TOP STORIES

• Wisconsin Governor Doyle Leads Trade Mission to Israel
• Hardee's Opens First Restaurant in Pakistan & Expands into Yemen
• Innovative Technology From Phoebus Energy is Greening Jerusalem
• Ten Companies to Compete in Egypt Wind Farm Bid
• Sol-Gel's IND Application for Rosacea Accepted by FDA
• SAUDI ARABIA: Retail Report for 2009's Fourth Quarter
  

TABLE OF CONTENTS:

1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS

1.1 Gov. Fischer Says Israel Has Too Much Foreign Currency
1.2 Bank Of Israel Raises Interest Rate Again

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2: ISRAEL MARKET & BUSINESS NEWS

2.1 Wisconsin Governor Doyle Leads Trade Mission to Israel
2.2 JVP & Giza Announce A-Round Investment in Early-Stage Startup XtremIO
2.3 Canada's Trade Minister Explores Opportunities in Israel
2.4 BluePhoenix Expands Product Portfolio to Knowledge Management Modernization
2.5 Camtek Announces Closing of the Acquisition of SELA - Semiconductor Engineering Laboratories
2.6 Panoramic Power Wins Qualcomm Ventures QPrize Business Plan Competition
2.7 ClickSoftware Announces Closing of AiPoint Assets Acquisition
2.8 Large Israeli Supermarket Chains Lose Market Share
2.9 Milk Most Sold Product in Israel
2.10 NICE to Acquire Orsus, a Leading Provider of Security Management Software Solutions
2.11 Canada's Bontan Moves into Israel

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3: REGIONAL PRIVATE SECTOR NEWS

3.1 Middle East Business Jets Market Has Its Cash Registers Ringing
3.2 Experts See Considerable Jordanian Demand for Hybrid Cars
3.3 Three Arab Nations Purchase Raytheon AMRAAM
3.4 GMT Chosen by the National Bank of Kuwait for Branch Workforce Optimization
3.5 Qatar Cuts VW Stake
3.6 UAE Firm to Lease Farmland in Iraq
3.7 IBM & KACST Unveil Research Pact to Advance Machine Translation Technology & IP Development
3.8 Hardee's Opens First Restaurant in Pakistan & Expands into Yemen
3.9 Greek Service Sector of Tourist - Travel Agencies Rising
3.10 Greek Juice & Soft Drinks Sector is Highly Concentrated & Controlled by a Few, Large Businesses
3.11 US State Ohio Seeks To Attract Bulgarian Investments

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4: CLEAN TECH & ENVIRONMENTAL DEVELOPMENTS

4.1 Ecologic Transportation Signs with Ecologic Car Rentals & Ray Motor for Joint Venture Ecologic Israel
4.2 California & Israel to Cooperate on Renewable Energy
4.3 Innovative Technology From Phoebus Energy is Greening Jerusalem
4.4 Minrav Wins Ashdod Desalination Plant Tender

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5: ARAB STATE & PAKISTANI DEVELOPMENTS

5.1 Jordan's Budget Deficit Climbs To 78% As Spending Increases
5.2 Jordan & Australia Sign Nuclear Deal
5.3 GCC Population Seen Growing To 53 Million By 2020
5.4 S&P Assigns 'AA-' Rating to Qatar's $7 Billion Global Bond Issue
5.5 Qatar House Prices Set To Fall 15% Next Year
5.6 UAE Healthcare Sector Forecast to 2012
5.7 UAE Tops Ranking in MENA Retail Report
5.8 Abu Dhabi Inflation Falls To 20-Year Low
5.9 UAE Civil Building Construction Market Has Ongoing Projects Worth $657 Billion
5.10 Saudi Inflation Slows To 3.5%
5.11 Saudi Arabia Grants Pakistan $380 Million Loan
5.12 Ten Companies to Compete in Egypt Wind Farm Bid
5.13 IMF Mission Statement on the 2009 Article IV Consultation with Morocco
5.14 Outlook for Pharmaceuticals in Pakistan

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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS

6.1 Blockage of EU Environment Chapter Angers Turkey
6.2 Turkey Starts Over As Nuclear Power Plant Tender Scrapped
6.3 Turkish Jobless Rate Surges to 13.4%
6.4 Cyprus Recession Deepens in Third Quarter
6.5 Cyprus Tourism Tumbles 14% in October
6.6 Eurozone Concerned About Greece
6.7 Greek Incoming Tourism Falls By 8% - Outlook Bleak
6.8 Greece's Domestic Computer Market
6.9 Bulgaria Firm on Plans for Euro Adoption in 2013
6.10 Bulgaria Forms Natural Gas Supplies JV With Azerbaijan
6.11 Bulgaria Parliament Passes 2010 State Budget Without Debate
6.12 TI Corruption Perceptions Index: Bulgaria Is Less Corrupt In 2009

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7: GENERAL NEWS AND INTEREST

*ISRAEL:

7.1 Eid Al-Adha - Feast of the Sacrifice to Begin on 27 November
7.2 9/11 Monument Dedicated in Jerusalem

*REGIONAL:

7.3 King Abdullah Dissolves Parliament and Calls Election
7.4 Egyptian Riot Over Algeria's Soccer Win

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8: ISRAEL LIFE SCIENCE NEWS

8.1 Yissum Introduces a Novel Method for Preventing and Affecting Biofilm of Bacteria and Fungi
8.2 Sol-Gel's IND Application for Rosacea Accepted by FDA
8.3 Non-Invasive Uterine Fibroid Treatment with ExAblate Shows Significantly Fewer Complications
8.4 Nicast Announces Plans to Launch the NovaMesh Intra-Abdominal Hernia Mesh
8.5 BrainStorm Stem Cell Therapy Technology Promising for Future Treatment of Multiple Sclerosis
8.6 New Era in Cattle Feeding: Lachish Industries Launches the Mixellent
8.7 Syngenta & Makhteshim Agan Announce Supply Agreement

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9: ISRAEL PRODUCT & TECHNOLOGY NEWS

9.1 VocalTec & Runcom Offer Integrated WiMAX and VoIP Solutions
9.2 Italtel & ECI Telecom Partnership Supplies Advanced Telecom Solutions for Service Providers
9.3 Alvarion Chosen by Adam Internet to Deploy WiMAX Project in South Australia
9.4 InnerSense New Diagnostics for High Volume Semiconductor Manufacturing Environment
9.5 Mellanox Announces World's Fastest Switch Systems
9.6 Mellanox CORE-Direct is Most Advanced Application Offloading Technology
9.7 Security Market Giant Ramps up Its Business with Silicom's 10GB Fiber Adapter
9.8 InfoGin & NexM Communications Partner to Power the NTT Resonant "goo" Portal on Mobile

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10: ISRAEL ECONOMIC STATISTICS

10.1 Israel's CPI Rises By 0.2% in October
10.2 Israel's GDP Grows for Second Consecutive Quarter
10.3 Israel's Corruption Perception Rating Improves in 2009

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11: In Depth

11.1 LEBANON: Political Relief
11.2 KUWAIT: Retail Report for 2009's Fourth Quarter
11.3 BAHRAIN: Pharmaceuticals & Healthcare Report Q4/2009
11.4 QATAR: Transport Takeoff
11.5 OMAN: Internet Boost
11.6 SAUDI ARABIA: Retail Report for 2009's Fourth Quarter
11.7 EGYPT: The Political Edge of Labor Protests
11.8 MOROCCO: Fishing Expansion
11.9 MOROCCO: Obstacles to a New Press Code
11.10 TURKEY: Retail Sales Predicted to Grow to $301 Billion by 2013

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1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS

1.1 Gov. Fischer Says Israel Has Too Much Foreign Currency

On 16 November, Governor of the Bank of Israel Prof. Stanley said that "the economic situation is good, but not great." He made the remarks at a meeting of the Prime Minister's Office. "We've successfully made it through the economic crisis, possibly with the least damage among Western countries, but we didn't escape unscathed. Unemployment is high at 8%, and growth needs to continue because the pace is not yet enough. It's rare for us to be able to grow without global economic growth." Fischer added that the recovery by Israeli exports was faster than the recovery in imports, and that this was significant. He also pointed to the impressive recovery by the high-tech industry. He said that Israel had become a country with a built-in surplus in its current accounts, with more foreign currency coming in than going out. "We have too much foreign currency, which is causing appreciation that doesn't please everyone. So we're pleased that we have strong current accounts, but we're not so pleased about the repercussion of the strong current accounts. This surplus is affecting the exchange rate and causes problems to people trying to export," he said. Fischer continued, "Israelis look only at the shekel-dollar exchange rate, and only that. But we export more to Europe than the US, and it's important at the shekel's exchange rate with the basket of currencies of our trading partners. There, we see an appreciation of 12%." Fischer said that, while it is true that the shekel is strong, it was even more true that the dollar is very weak, and that there was nothing to be done about it because of the huge US current accounts deficit. "There was a need for adjustment, and we see it in the depreciation of the dollar. It won't last forever. People are talking as if it will last forever, but it won't." (Globes 16.11)

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1.2 Bank Of Israel Raises Interest Rate Again

On 23 November, the Bank of Israel unexpectedly raised the benchmark interest rate for a second time since the global economy began to recover, as growth accelerated and inflation approached the top of the government's target range. Bank of Israel Governor Fischer increased the lending rate by a .25% to 1%. Fischer in August became the first central banker to boost the key rate since the beginning of the global economic recovery, raising it by a quarter point to 0.75% from a record low. Inflation accelerated in October to 2.9%, compared with 2.8% the previous month, the Central Bureau of Statistics reported on 15 November. The decision will help to establish inflation one year ahead firmly within the target range. National accounts data for the third quarter indicate recovery in economic activity, reflecting a significant increase in private consumption, exports and investments. The government's annual inflation target is 1% - 3%. Raising the rates while other countries keep their rates unchanged might increase the flow of foreign currency into the country, strengthening the shekel, the central bank said on 9 November. That would undermine exports, which make up about half of the country's gross domestic product. New York University economics professor Roubini, who forecast the global financial crisis in 2006, has recommended that other central bankers should consider following the Bank of Israel lead. Roubini said that the world economy already faces the chance of another credit bubble as investors take advantage of low US rates to borrow in dollars to buy higher-yielding assets such as equities and commodities. (Varioous24.11)

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2: ISRAEL MARKET & BUSINESS NEWS

2.1 Wisconsin Governor Doyle Leads Trade Mission to Israel

A delegation of government and corporate representatives from Wisconsin was in Israel, led by Wisconsin Governor Jim Doyle, was in Israel during the week of 15 November. The trade delegation focused on water and life sciences technology, attending the WATEC water technology conference during their visit. While there the Governor signed a Memorandum of Understanding with Israel's Minister of Industry, Trade & Labor Ben Eliezer, regarding mutual cooperation on technological development between Wisconsin and Israel. In addition to Governor Doyle and State Secretary of Commerce Leinenkugel, the delegation includes State Secretary for the Wisconsin Department of Workforce Development Gassman, and State Agriculture, Trade & Consumer Protection Secretary Nilsestuen. Also in the delegation is the Chancellor of the University of Wisconsin - Milwaukee. The university recently initiated a new degree program in water sciences and management. In addition to WATEC, the group visited the Weizmann Institute, the Ashkelon Desalination Plant, Hebrew University, the Technion and representative activities in agriculture and water management. The visit was arranged by Atid, EDI (http://www.atid-edi.com) in cooperation with Israel's Ministries of Foreign Affairs and Industry, Trade & Labor as well as with the US Embassy in Jerusalem. According to Wisconsin's Department of Commerce, Israel was Wisconsin's 40th largest export customer in 2008, buying $68.2 million worth of goods and services from Wisconsin. (Globes 16.11)

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2.2 JVP & Giza Announce A-Round Investment in Early-Stage Startup XtremIO

JVP and Giza, two leading Israeli venture capital funds, have announced an A-round investment in XtremIO, an early-stage venture developing Solid State Drive (SSD) data storage systems. XtremIO's solutions are designed to deliver ultra-high performance in Enterprise storage environments, while addressing existing storage device limitations and data network connectivity challenges. Data storage system performance is a major bottleneck to modern data centers. XtremIO is developing Enterprise solutions that will enable shared storage environments with substantial performance improvements, efficient utilization of IT resources and a low capital investment.

Ra'anana's XtremIO (http://www.xtremio.com) is an early-stage venture developing Solid State Drive (SSD) data storage systems. XtremIO's solutions are designed to deliver ultra-high performance in Enterprise storage environments, while addressing existing storage device limitations and data network connectivity challenges. JVP (http://www.jvpvc.com) is one of the leading venture capital funds in Israel. The fund operates from Jerusalem and manages over 780 million dollars. JVP focuses on building market leaders in the fields of digital media technology, including gaming and virtual worlds, mobile media, software and hardware applications and internet advertising. Giza Venture Capital (http://www.gizavc.com) established in 1992, is a pioneer investor in seed and early-stage technology companies and currently manages five funds totaling over $600 million. Giza's investment professionals have a wealth of expertise and experience in Communications, Semiconductors, Information Technology, Enterprise Software, Life Sciences, CleanTech, Media, Internet & Entertainment. (Giza11.11)

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2.3 Canada's Trade Minister Explores Opportunities in Israel

On 14 November, Canadian Minister 0f Industry Clement began five days of meetings that will focus on Canada - Israel trade relations and focus on water technologies. Clement also attended the WATEC water technology conference and spoke at the event. Minister Clement also met with Israeli industry and government officials to discuss progress in a number of key sectors, including communications technology, biotechnology, aerospace and defense initiatives. He discussed bilateral trade opportunities with Minister of Industry, Trade & Labor Ben-Eliezer. Clement visited Jerusalem's Yissum Technology Transfer Company of the Hebrew University of Jerusalem, Intel's Development Design Center in Haifa and the Weizmann Institute of Science. He also toured the Israeli Space Agency to discuss joint programs with the Canadian Space Agency. (Industry Canada 15.11)

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2.4 BluePhoenix Expands Product Portfolio to Knowledge Management Modernization

BluePhoenix Solutions signed a purchase agreement to acquire certain assets of DSKnowledge, a knowledge management software company and affiliates. Under the terms of the agreement, BluePhoenix will acquire DSKnowledge for approximately $3.7 million of which BluePhoenix may, at its sole discretion, pay approximately $1.8 million in BluePhoenix shares and will assume liabilities of approximately $1.2 million. In addition, BluePhoenix may pay additional consideration based upon the future performance of the Business. The transaction is subject to the satisfaction of certain closing conditions and is anticipated to close toward the end of 2009.

Ra'anana's DSKnowledge (http://www.dsknowledge.com) is a leading provider of Knowledge Management (KM) software for enterprises. The company modernizes and transforms legacy data, information and content elements in enterprises into one knowledge management repository. The company offers proven solutions for enterprises such as financial institutions, logistics companies, the public sector, telecom operators, cable and satellite television broadcasters, healthcare, hi-tech organizations and more. By improving the management and delivery of knowledge, improving customer service, enhancing marketing efforts and reducing operating costs, DSKnowledge has become an invaluable solution that is used by enterprises with thousands of users.

Herzliya's BluePhoenix Solutions (http://www.bphx.com) is the leading provider of value-driven legacy IT modernization solutions. The BluePhoenix portfolio includes a comprehensive suite of tools and services from global IT asset assessment and impact analysis to automated database and application migration, rehosting and renewal. BluePhoenix provides modernization solutions to companies from diverse industries and vertical markets such as automotive, banking and financial services, insurance, manufacturing, and retail. (BluePhoenix 12.11)

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2.5 Camtek Announces Closing of the Acquisition of SELA - Semiconductor Engineering Laboratories

Camtek announced it has completed the acquisition of Yokneam's SELA - Semiconductor Engineering Laboratories (http://www.sela.com). In consideration for the shares, Camtek will pay to SELA's shareholders future payments in the aggregate amount of up to $9.5 million, contingent upon SELA's revenues. SELA is engaged in the development, manufacturing and marketing of automated SEM (Scanning Electron Microscope) and TEM (Transmission Electron Microscope) sample preparation equipment, primarily for the semiconductor industry. SELA has more than 275 systems installed worldwide, many of which are located at world-leading semiconductor fabrication facilities. SELA recently introduced the Xact, the first TEM/STEM sample preparation system using Adaptive Ion Milling (AIM) technology. The AIM technology brings numerous advantages to traditional FIB (Focused Ion Beam) technology by reducing the sample thickness to below 30nm over a large area with high precision and throughput and with superior image quality.

With headquarters in Migdal HaEmek, Camtek (http://www.camtek.co.il) designs, develops, manufactures and markets automatic optical inspection systems and related products. Camtek's automatic inspection systems are used to enhance both production processes and yield for manufacturers in the printed circuit board industry, the high density interconnect substrate industry and the semiconductor manufacturing and packaging industry. (Camtek 12.11)

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2.6 Panoramic Power Wins Qualcomm Ventures QPrize Business Plan Competition

Qualcomm Incorporated, a leading developer and innovator of advanced wireless technologies, products and services, concluded its international Qualcomm Ventures QPrize business plan competition recently with Israel-based company Panoramic Power taking home top honors for the most innovative business plan of 2009. Kidron, Israel's Panoramic Power (http://www.panpwr.com) has developed a wireless sensor-based, circuit-level energy visibility platform that gives enterprises the ability to deploy Smart Grid technologies within their existing facilities. The company impressed the QPrize judges with its innovative market strategy and technology that helps electrical networks run more efficiently. As a QPrize regional winner, Panoramic Power previously earned $100,000 in funding to support its business growth. The company will now receive an additional $150,000 from Qualcomm Ventures as the QPrize Grand Prize winner. Additionally, representatives of Panoramic Power will receive a trip to the Mobile World Congress in Barcelona, Spain to compete as a Global Finalist in the GSMA's Mobile Innovation Grand Prix competition, which is part of the GSMA's Global Mobile Awards. The Qualcomm Ventures QPrize business plan competition was created to promote global innovation in the wireless industry. (Qualcomm Incorporated 11.11)

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2.7 ClickSoftware Announces Closing of AiPoint Assets Acquisition

ClickSoftware Technologies has successfully closed the acquisition of the assets of AiPoint (http://www.aipoint.com), a Tel-Aviv based company which develops Workforce Management (WFM) systems for the Israeli and International call center markets. ClickSoftware acquired the workforce management business of AiPoint in an asset purchase transaction including its technology, customers and employees for total consideration of about $1.5 million paid in cash. This acquisition will expand the functionality of ClickSoftware's existing shift planning solution and significantly increase the spectrum of industry verticals and applications it can address.

Tel Aviv's ClickSoftware (http://www.clicksoftware.com) is the leading provider of workforce management and service optimization solutions that create business value for service operations through higher levels of productivity, customer satisfaction and cost effectiveness. Combining educational, implementation and support services with best practices and its industry-leading solutions, ClickSoftware drives service decision making across all levels of the organization. From proactive customer demand forecasting and capacity planning to real-time decision making, incorporating scheduling, mobility and location-based services, ClickSoftware helps service organizations get the most out of their resources. (ClickSoftware 16.11)

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2.8 Large Israeli Supermarket Chains Lose Market Share

Israel's top two supermarket chains, Shufersal and Blue Square Israel, lost market share in October 2009, according to Storenext figures obtained by "Globes". Both chains gained ground in September thanks to holiday coupons, which were redeemed at their stores. Independent supermarket chains Rami Levy Chain Stores Hashikma Marketing 2006 and Kol Bo Hazi Hinam gained market share at the expense of Shufersal and Blue Square. Shufersal's market share fell to 36.7% in October from a peak of 38.5% in September and Blue Square's market share fell to 20.4%from 21.3%. Shufersal's market share is back to its pre-holiday level of 36.6% in August, while Blue Square's market share is still above its August level of 19.8%. (Globes 19.11)

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2.9 Milk Most Sold Product in Israel

Milk is the most sold product in Israel with sales totaling NIS 1.15 billion (about $303,214 million) in 2009, according to data compiled recently by the Store Next company for the Federation of Israeli Chambers of Commerce. The figures are based on 1,500 points of sale examined between the months of January and October, compared to the same period last year. Despite the high volume of sales, the past 10 months saw a 1.7% drop in the consumption of milk.

Coca Cola tops the beverage category with sales totaling NIS 449 million ($118.4 million) – a 2.1% drop compared to last year. Bottled water recorded a sharper decline – 6.1%, mainly due to the pollution in the sources of water, which hurt two of the economy's leading companies. In the food category, the biggest demand is for yogurt products, which were purchased by Israelis for NIS 953 million ($251 million) this year.

Another popular product is chicken, which recorded a 2.6% rise in sales compared to last year. Between January and October Israelis consumed poultry in the amount of NIS 877 million ($231 million). The biggest rise in consumption – 10.1% - was recorded in the cottage cheese category. Other popular products are packaged salads (NIS 605 million - $159.5 million), eggs (NIS 510 million - $135 million), soft white cheese (NIS 446 million - $118 million), and hard cheese, which recorded an 8.4% rise in sales.

Israelis also love salty snacks, which were bought this year for NIS 627.6 million ($165.5 million) – down 1.6% compared to last year. The sweet snacks category saw a 3.4% rise. The consumption of canned tuna recorded a significant increase of 6.1%. In total, a 1.5% drop has been recorded in the entire food and beverages industry compared to the same months last year. According to estimates, this decline will be erased or reduced in the last two months of the year, in which consumption is expected to recover. (Various22.11)

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2.10 NICE to Acquire Orsus, a Leading Provider of Security Management Software Solutions

NICE Systems announced the signing of a definitive agreement to acquire the security management solution assets of Orsus. Under the terms of the agreement, NICE will be acquiring the security management solution assets of Orsus in an all-cash transaction for a total consideration of $22 million, subject to certain adjustments. The transaction is subject to the satisfaction of customary closing conditions and is anticipated to close towards the end of the fourth quarter of 2009. The integration of Orsus' unique security management software with NICE's comprehensive security solutions, complemented by its vertical domain expertise, will enhance NICE's leadership position in the security market, and enable its customers and partners to better protect city centers, transportation systems, critical infrastructure, and enterprise campuses. Orsus' Situator security management solution provides a framework for fusing data silos from disparate security and safety systems as well as multiple command and control centers, into a single, holistic operational view and automating security procedures.

Or Yehuda's Orsus (http://www.Orsus.com) is a pioneer and market leader in the field of situation management - a comprehensive and unique approach that coordinates the interaction between people, technologies and responses. Orsus's flagship solution, Situator, gathers and correlates information from multiple and diverse systems across the enterprise and coordinates the response actions ensuring that everyone in the operational chain knows what is happening and what to do. Ra'anana's NICE Systems (http://www.nice.com) is the leading provider of Insight from Interactions solutions and value-added services, powered by the convergence of advanced analytics of unstructured multimedia content and transactional data - from telephony, web, email, radio, video, and other data sources. NICE's solutions address the needs of the enterprise and security markets, enabling organizations to operate in an insightful and proactive manner, and take immediate action to improve business and operational performance and ensure safety and security. (NICE23.11)

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2.11 Canada's Bontan Moves into Israel

Toronto, Ontario's Bontan Corp. announced the indirect acquisition of exploration and drilling licenses in the Levantine Basin off the coast of Israel. Bontan said the two drilling licenses and one exploration permit cover a total area of more than 1,000 square miles in the Israeli waters of the Mediterranean Sea. The Israeli Petroleum Co. holds the 75% equity interest in the project area for Bontan. Wells associated with the Levantine Basin hold an estimated 6.8 trillion cubic feet of probably gas reserves, which Bontan said is the second largest discovery in the world made in nearly two years. The company said it was in the process of obtaining the necessary permits for further analysis of the Levantine Basin. (Bontan 24.11)

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3: REGIONAL PRIVATE SECTOR NEWS

3.1 Middle East Business Jets Market Has Its Cash Registers Ringing

Despite the global economic slowdown that adversely affected the commercial aviation industry worldwide, Middle East has been one of the few markets to register growth. The air taxi business is expected to be a major driver for this market. New analysis from Frost & Sullivan Middle East Business Jets Market Assessment, finds that the market earned revenues of $493.9 million in 2008. The business jets aircraft movement was 93,000 in 2008 and has grown to 103,000 in 2009. This growth is expected to continue and is expected to reach 160,000 in 2018. The compound annual growth rate (CAGR) of the business jets aircraft movement will be about 6.21% from 2008 to 2018. Growth in the Middle East business jets market along with the increasing gross domestic product (GDP) has necessitated airport expansion and will drive airport infrastructural development as airports in the region lack the capacity to cater to the existing air traffic. This region comprises 11 major tier-I airports that are being extensively revamped to cater to the growing traffic. Of these, the Kuwait International Airport, Dubai International Airport and the New Doha International Airport form about 40% of the total share of investment going into the region. The infrastructural development in this region is expected to be driven by its geographic location, which serves as a link between the west and east. The expected number of business jets to be delivered in the Middle East will be approximately 458 by 2018 and the number of jets expected to be delivered in Saudi Arabia alone will be about 154. Such a situation will be challenging to handle if there are no structured regulations in place. The most potential market for business jets within the Middle East is Saudi Arabia, which holds about 37% of the market potential in the long term, followed by the United Arab Emirates (UAE) with nearly 24% of the market potential. (BI-ME 23.11)

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3.2 Experts See Considerable Jordanian Demand for Hybrid Cars

Around 3,000 hybrid cars are presently running in Jordan, with supply expected to significantly increase next year from both car dealers and the free zone, experts said. According to the president of the Jordan Free Zone Investors Association, out of 48,000 cars imported through the free zone in the first nine months of 2009, a total of 1,800 were hybrid cars. Another 2,000 other cars are expected to be cleared from customs before the end of this year due to increasing demand. Over the past three years, 55,000 automobiles were imported annually by investors in the free zone and another 15,000 by car agents, expecting the same figure for this year. Auto sales increased in Q3/09, reaching 20,000 cars, compared to 12,000 in the Q1/09 and 16,000 in Q2/09. The agent of Toyota in Jordan said 80% of the company's sales are hybrid cars. Demand on green cars in Jordan increased recently as customers were concerned that this type of cars will be subject to customs fees, but the Ministry of Finance said it has no plans yet to impose more fees or taxes. Fees on such cars range between JD1,000 and JD4,000 depending on the size of the engine. The ministry's said that the Environment Ministry requested to only exempt hybrid vehicles under 2000cc from taxes and fees because they are more fuel-efficient and environment-friendly than large-engine hybrids. (JT17.11)

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3.3 Three Arab Nations Purchase Raytheon AMRAAM

The U.S. government executed separate Letters of Offer and Acceptance with three of its Arab allies to purchase Raytheon Company's AIM-120C-7 Advanced Medium Range Air-to-Air Missile (AMRAAM). The three countries, in the order they signed their LOAs, are Kuwait, Morocco and Jordan. The three countries will receive an undisclosed quantity of missiles for use in both air-to-air and air defense missions. AMRAAM gives the warfighter flexibility because it can be quickly transferred from a fighter aircraft to a missile launcher to fulfill its air defense role. Using one missile for two critical missions gives the warfighter a cost-effective logistics and maintenance solution. AIM-120C-7 has been integrated on the F-16, F-15, F/A-18, Typhoon and the Joint Strike Fighter aircraft. It is also the baseline missile for the U.S. Army's Surface Launched-AMRAAM and the NATO-approved Norwegian Advanced Surface-to-Air Missile System. Raytheon Company, with 2008 sales of $23.2 billion, is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 87 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. With headquarters in Waltham, Mass., Raytheon employs 73,000 people worldwide. (Raytheon13.11)

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3.4 GMT Chosen by the National Bank of Kuwait for Branch Workforce Optimization

Norcross, Georgia's GMT Corp., a global industry leader in enterprise workforce management and performance optimization solutions, announced that the National Bank of Kuwait (NBK) has selected GMT Planet to satisfy its requirements for branch workforce optimization. Having more than $43 billion in consolidated assets, the bank will deploy GMT Planet across its network of Kuwaiti branch locations. NBK joins a growing list of leading retail banks worldwide, including BB&T, Bank of the West, Zions Bancorporation and First Merit, who use GMT Planet to optimize their branch staffing. These, and many other financial institutions, have come to rely on GMT to help them improve customer service, increase operating efficiency, reduce branch wait times, and increase sales productivity as a result of using GMT Planet. (GMT 16.11)

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3.5 Qatar Cuts VW Stake

Qatar plans to sell up to half its Volkswagen preference shares, cashing in on recent gains and raising around €1.6 billion ($2.4 billion) for possible future deals. The news sent VW preference shares down. Qatar stands to make about €750 million ($1.125 billion) from the sale. Qatar Holding, the investment arm of the country's sovereign wealth fund, said it was selling 25 million preference shares in Europe's biggest carmaker "to enhance the liquidity" of the preference shares, but added it remained committed to its Volkswagen investment. The world's largest liquefied natural gas exporter has ramped up investments since the summer after previously slowing down its activity as financial markets plummeted and oil revenue fell. Qatar Holding said in a statement it would continue increasing its holding in Volkswagen as previously announced. That would give Qatar the third largest voting stake in VW behind automotive group Porsche SE and VW's home state of Lower Saxony. Qatar's voting stake in VW was 6.78% in August. Qatar also agreed on a lock-up period for the remainder of its non-voting VW preference shares until December 31 this year. Credit Suisse and Goldman Sachs are helping with the share sale. (Bi-ME10.11)

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3.6 UAE Firm to Lease Farmland in Iraq

Iraq is close to concluding a multi-billion dollar agriculture deal with a private sector firm in the UAE to lease farmland on a long-term basis. Gulf countries, mainly reliant on food imports, have increased efforts over the last year to buy or lease land in developing nations to secure food supplies. The company would lease the land over a long-term basis, since foreign ownership of farmland in Iraq is forbidden. Farming in Iraq has been hit hard by decades of war, instability and poor environmental management. Iraq imports almost all of its food, using receipts from oil to pay for it. Much of the government's budget is spent on food rations. Declining productivity in Iraq's farmland is largely a result of soil salination, which is caused by poor drainage. In June, the government said that around $18 billion in investments was needed to restore the majority of farmland. Last December the government started a project to restore six million acres (2.5 million hectares) of farmland. The project aimed to flush excess salinity out of millions of acres of land and cleanse rivers, breathing new life into what was once part of what historians called the "fertile crescent". (Reuters11.11)

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3.7 IBM & KACST Unveil Research Pact to Advance Machine Translation Technology & IP Development

IBM and King Abdul Aziz City for Science and Technology (KACST), the Saudi Arabian national research and development organization, announced a multi-year agreement to collaborate on advancing machine translation technologies, advancing intellectual property development and establishing a National Women Software Development Centre. Under terms of the agreement, KACST will purchase an IBM Blue Gene supercomputer to enable KACST scientists to perform complex simulations and computational modeling. This agreement is one of several joint research projects undertaken between KACST and IBM. IBM researchers, business consultants and KACST scientists will work together to further enhance the IBM Machine Translation Engine into a powerful translation engine to translate Arabic to other languages. This project deals with natural language analysis and computational methods for language translation. Technologies used for machine translation, such as syntactic parsing and word sense disambiguation, are commonly used in other applications of natural language processing. IBM will provide education services to KACST researchers on the functionality and features of statistical machine translation technology which was invented by the IBM Research team. IBM's Research and Development team will build the machine translation system with the initial basic system capabilities of several million words that will form the basis of the translation learning process. During this stage of the project, the IBM team will design, construct and test the machine translation application based on the existing IBM Translation Engine tool. (IBM 16.11)

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3.8 Hardee's Opens First Restaurant in Pakistan & Expands into Yemen

Carpinteria, California's CKE Restaurants announced the opening of its first Hardee's restaurant in Lahore, Pakistan. This marks the first of at least 25 Hardee's restaurants to be opened in Pakistan within the next five years. The franchised Hardee's restaurant is operated by MDS Foods Private Limited, a subsidiary of the Super Asia Group, a leading home appliances and automotive company in Pakistan since 1960. MDS Foods Private Limited has signed a development agreement with CKE Restaurants to open 15 Hardee's restaurants in Punjab and the NWFP Provinces of Pakistan within the next four years. CKE Restaurants' entry into Pakistan is an extension of its international expansion strategy and the company sees a high demand for premium quick service restaurants in the region. Hardee's has operated franchised restaurants in the Middle East since 1980 and currently operates 205 Hardee's restaurants in Egypt, Lebanon, Jordan, Kuwait, Saudi Arabia, United Arab Emirates, Bahrain, Qatar, Oman and now Pakistan. In addition to the Pakistan opening, the company also announced the execution of a development agreement for three Hardee's restaurants in the Republic of Yemen. (CKE Restaurants 24.11)

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3.9 Greek Service Sector of Tourist - Travel Agencies Rising

Research and Markets (http://www.researchandmarkets.com) has announced the addition of ICAP Group's new report "Tourist and Travel Agencies in Greece 2008" to their offering. The total size of the Greek service sector of tourist - travel agencies has been on the rise over the past three years (2005-2007). As regards inbound tourism, foreign tourists are the main clients of travel agencies, visiting Greece on vacation mostly during the summer period. Domestic and outbound tourism services are mainly provided to Greeks, who either travel within the country or visit destinations abroad. The tourist-travel agencies sector comprises a significant number of companies (market sources say they are over 4,000) which differ among them in terms of size and to the extent to which they provide the various tourist services. The main activity of most sector companies is inbound tourism, yet they also offer related services (ticket issue, etc.). The sector is made up of large-sized companies- many of which represent large international agencies-, medium-sized companies and, predominantly, small-sized companies. (R&M11.11)

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3.10 Greek Juice & Soft Drinks Sector is Highly Concentrated & Controlled by a Few, Large Businesses

Research and Markets (http://www.researchandmarkets.com) added the "Juices and Soft Drinks in Greece 2009" report to their offering. This sector can be characterized as highly concentrated since it is controlled by merely a few large businesses. This pushes sector companies to constantly enrich their product range and differentiate themselves from competitors in order to attract more consumers and gain a higher market share. They sell brand name products (highly recognized by consumers) which they support by various sales promotions and which can be found across Greece thanks to their organized distribution network. The fierce competition in the assessed sector forces companies to allocate large amounts of money in order to advertise their products, carry out additional promotions, like special offers and sales for the final consumer, as well as provide incentives to retailers in order to position their products the best possible way inside their points of sale. In the juice market specifically, the pressure from healthy eating trends favors juices and bottled water but makes competition even stronger. Moreover, the private label products sold by large supermarket chains also increase competition; since these products are sold at lower prices than brand name ones and are preferred by a number of consumers. In addition to the competitive landscape and the healthy eating habits, the sector is also affected by the weather conditions mostly between April and October. It is during these months that juices and soft drinks generate their highest sales, and this is also a result of the increase in tourism. (R&M 19.11)

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3.11 US State Ohio Seeks To Attract Bulgarian Investments

The American state of Ohio has set off to attract more investments from Europe, including from Bulgaria. The Mayor of Cleveland, Frank Jackson, has presented at the Bulgarian Chamber of Commerce and Industry the project "Investing in America: Destination Cleveland". Jackson is on a visit to Bulgaria where he is accompanied by representatives of the Greater Cleveland Partnership (GCP), the Small & Medium Enterprises Union and other business organizations from Ohio. The Bulgarian Chamber of Commerce and Industry and the GCP have signed a agreement laying the groundwork for future cooperation between Bulgarian and Ohio businessmen. The "Investing in America: Destination Cleveland" project started in 2007 in order to boost the economic development of Ohio. Its significance has increased since the beginning of the economic crisis in 2008 since Ohio has been badly affected by the downturn. Some 62% of all foreign investment in Ohio, amounting to some €350b, comes from Europe. (SMN 19.11)

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4: CLEAN TECH & ENVIRONMENTAL DEVELOPMENTS

4.1 Ecologic Transportation Signs with Ecologic Car Rentals & Ray Motor for Joint Venture Ecologic Israel

Santa Monica, California's Ecologic Transportation has formed a joint venture with Ray Motor, an Israeli company with principal place of business located at Kibbutz Magshimim, to identify and contract with potential business partners in Israel to operate electric car rental operations under the Ecologic Brand. Ray Motors has over 200 years of combined automotive experience including R&D, engineering, prototyping, and mass production for special applications. Ray Motor's principals are the founders of TOMCAR, joined by several electric vehicle specialists in developing cutting edge solutions for this industry. Ecologic Transportation is a holding company with wholly owned subsidiaries all dedicated to environmentally friendly transportation products and services. The company encompasses three separate but integrated operations that address the environment and transportation holistically: Ecologic Car Rentals, Ecologic Systems and Ecologic Products. This innovative company has an unbiased approach to green cars and clean fuels by providing a platform for all emerging environmental transportation technologies. (ETI 11.11)

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4.2 California & Israel to Cooperate on Renewable Energy

Governor of California Schwarzenegger and Minister of Industry, Trade & Labor Ben-Eliezer signed a renewable energy R&D cooperation agreement on 15 November. Gov. Schwarzenegger is visiting Israel to attend the 6th Saban Forum. The cooperation agreement will promote Israel-California strategic R&D in renewable energy and environmental technologies by establishing joint ventures between Israeli renewable energy companies and municipal authorities in California. The agreement will also boost mutual investment, and foster research collaboration. US-Israeli trade totaled $17 billion in January-September 2009, including $12 billion in Israeli exports to the US, and $5 billion in imports. Israeli exports to the US were down 12% compared with the corresponding period of 2008, and imports were down 25%. (Globes 15.11)

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4.3 Innovative Technology From Phoebus Energy is Greening Jerusalem

Phoebus Energy recently successfully installed more than 10 systems in Israel. Over the last several months, the company has been working to make Jerusalem more ecologically friendly. Five community centers in the city have selected to install the Phoebus Energy system. The yHsystems installed at Gilo, Neve Yaakov and the Hebrew Youth Community Centers already realize savings of more than 60% of the water heating costs. These yearly savings translate to hundreds of thousands of shekels at each site and reduce pollution in the area by 80-90%. Currently, systems are being installed at community centers in the Jerusalem neighborhoods, Ramot and Yuvalim. The company, considered to be one of the promising companies in the renewable energy domain, has received investment from Terra Venture Partners and Galilaea.

Bazra's Phoebus Energy (http://www.phoebus-energy.com), established two years ago, develops, manufactures and implements a revolutionary solution for energy efficiency - the hybrid heat system. The hybrid system reduces fossil fuel consumption for all commercial organizations that heat water including hospitals, hotels, sport centers, etc. for savings of 40-70% and a reduction of 80-90% of carbon emissions. The innovative system, from Phoebus Energy, combines heat pump technology and unique, intelligent software that seamlessly transforms the existing boiler into a hybrid heat system, which produces the required heat at the lowest cost. (Phoebus Energy 16.11)

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4.4 Minrav Wins Ashdod Desalination Plant Tender

Minrav Holdings was the winner of the Mekorot National Water Company tender for constructing a desalination plant in Ashdod. The tender is worth NIS 1.5 - 2 billion. The result emerges from the pricing process held this after noon between the Minrav consortium and the consortium led by Arison Holdings unit Shikun u'Binui Holdings (Housing & Construction). Mekorot subsidiary Mekorot Development & Enterprise announced that the IVM consortium, comprising Minrav and Spain's Valoriza Agua SL, a division of Sacyr Vallehermoso subsidiary SADYT, had won the tender. The Ashdod desalination plant is due to produce 100 million cubic meters of fresh water a year beginning in 2012 at a 65-dunam (16.25-acre) site in the north Ashdod industrial zone. Mekorot Development & Enterprise will operate the plant for 25 years, under a BOT (build, operate and transfer) contract with the government. The tender gives the winner an option to acquire up to 40% of the desalination plant company. Bank Hapoalim will lead the funding for the project. The European Investment Bank (EIB) reportedly wants to join on up to half of the NIS 1.5 billion financing for the project. (Globes 18.11)

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5: ARAB STATE & PAKISTANI DEVELOPMENTS

5.1 Jordan's Budget Deficit Climbs To 78% As Spending Increases

Jordan's budget deficit stood at JD 891.7 million during the first 10 months of this year, an increase of 78.3% compared to the same period of last year, the Ministry of Finance announced. According to official data, budget deficit was due to an increase in government expenditures and a decline in foreign assistance. Latest preliminary figures showed that aid provided by donor countries to the Hashemite Kingdom to cover part of the deficit, reached only JD144.5 million, compared with JD493 million during the first 10 month of last year. Government estimates showed that 2009 budget deficit will jump to JD1.1 billion which is equivalent to 7% of the Gross Domestic Product (GDP). Total revenues which include general sales tax, income tax and foreign aid stood at JD3.66 billion, a drop by 13.4% compared with the same period of 2008. Public spending rose to JD 4.56 billion compared to JD 4.38 billion due to early approval of the 2009 budget, data revealed. (Petra16.11)

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5.2 Jordan & Australia Sign Nuclear Deal

On 15 November, Jordan has signed a $11.3 million agreement with Australian consulting firm WorleyParsons to conduct the pre-construction consultancy services for the Kingdom's first nuclear power plant. Under the two to three-year agreement, which was signed by the Jordan Atomic Energy Commission (JAEC), the Australian firm will carry out technology selection and assist in fuel cycle engineering and waste management for the plant, which is expected to be built in Aqaba. As part of the agreement, WorleyParsons will prepare the tender and aid in evaluating bidders for the plant's construction, according to the JAEC chairman Khaled Touqan. The firm will also assist in establishing a utility company, expected to be a public-private entity, to own and operate the plant, Touqan said. Touqan added that WorleyParsons would undertake various tasks related to the long-term nuclear fuel strategy, spent fuel and radioactive waste management strategy, environmental protection issues, localization of power plant technology and services and the structure of the electric nuclear utility. WorleyParsons will undertake a number of technical and other consultancies and services to evaluate the nuclear power plant technology that would be most suitable for Jordan. (Petra15.11)

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5.3 GCC Population Seen Growing To 53 Million By 2020

The population explosion in the Persian Gulf region is predicted to continue with a new report seeing it rising by a third in the next decade. Latest research by the Economist Intelligence Unit (EIU), sponsored by Qatar Financial Centre Authority (QFC), said the GCC's population was likely to hit 53m by 2020, with the vast majority of people under 25 years old. The continuing population boom could raise significant questions related to labor and immigration policies, the role of women, and the adequacy of infrastructure and public services. Currently the GCC has one of the youngest populations in the world and the future development of the region ultimately depends on the success of efforts to educate and employ these young people. At a time when populations in the US and Europe are increasingly aging, the EIU said that by 2020, about 24% of the GCC population will be under 15, higher than everywhere else in the world apart from Africa. The report added that the number of women who work will continue to rise, reflecting increasing investment in education for women, changing social attitudes and newly emerging role models. It said that net immigration was forecast to remain strongly positive, as the private sector will continue to remain heavily dependent on expatriate labor, despite some efforts to nationalize the workforce. The GCC countries will face questions about how best to manage immigration, as they face competing pressures from groups that want to protect jobs for nationals and others that want more rights for immigrants. The treatment of foreign workers will become an increasingly important aspect of foreign relations with source countries. (AB16.11)

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5.4 S&P Assigns 'AA-' Rating to Qatar's $7 Billion Global Bond Issue

Standard & Poor's Ratings Services (http://www.standardandpoors.com) assigned its 'AA-' senior unsecured debt rating to the State of Qatar's (AA-/Stable/A-1+) $7 billion global bond issue. The fixed-rate notes have three tranches: a $3.5 billion 4.0% tranche maturing 20 January 2015; a $2.5 billion 5.25% tranche maturing 20 January 2020; and a $1 billion 6.4% tranche maturing 20 January 2040. The proceeds of the bonds will help the State of Qatar's general financing, and will be used in areas such as contingency funding for entities that the state owns or controls, and infrastructure investments funding in and outside the hydrocarbon sector. "The ratings on Qatar are supported primarily by the country's solid fiscal and external balance sheets, its prosperous economy and strong growth prospects, and its prudent long-term policies," Standard & Poor's credit analyst said. The ratings remain constrained by the geopolitical risks facing sovereigns in the Gulf region, limited disclosure on government assets, and institutional constraints which are higher than for other 'AA' rated sovereigns. "If Qatar achieves its forecast growth rate, increases its general government net asset position, and makes progress on institutional reforms and economic diversification, this would have a favorable impact on the ratings in the coming years," S&P said. "Conversely, the ratings could come under downward pressure if regional geopolitical risks escalate, or if the government's asset position deteriorates sharply." (S&P 18.11)

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5.5 Qatar House Prices Set To Fall 15% Next Year

Qatar house prices are poised to ease 15% in 2010 on higher supply, but the construction sector would grow as 40% of the state budget is earmarked for infrastructure, The First Investor Asset Management said. The Bank expects 2010 to be the bottom of the market in terms of prices but they do not necessarily see any upturn in 2011 as being aggressive because of the supply coming in. House prices in the world's largest exporter of liquefied natural gas fell 20% during the first nine-months of 2009. Prices appear to be set to fall another 15% in 2010 as around 10,000 new homes are expected to be built in the same year with additional supply seen in 2011. Overall, the country's construction sector has a sanguine outlook and is set to grow 5% in 2009, driven by infrastructure, to around $5.2 billion, about 40% of the country's budgetary expenditure. In fact Qatari-listed cement firms were the best performing cement firms in the third quarter in the GCC region showing that there is still demand for building materials and construction is still going on, albeit at a slower pace. An increasing number of international contracting firms are winning contracts in Qatar and elsewhere in the region like Abu Dhabi and Saudi Arabia as they look to diversify their portfolios and weather the global economic downturn. There will be a lot of infrastructure projects coming on for the bigger contractors, but there is still room for improvement for the middle and lower-end contractors. In contrast, few contracts are being won in Dubai's once-booming real estate sector, where property prices are off some 50% from their peaks in 2008. (AB 17.11)

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5.6 UAE Healthcare Sector Forecast to 2012

Research and Markets (http://www.researchandmarkets.com) has announced the addition of the "UAE Healthcare Sector Forecast to 2012" report to their offering. The UAE has emerged as one the fastest growing healthcare markets in the Middle East. The UAE's healthcare sector has grown at double digit rate to keep pace with incessantly rising demand for quality treatment and diagnostic facilities. Driven by various factors such as rapidly increasing population, rising prevalence of lifestyle diseases, such as obesity, diabetes and hypertension, and the lack of internationally accredited healthcare infrastructure, the country has been witnessing tremendous increase in demand for healthcare services, resulting into increased healthcare spending. Healthcare spending in the country is forecasted to grow at a CAGR of more than 13% during 2007-2012. This growth will be driven by the regulatory environment, increasing private sector participation and the introduction of compulsory medical insurance schemes together with the expected completion of the Dubai Healthcare City (DHCC) by 2010, which will be the world's first healthcare free-zone. The government plays a central role in providing healthcare services and accounted for around 70% of the total healthcare spending in 2007. However, with increasing pressure on the public healthcare system, the government is rapidly promoting the involvement of private sector in all areas of medical services ranging from diagnosis to treatment. Under such scenario of outstanding expansion opportunities, we anticipate big investment from the private sector in the forecast period. The demand for hospitals and hospital beds is anticipated to rise over the next few years since the existing infrastructure is inadequate to deal with rising number of health complications in all sections of the society and every age group people. Besides, the penetration of hospital beds in the UAE is currently low as per the international standards. In general, it is assumed that the developed markets average 4 beds per 1,000 population, while in the UAE it is less than 2 beds per 1,000 population (in 2007), indicating large room for future growth potential. (R&M14.11)

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5.7 UAE Tops Ranking in MENA Retail Report

According to the latest retail research report from CB Richard Ellis (CBRE), the UAE is seen as the point of entry for most retailers and brands looking to expand in the Gulf region in 2010, with over 80% of retail respondents focusing their Middle East and North Africa (MENA) market interest on the Emirates. CBRE's latest research report examines the current attitudes and 2010 expansion plans of 220 leading retailers, based on interviews conducted over the summer of 2009. While the research has shown a broad shift towards the more mature Western European markets and prime locations, some retailers are taking the opposite approach and are targeting new and previously untried markets in their search for competitive advantage.

CBRE grouped together the regions, revealing an alternative geographic perspective: 24% of retailers are looking to target one or more countries within the MENA region; although much of the MENA interest is focused on the main UAE markets – with fewer than 20% of retailers looking at markets outside the Emirates. However, it must be noted that Dubai has probably seen the greatest fall in retail spend and that is a significant factor in retailers' deliberations.

In terms of retail spending, Dubai has seen a fall in comparison to Abu Dhabi and its other neighbors. Both cities are looking at tourism to play a major part in retail growth for next year, with shows like Formula One and FIFA World Club Tournament will bring added glitz, glamour and shoppers. However, in terms of retail expansion, the mood of the market has changed. There is a drive to expand new brands into the region, but it is a measured approach and there is a focus on securing the best location in those schemes where sales are maximized and risk minimized. Retailers will not compromise on locations and want to secure quality space in quality schemes. The retailers active in expansion in the MENA region see the current turbulence in the market as an opportunity to secure their position for when the market recovers and to give them a commercial competitive edge. (BI-ME 19.11)

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5.8 Abu Dhabi Inflation Falls To 20-Year Low

Statistics Centre - Abu Dhabi's (SCAD) report showed a steady drop during the year to the current rate of 0.98%, compared with 14.41% for 2008. SCAD added that the decline in inflation rate is forecast to continue, offering better opportunities for further growth and financial and economic stability in Abu Dhabi. The report added that in the last four months (July-October), the emirate had seen a decrease in prices of most goods and services, compared with their previous year levels. SCAD said the marked drop in the rate of inflation was the result of stabilization in the prices most major commodities and the decline in house rentals. The consumer price index (CPI) for October retreated by 0.70% year-on-year, the report added. (AB17.11)

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5.9 UAE Civil Building Construction Market Has Ongoing Projects Worth $657 Billion

The latest research undertaken by Dubai-based research and analysis think tank Proleads, has identified 1,845 projects worth a combined $657 billion are still active (not cancelled, completed or on-hold). The study splits the market into four sectors; Commercial and Retail, Education and Healthcare, Leisure and Entertainment and finally the Residential sector. The largest of these sectors by number of projects as well as by budget is the commercial and civil sector. The total market consists of 829 projects valued at $412 billion. The residential sector is made up of a combined value of $312 billion. The rate that projects are being cancelled has accelerated over the course of the year although the largest proportion of projects, are still in progress. Projects classified within the leisure and entertainment sector amount to over $233 billion spread across 445 projects, while education and healthcare has almost 700 projects worth $57 billion. The UAE study is complemented by a comparative report on the state of civil projects in Abu Dhabi and Dubai. In terms of projects currently under construction, the report finds Dubai has the larger share of the market - indicative of Abu Dhabi projects having started later than Dubai. (BI-ME 11.11)

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5.10 Saudi Inflation Slows To 3.5%

Saudi Arabia's Central Department of Statistics announced that inflation slowed to its slowest pace in more than two years. Inflation decelerated to an annual rate of 3.5% in October from 4.4% in September, the data shows. It was the lowest rate since June 2007. Inflation in the Arab world's largest economy will slow further in Q4/09, partially due to lower commodity prices excluding oil, the kingdom's central bank said. Consumer prices rose 0.65% in October and September. Annual inflation may slow to an average 4.6% next year from 5.1% this year. The pundits added that though the dollar should strengthen somewhat during 2010, domestic inflation is likely to stay at historically high levels. Inflation averaged 0.98% from 1990 to 2007. (BI-ME 15.11)

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5.11 Saudi Arabia Grants Pakistan $380 Million Loan

Saudi Arabia has granted Pakistan a $380m soft loan to mainly support its budget, in the biggest single donation since donors pledged $5.7 billion of aid in April to the violence-torn country. A senior Saudi official said the loan was part of $700m Saudi Arabia has pledged to give Pakistan at the Tokyo donors meeting. Nations pledged $5.7 billion in aid to Pakistan but a fraction of that has trickled in, with donors wanting more details on how the money will be spent and amid questions over how well the fragile civilian government is functioning. The Pakistani central bank will get $200m from Saudi Arabia for "budget spending", $100m will be a credit line to cover Pakistani imports of fertilizers from Saudi Fertilizers Co and $80m will help finance a hydropower project in Pakistan, the official said. Saudi Arabia is Pakistan's top Arab ally. Some 1.7 million Pakistani expatriates who live and work in Saudi Arabia sent home $1.8bn in remittances in 2008. The International Monetary Fund (IMF) has urged Pakistan to work harder on its own reforms and demanded that donors follow through on the aid promised for the Asian country. The IMF bailed out Pakistan last November to avert a balance of payments crisis and in July it increased its loan to the country to $11.3bn from an initial $7.6bn. (Reuters11.11)

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5.12 Ten Companies to Compete in Egypt Wind Farm Bid

In an effort to beef up its alternative energy sources, the Egyptian government has established a list of 10 bidders to build a wind farm in the country. The farm will have a capacity of 250 MW and is expected to be built on the Gulf of Suez. El Sewedy Cables, as part of a consortium, is among the contenders. Orascom Construction, Enel Green Power SpA, and Electricite de France, are also all in the running. With this list now established, the bidders will compile their final bids, which they will each submit in the first quarter of 2011, in advance of 2014, when the plant is expected to be fully operational. The project is being carried out under the auspices of the Ministry of Electricity. This project is part of a broader effort by the Ministry of Electricity, and the Egyptian government at large, to increase the amount of energy it generates from renewable sources, including wind, hydro and solar. It is part of the government's long-stated plan to harvest 20% of its energy from alternative sources. Wind is expected to take the lead among the renewable sources, filling 12% of Egypt's energy needs. The sale of the rights for this wind farm is for a build-operate-own (BOO) operation, meaning that whichever company wins the bidding will be responsible for the design, construction and operation of the facility. As part of its licensing agreement, it will sell the electricity to the Egyptian Electricity Transmission Company. Making it to the final list of 10 was a substantial feat, considering reports that there were 34 countries that initially offered bids. Minister of Electricity Younes said that 72 companies had expressed interest. Egypt has catching up to do when compared to some of its neighbors. Morocco, for example, already generates 20% of its energy from renewable sources, a benchmark that Egypt hopes to reach in a decade. But with all the interest in the latest Red Sea wind project, it is clear that the investment appetite is there. (DNE11.11)

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5.13 IMF Mission Statement on the 2009 Article IV Consultation with Morocco

An International Monetary Fund (IMF) mission visited Rabat from November 2-13, 2009, for the 2009 Article IV consultation with Morocco. At the conclusion of the visit, the mission said that it reviewed recent economic developments and the authorities' strategy for mitigating the impact of the global crisis on Morocco, and discussed policies to boost economic growth, income and employment. The mission met with ministers, senior government officials, the Central Bank Governor, as well as with representatives from the private sector and labor unions. Despite the world economic slowdown, Morocco's economic performance has remained solid. Real GDP growth was 5.6% in 2008 and is expected to be around 5% in 2009, sustained by strong domestic demand and exceptional agricultural production. Consumer price inflation will drop to less than 2% in 2009, reflecting, among other factors, the decline in world commodities price. The current account deficit is expected to improve, assuming that the recent signs of a rebound continue in the last part of the year. Fiscal policy will appropriately loosen in 2009 and 2010, reflecting in good part the authorities' counter-cyclical measures. Over the medium term, fiscal policy should aim to gradually bring the budget deficit below 3% of GDP, without jeopardizing the economic rebound. Important reforms in the public finance area are ongoing, including tax reforms, and efforts to gradually replace the current system of subsidies by targeted measures to assist the low-income segments of the population.

The central bank has responded appropriately to the evolving economic and financial conditions through its interest rate policy and liquidity management tools. The mission notes that the central bank has the necessary tools, resources, and analytical framework in place should monetary policy evolve to an inflation targeting framework. The banking sector remains solid, and has largely been untouched by developments in international financial markets. Given the rapid credit growth in recent years, the Central Bank continues to pay close attention to credit quality. Strong and sustained economic growth in Morocco will depend on reforms aimed at increasing the productivity and competitiveness of the economy, and boosting Morocco's ability to compete on external markets. To these ends, the authorities are undertaking a wide range of reforms, including in the sectors of justice, agriculture, energy, and education. Success in these efforts will raise investment and output, and help address key social challenges, including youth unemployment. (IMF13.11)

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5.14 Outlook for Pharmaceuticals in Pakistan

The Pakistani pharmaceutical market remains beset with difficulties. Strict government control over pricing has made many drugs uneconomical, with the result that they either become available only on the black market at inflated prices, or disappear completely. In this environment, manufacturers, both local and foreign-owned, have proved unable to generate the profits needed for capital investment. This is not helped by a regulatory system best described as rudimentary. There is virtually no public drug reimbursement or IP protection; patent law was officially tightened in December 2000, although the effectiveness of this has been questioned. In 2002, further changes were made, making Pakistan's IP laws even weaker. Drug prices are officially controlled, although the government lacks the capacity to enforce its policies in this area. Some price rises have been allowed since 2000, but the current government shows little sign of enacting any serious reform of the pharmaceutical sector, preferring to allege profiteering on the part of the pharmaceutical industry. (Various 15.11)

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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS

6.1 Blockage of EU Environment Chapter Angers Turkey

Plans to open more negotiation chapters in the EU accession negotiations are being thwarted for political reasons and Turkish leaders are angry. Some European countries reportedly intend to block the opening of the environment chapter of Turkey's European Union-accession negotiations for political reasons, infuriating Turkish officials. Turkey has been planning to open the environment chapter next month at the Intergovernmental Conference, making it the 12th out of 35 chapters opened as part of negotiations over the country's EU membership candidacy. The EU has suspended the opening of eight chapters due to Ankara's resistance to opening its ports and airports to Greek vessels and aircrafts. France also unilaterally blocked five chapters, meaning one-third of the sections are untouchable at this time. Now, the Greek Cypriot administration has been blocking the opening of additional chapters, including those on energy and education and culture, drawing disappointment and fury in Turkey. Noting that the same EU member state has also blocked the opening of the chapter on education and culture, the Turkish foreign minister indirectly blamed EU countries for being passive on the issue. The minister also criticized the discouraging attitudes expressed by Europeans. According to diplomats, Spain will try to move forward with the opening of the chapter on energy during its EU presidency. Turkish officials also mentioned the chapters that are ready to be opened, but have been suspended due to the Greek Cypriot veto. Next spring, the Turkish Cypriots will vote to elect their president, making early next year a target date for many for the deadline of the talks. The Greek Cypriots, on the other hand, are avoiding rushing to an agreement in order to first see the European Council's decision on the fate of the negotiations with Turkey. The council will review the negotiations on the basis of its 2006 decision after Turkey refused to open its ports to Greek Cyprus. (Hurriyet 16.11)

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6.2 Turkey Starts Over As Nuclear Power Plant Tender Scrapped

Turkey has had to postpone its decades-old desire of having a nuclear power plant as on 20 November, the Turkish Electricity Trading and Contracting Company (TETAS) cancelled a tender for the construction and operation of Turkey's first nuclear plant. In a brief statement, TETAS said its board of directors had unanimously decided to scrap the tender under Article 31 of the bid specifications, which gives TETAS the right to cancel the tender after the bid envelopes are opened, without any legal liability. The article also reads that the bidding parties may not make any claims due to the cancellation of the tender.

TETAS had held the tender for the construction and first 15 years of operation of the nuclear power plant since September 2008 and a consortium composed of Russian companies Atomstroyexport and Inter RAO UES and the Ciner Group's Park Teknik won it as the sole bidder. The Turkish Atomic Energy Agency (TAEK) approved the technical aspects of the consortium's bid and sent the bid for the Cabinet's evaluation. The decision to cancel was no surprise as the tender was already in jeopardy due to a recent verdict by the Turkish Council of State which ruled the tender legally invalid over issues such as power pricing. Upon loud criticism over the high price of the bid, the consortium had lowered its offer. The new price was $0.134-$0.154 per kilowatt hour (kWh), 27% lower than its original bid but still approximately double the current rates.

Turkey is seeking to cover an imminent shortfall in electricity as well as cut its dependence on foreign energy resources, mainly natural gas. The government's plan was to designate atomic power an essential source of energy, meeting at least one-fifth of Turkey's power needs within the next two decades. The government guarantees 15 years of power purchases to encourage investment in the plant, but the winning companies still have to charge a premium to recoup nearly $8 billion in costs. Turkey has cancelled four previous attempts to build a nuclear plant, with plans stretching back to the late 1950s, due to the high cost and environmental concerns. The decision to cancel also had another dimension as regards international politics. The plant was part of a major push of deals Turkey had agreed with Russia earlier this year to increase cooperation on energy, such as Turkey's permission for Russia's South Stream natural gas pipeline to pass through its territorial waters and Russia's promise to provide oil to Turkey's Samsun-Ceyhan oil pipeline project. (Zaman22.11)

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6.3 Turkish Jobless Rate Surges to 13.4%

Turkey's unemployment rate jumped to 13.4% in the three months through September as the global crisis sent the economy into its deepest recession since 1945. The rate increased from a revised 10.2% in the same period of last year, the Ankara-based Turkish Statistics Institute (TurkStat) announced. The jobless rate was 12.8% in the month-earlier period and hit 16.1% in February, the highest since records began in 2005. Turkey's economy contracted 7% in Q2/09 after slumping 14.3% in the first, the deepest fall since records began in 1987. The Central Bank says it is not convinced there is any sustainable recovery. Turkey shed 192,000 jobs in services, construction and manufacturing in the period from the year earlier, while agricultural jobs rose 40,000, TurkStat said. The workforce grew by about 1 million from the same period a year earlier. (Hurriyet 16.11)

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6.4 Cyprus Recession Deepens in Third Quarter

Cyprus moved deep into recession in the third quarter according to the latest "flash" estimates of gross domestic product (GDP) produced by the Statistical Service. GDP is estimated to have declined by 1.4% compared with the previous quarter - its steepest decline since quarterly GDP started to be recorded. Moreover, GDP in the second quarter was also revised down, to a decline of 0.8%, after a previous estimate of a 0.5% contraction. Compared with the same quarter of 2008, GDP is estimated to have dropped by 2.7% on a seasonally adjusted basis, after a 1% contraction in the second quarter. On a non-seasonally adjusted basis, GDP fell by 2.9%. Cyprus has not recorded a full year's GDP decline since 1975, the year after the Turkish invasion. The Statistical Service said that contraction of the economy during the third quarter of 2009 was mainly owing to the very negative growth rates in construction and hotels and restaurants as well as the negative performance of manufacturing, retail and wholesale trade, and transport activities. Financial intermediation activities (banking) as well as the broad services sector continue to record positive growth rates but at a decelerating rate. (FM13.11)

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6.5 Cyprus Tourism Tumbles 14% in October

Tourism arrivals in Cyprus continued to fall steeply in October, falling by 14% 230,431 in October 2009 compared with 267,866 in October 2008. Arrivals from the United Kingdom, which sources more than half of all tourists, fell by 19.1% to recorded 115,526 in October 2009 compared with 142,868 in October 2008. There was also a sharp decrease in arrivals from Russia, which has recently been a buoyant market, with arrivals falling by 29.6% to 14,131 from 20,076 in October 2009. There was a milder decrease of 2.0% in arrivals from Germany to 16,166 compared to 16,498 in October 2008. The only bright spot was Greece, where there was an increase of 21.9%from 10,598 in October 2008 to 12,924 in October 2009. For the period January - October 2009 arrivals of tourists totaled 1,985,321 compared to 2,233,721 in the corresponding period of 2008, recording a decrease of 11.1% over the same period of the previous year. (FM13.11)

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6.6 Eurozone Concerned About Greece

Greece's public finances have become a "concern for the whole euro area," according to European Commissioner for Economic & Monetary Affairs Almunia, who said the Greek government needs to move ahead with crucial institutional reforms. Economic statistics provided by Greece "were completely wrong," Almunia said in Brussels, adding that the challenges facing the country are "high" and "a question of common concern for the whole euro area." Greece admitted last month that its budget deficit will come in at 12.7% of GDP in 2009 as opposed to the 3.7% shortfall originally estimated. Responding to the comments, Finance Minister Papaconstantinou said in Athens that the government is determined to restore the credibility of its macroeconomic statistics and reduce its large fiscal deficit. In its autumn forecasts, released last week, the EU's executive Commission sees Greece's budget deficit remaining above 12% of GDP through to 2011 – at 12.2% in 2010 and 12.8% in 2011. To show it is serious about restoring credibility, the minister said he had invited EU statistics agency Eurostat to join an independent committee he will set up to look into what went wrong with the country's macroeconomic statistics. (Ekathimerini12.11)

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6.7 Greek Incoming Tourism Falls By 8% - Outlook Bleak

Tourist arrivals at Greek airports dropped by an annual rate of 7.8% in the first 10 months of the year, data showed. The Institute of Tourism Research & Forecasting (ITEP) said the number of tourists arriving at Greek airports fell 6.2% year-on-year in October. Athens and the islands of Myconos and Santorini were among the worst-hit destinations. It said Greek tourism receipts dropped 11.7% year-on-year in the January-September period, with hotels hit hardest by the impact of the economic crisis. Initial indications show that the rebound in Greek tourism will be "exceptionally slow," according to the Panhellenic Federation of Tourism Enterprises (POET), which took part in London's World Travel Market earlier this month. POET, which represents mainly travel agents, said that initial bookings along with broader market trends point to a bleak upcoming season. (Ekathimerini18.11)

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6.8 Greece's Domestic Computer Market

Research and Markets (http://www.researchandmarkets.com) announced the addition of ICAP Group's new report "Computers in Greece 2008" to their offering, focusing on the domestic Greek computer market and in particular the market of laptop computers, desktop computers and servers. In the field of computer hardware, a large number of Greek companies import and assemble computers. Most of them also operate in the broader Information and Communications Technologies field which includes telecommunications, software, computer services, office equipment, and so on. In recent years, several sector companies have developed organized sales networks and are gaining a strong position in the field of retail. The demand for computers may be classified in two broad categories: the demand that derives from households and small businesses, and the demand that comes from large companies and organizations (private and public). According to the data of this study, the two groups that lag behind in the deployment of IT in our country (low penetration levels in comparison with the EU-15) are very small businesses (with 1-5 employees) and households. (R&M13.11)

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6.9 Bulgaria Firm on Plans for Euro Adoption in 2013

Bulgaria's Finance Minister Djankov has confirmed that the country will apply early next year to join the exchange-rate mechanism, the two-year currency stability test prior to euro adoption, and seek to switch to the common currency in 2013. Bulgaria initially planned to apply to join the exchange-rate mechanism in November, but delayed it till February at the earliest, after all member states submit their convergence programs, which contains the mid-term goals of the fiscal policy. Djankov, a World Bank economist, hopes to offset a possible reluctance to admit Bulgaria into the ERM, stemming from the global crisis, by garnishing the application with a targeted balanced 2010 budget, the smallest 2009 deficit in the EU and laws overhauling the inefficient health-care and social-security systems. Joining the exchange-rate mechanism would bring Bulgaria closer to the umbrella of the euro region and the protection of the European Central Bank and is conditional on whether the new government will succeed to restore Brussels trust. The lev is already linked to the euro in a currency board that keeps the Bulgarian currency at 1.9558 to the euro. Joining the exchange-rate mechanism may allow the lev to fluctuate by as much as 15 % around a central band, though the central bank has said it will leave the lev tightly pegged to the euro through the duration of the two years. Bulgaria's entry in the eurozone, initially scheduled for 2010, has been set back as it is conditional on continued fiscal prudence and lower inflation. Bulgaria has the lowest personal and corporate income tax in the EU at 10%. (SMN12.11)

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6.10 Bulgaria Forms Natural Gas Supplies JV With Azerbaijan

Bulgaria's state-owned gas operator Bulgartransgaz, a subsidiary of Bulgargaz, and the Azerbaijan state gas company GNKAR are going to set up a joint venture, as announced by Bulgaria's Minister of Economy, Energy & Tourism Traikov. Traikov received authorization by the Council of Ministers to sign a cooperation memorandum for the setting up of the joint venture with the Energy Minister of Azerbaijan. The Bulgaria-Azerbaijan joint company is going to explore the possibilities for the delivery of natural gas from Azerbaijan to Bulgaria, including as both finding supplies for the quota of natural gas that Bulgaria will be entitled to receive through the Nabucco gas transit pipeline, and for the transit of compressed natural gas with tankers through the Black Sea. If the project is realized, Bulgaria will not have to participate in the construction of a liquefied natural gas terminal. As a result of the January 2009 Russia-Ukraine gas crisis, the Bulgarian authorities considered pushing for the setting up of such a terminal in Greece or Turkey in order to diversify the country's gas supplies. The new Bulgarian-Azerbaijan memorandum is going to build upon the one signed in June 2008 in Baku for starting talks between Bulgargaz and GNKAR for the supply to Bulgaria of 1 billion cubic meters of Azerbaijan natural gas. According to Traikov, if the joint venture for transporting compressed natural gas from Azerbaijan to Bulgaria with tankers is successful, the quantity could be increased up to 7-8 billion cubic meters including supplies to be transited through Bulgaria for third parties. (SMN12.11)

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6.11 Bulgaria Parliament Passes 2010 State Budget Without Debate

On 17 November, Bulgaria's Parliament passed the 2010 State Budget Act at first reading with minimum debate. The 2010 State Budget Act was adopted with 135 votes in favor and 44 votes against. It was passed with the votes of the ruling majority from the governing GERB party and its allies from the Blue Coalition, the Ataka party and the conservative RZS party, and was opposed by the Bulgarian Socialist Party and the ethnic Turkish Movement for Rights and Freedoms (DPS). The new State Budget Act envisages a 2% decline of Bulgaria's GDP in 2010. The projected 2010 state revenues amount to BGN 26.4 B, which is a 19% decline compared to the one in the 2009 State Budget, and about BGN 435 M more than what the government expects to have actually raised for all of 2009. The social security payments will be reduced by 2% starting January 2010. All direct taxes are going to stay the same in 2010, and only some excise taxes are going to be increased, most notably the one on cigarettes – by 43%. Foreign investments, which collapsed from BGN 6.5 B to BGN 3 B in 2009, are projected at BGN 3.3 B. Bulgaria's employment ratio is expected to drop by 2.5% and the unemployment is expected to stand at 11.4% at the end of 2010. (SMN18.11)

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6.12 TI Corruption Perceptions Index: Bulgaria Is Less Corrupt In 2009

Bulgaria has become less corrupt in 2009 according to the corruption perceptions index (CPI) published by Transparency International (TI). Bulgaria moved up one place from 72 to 71 and has become less corrupt than its close neighbors Romania and Greece according to the index. War-torn nations remain the world's most corrupt TI has reported. New Zealand was the least corrupt, with last year's winner Denmark as runner-up and Singapore third. (SMN18.11)

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7: GENERAL NEWS AND INTEREST

*ISRAEL:

7.1 Eid Al-Adha - Feast of the Sacrifice to Begin on 27 November

The first day of the Islamic holiday Eid al-Adha will fall on 27 November and last for three days. Eid al-Adha is a religious festival celebrated by Muslims worldwide as a commemoration of Ibrahim's willingness to sacrifice his son Ishmael for Allah. It is one of two Eid festivals that Muslims celebrate. Like Eid al-Fitr, Eid al-Adha begins with a short prayer followed by a sermon. Eid al-Adha is three days long and starts on the 10th day of the month of Dhul Hijja of the lunar Islamic calendar. This is the day after the pilgrims in Hajj, the annual pilgrimage to Mecca in Saudi Arabia by Muslims worldwide, descend from Mount Arafat. It happens to be approximately 70 days after the end of the month of Ramadan.

Men, women and children are expected to dress in their finest clothing and perform the Eid prayer in any mosque. Muslims who can afford to do so sacrifice their best domestic animals (usually sheep, but also camels, cows, and goats) as a symbol of Ibrahim's sacrifice. The sacrificed animals, called udhiya, also known as qurbani, have to meet certain age and quality standards or else the animal is considered an unacceptable sacrifice. Generally, these must be at least 4 years old. At the time of sacrifice, Allah's name is recited along with the offering statement and a supplication as Muhammad said. According to the Quran a large portion of the meat has to be given towards the poor and hungry people so they can all join in the feast which is held on Eid-al-Adha. The remainder is cooked for the family celebration meal in which relatives and friends are invited to share.

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7.2 9/11 Monument Dedicated in Jerusalem

A monument to the victims of 9/11 was dedicated in Jerusalem, Israel. The monument, commissioned and built by the Jewish National Fund-USA/Keren Kayemeth LeIsrael, depicts the World Trade Center and Pentagon through sculpture and landscape architecture. Designed by award-winning Israeli artist Eliezer Weishoff, the 30-foot high bronze sculpture is composed of a waving American flag transformed into a memorial flame. It rests on a gray granite base, part of which is from the original Twin Towers. The sculpture is surrounded by a circular, crater-like plaza and reflection area tiled in stone. The memorial was donated by New York resident Edward Blank and the plaza was funded by the Bronka Stavsky Rabin Weintraub Trust. The Jerusalem monument is the only site outside of New York to recognize the names of every victim of the attack, engraved on bronze plaques surrounding the sculpture. (JTA 12.11)

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*REGIONAL:

7.3 King Abdullah Dissolves Parliament and Calls Election

On 23 November, Jordan's King Abdullah has dissolved parliament halfway through its four-year term and called for early elections. The king issued a royal edict ordering the dissolution of what is widely considered a rubber-stamp assembly composed of 110 lawmakers, mainly tribal loyalists. No reason was given for the king's sudden decision, but the assembly had been accused of inept handling of legislation and there had been speculation it might be dissolved. Constitutionally, most powers rest with the king, who appoints governments and approves legislation. Liberal politicians say the move could herald a wider government shake-up to ward off popular disenchantment over economic contraction after years of growth, and allegations of official graft. Parliament was elected in November 2007 under a controversial electoral law that reduced the representation of the largely Palestinian-dominated cities, which are Islamic strongholds, in favor of rural and Bedouin areas. Successive governments have sidelined parliament and eroded the democratic gains made since 1989. The government has four months to declare new elections but lawmakers say the constitution allows the king to delay them. (Petra24.11)

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7.4 Egyptian Riot Over Algeria's Soccer Win

History has proved that there are two subjects that will move Egyptians to pour into the streets in riotous numbers, crashing windows, burning cars, battling one another and defying an army of club-wielding riot police officers. One is the price of bread and the other is soccer. This was proved again this week after Egypt's national team was defeated by its bitter rival Algeria, losing a berth in the World Cup tournament next year and sparking a riot outside the Algerian Embassy in Cairo on 19 November.

There was a pronounced difference between the bread riots of 1977 and 2008 and the soccer riot of Thursday night: the government quieted those earlier outbreaks by quickly lowering the price of bread, while this week it stoked outrage against Algeria. Egypt had defeated Algeria 2-0 in Cairo on 14 November to set up a climactic playoff on 18 November in the Sudanese capital, Khartoum. After Egypt lost the second match, the government withdrew its ambassador from Algiers and accused Algerians of menacing Egyptian fans after the game. President Hosni Mubarak's eldest son, Alaa, a wealthy businessman, sounded as if he were calling his nation to war.

Dignity did seem to be a subtext, however, as hundreds of young men rushed the Algerian Embassy in Cairo, vandalizing cars and stores, burning Algerian flags and injuring 35 police officers — a rare occurrence in a police state that has made gatherings of seven or more people illegal. Soccer is a national passion. The only time Egyptians take to the streets in flag-waving celebration is when their team wins and in soccer terms Algeria has for years been enemy No. 1. Both nations have waited a long time to get a spot in the World Cup, 24 years for Algeria, 20 for Egypt. The last time Egypt made it was in 1989, when it defeated Algeria.

From the start, the Egyptian government sought to exploit the games with Algeria for political reasons, political analysts said. State radio broadcast nationalist songs. Streets were filled with young men selling Egyptian flags. The president's son Gamal Mubarak, who is often talked about as a possible successor to his 81-year-old father, attended the two games with other high-ranking party members. Critics charged that the government, specifically the president's political organization the National Democratic Party, was hoping that a victory on the field could bolster its credibility in the face of grinding poverty and political stagnation. When Egypt lost the playoff, the government still tried to ride those emotions, leading with calls of outrage and indignation.

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8: ISRAEL LIFE SCIENCE NEWS

8.1 Yissum Introduces a Novel Method for Preventing and Affecting Biofilm of Bacteria and Fungi

Yissum Research Development Company of the Hebrew University of Jerusalem, the technology transfer arm of the University, introduced a novel method for preventing biofilm. The invention utilizes novel heterocyclic compounds that disrupt cell-cell communication, thereby interfering with the formation of biofilms. Unlike the use of antibiotics which often induce formation of resistant strains, the compounds do not need to kill the microorganisms that cause the biofilms. This is only one of the many breakthrough water technologies developed at the Hebrew University. A recent study published by researchers from the University of Colorado showed that showerheads may be dangerous for our health due to contamination with biofilms, or aggregates of bacteria or fungi. This invention is exactly the solution for such problems as well as many other problems related to home and industrial use that affect us daily. The novel compounds will be used as a coating on pipes, filters, membranes, air conditioning ducts and other surfaces in contact with water prone to formation of biofilms. The coating is environmentally friendly and effective against both fungal and bacterial biofilms. 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. (Yissum11.11)

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8.2 Sol-Gel's IND Application for Rosacea Accepted by FDA

Sol-Gel Technologies announced that the U.S. FDA has acknowledged receipt of Sol-Gel's Investigational New Drug Application (IND) for DER45-EV Gel for the topical treatment of rosacea. This IND allows Sol-Gel to initiate Phase II studies with DER45-EV Gel in rosacea patients. DER45-EV Gel is an innovative topical product based on Sol-Gel's patented drug delivery system that is designed to enhance the efficacy, safety and stability of topical drugs. Sol-Gel's technology does so by encapsulating the active ingredients in an inert, clear-silica microcapsule shell and by releasing the ingredients in a time-controlled manner. Ness Ziona's Sol-Gel Technologies (http://www.sol-gel.com) is a fast-growing specialty pharmaceutical company focusing on enhancing dermatological products. Founded in 1997, the company has advanced skincare products to market and developed a pipeline of prescription and over-the-counter products, addressing dermal medical conditions affecting large patient populations. (Sol-Gel11.11)

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8.3 Non-Invasive Uterine Fibroid Treatment with ExAblate Shows Significantly Fewer Complications

InSightec announced that three new papers published in the November issue of Ultrasound in Obstetrics and Gynecology add to the growing body of data supporting the use of ExAblate as a safe, effective and durable treatment for uterine fibroids. One study showed that non-invasive treatment with the ExAblate Magnetic Resonance-guided Focused Ultrasound (MRgFUS) system offers women a significantly less risky treatment for symptomatic uterine fibroids with much faster recovery time than hysterectomy. A separate study shows the positive correlation in the volume reduction of the fibroid to symptom improvement after two years, while a third showed improvement in outcomes of ExAblate treatments as physicians improved their skills with the system. In a separate retrospective multi-center study of patients who had undergone MRgFUS in Japan, researchers found that as practitioners gained more experience using MRgFUS, their treatments were increasingly effective and that the percentage of patients that who required a second treatment at one year decreased significantly, from 12% in the first group to 5% in the patients treated later. These numbers are similar to the retreatment rates of other uterine-conserving solutions.

ExAblate is the first system to use the MR guided focused ultrasound technology that combines MRI - to visualize the body anatomy, plan the treatment and monitor treatment outcome in real time - and high intensity focused ultrasound to thermally ablate tumors inside the body non-invasively. MR thermometry, provided uniquely by the system, allows the physician to control and adjust the treatment in real time to ensure that the targeted tumor is fully treated and surrounding tissue is spared. The ExAblate system was approved by the U.S. FDA in 2004 as a treatment for symptomatic uterine fibroids. Tirat Carmel's InSightec (http://www.insightec.com) is a privately-held company owned by Elbit Imaging, General Electric, MediTech Advisors, LLC and employees. It was founded in 1999 to develop the breakthrough MR guided Focused Ultrasound technology and transform it into the next generation operating room. The company has over 160 employees and has invested more than $120 million in research, development, and clinical investigations. (InSightec11.11)

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8.4 Nicast Announces Plans to Launch the NovaMesh Intra-Abdominal Hernia Mesh

Nicast is readying to launch the NovaMesh intra-abdominal hernia mesh in the European market in Q1/10, pending European regulatory approval. NovaMesh is the first intra-abdominal hernia mesh to utilize the special properties of electrospun nanofabric. In preclinical animal studies, NovaMesh has demonstrated excellent resistance to adhesions on the organ facing surface followed by regrowth of the peritoneum, strong tissue integration on the abdominal facing surface, and minimal mesh shrinkage. The findings of the preclinical study of the NovaMesh will be announced following the receipt of the final study report. AVflo is a self-sealing vascular access graft that enables unobstructed blood flow, allows for dialysis within 24-48 hours after implantation and self-seals within less than five minutes following withdrawal of the dialysis needles. The AVflo received CE certification in October 2008. The Company plans to introduce the improved version of the AVflo vascular access graft to the European market in the first quarter of 2010. Lod's Nicast (http://www.nicast.com) is a pioneer in the development of superior implantable medical devices made of electrospun polymer nanofabrics for a wide range of applications. The company is currently focused on the development and marketing of the AVflo vascular access graft and the NovaMesh intra-abdominal hernia mesh, which address a combined global market of $0.7 billion to $1 billion. Nicast has six patents in the U.S., ten patents outside of the U.S. and 16 additional patents pending. (Nicast 12.11)

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8.5 BrainStorm Stem Cell Therapy Technology Promising for Future Treatment of Multiple Sclerosis

BrainStorm Cell Therapeutics announced that the company's therapeutic approach for treating neurodegenerative diseases, particularly ALS and Parkinson's disease, was found to have a positive effect in a mouse model of multiple sclerosis (MS). In a scientific paper published in the Journal of Molecular Neuroscience, Professors Melamed and Offen's team from Tel Aviv University studied the effectiveness of human bone marrow derived stem cells induced to differentiate and secrete neurotrophic factors (NTF-SC) as compared to the use of non-differentiated stem cells in a mouse MS model. This study demonstrated that the transplantation of the NTF-SC, based on their novel differentiation technology, resulted in a delay of disease onset and increased animal survival in the mouse MS model to a greater extent than transplantation of the non-differentiated stem cells. It was shown that the NTF-SC modulate the immune system and protect neuronal cells from toxic insults. The positive results in the mouse MS model indicates that their new technology may serve as a possible approach for the treatment of MS.

Petah Tikva's BrainStorm Cell Therapeutics (http://www.brainstorm-cell.com) is an emerging company developing adult stem cell therapeutic products, derived from autologous (self) bone marrow cells, for the treatment of neurodegenerative diseases. The technology allows for the differentiation of bone marrow-derived stem cells into functional neurons and astrocytes, as demonstrated in animal models. The Company holds rights to develop and commercialize the technology through an exclusive, worldwide licensing agreement with Ramot at Tel Aviv University Ltd., the technology transfer company of Tel-Aviv University. The Company's current focus is on ALS, although its technology has promise for treating several other diseases including MS, Huntington's disease and stroke. (BrainStorm 16.11)

8.6 New Era in Cattle Feeding: Lachish Industries Launches the Mixellent

Lachish Industries presents a revolution in the cattle feeding methods. The production of milk is a direct result of the food cows' consumption – imbalanced or malnutrition will lower the quantity and quality of the milk produced, thereby reducing the income of the owner. The Mixellent enables accurate feeding through precise mixing and creation of a homogeneous, balanced mixture to match the farm's nutritional instructions. The Mixellent was developed to provide a solution for precise and fixed cattle feeding, with a perfect mixture of the food ingredients to insure the increase in the milk production and keep the herd healthy and strong. The maximum operator efficiency and state of the art equipment with special technology that will ensure perfect execution of the cattle's feeding. It also affords owners absolute control in the area of feeding, which constitutes up to 70% of the farm's total expenses. This will ensure that the owner has complete control over the main expense, and he can then improve the business results. Investing in the Mixellent will guarantee many years of precise and stable work, keeping milk production high, the herd healthy and the expenses under control. The Mixellent is the world's leading feeding vehicle for the volumes of 16-30 m3. The Mixellent is an energy efficient machine that enables savings for raw materials and shortens the feed preparation time. Sderot's RMH Lachish Industries (http://www.lachish.com) has been actively involved in providing services to the agricultural sector by manufacturing and developing cattle feeding machinery to comply with the needs of the dairy farming and feedlot industry. Lachish Industries mixers are recognized world-wide under the brand name RMH. (RMH17.11)

8.7 Syngenta & Makhteshim Agan Announce Supply Agreement

Switzerland's Syngenta and Makhteshim Agan announced a long term agreement under which Syngenta will supply Makhteshim Agan with its fungicide azoxystrobin. The agreement will offer growers a wider choice of solutions through the distribution channels of both companies. Syngenta will continue to expand the sales of its azoxystrobin based fungicide solutions while Makhteshim Agan will develop and commercialize its own range of products based on azoxystrobin, mainly in mixtures with its existing fungicide portfolio. The active ingredient azoxystrobin, developed by Syngenta, is the world's best selling fungicide. Azoxystrobin, which belongs to the strobilurin chemical group, has a broad spectrum of fungicidal activity and is now registered for use on approximately 120 different crops in some 100 countries. Financial terms of the agreement have not been disclosed. Tel Aviv's Makhteshim Agan (http://www.ma-industries.com) is a world-leading manufacturer and distributor of branded off-patent crop protection products. The Company is characterized by its know how, high-level technological-chemical abilities, expertise in product registration, observance of strict standards of environmental protection, stringent quality control and global marketing and distribution channels. (Syngenta19.11)

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9: ISRAEL PRODUCT & TECHNOLOGY NEWS

9.1 VocalTec & Runcom Offer Integrated WiMAX and VoIP Solutions

VocalTec Communications, together with Runcom Technologies, disclosed their integrated WiMAX VoIP solution today at the AfricaCom Conference and Exhibition. The companies announced that they will collaborate on the provisioning of WiMAX VoIP solutions to service providers in emerging telecom markets. The joint offering enables the delivery of both broadband and voice services to remote areas where traditional access is unavailable, assuring interoperability and ease of deployment. It also allows service providers to effectively provide high quality VoIP services to their subscribers at low cost. Rishon LeZion's Runcom (http://www.runcom.com) is the world's pioneer of OFDMA based End-to-End WiMAX System solutions for Fixed and Mobile operators worldwide. Runcom's offering includes Base Stations, ASN Gateways, NOC and a variety of high-end terminals including WiMAX Voice and Video Phones and handsets that comply with the IEEE802.16e-2009 standard for WiBro and Mobile WiMAX applications. Herzliya's VocalTec Communications (http://www.vocaltec.com) is a global provider of carrier-class multimedia and voice-over-IP solutions for communication service providers. A pioneer in VoIP technology since 1994, VocalTec provides proven VoIP trunking, VoIP peering and residential/enterprise VoIP application solutions that enable flexible deployment of next-generation networks (NGNs). Partnering with prominent system integrators and equipment manufacturers, VocalTec serves an installed base of dozens of leading carriers. (VocalTec11.11)

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9.2 Italtel & ECI Telecom Partnership Supplies Advanced Telecom Solutions for Service Providers

Milan's Italtel, one of the leading companies in the next generation IP networks sector, and ECI Telecom have signed a partnership agreement for the sale and customization of optical transport systems for metropolitan networks and access platforms for voice, data, IP video and fixed/mobile convergence. As such, Italtel will be a preferred vendor and system integrator for ECI Telecom technology in the building of integrated communication networks for service providers, communications providers and utility companies in the "Quadruple Play" (data, voice, video, mobile) access and transport markets. Under this agreement, Italtel has become one of ECI's Global Partners. The partnership between Italtel and ECI Telecom will cover the integration and customisation, at the customers' premises, of ECI's Multi-Service Access Node (MSAN) Hi-FOCuS and the metro edge BroadGate line of products. The Hi-FOCuS supports voice, data and video over one, converged IP platform, while the BroadGate line is an advanced multi-service provisioning platform for the transporting of data streams over fibre optic in metropolitan networks.

Petah Tikva's ECI Telecom (http://www.ecitele.com) delivers innovative communications platforms to carriers and service providers worldwide. ECI provides efficient platforms and solutions that enable customers to rapidly deploy cost-effective, revenue-generating services. Founded in 1961, ECI has consistently delivered customer-focused networking solutions to the world's largest carriers. The Company is also a market leader in many emerging markets. ECI provides scalable broadband access, transport and data networking infrastructure that provides the foundation for the communications of tomorrow, including next-generation voice, IPTV, mobility and other business solutions. (ECI11.11)

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9.3 Alvarion Chosen by Adam Internet to Deploy WiMAX Project in South Australia

Alvarion has been selected by Adam Internet to deploy a WiMAX network across metropolitan Adelaide, Australia. Adam Internet is building a wireless broadband network as part of the Australian government's Broadband Guarantee Program aimed at providing services to all Australian residents. The network will deliver high-speed broadband services to subscribers across an approximate 5000 square kilometer area of metropolitan Adelaide. Alvarion is working closely with Adam Internet and expects that the deployment in 14 wireless service areas will be complete in about one year providing maximum coverage across metropolitan Adelaide. It is expected that up to 55,000 residential and business premises will benefit from the provision of this service and will elevate Adelaide above the national Australian average for Broadband penetration. WiMAX technology enables lower cost high speed broadband data applications over extended coverage areas for many types of business models. Alvarion's WiMAX solutions are very widely deployed all over the world in over 100 countries. Tel Aviv's Alvarion (http://www.alvarion.com) is the largest WiMAX pure-player with the most extensive WiMAX customer base and over 250 commercial deployments around the globe. Committed to growing the WiMAX market, the company offers solutions for a wide range of frequency bands supporting a variety of business cases. Through its OPEN WiMAX strategy, superior IP and OFDMA know-how, and ability to deploy end-to-end turnkey WiMAX projects, Alvarion is shaping the new wireless broadband experience. (Alvarion11.11)

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9.4 InnerSense New Diagnostics for High Volume Semiconductor Manufacturing Environment

InnerSense introduced a new system for eliminating handling-related yield loss in 300mm wafer process tools running high volume production. The new system, coined SMW2, consists of a 300mm wafer instrumented with sensitive three dimensional vibration sensors, and a "Smart FOUP" that serves as a recharge and communication station, as well as a clean storage container. The "Smart FOUP" employs contact-less recharging and data transfer that enable the system to interface with standard robotic wafer handlers and be operated with minimal interruption to the production line. In addition to 3D vibration sensing and FOUP-based, contact-less reader/recharger station, the SMW2 features advanced analytical tools that facilitate troubleshooting, SPC-based trend identification and tool-to-tool comparison. These tools allow even untrained operators to use the system effectively to enhance the availability of expensive wafer process equipment. Established in Jerusalem, Israel, in 2002, InnerSense ((http://www.innersense-semi.com) develops, manufactures and markets diagnostic solutions for the semiconductor, flat panel display and solar cell industries. InnerSense's products, such as the Smart Wafer described above, help customers in over 25 fabs around the world increase their manufacturing yields and reduce operation and maintenance costs. Ricor Cryogenic and Vacuum Systems of Ein Harod, Israel, has acquired InnerSense in 2008. (InnerSense 11.11)

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9.5 Mellanox Announces World's Fastest Switch Systems

Mellanox Technologies announced the world's first 120Gb/s per port InfiniBand switch systems, delivering industry-leading throughput, performance, efficiency, and the lowest latency. Based on InfiniScale IV, Mellanox's 4th generation of InfiniBand switch silicon, the new members of the IS5000 switch system family deliver the highest networking bandwidth per port to enable the next generation of high-performance computing, cloud infrastructures and enterprise data centers. The new switch solutions reduce network congestion and the number of network cables by a factor of three to provide customers with the optimal combination of cost-effective, proven performance and efficiency enhancements to address next-generation, Petascale computing demands. Mellanox IS5000 family of switch systems, consisting of un-managed and managed edge switches and director-class modular switches, provide industry-leading 51.8 Tb/s of non-blocking bandwidth in a single enclosure. FabricIT fabric management software reduces management overhead by providing the essential capabilities for managing systems at scale with simplicity and flexibility. IT managers can optimize data center performance and efficiency with FabricIT's performance monitoring, granular Quality of Service, and dynamic adaptation of the network to meet application demands in real-time. By enabling IT managers to adapt networking settings by application demands in real time, the IS5000 products deliver maximum systems productivity and efficiency for any usage model and for any scale.

Yokneam's Mellanox Technologies (http://www.mellanox.com) is a leading supplier of end-to-end connectivity solutions for servers and storage that optimize data center performance. Mellanox products deliver market-leading bandwidth, performance, scalability, power conservation and cost-effectiveness while converging multiple legacy network technologies into one future-proof solution. (Mellanox 16.11)

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9.6 Mellanox CORE-Direct is Most Advanced Application Offloading Technology

Mellanox Technologies announced the availability of ConnectX-2 adapter products with CORE-Direct, application acceleration and scaling technology. The new capabilities in ConnectX-2 mark the next evolutionary step in High-Performance Computing (HPC) interconnect solutions that will enable significant improvements in application performance and scalability, and thus increase the productivity of compute centers. Mellanox ConnectX-2 with CORE-Direct is the first host channel adapter (HCA) in the market to process in hardware application communications frequently used by scientific simulation for data broadcast, global synchronization and data collection. By offloading these collectives communication, ConnectX-2 adapters help to reduce simulation completion time by accelerating the synchronization process and freeing up CPU cycles to work on the simulation, thus enabling greater scalability by eliminating system jitter and noise - the biggest issues for performance at scale. The advanced feature set combined with the highest I/O performance of any standard interconnect makes ConnectX-2 with CORE-Direct the leading interconnect adapter solution for high-performance server and storage computing infrastructures. Together with Mellanox InfiniBand switch systems, FabricIT comprehensive switch management software and cables, Mellanox provides its customers with the richest, most advanced and highest performing end-to-end networking solutions for the world's most compute-demanding applications.

Yokneam's Mellanox Technologies (http://www.mellanox.com) is a leading supplier of end-to-end connectivity solutions for servers and storage that optimize data center performance. Mellanox products deliver market-leading bandwidth, performance, scalability, power conservation and cost-effectiveness while converging multiple legacy network technologies into one future-proof solution. (Mellanox 16.11)

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9.7 Security Market Giant Ramps up Its Business with Silicom's 10GB Fiber Adapter

Silicom announced that an existing client, a dominant player in the global security industry, has ramped up its orders significantly over the past few months, reaching a rate of approximately one million dollars on an annualized basis. The increase in orders is due primarily to the customer's selection of a customized version of Silicom's high-performance 10 gigabit, fiber network interface card as its standard 10 Gigabit connectivity solution for its new firewall appliance. Kfar Saba's Silicom (http://www.silicom.co.il) is an industry-leading provider of high-performance server/appliances networking solutions. The Company's flagship products include a variety of multi-port Gigabit Ethernet, copper and fiber-optic, server adapters and innovative BYPASS adapters designed to increase throughput and availability of server-based systems, WAN Optimization and security appliances and other mission-critical gateway applications. (Silicom16.11)

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9.8 InfoGin & NexM Communications Partner to Power the NTT Resonant "goo" Portal on Mobile

InfoGin and its Japanese strategic partner, NexM communications today announced the successful deployment of InfoGin's Intelligent Mobile Platform (IMP) at NTT Resonant Inc. InfoGin's flagship technology enables operators and content providers to retain full control over the mobile service ecosystem by expanding service offerings, increasing revenues while reducing costs, and retaining and building subscriber loyalty. NTT Resonant operates its highly popular "goo" portal. "goo" is one of Japan's most popular internet search engines and content portals; its features include a search engine (which is the core service), information and communication services, and personal utilities, among others. The newly launched commercial service enables NTT Resonant mobile users in Japan to search for any mobile or Web content while enjoying a flawless browsing experience. With the implementation of InfoGin's IMP - a server-side solution that takes full advantage of the features and capabilities of every mobile device - mobile users do not encounter problems or limitations while browsing the Web. Kfar Saba's InfoGin (http://www.infogin.com) is the pioneer and market leader in providing telco-grade mobile browsing solutions for carriers and content providers. With over nine years of research & development, InfoGin is entirely focused on delivering the real Web's richness to any mobile device while ensuring a superb browsing experience. InfoGin has played a major role in designing, shaping, and implementing the mobile vision and product offerings of some of the world's top-tier carriers, content providers and Internet players. (InfoGin18.11)

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10: ISRAEL ECONOMIC STATISTICS

10.1 Israel's CPI Rises By 0.2% in October

The Central Bureau of Statistics announced on 15 November that Israel's Consumer Prices Index (CPI) rose 0.2% in October, reported today. The figure is in line with expectations, which were for a rise of 0.2 - 0.4%. Inflation for 2009 (January-October) stands at 3.6%, 0.6% above the upper limit of the government's 1 - 3% target. However, trailing twelve month inflation continues to be within the target range, at 2.9%. Moreover, the annual rate of price rises continues to moderate and at 3.2% is approaching the target. Among the items that had a large effect on the October CPI figure were footwear and clothing, which rose 3.9% and 4.1% respectively. Housing continues to rise, recording a 0.3% rise in October. The drought levy on water left its mark, with the price of water rising 3.7%, which caused a 0.7% rise in the home maintenance item. On the other hand, produce prices fell 2%, and the prices for furniture and transport also fell. (CBS15.11)

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10.2 Israel's GDP Grows for Second Consecutive Quarter

On 16 November, the Central Bureau of Statistics announced that Israel's GDP rose by a fixed-price, seasonally-adjusted annualized 2.2% during Q3/09. The GDP grew by an annualized 1% in Q2, but fell by 3.2% in Q1/09. The growth rate was faster than expected, attributed to exports of goods & services and investment in fixed assets. There was also an increase in private consumption net of durable goods. Public consumption also increased. The business product rose by an annualized 1.6% during Q3/09, after rising by an annualized 1.1% in Q2 and falling by 4.9% in Q1. Exports of goods and services rose by 5% in the third quarter, an annualized rate of 21.8%, after rising by 3.5% (an annualized rate of 14.6%) in the preceding quarter. Imports of goods rose by 12.8% in the third quarter, an annualized rate of 61.9%, after rising by 1.2% (an annualized rate of 4.8%) in the preceding quarter. Private consumption rose by an annualized 8.9% in the third quarter, compared with the second quarter, amounting to 6.9%, growth in consumption per capita. Private consumption per capita rose by annualized 6.4% in the second quarter and fell by an annualized 5.2% in the first quarter. Private consumption per capita on durable goods rose by 10.9% in the third quarter, an annualized rate of 51.5%, after rising by 4.6% (an annualized rate of 19.6%) in the second quarter. (CBS16.11)

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10.3 Israel's Corruption Perception Rating Improves in 2009

Transparency International's 2009 Corruption Perceptions Index (CPI) has ranked Israel in 32nd place in the world. Israel received a score of 6.1 out of 10, up from its 33rd place in 2008, with a score of 6. Israel was also ranked 30th in 2007, with a score of 6.1. The CPI ranks 180 countries based on perceived levels of public sector corruption. The CPI scores countries on a scale of zero to ten, with zero indicating high levels of corruption and ten, low levels. This year, Israel tied with Spain, and is ranked below the United Arab Emirates, in 30th place with a score of 6.5, and Qatar, 22nd, with a score of 7. Nine of the top ten countries in the CPI are members of the OECD. New Zealand is in first place, with a score of 9.4, the first time it has been in first place since 1997. Denmark is in second place, with a score of 9.2; followed by Singapore (the exception) and Sweden with a score of 9.2; Switzerland in fifth place, with a score of 9; Finland, and the Netherlands tied in sixth place, with a score 8.9%; and Australia, Canada, and Iceland tied in eighth place, with a score of 8.7. The US is ranked 19th, with a score of 7.5. India and China scored 3.4 and 3.6, respectively, putting them in 84th and 79th place. Iran is ranked in 141st place, with a score of 2.3. Jordan took 49th place, with a score of 5. Egypt ranked 111th place with a score of 2.8; and Syria ranked 126th place with a score of 2.6. In the Persian Gulf, Oman was ranked 39th, Bahrain 46th, Saudi Arabia 63rd - a leap of 17 places on its 2008 ranking - and Kuwait came in at number 66, the only Gulf nation to drop down the rankings this year. (Globes 17.11)

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11: In Depth

11.1 LEBANON: Political Relief

The Economist Intelligence Unit reports that Lebanon finally has a new government, more than five months after a general election that gave the March 14th movement, a pro-Western, Saudi-supported, bloc a majority of the seats in parliament. The long delay in forming the cabinet, even though the basic formula for apportioning seats between majority and opposition had been substantially agreed, reflected both local and regional power struggles. It has left March 14th weakened, but still holding some important political cards. The advent of the new government is not likely to herald any major changes in economic policy or performance - the economy has already fared reasonably well this year despite the political turbulence.

The task of forming a national unity government was given to Saad al-Hariri, the leader of March 14th, shortly after the election. The template was a 30-member cabinet, of which 15 would be from the parliamentary majority, ten from the opposition and five nominated by the president, Michel Suleiman. This formula was devised to ensure that the majority would not be able to impose policy and the opposition would not be able to exercise a veto. The main difficulty that Mr Hariri encountered was in getting the Free Patriotic Movement (FPM), the Christian component of the opposition March 8th movement, to agree on the distribution of cabinet posts. This problem stemmed in part from the refusal of the FPM leader, Michel Aoun, to compromise on his central demands, notably for the retention of the telecoms portfolio by his son-in-law, Jebran Bassil, who lost his seat in the election. However, Mr Aoun was only able to take such a strong stand because of the backing he received, mainly tacit, from Hizbullah, the dominant political force in March 8th. Prospects for a deal improved in early October when the Saudi king, Abdullah bin Abdelaziz al-Saud, visited Damascus, indicating a Saudi-Syrian consensus on the need to resolve the Lebanese cabinet crisis. However, it took a few more weeks of wrangling for the breakthrough to be achieved.

Aoun's Gain

Mr Aoun has reason to be satisfied with the outcome. Mr Bassil has been included in the cabinet, albeit as energy and water minister, and the telecoms portfolio has been kept in FPM hands, with Charbal Nahas in charge. Both sectors are likely to figure prominently in the new government's policy statement, as major decisions will need to be taken on the structure of the electricity and telecoms industries. Mr Aoun's bloc has five cabinet seats in total, including one for the Armenian Orthodox Tashnag party and one for Marada, led by Suleiman Tony Franjieh. Of the other five March 8th portfolios, three (foreign affairs, health and youth & sports) have gone to Amal, a Shia party led by Nabih Berri, the speaker of parliament, and two to Hizbullah (agriculture and administrative reform). In order to accommodate Mr Aoun, Mr Hariri has been obliged to disappoint some of his Christian allies within March 14th, with the Kataeb (Phalange) party registering its displeasure at being accorded only the relatively minor post of social affairs.

One of the key portfolios retained by March 14th is the justice ministry, which has an important role to play as the Lebanese reference point for the Special Tribunal for Lebanon, which has been constituted in The Hague to try those deemed to be responsible for the February 2005 assassination of Mr Hariri's father, Rafiq. Mr Hariri has also kept the finance ministry in the hands of his Future Movement - the minister, Raya al-Hassan al-Haffar, is one of two women in the cabinet. The Druze leader Walid Jumblatt, whose loyalty to March 14th has wavered in recent months as he has sought improved ties with Syria, is well represented in the cabinet, with the big-budget public works and displaced persons portfolios going to his Progressive Socialist Party, along with one minister of state. Mr Suleiman's five nominees include Elias Murr and Ziad Baroud, who stay in the cabinet as defence and interior minister, respectively, and three ministers of state from the Shia, Sunni and Greek Orthodox sects.

Untouchable

The long struggle to form the government has put paid to any notion that Mr Hariri could have used his election victory as a mandate to set radical policy objectives, whether in the economic sphere or in the sensitive area of security. Neither Mr Hariri nor Mr Suleiman is in a position to challenge Hizbullah's self-proclaimed right to maintain a substantial military presence in south Lebanon, with its own supply lines from Iran and Syria. Israel recently seized a ship in the Mediterranean loaded with weapons destined for Hizbullah from Iran via the Syrian port of Latakia. Hizbullah leader, Sayyed Hassan Nasrallah, has frequently boasted over the past three years that his group has rebuilt and upgraded its arsenal since its 2006 war with Israel. Israeli chief of staff Ashkenazi, told a parliamentary committee that Hizbullah now has missiles with a range of up to 350 km, sufficient to reach Israel's nuclear reactor in Dimona, in the Negev.

The new Lebanese government statement is likely to include reference to UN Security Council resolution 1701 - which affirms that there shall be "no weapons or authority in Lebanon other than that of the Lebanese state" - but without specifying any restrictions on Hizbullah's military forces. This means that the fate of the government and of Lebanon itself will continue to be determined to a large extent by the strategic calculations of Hizbullah and of the movement's allies and principal adversary. (EIU 10.11)

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11.2 KUWAIT: Retail Report for 2009's Fourth Quarter

Research and Markets (http://www.researchandmarkets.com) announced the addition of the "Kuwait Retail Report Q4 2009" report to their offering. The Q4/09 Kuwait Retail Report predicts that the country's retail sales will grow from around $38.7bn in 2008 to $53.7bn by 2013. Key factors behind the forecast growth in Kuwait's retail sales are a favorable long-term economic outlook, a sophisticated consumer base and high levels of disposable income.

Kuwait's nominal GDP was $142.09bn in 2008, with a decline of 2.2% now assumed for 2009 as the economy goes into reverse. Average annual GDP growth of 2.5% is now predicted between 2008 and 2013. With the population rising slightly from its 2008 level of 3.3mn to reach 3.4mn by the end of the forecast period, GDP per capita is predicted to rise by more than 6% by 2013, reaching $45,608. Approximately 80% of the Kuwaiti population are expatriates, and foreign workers crossing the border from Iraq serve to stimulate the retail market.

In 2005, 73.8% of the Kuwaiti population was described by the UN as economically active, with 37.9% in the crucial (for retail sales) 20-44 age range. By 2010, 74.6% of the population is expected to be active, while the proportion of those in the 20-44 age band is forecast to reach 39.4%. A very high level of urbanization is also contributing to a vibrant retail sector. In 2005, more than 96% of the population was classified by the UN as urban, and this is forecast to increase to almost 99% by 2015. According to Arabianbusiness.com, by 2010 the gross leasable area (GLA) in Kuwait's retail sector is expected to total 1.15mn m2, compared with the 345,000m2 in use in 2006. Property consultant Colliers International expects Kuwait to have the third largest supply of retail space in the Gulf by 2010.

According to this data, retail sub-sectors that are predicted to show strong growth over the forecast period include consumer electronics, with sales increasing from $0.67bn in 2008 to $0.94bn by the end of the forecast period, a rise of 41%. Sales of over-the-counter (OTC) pharmaceutical products are predicted to increase by nearly 35%, from $1.41bn in 2008 to $01.90bn by 2013. Automotive sales are forecast to rise by just over 3% during the period, from $3.38bn in 2008 to $3.49bn by 2013. Retail sales for our set of Middle East and Africa (MEA) countries in 2008 amounted to an estimated $382bn, based on the varying national definitions. Total consumer spending for the region based on the macroeconomic database amounts to $660.41bn. In 2008, the United Arab Emirates (UAE), Saudi Arabia, Egypt and South Africa together accounted for an estimated 79.8% of regional retail sales, and their combined share is expected to rise to 80.7% by 2013. For Kuwait, the estimated 2007 regional market share of 10.1% is expected to ease to 9.5% by 2013. (R&M16.11)

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11.3 BAHRAIN: Pharmaceuticals & Healthcare Report Q4/2009

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

From BHD44mn ($114mn) in 2008, BMI forecasts that Bahrain's pharmaceutical market will expand to be worth BHD61mn ($160mn) in 2018. While the market will remain small in absolute terms, rapid value growth, representing a compound annual growth rate (CAGR) of 6.8% and a favorable political economic and business environment mean that the country is likely to increasingly feature in drug makers' Middle East and Africa (MEA) strategies. In the Q4/09 Business Environment Rating for the 17 countries of the MEA region, Bahrain ranks eighth. The potential returns from the market are constrained by the island's population of just 1mn. However, a strong regulatory structure and stable political climate create a relatively low-risk business environment.

The Gulf Co-operation Council (GCC) member states already work together on a number of regulatory fronts and hope to deepen this collaboration in the coming years. At present, the GCC operates a unified import tariff system, as well as a system of collective tenders for group purchasing of drugs and vaccines. These tenders are an important way for multinational drug makers to supply the Bahraini market. Healthcare is provided free of charge by the government to all citizens of Bahrain. Although, along with a number of other Gulf states, Bahrain has recently excluded non-Bahrain nationals from the public healthcare system. As a result, expatriates have to purchase private insurance - either personally or through their employers - or pay out-of-pocket for their treatments.

Demand for healthcare is growing rapidly due to a combination of factors including population growth, an ageing population and a higher prevalence of chronic disease. According to a 2008 Ministry of Health study, these three factors alone will cause healthcare expenditure to increase by around 500% over the next 20 years to reach BHD1.15mn in 2025, assuming no changes in the type of care provided. Private healthcare is likely to see considerable growth over the coming years. The artificial 'health island' known as Dilmunia, off the north coast of Bahrain should become a focal point for the growing private healthcare industry in the country and provide a major draw for health tourists from overseas. The project is progressing on schedule, with land reclamation work completed at the beginning of June 2009. The first phase of the project is expected to be completed in 2012, and the second phase in 2015. (R&M 18.11)

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11.4 QATAR: Transport Takeoff

Qatar's multibillion-dollar program of expanding the country's transport infrastructure is gathering pace with a firm opening date set for the Doha's new airport, tenders called for the first stage of a rail link and plans to revamp the public bus service all announced in recent weeks.

Quite apart from the conventional reasons for building new transport infrastructure, such as meeting the needs of a rapidly expanding economy and boosting tourism, Qatar has other, more athletic goals in its sights. The country is looking to improve its overall transport grid as part of its campaign to be granted the rights to host the Olympic Games. Having not been successful in bidding for the 2016 games, Qatar has put itself into the running for the Olympiad of 2020. It has also kicked off a campaign to stage the 2022 World Cup, the second-largest event on the global sporting calendar.

While the requirement of providing the necessary stadiums and facilities to host the games are of paramount importance when both the International Olympic Committee and FIFA make their decisions, the ability to be able to move fans, officials and competitors in and out of the host country and then between hotels and venues is also crucial.

Qatar has been working to build up an impressive resume of sporting events hosted, including the 2006 Asian Games and the recent friendly football match between Brazil and Britain. Of course, events such as the World Cup or the Olympics draw far more spectators and competitors than a single match or a regional sports meet. Nevertheless, the Qatari Olympic Committee used the success of past events, and the vast expansion of the country's transport network, in its pitch for the 2016 games.

The jewel in the crown of the transportation program is the $14bn New Doha International Airport (NDIA), which is scheduled to start receiving flights in mid-2011. The first two stages of the project, which will be completed concurrently, will see the airport have a passenger-handling capacity of 24m a year, a figure set to double as subsequent stages are finished. The airport is also intended to serve as a major air freight hub, with a capacity to handle 1.4m tonnes of cargo annually. This compares to the 466,600 tonnes handled at the existing Doha airport in 2008.

It is not just air travel that has been the subject of massive investments though. In late October, Qatari officials unveiled plans to radically reduce the county's dependence on the automobile for domestic transport, releasing details of a proposed system that will combine rail and an advanced public bus service. The rail component of the plan includes a 180-km long link connecting Doha with the Bahraini capital Manama, the line crossing the yet-to-be-built 40-km causeway between the two countries and another line running from NDIA to the Saudi border. There will also be 325 km of dedicated freight lines and four metro lines with a total length of 292 km, which will be served by 172 trains stopping at 69 stations.

One step in this process has already been taken, with five consortia submitting bids in early November for a tender to construct a railway station at NDIA. State transport firm Mowasalat is carrying out another part of the project. The company is conducting a feasibility study into implementing a bus rapid transit (BRT) system, which would see a series of centralized bus stations built, special bus lanes set aside on main traffic routes and a major increase in the numbers of buses and frequency of services. The BRT system would be integrated with the metro and long-distance rail grids, putting in place a land-based transport network operating at local, national and international levels.

Again, there is a sporting link, with plans for both the BRT and the metro to be completed and ready to serve all major stadiums should Doha win the rights to stage either the 2020 Olympics or the World Cup two years later. Whatever the outcome of Qatar's bids for the world's two premier sporting events, it will have an international-class transport network, one which some estimates say has a price tag of well over $21bn. Though seemingly high, this investment should equip the Qatari economy to play in the top flight. (OBG20.11)

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11.5 OMAN: Internet Boost

As 2009 draws to a close, Oman's relatively underserved IT sector is preparing for the introduction of competition to the internet-service-provider (ISP) market, as QTel's local subsidiary Nawras prepares to launch the Sultanate's second fixed-line telecoms service.

Currently, internet service provision in the country remains the monopoly of Omantel, the predominantly state-owned national telecoms company. This is not for want of trying by the Telecommunications Regulatory Authority (TRA), the national telecoms watchdog. In 2007 it attempted to open the ISP market to competition by announcing the sale of licenses to newcomers. However, perhaps as a result of the terms offered (which required potential new ISPs to lease infrastructure and bandwidth from the incumbent Omantel), no takers were found in the private sector.

As a result, a more ambitious approach towards introducing liberalization and competition to the telecoms network was attempted. In April 2008 the auction of a second fixed-line telecoms license was announced by the TRA, with the eventual winner, Nawras, announced in November of the same year.

Nawras has already proved extremely successful in Oman's mobile telecoms market. A joint-venture between Qatar's QTel, Danish operator TDC and a number of local investors, the company has captured around half the market share in Oman since launching services in 2005. Nawras has also served to shake up the market, often being the first operator to launch new services, and recently winning "superbrand" status in the Sultanate.

Having been awarded the contract for the second fixed-line telecoms network, Nawras will begin offering services in 2010. The company is building a backbone infrastructure of over 5000 km and will be providing fixed broadband coverage to more than 80% of the Omani population.

The government and regulator, not to mention the average consumer, will be hoping that Nawras' entry to the fixed-line market will inject some dynamism to the ISP sector in particular. While Oman's internet penetration figures have picked up in recent years, they still lag in comparison with the wider Middle East. According to internetworldstats.com, a website which monitors penetration rates by country and region, Oman's current internet penetration level places it near the bottom of the regional table, with only Yemen and Iraq posting lower figures. There are currently an estimated 469,000 internet users in the Sultanate, representing penetration of 13.7%, compared with a regional average of 23.7%. Moreover, the majority of connections remain dial-up, with the government estimating a single subscription is shared between four or five people.

Some analysts and commentators have argued that there is an underlying antipathy towards the internet in parts of Omani society. As Jawad Sultan, the director of Jawad Sultan Enterprises, a private e-solutions company, told OBG, "We still occasionally read articles in local newspapers and magazines about how the internet is a bad influence. This needs to change." However, it is possible to overstate such antipathy - other statistics seem to prove conversely that there is great potential for internet services in Oman, with a recent Arab Advisors report claiming 40% of Oman's adult internet users spent a combined $236m via e-commerce in 2008. When analyzed on a per-user basis, this comes to nearly $1500 - an impressive figure.

Oman naturally presents some challenges to expanding internet penetration - not least its sheer size, and the relatively low density of its population outside of major urban centers. However, with GDP per-capita figures of just under $20,000 at purchasing power parity, it is clear that Oman's current level of internet penetration is well below potential. The entry of a second fixed-line network should go some way towards remedying that - both increasing the number of subscribers and the quality of provision, thus opening Oman's economy to an e-future. (OBG19.11)

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11.6 SAUDI ARABIA: Retail Report for 2009's Fourth Quarter

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

The Q4/09 Saudi Arabia Retail Report forecasts that the country's retail sales will grow from about $76bn in 2008 to $97bn by 2013. Key factors behind the forecast growth in Saudi Arabia's retail sales are: strong underlying economic growth, rising disposable incomes, increasing acceptance of the concept of modern retailing, a youthful population and an enlarged consumer base created by the improved position of women in society.

Saudi Arabia's nominal GDP was $489.69bn in 2008, with growth slowing to an estimated 0.5% in 2009 as the economy is hit by the global economic downturn. Average annual GDP growth of 3.0% is now predicted between 2008 and 2013. With the population increasing from 24.4mn in 2008 to an estimated 26.5mn by 2013, consumer spending per capita is predicted to rise by more than 24% by the end of the forecast period, reaching $5,246.

The retail sector benefits from the large number of Muslim tourists visiting the country to take part in the hajj and umrah pilgrimages every year. Sales of gifts and souvenirs in 2008 were estimated to have risen by at least SAR4bn ($1.1bn) due to shopping by hajj pilgrims. Increasing urbanization is also driving retail sales. In 2005, nearly 89% of the population was classified by the UN as urban, and this is forecast to increase to more than 90% by 2010. The UN also described more than 57% of the population as economically active in 2005, with this proportion forecast to exceed 59% by 2010 and 66% by 2015. About 38% of the population was in the crucial (for retail sales) 20-44 age range in 2005, and the UN forecasts that this will rise to about 46% by 2015.

San Francisco-based Gap is among the latest international retailers to enter the market. It plans to open 44 Gap stores (and variations) and 10 Banana Republic stores in Saudi Arabia by 2012.

Retail sub-sectors that are predicted to show strong growth over the forecast period include over the-counter (OTC) pharmaceuticals, with sales expected to increase by more than 59%, from $0.32bn in 2008 to $0.51bn by 2013. Automotive sales are forecast to rise by more than 51% during the forecast period, from $16.57bn to $25.05bn; while sales of consumer electronics are predicted to increase from $3.65bn in 2008 to $4.75bn by the end of the forecast period, a rise of more than 30%.

Retail sales for Middle East and Africa (MEA) countries in 2008 amounted to an estimated $382bn, based on the varying national definitions. Total consumer spending for the region based on the macroeconomic database amounts to $660.41bn. In 2008, the United Arab Emirates (UAE), Saudi Arabia, Egypt and South Africa together accounted for an estimated 79.8% of regional retail sales, and their combined share is expected to rise to 80.7% by 2013. For Saudi Arabia, the estimated 2008 market share of 19.9% is expected to decrease to 17.2% by 2013. (R&M11.11)

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11.7 EGYPT: The Political Edge of Labor Protests

Saif Nasrawi writes that while Western and Egyptian media have been preoccupied in recent years with small demonstrations in downtown Cairo protesting the widely-held belief that President Hosni Mubarak is grooming his son Gamal for the presidency, they have missed the bigger story: a rising labor force has become the country's most effective political force. Since the massive strikes of 27,000 Ghazel el-Mahalla Textile Company workers in 2006 and 2007, Egyptian workers have started to shift their demands from strictly economic - salaries, bonuses and industrial safety - to the more political question of re-configuring their relation to the state.

For half a century, the state-controlled Egyptian Trade Unions Federation (ETUF) has monopolized workers' representation. The Ghazel el-Mahalla workers called for dissolving their factory's union committee, which they deemed "undemocratic and unrepresentative."

In December 2008, real estate tax collectors took the further step of establishing Egypt's first independent trade union since 1957. This announcement came a year after thousands of property tax collectors staged an eleven day sit-in outside the Finance Ministry in downtown Cairo demanding a raise in their salaries. Although the General Union of Bank, Insurance and Finance Employees (part of the EFTU) opposed the strike, the government eventually conceded to the demands of real estate tax employees and tripled their salaries.

Following this success, workers in several industrial and service sectors have been exploring establishing their own free unions to address their deteriorating economic conditions. These include the Public Transport Authority drivers and fare-collectors, school teachers, university professors, Education Ministry administrators, postal workers and pensioners.

The nearly 1,600 incidents of labor protest in Egypt since 2004 should be understood in the context of the neoliberal economic reforms by the government of Prime Minister Ahmed Nazif, perceived by many workers and civil servants as a deliberate strategy to redefine the social contract in place since the 1952 military coup. The old state discourse of "workers and peasants" has gradually given way to the new category of "businessmen," some of whom appeared as members of Nazif's cabinet.

Amid rising inflation related to reforms, hundreds of independent and opposition candidates were disqualified in the 2006 ETUF elections, contributing to workers' sense of outrage. "The outcome of the elections made the newly elected EFTU a mere extension of the National Democratic Party-backed businessmen government," according to Kamal Abu Eita, the president of the Independent Real Estate Tax Collectors Union.

Neutralizing the state's political and security apparatuses has been the key political tactic of the labor movement in Egypt. Although the regime has occasionally depended on its traditional mechanisms of cracking down on workers via arrest, intimidation, or suspension from work, it has nevertheless tolerated labor protests to an extent not seen in its treatment of either the Muslim Brotherhood or the smaller secular Kifaya Movement and al-Ghad Party. The regime most likely recognizes that cracking down on workers inside factories could be extremely costly in human and financial terms.

Egyptian authorities probably also are aware that labor leaders have deliberately stayed aloof from political parties. Leaders of property tax employees, for example, unanimously agreed not to participate in a general strike organized by a group of Facebook activists to commemorate the first anniversary of the April 6, 2008 strike in the northern town of al-Mahalla al-Kubra. Unlike demonstrations organized by Kifaya and its sister change movements (which usually target President Hosni Mubarak and elements of his regime), Egyptian workers tend to appeal to Mubarak to step in personally to resolve their grievances.

The state's approach to the newly established independent Real Estate Tax Collectors Union (RETCU) will be an important signal of where labor-government relations are going. The RETCU applied for legal status in April 2009, but Minister of Manpower Aisha Abdel Hady has still not officially recognized the union. Legalizing the RETCU would not only shield it against state intervention, but would also allow the union to open bank accounts through which membership fees can be collected.

Meanwhile, the government-controlled ETFU is at work trying to strangle the new union in its cradle. ETUF President Hussein Megawar decided in September to form a special committee, for example, to consider establishing a new union for all Finance Ministry employees, including the property tax collectors. Megawar's plan is aimed at de-legitimizing the RETCU, as there are laws against multiple trade union memberships.

Whatever happens to the RETCU, labor is likely to continue to rise as a force within Egypt. Plans to speed up privatization of government-owned industries, the likelihood that unemployment and inflation will remain high and economic growth modest, and the atmosphere of political ambiguity that dominates Egypt ahead of the parliamentary and presidential elections of 2010 and 2011 suggest that the anger of Egyptian workers and the organization of protests is far from over.

Saif Nasrawi is a journalist and political sociology researcher based in Cairo, whose writings address democracy, social movements and the politics of identity in Egypt and Iraq. (Carnegie ARB November 2009)

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11.8 MOROCCO: Fishing Expansion

Morocco's wide-reaching agricultural reform drive has been extended to the fishing industry. At the end of September, the Ministry of Agriculture, Rural Development and Maritime Fishing unveiled Plan Halieutis, a series of development projects and targets for the fishing sector's expansion and modernization.

Long an economic pillar for Morocco, the fishing industry is a leading foreign exchange earner, accounting for 56% of agricultural and 16% of total exports. Plan Halieutis aims to increase exports from DH8.3bn (€729m) in 2007 to DH21.9bn (€1.9bn) by 2020. In the same time period, the sector's contribution to GDP is expected to rise from DH16.2bn (€1.4bn) to DH23.9bn (€2bn). Direct jobs in the fishing industry, a key employer, are also anticipated to nearly double, rising from 61,650 to 115,000.

Under Plan Halieutis, the government will invest DH9bn (€790m) to create "industry clusters" in Tangier as well as the southern ports of Agadir and Laayoune-Dakhla. Speaking at the launch of the plan in Agadir, the agriculture minister, Aziz Akhannouch, noted that the three clusters were bringing about "a new orientation in the sector, which spurs the development of the regions managing the clusters, reinforces the competitiveness of Morocco at the international level, and fosters new work habits".

A vital component of the reform strategy is developing aquaculture to solve the problem of overfishing. Until now, aquaculture has been limited – in 2008 output was 4800 tonnes, generating DH24m (€2.1m) in revenue. Plan Halieutis paves the way for the creation of a National Agency for the Development of Aquaculture, a seafood promotion centre, and a fisheries employment observatory. In 2010 an aquaculture facility will be launched at Ras El Ma to produce 40,000 crayfish a year.

Within the framework of Plan Halieutis, the construction of a DH6.6bn (€580bn) fisheries zone, Heliopolis, began at the beginning of October. Capable of processing 500,000 tonnes of fish, the complex will create 20,000 direct jobs in the fishing industry.

Morocco has initiated a number of sector reforms in recent years, including the Plan Azur for tourism and the emergency plan for education. With the Plan Maroc Vert, a long-term development strategy put into effect in April 2008, the government sought to turn the agricultural sector into a motor of economic growth. Though the fishing industry was not included in Plan Vert, the National Fisheries Agency (Office National des Pêches) has been conducting a modernization campaign since 2008, constructing wholesale fish markets and upgrading facilities, while expanding production further south, including the stretch of coast between Tan-Tan and Dakhla.

Although the country has 3000 km of coastline, fishing production has traditionally been concentrated on the northern ports. "With fishing resources in the north suffering from over-exploitation, the main reserves are now located in the south, particularly for blue fish such as sardine and octopus," Najib Chaoui, the director of the National Fish Processing Industry Federation (Fédération Nationale des Industries de Transformation et de Valorisation des Produits de la Pêche), told OBG.

The continent's top fish producer, Morocco saw a 15% increase in yield between 2007 and 2008, reaching 943,000m tonnes. Output value amounted to Dh4.5bn (€395m) in 2008, a 22% annual increase. According to Majid El Ghaïb, the general director of the National Fisheries Agency, "This increase can mainly be attributed to the modernisation of the fishing fleet, as well as the hike in sardine production at the ports of Laayoune and Tan-Tan, and growth in octopus production at the ports of Laayoune and Dakhla." Depletion of tuna reserves (163 tonnes were caught in 2008 compared to 740 tonnes in 2006) led the industry to diversify to include high-value fish, such as octopus and shrimp.

While neighboring Senegal and Mauritania are competitors in fresh fish exports, Morocco dominates in the canned fish segment, with sardines comprising 90% of canned exports. The EU is the country's top market, receiving 73% of production, though North America and the Middle East are also being targeted. As Morocco currently exports 90% of its production, Plan Halieutis also seeks to increase domestic fish consumption from 10 kg per person per year to 16 kg.

In addition to boosting production, the new plan envisages several regulatory changes, such as clarifying the fishing industry's legal framework. Five new regulatory bodies will be established, including the National Committee for Fisheries to monitor and set policies for fisheries and the Fishing Adjustment and Modernisation Fund to restructure Morocco's fishing fleet. (OBG12.11)

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11.9 MOROCCO: Obstacles to a New Press Code

Aziz Douai writes that it was a hectic summer for Morocco's independent press. In late July 2009, a court ruling imposed heavy fines on three independent dailies for defaming a foreign leader, Libya's Muammar Qaddafi. A day after the ruling, in an unprecedented show of solidarity, a majority of the country's newspapers published blank editorials. In August, the government seized an issue of an independent weekly, Nichane, for publishing an opinion poll on the approval ratings of King Mohamed VI as he was celebrating his tenth anniversary on the throne. There was also the public airing of journalistic dirty laundry, with Le Journal's former reporters and editors publicly trading barbs and recriminations over their relationships with the royal family (including alleged pay-offs to some journalists from the king's cousin, Prince Moulay Hicham).

In the last decade, a feisty Moroccan press with a new breed of independent journalists has grown in influence and popularity despite mixed signals from the palace. It has become more critical, broaching topics that were deemed off-limits to Moroccan journalists until a few years ago. Covering topics such as the king's health, the royal family's private affairs and victims of political oppression would have been inconceivable during his father's reign.

The earliest manifestation of a positive shift in the fortunes of the Moroccan press became apparent after a new press code was passed in 2002, guaranteeing a modicum of freedom. The final legislation, however, was riddled with legal loopholes and purposefully vague language, allowing libel and defamation laws to be used to constrain and silence critical and independent publications. Reporters from the weekly al-Michaal and the daily al-Jarida al-Oula were dragged to court and charged with "intentionally publishing false information" after their articles questioned the Royal Palace's official release on the king's health in September 2009. The populist al-Massae has yet to pay a fine of six million dirhams ($790,000) the courts imposed in a defamation case. A cartoon of a royal family wedding in Akhbar al-Youm drew government charges of "insulting the royal family." The government has indefinitely shut down the newspaper in blatant contravention of the current press law's Article 77, which authorizes the government only to ban a single issue of a periodical deemed disrespectful to the royal family.

In view of these cases, calls for reforming existing press laws have grown stronger, garnering support from local journalists as well as regional and international press organizations. The national press union, le Syndicat National de la Presse Marocaine (SNPM), has been at the forefront of those demanding reform, calling for decriminalizing press offences, making fines proportional to alleged damages, and ensuring journalists' free access to information. Other press watchdogs have reiterated similar demands, ranking Morocco among those whose "press laws hark back to another era," wavering between repression and liberalization, as Reporters Without Borders observed in 2008.

While the government has long promised to address these legal loopholes, a new press law seems to have stalled, endangering already fragile independent publications. In dragging its feet, the government has unexpectedly received help from the independent press's own feuds and frictions. Enacting a new press code requires a press corps united around a reform agenda. But in the current crop of independent journalists, in-fighting and petty feuds have recently escalated. Should legitimate editorial differences continue to be used to settle personal scores, this would spell the demise of reform efforts, if not the independent press as a whole. More ominously, personal feuds and frictions are discrediting the rest of the profession in the court of Moroccan public opinion.

Aziz Douai is assistant professor of communication at the University of Ontario Institute of Technology. (Carnegie ARB November 2009)

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11.10 TURKEY: Retail Sales Predicted to Grow to $301 Billion by 2013

Research and Markets (http://www.researchandmarkets.com) announced in their "Turkey Retail Report Q4 2009" that the country's retail sales will grow from about $246bn in 2008 to $301bn by 2013. Underlying economic growth, an expanding population, especially in urban areas; rising levels of disposable income and the continued development of organized retail infrastructure are key factors behind the forecast growth in Turkish retail sales.

Turkey's nominal GDP was $729.53bn in 2008, with a decline of 5.7% expected in 2009 as the economy goes into reverse. Average annual GDP growth of 1.8% is now predicted between 2008 and 2013. With the population increasing from 71.3mn in 2008 to an estimated 75.6mn by 2013, GDP per capita is forecast to rise by more than 15% to $11,790 by the end of the forecast period. The forecast for consumer spending per capita is for an increase from $4,043 in 2008 to $7,650 by 2013. Salaries in Turkey remain low, with the authors estimating the 2007 average annual wage at $5,848. However, Turkey has a large, growing and young population. Each year, 750,000 young people join the workforce and, with an increasing level of urbanization, many are abandoning the agricultural sector in order to seek better paid work in other areas. Nevertheless, unemployment is a problem, standing at 12.3% in 2008 and potentially rising to 16.0% in 2009.

In 2005, 65.8% of the Turkish population was described by the UN as economically active, with 41.0% in the crucial (for retail sales) 20-44 age range. Just over two-thirds of the population was classified by the UN as urban (67.3%). By 2015, the urban population is forecast to have reached almost 72%, with 43.8% in the 20-44 age band and 69.1% of the population is expected to be active.

Organized retail accounted for an estimated $96.63bn of overall sales in 2008, rising to a forecast $122.37bn by 2013. This represents an annual average growth rate of 8.1%, compared with the predicted 6.2% annual growth rate in US dollar terms for overall retail sales. Food and drink had a 24.8% share of the total retail market in 2008, forecast to ease to 21.8% by 2013. Over-the-counter (OTC) pharmaceutical sales are predicted to increase from $1.15bn in 2008 to $1.60bn by 2013, a rise of 38.9%. Automotive sales are forecast to rise by 20.0% during the same period to $21.92bn. Sales of consumer electronics products, are forecast to increase by 96.4%, from $7.19bn in 2008 to $14.12bn by 2013. (R&M 19.11)

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

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