binary options platform. Markets Pulse offers a short time to market for operators wanting to profit from an emerging new field in the retail investment industry. It provides top-notch web engineering with deep knowledge of financial markets for exotic options online exchanges. Investment in the stock market requires substantial research, time and money to receive substantial payout on the investment, and also involves commission fees. Binary options allow traders to invest in short term options that last hours or minutes with the possibility of a high amount of gain around 70%. Binary options are a type of trading which offers traders a fixed amount of return around 70% if the trade is successful and a protection rate of around 15% if the trade is unsuccessful. Traders invest in options and predict whether or not spot prices of an underlying security will close above or below a certain price. Exact amounts of gains and losses are known upfront, and traders predict only the movement direction of the option. Traders cannot lose any more than they invested- the exposure is known upfront. Markets Pulse offers a comprehensive solution for managing your online trading site with over 120 screens. It includes CRM, retention tools, a top-of-the-line pricing engine, risk management, clearance integration, financial reports and a lot more. Operators can rely on Markets Pulse for a secure and proven technology solution, allowing them to focus entirely on marketing their binary options trading site. Along with other marketing and financial features, Markets Pulse allows its operators to offer white labels as well as affiliate programs management tools.
Herzliya Pituah's Jivy Group (http://www.jivygroup.com) is a conglomerate of small companies specializing in the online gambling, gaming and trading industries. MarketsPulse (http://www.marketspulse.com) is part of Jivy Group, which specializes in building platforms for internet operators in gaming and financial industries. (Jivy Group 16.02)
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9.18 Utah Air National Guard to Stream up to 248 Channels with Optibase IPTV Solution
Optibase announced that the Utah Air National Guard will deploy an Optibase IPTV solution that streams up to 248 H.264 video channels, including feeds received from satellite, cable systems and cameras, to base employees, both on and off base. The IPTV solution enables real-time information-sharing and collaboration between Utah Air National Guard personnel in the field and those on base during emergency events, as well as for exercises and routine operations. It provides a secure means to distribute classified content, and serves as a robust, easy-to-access platform for training sessions and informational presentations. The system also allows employees to monitor news and satellite TV channels on their PC workstations. The Optibase solution includes five MGW 5100 multi-channel encoders, which together can stream up to 124 channels. Secondary stream functionality doubles streaming capacity to 248 streams at two different bit-rates. MGW platforms are integrated with the Cluster Manager, Optibase's professional management suite. The system offers full N+K redundancy and video matrix control capabilities, effectively eliminating single point-of-failure scenarios.
Herzliya's Optibase (http://www.optibase.com) provides video over IP solutions, specializing in video encoding, decoding and streaming for federal and state government agencies, Telco operators, enterprise organizations and the world's leading broadcast service providers. With a collection of open, standards-based products, Optibase enables its customers to take full advantage of video distribution over their IP network, ensuring superb video quality in a scale of bit-rates for simple and effective video streaming to desktops, STBs and VOD applications. (Optibase 16.02)
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10: ISRAEL ECONOMIC STATISTICS
10.1 Israel's CPI Drops Farther Than Forecast
On 15 February, Israel's Central Bureau of Statistics announced that the Consumer Prices Index (CPI) fell by 0.7% in January, a drop much larger than the 0.3% forecast by the pundits. This is the second successive month that the prices of apartments have fallen. Apartment prices fell 1% in January, after a 0.2% drop in December. The decline in apartment prices was responsible for 0.2% of the drop in January's CPI. Another major influence on the January CPI was the 10% fall in clothing prices in January, which contributed a drop of 0.25% to the overall index. Despite the rise in water tariffs, water prices fell 10% in January because of the freezing of the drought tax. The price of fresh vegetables fell 6% and prices of overseas vacations were down 1.6%. In contrast, the price of fresh fruits rose by 3%, bus fares rose by 4.5% and the price of electricity rose by 1%. Annual inflation from January 2009 to January 2010 stands at 3.8%, still above the government target for price stability of 1%-3%. (CBS15.02)
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10.2 Israel's Trade Gap Widens as Imports Increase
On 10 February, the Central Bureau of Statistics announced that Israel's trade deficit widened in January for a second consecutive month as imports of raw materials and consumer goods increased. The deficit, excluding polished diamonds, ships and aircraft, was a seasonally adjusted $841 million compared with $683million in the same month last year. In December, the trade gap widened for the first time in 13 months. (CBS10.02)
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11: In Depth
11.1 ISRAEL: IVC's Most Active Israeli Venture Capital Funds in 2009
On 15 February, IVC Research Center released results of its Survey to determine 2009's most active Israeli venture capital funds. IVC ranked Israeli venture capital funds according to the number of First investments made in 2009. The data are based on information received directly from the VC funds and from the IVC Online Database (http://www.ivc-online.com). The Survey relates to investments in Israeli and Israel-related companies and in foreign high-tech companies made by Israeli management firms. The ranking reflects the number of deals only, not capital invested.
Terra Venture Partners topped the 2009 most active funds ranking with six First investments. Second place was shared by seven funds with five first investments each: Carmel, Giza, JVP, Magma, Pitango, Sequoia and TriVentures. Genesis and Gemini followed with four investments each.
Both Terra Venture Partners and TriVentures are small VC funds, managing $25 million each. Terra Venture Partners is dedicated to investments in clean technologies. TriVentures is a new venture fund, with Medtronic Inc. as its main investor. It has therefore made a relatively large number of investments, even though it manages less capital than other Israeli VC funds. It is focused on early stage medical device companies.
In 2009, Israeli VC funds made 77 first investments in technology companies, compared to 119 investments in 2008. Of particular note is the dollar amount of the first investments, which tumbled 50% from that of the previous year. Additional details can be found in the IVC Survey for Q4/09.
According to Doron Rosenbaum, IVC's Vice President - Information, "The availability of Israeli venture capital for investment is shrinking, and local venture funds are not expected to raise significant new capital in the coming year. As a result, we expect allocations to first investments in 2010 to continue to be reduced."
In 2009, 38% of first investments (29 firms) were made in Seed stage companies, compared to 28% in 2008. JVP made the largest number of investments in seed companies with four deals. JVP owns JVP Media Studio, an incubator for seed stage companies that focuses on media related technology. Of the 26 Israeli venture capital funds which made first investments during 2009, 10 did not invest in Seed companies at all.
The decline in Israeli VC fund investment activity in 2009 is demonstrated, in part, by the fact that in 2009 top-placed Terra Venture Partners reached only six first investments, while in 2008 there were four funds with more than seven first investments each.
The software, Internet and life science sectors attracted the largest number of first investments in 2009 – each sector with 17 deals or 22% of the total number of investments. In 2008, software ranked first, with 22%, while the life sciences ranked second with 21% and Internet was third with 20%.
Six first investments were made in foreign high-tech companies in 2009, compared with 10 first investments made in 2008. Greylock Israel made two first investments in foreign companies.
IVC Research Center is Israel's leading research center providing business leaders with an unmatched wealth of data on Israeli high-tech, venture capital and private equity industries. IVC products and services are used regularly by high-tech companies, venture capital funds, private investors, financial investors and institutions, as well as public entities such as the Central Bureau of Statistics, the Bank of Israel and the Office of the Chief Scientist.
IVC owns and operates the IVC Online Database (http://www.ivc-online.com) containing over 8,000 Israeli high-tech companies, venture capital funds, investment companies, angels and technology incubators, as well as news updates and lots more. Among IVC products and publications are the IVC Quarterly Survey, which examines capital raising trends by Israeli high-tech companies, and the most comprehensive guide to Israeli high technology and venture capital – the IVC 2010 Yearbook, due April. (IVC 15.02)
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11.2 JORDAN: Value of Drug Market to Increase to $533 Million By 2014
Research and Markets (http://www.researchandmarkets.com) announced the "Jordan Pharmaceuticals and Healthcare Report Q1 2010" report. This report forecasts that the value of the Jordanian drug market will increase from around $370mn in 2008 to $533mn by 2014. This represents a compound annual growth rate (CAGR) of 6.38% in both US dollar and local currency terms. The Jordanian Association of Pharmaceutical Manufacturers and Medical Appliances (JAPM) recently announced that domestic drug producers export 75% of their products. While this is strength in many regards, it also demonstrates a key weakness of the domestic pharmaceutical industry, as the perception among patients in Jordan is that foreign-derived medicines are of superior quality. The JAPM is launching a campaign to reverse this trend, focusing on the capital, Amman, Irbid and Zarqa, which should help local companies better exploit their home market. The JAPM is also working closely with the US Agency for International Development (USAID) to make the Jordanian pharmaceutical industry more internationally competitive.
A significant step forward in boosting exports to Syria was the formation of a technical committee in September 2009, with the sole aim of removing unnecessary paperwork and optimizing current pharmaceutical trade practices. To date, pharmaceutical trade between Syria and Jordan has been restricted by shared drug registration barriers. It is claimed that the sale of Jordanian pharmaceuticals in Syria have been weaker than expected due to the lengthy registration process in Syria. It can take up to a year to register a new medicine and there is a policy of not importing a Jordanian medicine if there is an alternative product already on the Syrian market. This is particularly detrimental to Jordanian exports since the country's largest manufacturer, Hikma Pharmaceuticals, specializes in producing affordable generics. The UN Commodity Trade Statistics Database (UN Comtrade) says that in 2008, exports from Jordan to Syria reached $4.2mn, while exports from Syria to Jordan reached only $163,000. Hikma is reported to be exploring possible partnerships with Western drugmakers in the Middle East. No names or deals have been announced; however, it is thought to be likely that there will be a rise in licensing deals through Hikma next year.
The weak domestic demand for products from local companies has not been helped by the government dispute with the Jordan Pharmacists Association (JPhA) regarding sales tax on pharmaceuticals. There are around 1,800 pharmacies in Jordan of which around 600 have an annual turnover of more than $105,000 and these are subject to the 4% sales tax on medicines. While the tax is meant to encourage pharmacies to keep the prices lower in order to avoid the annual taxation limit, it also discriminates against larger stores and those patients who can only access such outlets. The JPhA opposes the sales tax, which has been in place since 2002, and proposed closing all pharmacies for four hours on July 19 2009, marking a move to more drastic action. The JPhA did not propose strike action earlier due to internal differences within the organization; however, it now seems likely that an agreement will be reached, with the government having proposed that the sales tax is imposed on suppliers and pharmaceutical companies rather than directly on pharmacies. (R&M 03.02)
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11.3 QATAR: Pharmaceutical Market Estimated at $204 Million in 2008, To Reach $385 Million in 2014
Research and Markets' (http://www.researchandmarkets.com) "Qatar Pharmaceuticals and Healthcare Report Q1 2010" covers Qatar's pharmaceuticals and healthcare industry.
In this updated Business Environment Rankings (BER) matrix for the 17 key pharmaceutical markets in the Middle East and Africa (MEA) region, Qatar remains ranked equal third. The country's high Q1/10 placement is supported by its strong intellectual property (IP) environment, highly urbanized nature, and a preference for branded and imported products which has resulted in high per-capita spending on medicines and medical services. However, some risks to the future performance of the country's pharmaceutical markets are present, in the shape of its small and predominantly young population, as well as the pending introduction of a health insurance scheme. The government may also be forced to take a less generous approach to reimbursement if oil revenues decline, especially as the recently-created Supreme Council of Health has the power to set prices for medical services and pharmaceuticals.
Nevertheless, the value of Qatar's pharmaceutical market, estimated at $204mn in 2008, should reach $385mn in 2014, growing at a compound annual growth rate (CAGR) of 10.55%. Unlike in many other global markets, the current economic downturn is not expected to result in a drastic slowdown of the value growth of pharmaceutical expenditure in Qatar, which is buffered by oil revenues. Over the course of 2009, spending on medicines is projected to increase by 14.22% year-on-year (y-o-y). However, we caution that the longer 10-year forecast for Qatar expects a deceleration of market growth, with values posting a CAGR of 7.94% between 2009 and 2019, as cost-containment pressures increase the need to introduce a more rational model for the spending of public funds. On the other hand, the changing epidemiological profile of the country will continue to require more frequent usage of longer-term and chronic diseases medicines, providing one of the key growth drivers over the coming years. In fact, according to a study by the Centre for Arab Genomic Studies reported in September 2009, Arabs have among the highest prevalence of genetic disorders on a global scale. The research identified around 200 such conditions as being prevalent among Arabs in the Gulf Co-operation Council (GCC) states alone, out of just over 900 genetic disorders reported among Arabs in total.
Around the same time, the authorities reported that a new state-of-the-art genetics centre is to be established in Qatar, as part of the joint program between local Hamad Medical Corporation (HMC) and Germanys Heidelberg University Children's Hospital. Additionally, Qatar's Weill Cornell Medical College started equipping six new laboratories, which will be used for research into diseases prevalent in the region, including cardiovascular and respiratory diseases, diabetes, obesity and neurogenetic abnormalities. The laboratories have received $19mn funding from the Qatar Foundations National Priorities Research Program, as the government continues to take a proactive stance towards public health. (R&M 03.02)
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11.4 UAE: Abu Dhabi - Tourism Upswing
Abu Dhabi's tourism sector can look to the future with optimism thanks to a growth in hotel guests, a burgeoning meetings, incentive, convention and exhibitions (MICE) segment, new hotel inventory and third-party endorsements. "Last year we achieved 2% growth in the number of hotel guests, which was great considering it was challenging year around the world," Mubarak Al Muhairi, the director-general of the Abu Dhabi Tourism Authority (ADTA), told the Oxford Business Group.
Abu Dhabi saw over 1.5m guests stay in hotels throughout 2009. Some of this growth can be attributed to the substantial number of UAE residents who decided to holiday at home – giving the hotel industry a welcomed fillip. Domestic travel in the UAE, which accounted for 42% of hotel guests, increased 26% on 2008. The global economic crisis and the spread of H1N1 are seen as the reasons for holidaymakers staying closer to home. Even so, figures for hotel guests in the final quarter grew by 16% year-on year, a sign that foreign visitors who had decided to stay at home during the crisis were once again venturing abroad.
In 2009 foreign hotel guests mostly came from the UK (96,709), US (67,804), India (61,241), Germany (59,667), Egypt (43,304), France (34,776), Saudi Arabia (30,717) and Italy (29,653).
Although ADTA admits there is plenty more work to be done, it can be proud of its record thus far. Since 2004, when Abu Dhabi's guest numbers totaled 960,000, the emirate has witnessed double-digit growth every year until 2009, when it reached over 1.5m. It is this substantial surge in visitors in recent years that made occupancy and hotel prices in the emirate very high through 2009. According to Al Muhairi, this is now changing thanks to increased capacity. "In the past, supply and demand were not normal, but this has changed. We've passed through a difficult year in which hotels were expensive. The increased capacity and reduced prices is good news for the healthy growth of the tourism industry," he told OBG.
Large-scale projects, such as the Yas Island development, which has several new hotels, helped boost inventory in 2009 and has led to a better-value environment for visitors looking for a bed. At the beginning of last year Abu Dhabi had 12,800 rooms, increasing to 17,500 at the year-end. More accommodation stock is due in 2010.
Meanwhile, previous government investment aimed at building a MICE segment – particularly via the Abu Dhabi National Exhibition Centre (ADNEC) – appears to be paying off. Even with the global economic slowdown, MICE's contribution to hotel guests continued to expand by a healthy clip last year – registering a two-percentage-point increase in market share from 8% to 10%. "Now with ADNEC, Emirates Palace and other hotels, the MICE infrastructure is huge. If you look at most surveys Abu Dhabi is second or third on the list of the most attractive places to have a meeting in the region. If you go back two of three years ago we were between ninth and 11th place," Al Muhairi said.
ADNEC is confident the experience it has garnered in recent years will see its expansion continue. Ali Saeed Bin Harmal Al Dhaheri, managing director of ADNEC, told OBG, "In 2005 ADNEC hosted 14 events and in 2010 we expect to hold over 100. This growth is expected to continue in line with the ongoing development of Abu Dhabi."
At the same time, the capital is focusing on developing the leisure segment further. ADTA said it has been successful in building projects that will make the emirate more attractive for holidaymakers. "The leisure segment is all about the product and if you don't have that then it is difficult," said Al Muhairi. "Now with Abu Dhabi's increased connectivity, thanks to Etihad Airways, and the new products – golf courses, theme parks and resorts – it has improved the attractiveness for that segment."
Abu Dhabi also wants to become a cultural centre within the region. Its $27bn Saadiyat Island project, which will house some of the world's most famous museums, such as the Louvre Abu Dhabi and the Guggenheim museum project, is the cornerstone of its strategy. In March 2007 Abu Dhabi and France began discussing a 30-year cultural agreement to establish such initiatives. The subsequent agreement allowed the Musee du Louvre and other major French institutions, such as the Musee du Quai Branly, Centre Georges Pompidou, Musee d'Orsay, Versailles, Guimet and Rodin to provide long-term loans from their collections to the capital.
It appears such additions led by the tourism body are beginning to work. Last year the emirate enjoyed influential third-party endorsements as a leisure destination. The "top ten places to visit in 2010" recommendations from leading travel guides Lonely Planet and Frommer's both included Abu Dhabi. Such endorsements are a welcome shot in the arm for ADTA, which is now targeting 1.65m hotel guests for 2010 – a 10% rise on last year. (OBG11.02)
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11.5 OMAN: Tourism Report for First Quarter of 2010
Research and Markets (http://www.researchandmarkets.com) has announced the addition of the "Oman Tourism Report Q1 2010" report to their offering.
Omani tourism currently relies on visitors, to the south west coast, many of them from other Gulf countries. The authorities believe that Salalah, which has a much more temperate climate than most other cities within the Gulf Cooperation Council (GCC), is the key to attracting tourists to this once completely closed state. This area catches the Indian Ocean monsoon between June and September. While most of the Gulf region suffers from extreme dry heat during that time, the Dhofar province has a cool and misty summer, although travelers from outside the Gulf may not see the attraction of a cool, damp 25C summer holiday.
Although still a tiny industry there, tourism is being heavily promoted and, according to a study by Standard Chartered in August 2009, the country's tourism industry has shown resilience during the global slowdown and flu pandemic. According to the report, the number of tourist arrivals over the first five months of 2009 rose by 17.5% year-on-year (y-o-y) and revenues rose by 3.9%. Unlike other GCC states, Oman has relatively minor oil and gas reserves and so has needed to find other sources of revenue. The most recent initiative is a regional one: Iran and Oman have agreed to promote tourism between the two countries and undertake joint promotions to third countries. Oman's image has been helped by the completion of two new major projects, The Wave and The Muscat Hills Golf & Country Club, and by another vote of confidence in the sector, when Swiss-Belhotel International signed a memorandum of understanding to build a four-star business hotel in Al Khuwair in Muscat in August 2009.
Oman plans to attract 12 million visitors annually by 2020, an almost six-fold increase on the current level. The focus of discussion is how this can be achieved while maintaining the authentic character of the country. The director of sales and marketing at the Chedi Hotel in Muscat, Lore Koenig, said that tourists come to Oman for its culture and history, not because there is a cheap deal going or for guaranteed sunshine.
Political Risk: July 23 2009 was the 39th anniversary of Sultan Qaboos accession to the throne, an occasion known as Renaissance Day. The Omani media celebrated with a predictable series of tributes and glowing praise about the sultan's achievements in turning Oman into a modern nation. Generally speaking, Qaboos appears to be fairly popular and there is scant evidence of opposition or dissent. Qaboos is 69 years old, so this situation should continue over the coming years, although his sudden incapacitation would pose a risk. He has not named a successor publicly, but his preference has reportedly been stated in a sealed letter which is to be opened in the event of his death.
Economic Risk: Bolstered by an expansionary spending policy, Oman is looking to mitigate the sharp drop in crude oil revenues experienced in H1/09 with the addition of an injection of state investment in order to underpin flagging private-sector economic activity. The 13% real GDP growth in 2008 will clearly not be matched, but Oman should still manage positive real GDP growth of 0.4% in 2009 (upwardly revised on the back of 2008 data and the uptick in oil prices), rising to a respectable 2.5% in 2010.
Business Environment: The Oman Tender Board has allocated tenders for contracts worth $139.8mn in the areas of transport and energy. The largest single tender includes construction of a power plant worth $29.4mn, which will serve the Yitti region in the Muscat governorate. Other tenders include designing and construction of internal roads in the Al Sharqiya region at the cost of $23.3mn. Although government involvement in projects is on the low by GCC standards 33%, compared with an average regional figure of over 60% from the Kuwait Finance House, we expect the public sectors role to increase as financing remains hard to come by. This could be negative for the business environment. (R&D 15.02)
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11.6 SAUDI ARABIA: Growth Signals
As the Gulf Cooperation Council's biggest economy closes the books on 2009, it may well be remembered as a year of caution and mixed fortunes. While the Oxford Business Group observed that economic growth was positive and inflation fell, lower oil prices caused the state budget to drift into deficit territory. Nevertheless, with the government clearly committed to supporting the economy through stimulatory spending, higher growth is already expected in 2010. Saudi Arabia's GDP grew by 0.15% in 2009, while inflation fell drastically to 4.4% from 9.9% in 2008, according to preliminary figures released by the Ministry of Finance. "The Saudi economy and monetary system remained solid throughout 2009," Saleh Nasser Al Sorayai, the managing director of Al Sorayai Group, told OBG.
Oil sector performance was significantly affected by the global fall in prices, causing nominal GDP to fall 22.3% to SR1.38trn ($368bn). However, "All non-oil economic sectors have achieved positive growth during 2009," the minister of finance, Ibrahim Al Assaf, said in a recent statement. According to Al Assaf, non-oil sector growth stood at 3%, composed of public and private sector growth at 4% and 2.5%, respectively. The private sector's overall contribution to the economy increased to 47.8% of GDP, from 46% in 2008.
GDP growth is expected to be more substantial in 2010. According to Global Investment House's "Saudi Arabia Investment Strategy 2010" report, the Kingdom's economy will expand by 3% on the expected recovery in the global economy, growth in international oil demand and a pickup in domestic private consumption.
The best-performing sector in the country last year was transport and communications, which grew by 6%, followed by construction and electricity (3.9%), and the gas and water sector (3.4%). The industrial sector was up 2.2% as local demand remained strong. "For most industrial companies, there was no difference in local sales and growth from previous years, although exports were affected," Al Sorayai commented. The wholesale, retail, restaurants and hotels sector grew by 2%, while finance, insurance and real estate expanded 1.8%.
The year 2009 also saw the first budget deficit in Saudi Arabia since 2002, with a SR45bn ($12bn) shortfall on SR505bn ($134.7bn) in revenues and SR550bn ($146.7bn) in expenditures. The deficit was smaller than the SR65bn ($17.3bn) anticipated by the government at the start of the year, due to increasing oil prices in the latter months of 2009 and ramped up government spending to stimulate the economy. The 2010 budget, released in December, forecasts a SR70bn ($18.7bn) deficit based on expected state revenues of SR470bn ($125.3bn) and record-high budgeted state expenditures of SR540bn ($144.0bn). With the announcement of the budget, the government has signaled to both domestic and foreign market watchers that it intends to continue spending to stimulate economic growth.
The Kingdom's capital markets ended the year well, although there were signs of hesitation among investors. According to the Saudi Stock Exchange Annual Report, the Tadawul All Share Index (TASI) closed up 27.5% for the year and total market capitalization rose by 29.3%. However, the major indicators of market participation fell significantly, with the total number of shares traded down by 5.7%, while the number of transactions executed fell by 30.1%. The drop in volume of trades can be attributed to the fact that around 90% of TASI volume is made up of retail investors, who had a tougher year financially, and were consequently forced to direct their funds elsewhere or chose to limit trading.
The country's capital markets welcomed 11 initial public offerings (IPOs) in 2009, including the National Petrochemical Company of Saudi Arabia, also known as Petrochem, which was the year's biggest initial listing. Of the 11 new issues, 7 were insurance companies who had to list publicly in order to comply with Saudi Arabian Monetary Agency regulations governing insurance operators in the Kingdom. By the end of the year, two of the seven, Gulf General Cooperative Insurance Company and Buruj Cooperative Insurance Company, had not yet been listed, bringing the total number of companies listed and traded on the market to 135.
Only a month in, 2010 is already looking more promising for IPO activity. Local fast food chain Herfy Food Services kicked off the IPO season in January with a SR413.1m ($110.2m) initial offering. The next firm in the IPO queue is floor-covering manufacturer Alsorayai Trading and Industrial Group, which is set to raise SR243m ($64.8m) from 30% of the company's capital being offered from February 1-7. The CMA also announced that the two aforementioned insurance companies will enter the market in the upcoming month. Shares of Gulf General Cooperative Insurance Company and Buruj Cooperative Insurance Company will be listed, with trading to begin on February 8 and 15, respectively, marking a busy start to the year for the Saudi capital markets.
After a year of mixed economic signals and caution on the part of investors, Saudi Arabia is beginning the new year on a positive note. While some repercussions from the tail end of the global crisis are likely to continue to be felt, the government and business community are forging ahead with plans and strategies to secure future growth and development. (OBG05.02)
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11.7 EGYPT: Pharmaceutical Pricing
Already the Middle East and North Africa (MENA's) largest pharmaceutical producer, Egypt is looking to further solidify its stronghold by increasing investment in the sector and expanding production capacity. Much of the extra medicine will go to foreign markets, says the Oxford Business Group, despite a potential health crisis at home as the government introduces a new drug-pricing regime.
Pharmaceutical production surged in 2009, reaching $640.2m at year's end where the industry had only expected $182.9m. In January 2010, the Ministry of Investment announced plans to build 76 new pharmaceutical plants, bringing the national total to 180, in order to help meet its target of $1bn in exports by 2015.
Only five years ago, the country was exporting $152m in pharmaceuticals annually, according to Osama El Saady, the head of the Export Council for Medical Industries. That figure had increased by 10 - 20% annually on average, except for 2009, when it receded 15% due to the global recession. Egypt currently has roughly a 30% share of the pharmaceuticals supply to the MENA market, according to the American Chamber of Commerce in Egypt.
The recent upturn in production can be partially attributed to Egypt's new streamlined registration procedure for pharmaceuticals, which had been recommended by the World Health Organization. New products, which once took several years to register, can now be on the market much faster. Ultimately, the government aims to shorten the process to a year. The sector has also been a big investment draw in recent years, receiving $121.8m since FY 2007/08. The government's latest push for expansion will require an additional $237.7m to build new factories and upgrade existing ones.
Egypt's export-oriented strategy looks like a profitable gambit: the pharmaceuticals industry of the Middle East is worth $21bn, according to the American Chamber of Commerce in Egypt. Pharmaceutical giants GlaxoSmithKline, Novartis and Pfizer all operate factories in Egypt, sending their products to the MENA markets as well as India and Eastern Europe. In December 2009, Egypt International Pharmaceutical Industries Co (EIPICO), the leading domestic drug producer, announced plans to bring the export share of its drug production from 20% to 35% by 2015. A 30,000-sq-metre drug facility to be launched in mid-2010 will help reach this goal, with most of the new drug production bound for foreign markets.
In the domestic market, pharmaceuticals had long been subject to price controls, until September 2009, when the government introduced a new drug pricing system to be phased in by 2020. Replacing the cost-plus system, by which buyers paid wholesale prices for generics with a slight mark-up, the new regime links prices to a reference group of 36 countries and to the original drug a generic is based on.
As 68% of Egyptian health care spending is out of pocket, the new pricing regime has drawn some protest from patient's rights groups, such as the Egyptian Initiative for Personal Rights (EIPR), which charge that the government colluded with multinationals to raise prices to unrealistic international levels. For example, according to the EIPR, a tablet of the heart medication Plavix now costs $2.19 and its generic version only $0.35. Under the new system, the generic will cost $1.31.
However, others believe that this measure is essential to freeing up the pharmaceutical market in Egypt, and that companies will focus more on supplying drugs within the country if they have higher returns. Under the previous regime, many suppliers went through a lengthy process of product registration only to find that their medicine would be priced unacceptably low. Critics of the regime ask where the money for higher-priced drugs is going is going to come from, when the country's average per-capita income is just $1,800.
Egypt's pharmaceutical sector has made great strides towards becoming a leading regional exporter, but the same growth has not been mirrored in the domestic market. As pharmaceutical producers are not NGOs and will focus on selling where they can turn more profit, a further restructuring of the price regime may be needed to ensure that Egypt's population receives the medication it needs. (OBG15.02)
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11.8 LIBYA: Politics - Saif Cracking?
The political fortunes of Saif al-Islam al-Qadhafi, the second son and heir-presumptive of the veteran Libyan leader, have continued to ebb and flow. After playing a pivotal role in Libya's post-Lockerbie rehabilitation, Saif announced in 2008 that he was quitting politics. However, towards the end of last year he was appointed to a position giving him extensive powers over domestic political affairs. It now seems either that he is reluctant to take up this post, or that other interests are blocking his ascent.
Following a speech given by Colonel Muammar al-Qadhafi to leading members of the GPC (General People's Congress) in October - in which he requested that his son be found an official political position that is not limited to a four-year term and enables him to implement his reform program - the Popular Social Command of Libya, a powerful grouping of regional and tribal leaders, announced that Saif had been appointed as its general coordinator. The position encompasses many of the powers of a head of state with authority over both parliament and the rest of government. However, Saif has not yet taken up the post and the subject has not been discussed by the GPC, which has prompted speculation that either he has decided he does not want a political role or there is resistance from within the government to him taking on the position. Asharq Alawsat, a London-based Arabic newspaper, quoted sources that it said were close to Saif as saying that he did not envisage taking up a formal political post in the foreseeable future.
Saif Qadhafi is seen as a strong supporter of economic and political reform and his appointment to a high-ranking political position had been seen as a positive sign for the country's development. However, there remains a powerful grouping of conservatives within the Libyan regime who have vested interests in maintaining a status quo in the way that the country operates. A formal political position for Saif is therefore likely to meet with strong resistance. A clear indication of this resistance was given in January when two Libyan newspapers, Oea and Quryna, which are both owned by the Al Ghad Foundation, which is owned by Saif, were forced to suspend publication, although they will continue to be published online. The papers have written about official corruption and demanded reform. Control of a television station, Al Libia, also owned by the Al Ghad Foundation was taken by the government in June last year.
Biding his time?
Saif Qadhafi may also be taking his time before taking up the general coordinator post in order to consolidate his position. Given that Colonel Qadhafi himself has sanctioned and requested a position for his son at the top of the political hierarchy, the eventual appointment of Saif Qadhafi may be inevitable and he may be waiting to ensure that he takes on the position with the widest base of support possible, using the current interlude to seek the approval of powerful members within the regime. He is already thought to have the support of the foreign minister and former intelligence and security chief, Mousa Kousa, who is a key member of the Libyan apparatus. Opponents of reform are thought to include the assistant secretary of the GPC, Ahmed Mohammed Ibrahim, and, to a lesser extent, the labor minister, Matuk Matuk, as well as senior members of the Revolutionary Committees.
Rather than accept a position under the current political structure in Libya, which is highly unorthodox and has little provision for checks and balances on the ultimate executive authorities, it could be preferable for Said to continue to press for constitutional reforms. That way he might stand a better chance of creating a legitimate basis for his eventual succession. (Viewswire 09.02)
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11.9 GREECE: Europe's Lehman Brothers Brussels Intervenes to Slow Greece's Plunge
Der Spiegel (http://www.spiegel.de) writes that Europe is losing its patience with Greece and has ordered a strict fiscal austerity program for the euro zone member. Monetary Affairs Commissioner Almunia is also demanding frequent reporting from Athens. But the response isn't enough - Greece is in deep trouble and the threat to the euro is too great not to act.
The European Union took steps Wednesday to rein in the fiscal chaos that has brought Athens to the brink of financial disaster in recent months. Leaders of EU member states agreed at a summit in December that Athens should be left to its own devices to deal with its deficit crisis, but the European Commission moved this week to intervene to fix Greece's fiscal mess out of fear it could spiral into a systemic crisis for the euro.
European Economic and Monetary Affairs Commissioner Joaquin Almunia is seeking to portray himself as the tough sheriff. Indeed, he announced Wednesday that Brussels would take the historically unprecedented step of strictly monitoring Greek government spending. But his real message is this: We're not going to abandon you. The markets also understood the message with the euro exchange rate against the dollar ticking upwards after the announcement.
Almunia has sketched out an austere fiscal regime that Greece will have to adhere to in the coming months. It includes immediate budget cuts in all areas and progress reports that must be sent to Brussels every few months. The first is already due on March 16. That should please Europe's fiscal hardliners, particularly Germany's conservatives.
At the same time, Almunia hasn't imposed any sanctions against Greece and he has also extended by two years the deadline for Greece to bring its budget within the euro zone deficit spending limit of 3% of gross domestic product. Currently, deficit spending in Greece is at 13%, more than four times the limit stipulated by the stability provisions in the Maastricht Treaty for countries that share Europe's common currency, the euro.
Although the extended date may be closer to reality, it is still an illusion. If a country as economically strong as Great Britain only plans to halve its deficit spending from a current 12.6% to 6% in four years, then how will a perpetual problem country like Greece pull off a miracle and reduce its equally massive deficit spending in an even shorter period of time to 3%?
Europe Fear's Lehman Brothers Knock-On Effects
But hope is the lifeblood of Europe's common currency, and Almunia's primary goal is to stop euro speculation on the financial markets. The commissioner said that the EU has sufficient instruments at its disposal to solve Greece's problems. He didn't provide any concrete details, but his words were sufficient to give the markets the illusion they apparently needed. The possible tools available to the EU include loans to Greece right up to a common Eurobond, which would see other countries backing a Greek bond. In the worst case scenario, the International Monetary Fund could also provide credit - but that's a disgrace Europe would prefer to avoid.
So far, every form of EU aid has been rejected in Brussels out of principle. The thinking has been that governments that live beyond their means should not be rewarded for their behavior. But the case of Lehman Brothers shows that sticking to principle, while tempting in theory, doesn't always work well in practice. It appears the European Commission has come to the conclusion that Greece is Europe's own version of Lehman - it is simply too big to fail. It was the Lehman Brothers collapse in fall 2008 that fueled the global financial crisis.
Economically, of course, Greece is a dwarf, producing a meager 3% of the EU's economic output. But a bankruptcy could have the same kind of knock-on effects as the bankruptcy of a major US investment bank. One couldn't rule out a domino effect in Spain, Portugal and Italy. US economist Nouriel Roubini pessimistically wrote of "Europe's sinking south." It's an experiment the EU cannot afford.
Further Aid in Sight
Indeed, it is unlikely that intense EU surveillance of Greek finances, as announced by Almunia, will be the last of the measures imposed. Brussels cannot simply decree an immediate shrinking of the deficit below the 3% threshold. Greece's problems are deep and it will take time to solve them. No European country would be able to do what is being asked of Greece: a complete reform of its health and pension systems and the streamlining of its economy within just a few years.
It remains to be seen whether the Greek population will go along with the tough measures announced by Prime Minister Giorgos Papandreou in a television address on 2 February. The first step foresees the cutting of salaries in the public sector by 4 to 6%. The budgets of all ministries are to be slashed by 10% and the retirement age raised. Taxes on fuel, tobacco and alcohol will also rise.
Even Ireland, which ran into serious problems of its own last year, was better off. Public salaries there were cut by a whopping 20%, but civil servants in Ireland were among the best paid in Europe. Furthermore, the country had already made fundamental changes to its economy by focusing heavily on the service sector - changes that Greece has yet to address.
A Herculean Task for Europa
Brussels now faces the question as to how much reform Greece can take before social unrest becomes widespread. The first strikes have already begun. No matter how necessary far-reaching reform may be, it can hardly be pushed through against the will of the population - meaning that the Greek tragedy could dog the euro-zone for years to come.
Much of the fault for the current predicament can, of course, be found in Athens. After all, Greece massively manipulated its books in 2001 to be admitted into the euro zone. But the rest of the countries belonging to Europe's single currency looked the other way for far too long, preferring instead to ignore the problem. In Greece, it is said that it will take a Hercules to fix the country's finances. But perhaps another character from Greek mythology will be able to do the job: Europa. (Der Spiegel 04.02)
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11.10 GREECE: Debt Crisis - How Goldman Sachs Helped Greece to Mask its True Debt
Mr. Beat Balzli wrote in Der Spiegel (http://www.spiegel.de) that Goldman Sachs helped the Greek government to mask the true extent of its deficit with the help of a derivatives deal that legally circumvented the EU Maastricht deficit rules. At some point the so-called cross currency swaps will mature, and swell the country's already bloated deficit.
Greeks aren't very welcome in the Rue Alphones Weicker in Luxembourg. It's home to Eurostat, the European Union's statistical office. The number crunchers there are deeply annoyed with Athens. Investigative reports state that important data "cannot be confirmed" or has been requested but "not received." Creative accounting took priority when it came to totting up government debt. Since 1999, the Maastricht rules threaten to slap hefty fines on euro member countries that exceed the budget deficit limit of 3% of gross domestic product. Total government debt mustn't exceed 60%.
The Greeks have never managed to stick to the 60% debt limit, and they only adhered to the 3% deficit ceiling with the help of blatant balance sheet cosmetics. One time, gigantic military expenditures were left out, and another time billions in hospital debt. After recalculating the figures, the experts at Eurostat consistently came up with the same results: In truth, the deficit each year has been far greater than the 3% limit. In 2009, it exploded to over 12%.
Now, though, it looks like the Greek figure jugglers have been even more brazen than was previously thought. "Around 2002 in particular, various investment banks offered complex financial products with which governments could push part of their liabilities into the future," one insider recalled, adding that Mediterranean countries had snapped up such products. Greece's debt managers agreed a huge deal with the savvy bankers of US investment bank Goldman Sachs at the start of 2002. The deal involved so-called cross-currency swaps in which government debt issued in dollars and yen was swapped for euro debt for a certain period - to be exchanged back into the original currencies at a later date.
Fictional Exchange Rates
Such transactions are part of normal government refinancing. Europe's governments obtain funds from investors around the world by issuing bonds in yen, dollar or Swiss francs. But they need euros to pay their daily bills. Years later the bonds are repaid in the original foreign denominations.
But in the Greek case the US bankers devised a special kind of swap with fictional exchange rates. That enabled Greece to receive a far higher sum than the actual euro market value of 10 billion dollars or yen. In that way Goldman Sachs secretly arranged additional credit of up to $1 billion for the Greeks.
This credit disguised as a swap didn't show up in the Greek debt statistics. Eurostat's reporting rules don't comprehensively record transactions involving financial derivatives. "The Maastricht rules can be circumvented quite legally through swaps," says a German derivatives dealer.
In previous years, Italy used a similar trick to mask its true debt with the help of a different US bank. In 2002 the Greek deficit amounted to 1.2% of GDP. After Eurostat reviewed the data in September 2004, the ratio had to be revised up to 3.7%. According to today's records, it stands at 5.2%.
At some point Greece will have to pay up for its swap transactions, and that will impact its deficit. The bond maturities range between 10 and 15 years. Goldman Sachs charged a hefty commission for the deal and sold the swaps on to a Greek bank in 2005. The bank declined to comment on the controversial deal. The Greek Finance Ministry did not respond to a written request for comment. (Der Spiegel 08.02)
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11.11 GREECE: The World from Berlin - 'Lies, Damned Lies and Greek Statistics'
On 15 February, European Union finance ministers accepted Greece's austerity package, aimed at radically shrinking its budget deficit by the end of the year. But Der Spiegel (http://www.spiegel.de) maintains that many would like to see Athens do more. German commentators doubt whether the correct strategy has been found. European finance ministers, meeting in Brussels on 15/16 February have rubber-stamped a package of deep budget cuts and strict savings measures proposed by Greece in an effort to slash its budget deficit from its current level of 12.7% of GDP to 8.7% by 2011.
Nevertheless, the agreement has done little to quell the ongoing debate in the European Union as to how best to deal with Greece and the dangers the country is posing to the common European currency, the euro. In a 16 February interview with German radio, Luxembourg Prime Minister Jean-Claude Juncker, who heads the Eurogroup - a body made up of finance ministers from countries in the euro zone - said that the EU will impose further savings measures on Greece should the country fail to meet its budget deficit reduction targets.
Others, though, were more pointed in their comments about Greece's savings package. Swedish Finance Minister Anders Borg demanded stricter measures, saying that "if (Greece) wants to build credibility in the market, they must surpass expectations and they have not done that so far." Borg also called for a greater surveillance role for the International Monetary Fund in Athens -- an idea rejected by Juncker. Juncker called the proposal "absurd" and said it was "fuelled by Anglo-Saxon voices."
Restless Populations
Greece had been hoping that the meeting would provide details of the safety net lately agreed upon by European Union leaders. So far, though, the EU has declined to outline exactly how it proposes to help should Greece prove unable to withstand speculators currently zeroing in on the country's weak finances. Greek finances have been placed under strict EU surveillance with a progress report due next month. Greece's public debt has ballooned in the last year and now stands at €300 billion, or 113% of GDP.
Just how aggressively the country will be able to pay down that debt, however, remains to be seen. A number of unions in Greece have called for strikes to protest the austerity measures announced by Athens.
Many countries in the European Union, though, are likewise facing restless populations, unimpressed with the apparent need to bail out Greece. The news that Athens worked together with American investment banks to hide state debt from the European Union has further angered Europeans.
Germany's financial daily Handelsblatt wrote that "the debt crisis has developed a dangerous dynamic. Austerity measures have become the favored strategy for confronting threatening mountains of debt. It seems to have been forgotten, however, that savings is not a cure-all - the economy must find its way back onto the path of growth. It wasn't all that long ago that politicians and economists were searching desperately for a strategy to scale back the state's role in the economy without disrupting fragile growth. This careful exit strategy, however, has now given way to mindless panic: Get out and save, is the new motto."
The Financial Times Deutschland wrote that "the European common currency zone was not created to guarantee peace in Europe, despite what former German Chancellor Helmut Kohl liked to tell his citizenry. Rather, it was designed to insulate industry and trade from the unpredictable ups and downs of international currency markets. How should German automakers find success in the Italian, Spanish and French markets when they were constantly confronted with the drastic devaluation of the lira, peseta and franc? Without a currency union, it would have been impossible. But a common currency among countries that follow radically different economic policies cannot go well. That was clear even to Kohl and his Finance Minister Theo Waigel."
"They devised the trick of placing euro zone countries in shackles. Governments were required to strictly limit their influence over the economy and a public debt ceiling was mandated.... In addition, economic policies were aligned.... But the real economies of euro zone countries have drifted apart. The actual purpose of the euro - the creation of an economic and currency zone insulated from the vagaries of the financial markets - was counteracted." (Der Spiegel 16.02)
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11.12 GREECE: Greek Milk Production Should Increase Slightly In 2010
Research and Markets (http://www.researchandmarkets.com) has announced the addition of the "Greece Agribusiness Report Q1 2010" report to their offering.
More so than most other European nations, swathes of Greek agriculture have changed little for hundreds of years. Livestock and dairy farming are highly fragmented, with small farmers still responsible for a large portion of production. The country is home to a large number of Controlled Denomination of Origin (DOC) products, particularly cheeses, and larger producers are having increasing success selling them in export markets. Greek consumption patterns are changing, too. Convenience products and health are increasingly factoring in to Greek consumer choices. These issues and others are examined in detail in BMI's Greek Agribusiness Report, Q110.
BMI expects Greek dairy production to experience mixed growth over our forecast period, with cheese leading the way. We estimate cheese production in 2009 to have reached 214,000 tonnes. This is set to experience dramatic growth over our forecast period, rising 35% to hit 289,000 tonnes in 2014. We believe this growth will be driven by increasing incomes as well as export demand, as foreign markets take more interest in the country's large range of Controlled Denomination of Origin (DOC) cheeses. In contrast to other EU countries, Greece produces a large number of cheeses from goat and sheep's milk, rather than cow's milk. As well as the well-known feta, these include Anthotiros, Graviera and Manouri. Growing interest in exotic foods in the EU markets and the US will boost demand for these products. Milk production should increase slightly in 2010, up to 2.08mn tonnes. Over our forecast period, production should head up to 2.15mn tonnes in 2014 as yields increase. Average yield increased from 179.3 kilograms per animal in 2000-2003 to 180.4kg/animal in 2004-2007, a trend which is likely to continue. In addition, until now Greece has produced less than its EU milk quota, but the gradual 1% increase in quota until abolition of the quota system in 2015 might spur a slight production increase.
As in many other EU markets, we forecast strong poultry growth over our forecast period, as tightening incomes as well as health concerns boost demand. We estimate poultry production for 2009 at 180,000 tonnes. This is set to rise by almost a fifth, increasing by 19.4% to reach 216,000 tonnes in 2014. Production of both pork and beef is on the decline. Unless there is increased investment in the sector, BMI expects pork production to fall from this year's 114,000 tonnes to 90,000 tonnes in 2014, a drop of 20.56% over the forecast period. Meanwhile, the Greek climate and terrain is not the most suitable for raising cattle. Since 2006, beef production has been falling as imports from more efficient producers within the EU are increasingly preferred by consumers. In 2009 we estimate production sank to 56,600 tonnes and will contract by 2.43% to 55,200 tonnes by 2014. (R&M 03.02)
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