TOP STORIES

• Spamming Illegal in Israel from December 1
• Oree Secures $4 Million Venture Loan from Silicon Valley Bank and Kreos Capital
• Michigan Governor Importing Israeli Hi-Tech
• Jordan & China Sign Nuclear Protocol
• Greece Returns To Kyoto Scheme
• Feast of the Sacrifice - Eid Al-Adha to Fall on 8 December
• NORTH AFRICA: Fitch Says Banks Face Limited Contagion Risk From Global Crisis

TABLE OF CONTENTS:

1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS

1.1 Treasury Sets NIS 11 Billion to Support Financial System
1.2 Bank of Israel Cuts 2009 Growth Forecast To 1.5%
1.3 Spamming Illegal in Israel from December 1

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2: ISRAEL MARKET & BUSINESS NEWS

2.1 Merrill Lynch International First Candidate for TASE Remote Membership
2.2 CA to Acquire Eurekify
2.3 Evergreen Venture Partners Leads $4.5m 2ndRound in Taboola
2.4 Easy Energy Completes Yogen Product Suite & Signs First Distribution Agreement
2.5 PharmAthene Agrees with Medison Pharma to Distribute Biodefense Medical Countermeasures in Israel
2.6 Finjan Raises $22 Million in Investment Round
2.7 Oree Secures $4 Million Venture Loan from Silicon Valley Bank and Kreos Capital
2.8 OpTier's CoreFirst Wins 2008 Financial Innovation Award

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3: REGIONAL PRIVATE SECTOR NEWS

3.1 DeFi Mobile & DoubleU Market DeFi Global Access in MENA Region
3.2 Rockwell Group Launches First Office in Middle East
3.3 Bruker Announces Order for 10 NMR Systems for Saudi’s KAUST
3.4 ExxonMobil Enters Black Sea with Exploration Agreement in Turkey

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4: ISRAEL MACRO-DEVELOPMENTS

4.1 Egyptian Court Orders Halt to Israel's Natural Gas Supply
4.2 Michigan Governor Importing Israeli Hi-Tech
4.3 Israel Poverty Report Shows Fewer Poor Children

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5: ARAB STATE & PAKISTANI DEVELOPMENTS

5.1 Gov. Granholm Meets King Abdullah II During Jordan Visit
5.2 Jordan & China Sign Nuclear Protocol
5.3 Iraq Approves $67 Billion Budget
5.4 Iraq in Breakthrough To Link Kurd Oilfields To Export
5.5 Citigroup Says $50 Oil Would 'Create Trade Deficit in Most Gulf States'
5.6 Qatar Oil Minister Expects 2009 to be Tough Year
5.7 US Group Wins Qatar Causeway Deal
5.8 Qatar Plans $1 Billion Fund to Invest in Jordan
5.9 UAE Construction Growth Seen Slowing To 13%
5.10 UAE Nationals Workforce to Double to 500,000 by 2020
5.11 Yemen Lost 25,000 bpd During Flooding
5.12 Piracy Jeopardizing Suez Revenues
5.13 Egypt’s July-Sept GDP Growth Slows to 5.8%
5.14 "Friends of Pakistan" Agree To Road Map
5.15 Pakistani Foreign Investment Down By 30%

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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS

6.1 Cyprus Economy Still Resilient In the Third Quarter
6.2 Cyprus Injects Millions of Euros Into Key Sectors
6.3 Cyprus Presses On With Oil Search, Warns Turkey on EU
6.4 Cyprus Spent €1 Billion On Education In 2006
6.5 Greece Approves €28 Billion Bank Support Plan
6.6 Greek Defense Budget To Be Squeezed
6.7 Greece Returns To Kyoto Scheme

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7: GENERAL NEWS AND INTEREST

*ISRAEL:

7.1 Feast of the Sacrifice – Eid Al-Adha to Fall on 8 December

*REGIONAL:

7.2 Iraq Signs Controversial US Military Pact
7.3 Iraq's Kurdish Areas Prepare To Ban Female Circumcision
7.4 UAE National Day Marked on 2 December
7.5 Oman Sets Up Human Rights Commission
7.6 Algeria Clears Way For Bouteflika To Seek 3rd Term

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8: ISRAEL LIFE SCIENCE NEWS

8.1 BioLineRx & Yissum Agree to Develop Novel Compound for Inflammatory Bowel Disease Treatment
8.2 Syneron Acquires San Diego-Based Inlight Corp.
8.3 Teva Announces Agreement on Allegra Patent Challenge
8.4 Topical Dermatology Drug Developer Sol-Gel Raises $9 Million
8.5 Teva Receives First U.S. Approval for Generic Pulmicort Respules; Commences Commercial Launch

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9: ISRAEL PRODUCT & TECHNOLOGY NEWS

9.1 Odysii Introduces Its Leading Marketing Intelligence Software to U.S. Banks
9.2 Spain’s Serenamail Licenses Commtouch Email Security Technologies to Improve Performance
9.3 GED-I Delivers Advanced Encryption/Security for IBM Storage
9.4 Infima Technologies Launches JPACK
9.5 Siano Receive CES Innovations 2009 Award
9.6 PineApp’s Archive-SeCure Helps Organizations Meet Legislative Requirements for Email Retrieval
9.7 Dune Networks Introduces a Line Card on a Chip for Data Center & Carrier Access Applications
9.8 ColdSpark Integrates Commtouch Messaging Security Suite into Mail Platform for Large Enterprises
9.9 Dinnovan Selects Surf's AMC & SurfExpress Boards to Develop Media Streaming Apps in Korea
9.10 NICE Receives 7-Digit Order from Miami-Dade Police Department for NICE Inform
9.11 Check Point Delivers Total Security for Branch Offices with Upgrade to UTM-1 Edge Appliances
9.12 Mongolia’s Incomnet Expands Its Gilat SkyEdge Network to Include Cellular Backhaul Solution
9.13 Siemens Energy Awards New Contract to ClickSoftware for Mobile Workforce Management
9.14 Elbit Vision Systems Wins Tender to Provide a High-Speed Rail Inspection System to Israel Railways

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10: ISRAEL ECONOMIC STATISTICS

10.1 Israel’s CPI Rises by 0.1% in October
10.2 Israel’s Exports Fall for First Time in 5 Years
10.3 Israel’s State of the Economy Index Declines

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11: In Depth

11.1 MENA: Economy Slowing Down
11.2 JORDAN: Aide-Memoire for the IMF Staff Visit Discussions
11.3 LEBANON: WTO Membership on the Horizon
11.4 LEBANON: IMF Approves $37.6 Million in Emergency Post-Conflict Assistance
11.5 GCC: Moody’s Says Currency Union Unlikely To Affect Member States’ Government Bond Ratings
11.6 GCC: Fitch Says Public Finances Resilient to Lower Oil Prices; Fiscal Surpluses May Shrink
11.7 BAHRAIN: Light in the Dark
11.8 UAE: Dubai Retail Challenge
11.9 UAE: Ras Al Khaimah - Cementing Demand
11.10 OMAN: Name Brand
11.11 EGYPT: Moody’s Banking System Outlook
11.12 NORTH AFRICA: Fitch Says Banks Face Limited Contagion Risk From Global Crisis
11.13 ALGERIA: Hollow Politics Win
11.14 TURKEY: Downgrading Growth Forecasts Once Again
11.15 TURKEY: Crisis Bites Into Local Economy
11.16 TURKEY: Hitting the Brakes
11.17 BULGARIA: Pharmaceuticals & Healthcare Report for Q4/2008

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1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS

1.1 Treasury Sets NIS 11 Billion To Support Financial System

At press time, a great furor was raging in the Israeli media and among local politicians concerning the effect of the worsening international economic milieu on Israel, especially concerning those whose pension funds are based on stocks. In response, Israel’s Ministry of Finance has announced a series of intervention measures in the capital market. The ministry said it will provide a total of NIS 11b in capital and guarantees, of which NIS 6b will be made available as guarantees to the banking sector for the raising of capital. A further NIS 5b will used to set up investment funds in partnership with the pension funds, which will focus on the provision and recycling of non-bank credit. The move is designed to support holders of corporate bonds when the bonds mature.

As reported by Globes, the Ministry of Finance said that measures aimed to strengthen the Israeli capital market and that they were supplemental to the economic stimulus package unveiled last week. A joint Ministry of Finance, Bank of Israel and Israel Securities Authority team formulated the financial plan. As for the timing and scope of the financial measures, the Ministry of Finance noted the global credit crunch and its impact on the Israeli capital market. These measures are aimed at dealing with the credit crunch and the market failure that it caused.

To deal with the credit crunch, the government will guarantee NIS 6b deferred notes that selected banks will issue. The goal is to expand the supply of bank credit to companies, small and mid-sized businesses, and the general public by tens of billions of shekels. The measure supplements previous credit-related measures included in the economic stimulus package. The additional credit to the business and private sectors is expected to boost economic activity.

The Ministry of Finance said that it decided to provide the guarantees in order to significantly increase credit in the economy. The guarantees will be limited to ten years from the issue date, and will decrease 20% every two years. The Ministry of Finance and pension institutions (provident and pension funds, and managers' insurance providers) will also allocate NIS 5b for the establishment of investment funds to deal with the refinancing of bonds. The measure is aimed at dealing with the long-term savings market failure and it will increase certainty with regard to companies' ability to meet their commitments. It will also indirectly affect the secondary bond market. The NIS 5b will be allocated in two tranches: NIS 3b immediately and NIS 2b in five months.

The Ministry of Finance has decided to set up several investment funds, which will help Israeli companies struggling to meet bond payments because of the global recession. The investment funds will either refinance corporate bonds and spread the payments out, or inject capital directly into companies to help them through the crisis. The investment fund administration will have a range of instruments to help bondholders' vis-à-vis companies by improving the latter's ability to repay their debts. The goal is to enable companies to meet their obligations while staying in business and keeping their employees. Of course, much will be debated and even changed before these measures are passed. (Globes 25.11)

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1.2 Bank of Israel Cuts 2009 Growth Forecast To 1.5%

On 20 November, the Bank of Israel announced that 2009 economic growth is now forecast to be only 1.5%. This is the central bank's third reduction of its growth forecast in recent months, including its previous reduction to 2.7%. The new growth forecast is due to sharp cuts in growth forecasts for developed countries by the IMF and OECD. Earlier this month, the IMF published a grim outlook. It was followed by the OECD last week, which cut growth forecasts for member states by up to 1%. According to the latest IMF and OECD projections, the US economy will shrink by 0.7-0.9% in 2009, the Eurozone economy will shrink by 0.5%, and the UK economy will shrink by 1.3%. Ministry of Finance figures indicate that 45% of Israel's GDP is exports, half of which goes to the EU and the US. This means that a severe slump in export demand will greatly affect Israel's growth rate. A 1.5% GDP growth is tantamount to a recession on the basis of two key macroeconomic figures: GDP per capita and real GDP growth. Given Israel's population growth rate of 1.7% a year, 1.5% GDP growth means a decline in GDP per capita. Since inflation in 2009 is projected to exceed 1.5%, 1.5% GDP growth means a decline in real GDP growth. (Globes 20.11)

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1.3 Spamming Illegal In Israel From December 1

Israel's anti-spam law - Amendment 40 to the Communications Law (Telecommunications and Broadcasting) 5742-1982 - will come into effect on December 1, banning advertising by e-mail, fax, or telephone text messaging without the prior written consent of the recipient. Courts will have the right to order spammers to pay compensation of NIS 1,000, regardless of any damage caused, for each piece of spam sent, until they stop. In extreme cases, the law allows for fines of up to NIS 200,000. If an addressee withdraws his or her consent to receive spam, but the spammer persists in sending it, the fine is NIS 67,000. The anti-spam law stipulates that if a person provides his or her details to an advertiser, such as when buying a product or service, or during negotiations for such a purchase, and the advertiser explains to the consumer that his details will be used for the sending of advertisements, this is not a violation of the law. The anti-spam law does not apply to telephone calls or personal approaches to an anonymous consumer on the basis of his or her categorization, but the law does apply to recordings by mass automatic dialing. The law also does not apply to political messages. Therefore, mass automatic telephone calls to people's homes ahead of the upcoming elections will be perfectly legal. Opponents of the anti-spam law include small business owners, who claim that the law will ruin their ability to market products to potential consumers. (Globes 25.11)

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2: ISRAEL MARKET & BUSINESS NEWS

2.1 Merrill Lynch International First Candidate for TASE Remote Membership

Global investment house Merrill Lynch has applied for remote membership to the Tel-Aviv Stock Exchange (TASE). The application, submitted by its subsidiary Merrill Lynch International (MLI), is the first application for remote membership. Merrill Lynch’s remote membership will enable the company to provide its clients with direct access to TASE trading. At the same time, its membership will increase the exposure of TASE listed companies to a broad spectrum of foreign investors. Merrill Lynch submitted its application to TASE after a process of preparation, beginning in 2007, which includes building the computer interface between its offices in London and TASE’s trading platform. This enables Merrill Lynch’s traders in London to trade directly on TASE. TASE has 28 members, of which four are foreign with permanent representation in Israel: UBS, Deutsche Bank, HSBC and Citibank.

Established in 1935, the Tel Aviv Stock Exchange (http://www.tase.co.il) is a fully-automated exchange with a central order book trading system. With approximately 650 listed companies and a total market capitalization of $145b, the Exchange is a 'one-stop shop' for capital market activity in Israel, with an increasingly sophisticated range of products available to investors, including 335 ETFs (Index Products). The state-of-the-art Exchange is also home to the local investment community and securities sector. Remote membership on the Tel Aviv Stock Exchange enables foreign banks and investment houses such as Merrill Lynch International, which are domiciled abroad and which do not have a permanent presence in Israel, to become TASE members and engage directly in trading on the exchange. Banks and investment houses incorporated in qualifying countries, which are members in their home exchange and members in at least one of the following exchanges for a period of at least ten years: NYSE; Euronext; London Stock Exchange (LSE); Tokyo Stock Exchange (TSE); the Swiss Exchange (SWX); Deutsche Borse and Eurex (Germany), are eligible for remote membership. (TASE17.11)

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2.2 CA to Acquire Eurekify

CA, one of the world’s largest information technology (IT) management software companies, announced on 13 November that it signed a definitive agreement to acquire Eurekify. Terms of the acquisition were not disclosed. The acquisition extends CA’s leadership in identity and access management, bringing the next generation of role-based identity and compliance management under the CA security software portfolio. CA has successfully collaborated with Eurekify for the past several months on the integration and sale of Eurekify technology as part of the larger CA Security Management Business Unit solution. The CA-Eurekify solution addresses the growing demand for a new generation of identity and access management (IAM) solutions that are business-centric. With this acquisition CA can deliver deeper product integration, and continued development and extension of products, particularly those that facilitate role-based, business-driven identity management and access control. The combination of CA Identity Manager with Eurekify Enterprise Role Manager delivers a system which helps customers clean up existing identity data and build a role model with the best available information. This model serves as the foundation to automate the user provisioning process and enhances identity lifecycle management.

Ra’anana’s Eurekify (http://www.eurekify.com) is a leading provider of privilege, role and policy management solutions. Eurekify Enterprise Role & Compliance Manager helps enterprises address difficult role modeling, compliance modeling and ongoing policy management challenges. (Eurekify13.11)

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2.3 Evergreen Venture Partners Leads $4.5m 2ndRound in Taboola

Taboola announced a $4.5m second round of funding led by Evergreen Venture Partners. In this round of funding, Evergreen was joined by a group of strategic Israeli & American angel investors. Taboola's proprietary hybrid solution combines contextual analysis algorithms with collaborative filtering and data mining technologies. The company's technology dynamically analyzes all the videos on a publisher's website and studies the way viewers behave while they view these videos. Based on this information analysis, Taboola automatically offers a personalized video list that predicts the best subsequent videos to watch, thereby effectively simplifying the video discovery process.

Tel Aviv’s Taboola (http://www.taboola.com) is the provider of the first Personalized Video Recommendation Solution which guarantees a more satisfying video discovery experience. The company's patent-pending technology seamlessly analyzes professional and user- generated video content, and anonymously studies the viewing patterns and behavior of millions of viewers. Taboola then offers a recommendation solution with a personalized video list that suggests the best subsequent videos to watch, effectively simplifying their video discovery process. For publishers, Taboola's recommendation solution enhances the users' experience, increases time spent on their site, boosts loyalty and drives profitability. Marketers are able to have their ads served according to viewers' personalized preferences and interests in a brand-safe environment. Taboola is a privately held company founded in 2007. (Taboola 18.11)

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2.4 Easy Energy Completes Yogen Product Suite & Signs First Distribution Agreement

Easy Energy announced that the final version of the Yogen has been completed and is now ready for mass production. On 20 April of this year the company executed an agreement for the Middle East Territory with Al-Sadeef Trading Company (headquartered in Jordan) and its shareholders Mr. Tahseen Jasim Hamadi and Mr. Ali Jasim Hamadi. In exchange for exclusive sales and marketing rights in the region, Al-Sadeef agreed to purchase an amount of at least 300,000 Yogens per year or $3,000,000. Nahariya’s Easy Energy (http://www.easy-energy.biz) is the sole owner of the Yogen man-powered charger products. YoGen is a hand-powered generator for cellphones and small electronics. It is a development-stage start-up company created to provide solutions to the problems related to battery-consumption of hand-held personal electronic devices. (Easy Energy 19.11)

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2.5 PharmAthene Agrees with Medison Pharma to Distribute Biodefense Medical Countermeasures in Israel

Annapolis, Maryland’s PharmAthene, a biodefense company developing medical countermeasures against biological and chemical threats, announced that it has signed an agreement with Medison Pharma to commercialize its biodefense products in Israel. Under terms of the exclusive, multi-year agreement, Medison Pharma will commercialize products from PharmAthene's biodefense portfolio and will be responsible for overseeing regulatory approval, marketing and distribution activities for those products in Israel. PharmAthene will maintain all manufacturing responsibilities. Medison Pharma, headquartered in Petah Tikva, Israel, is a leading Israeli marketing group focused in the fields of high quality pharmaceutical, diagnostics and medical devices. With over a decade of experience, the company is uniquely placed to provide a complete A to Z spectrum of integrated services for international companies looking to enter or expand their presence in the Israeli healthcare market, as well as in Romania and Slovakia. (PharmAthene19.11)

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2.6 Finjan Raises $22 Million in Investment Round

Finjan has raised $22m in an investment round led by HarbourVest Partners, with participation by new and current investors Benchmark Capital, Israel Seed Partners, Benhamou Global Ventures and Cisco. The company will use the proceeds to accelerate its growth and leadership within the global Secure Web Gateway market. This round of funding will assist Finjan in expanding its sales and marketing infrastructure and to bolster its leadership position in the web security arena. Finjan Secure Web Gateway enables organizations control, security and compliance for all their web productivity, liability and security needs. Differentiated by its industry-proven active real-time content inspection technology, Finjan Secure Web Gateway inspects inbound and outbound communication to prevent Crimeware from infiltrating networks and from confidential data leakage.

Netanya’s Finjan (http://www.finjan.com) is a leading provider of secure web gateway solutions for the enterprise market. Finjan Secure Gateway provides organizations with a comprehensive web security solution combining productivity, liability and bandwidth control via URL categorization, content caching and applications control technologies. Crimeware, malware and data leakage are proactively prevented via patented active real-time content inspection technologies and optional anti-virus modules. Powerful central management enables intuitive task-based policy management, excellent drill-down reporting capabilities and easy directory integration for all network implementation options. (Finjan16.11)

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2.7 Oree Secures $4 Million Venture Loan from Silicon Valley Bank and Kreos Capital

Oree has secured a $4 million venture loan from SVB (Silicon Valley Bank) and Kreos Capital. The funding will be devoted to manufacturing and expanding business developments activities. Oree’s technology enables the transmission of LEDs into a uniform surface in an ultra thin structure, making the "light bulb" as thin and flat as a credit card. The technology significantly decreases the energy consumption and radiated heat of standard lighting solutions. The product, made of entirely non-hazardous materials, offers improved light quality with a longer life span. Oree improves the amount of light extracted and significantly reduces the cost of the system. The deal represents the first time Silicon Valley Bank and Kreos Capital join forces to finance an Israeli company. Founded in 2006 with R&D centers in Israel and Germany, Ramat Gan’s Oree (http://www.oree-inc.com) is managed by proven entrepreneurs and backed by leading venture capital investors from Europe (Gimv) and Israel (Genesis Partners). While the LED industry is relatively young and scrambling for innovative solutions, Oree’s technology improves Lumen/Watt yields, shortens the supply chain and offers an inexpensive, simple and efficient product. (Oree 19.11)

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2.8 OpTier's CoreFirst Wins 2008 Financial Innovation Award

OpTier has received the 2008 Financial Innovation Award for Most Innovative Financial Services Technology Solution for its CoreFirst product. Presented by the ifs School of Finance, the prestigious Financial Innovation Awards recognize financial services organizations and technology providers that demonstrate excellence in one of 22 categories. OpTier's CoreFirst software topped five other technology vendor finalists in the category which recognizes the innovative development of a software package, application or tool set for the financial services industry. The company was one of more than 500 entrants and one of only three technology companies to receive an award at the 11th annual awards ceremony earlier this week in London.

CoreFirst is the first and only product to deliver end-to-end visibility of all transactions, across all execution tiers within the IT environment all the time. With CoreFirst's BTM, companies can manage transactions at the point of invocation through to completion, regardless of physical or virtual computing architectures. By uniquely identifying all transactions, OpTier provides a real-time picture of every transaction in order to reduce outages, quickly isolate and repair problems, improve operational efficiency and reduce overall costs. New York’s OpTier (http://www.optier.com), with an Israel R&D center in Ramat Gan, harnesses the power of real business transactions with its unique Business Transaction Management (BTM) software solutions. (OpTier 21.11)

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3: REGIONAL PRIVATE SECTOR NEWS

3.1 DeFi Mobile & DoubleU Market DeFi Global Access in MENA Region

Embracing one of the world's fastest growing economic and mobile technology areas, San Francisco’s DeFi Mobile and Beirut, Lebanon’s DoubleU have forged a new partnership, positioning DoubleU as the premier marketing and service provider for DeFi Mobile's offerings in the Middle East and North African (MENA) region. DoubleU has a heritage of more than a decade of commercializing technologies and content in the MENA region, including a database of more than 80m customers throughout the region. The DoubleU partnership with DeFi will focus initially on 15 countries in the MENA region: Egypt, Gambia, Ivory Coast, Jordan, The Kingdom of Saudi Arabia (KSA), Kuwait, Iraq, Lebanon, Liberia, Nigeria, Oman, Sierra Leone, Sudan, Syria and the United Arab Emirates (UAE). This list will grow as the two companies scale this partnership. Customers of DeFi Mobile access the DeFi Mobile network via millions of WiFi access points around the world, empowering them to place and receive telephone calls and use data-connection services over the DeFi Mobile network. De-Fi Mobile is a mobile communications company that provides a global IP platform for mobile applications and services. (De-Fi Mobile17.11)

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3.2 Rockwell Group Launches First Office in Middle East

Rockwell Group announced the November 16 opening of the firm's second satellite office, Rockwell Group Middle East. It will be located in the Jumeirah Lakes Towers district of Dubai, U.A.E., a popular and dynamic waterfront community surrounded by new office, hotel and retail towers, as well as atmospheric bodies of water and green space. The office will focus on business development in Asia, India and Africa; will serve as a liaison between the design teams in Rockwell Group's New York and Madrid offices; and will be a base of operations for clients, design and strategy teams working on projects in the regions supported by the Dubai office. Rockwell Group is an award winning, cross-disciplinary 200-person architecture and design firm specializing in cultural, hospitality, retail, product, and set design. Founded in 1984 in New York, the firm crafts a unique narrative and an immersive environment for each project. (Rockwell Group13.11)

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3.3 Bruker Announces Order for 10 NMR Systems for Saudi’s KAUST

Billerica, Massachusetts’ Bruker BioSpin has received an order from Saudi Arabia’s King Abdullah University of Science and Technology (KAUST) for ten (10) Nuclear Magnetic Resonance (NMR) spectrometers valued at close to $20 million, including Bruker’s flagship 950 MHz superconducting NMR magnet. KAUST is a new graduate-level research university in Saudi Arabia, dedicated to inspiring a new age of scientific achievement and the realization of a vision of King Abdullah. The two-story, eight-ton 950 MHz magnet is the world’s highest-field superconducting actively shielded high-resolution NMR magnet system. The heart of this 950 MHz NMR magnet is a proprietary coil set made of about 100 miles of superconducting wire which is producing a 22.3 Tesla magnetic field. The large magnet will allow scientists to investigate the structure of bio-molecules and study their interactions with greater resolution and sensitivity than ever before. The 950 MHz magnet at the center of KAUST’s NMR facility will be surrounded by other Bruker NMR spectrometers, ranging from 400 MHz for chemistry up to an actively-shielded 850 MHz widebore magnet for solid-state NMR. All Bruker NMR systems ordered will include the Bruker next-generation Avance III NMR console, which incorporates second-generation (2G) digital receiver (DR) technology for a significant further improvement in NMR detection fidelity. This 2G-DR technology and Bruker’s leading NMR probe and CryoProbe technology provide a new level of performance for demanding NMR experiments in structural biology, chemistry and material sciences. (Bruker19.11)

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3.4 ExxonMobil Enters Black Sea with Exploration Agreement in Turkey

On 19 November Exxon Mobil Corporation announced its affiliate, ExxonMobil Exploration and Production Turkey B.V., has signed an agreement with Turkish national oil company, Turkiye Petrolleri Anonim Ortakligi (TPAO), to explore in two large deepwater blocks offshore Turkey, marking ExxonMobil’s entry into Black Sea exploration. ExxonMobil will become operator during the initial exploration phase and earn a 50% interest in the Samsun Block, which measures approximately 2 million acres (8,500 square kilometers) and the eastern portion of 3921 Block, which measures approximately 5 million acres (21,000 square kilometers). Water depths reach an approximate 6,500 feet (2,000 meters). TPAO and ExxonMobil intend to collaborate to merge skills and operational abilities during the development and production phases. Seismic acquisition and evaluation programs for the two blocks are currently being operated by TPAO and are scheduled for completion in 2009. Assignment of the interest to ExxonMobil by TPAO is subject to Turkish government approval.

TPAO, Turkey's sole national oil company, was founded in 1954. Since its foundation, TPAO has made pioneering efforts in all branches of petroleum industry and implemented significant and strategic investments successfully. In addition to vast onshore and shallow water operating experience in Turkey, TPAO has interests in various projects in Azerbaijan, Kazakhstan, and Libya. (Exxon19.11)

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4: ISRAEL MACRO-DEVELOPMENTS

4.1 Egyptian Court Orders Halt to Israel's Natural Gas Supply

A Cairo court on 17 November ruled against an Egyptian government resolution to sell natural gas to Israel, issuing an injunction halting the supply. Legal sources in Egypt say however that the court did not put a timeline on its ruling, and meanwhile the gas continues to flow. Opposition members argue that the contract to sell gas to the Israel Electric Corporation is not legal, because it never underwent approval by the Egyptian parliament. The court ruling follows a motion by private lawyers, asking that the contract with the Israeli utility be revisited. The Merhav group, which is the Israeli partner of Egyptian supplier EMG, stated that according to its sources in Cairo, the Egyptian government will be appealing the ruling days. The Cairo court ruling roughly coincides with supply finally approaching the capacity to which the Egyptians had committed. The supply via a pipeline from El Arish, Egypt, to Ashkelon began in May, but has been stuttering, reportedly because of problems with the quality of the pipeline. Even when the gas did flow, capacity was a third of the volume stated in the agreement. The Egyptians promised to achieve full capacity by the beginning of 2009. Egypt has blamed the supply issues on glitches in the conduction system from the gas fields. (Various18.11)

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4.2 Michigan Governor Importing Israeli Hi-Tech

On 17 November, Michigan Governor Jennifer Granholm signed a water technologies partnership agreement with Israel, part of her seven-day trade trip to the Mideast. The joint declaration between Michigan and Israel establishes a working group between the two governments to focus on energy efficiency and technology that will improve water quality and increase water re-use. Governor Granholm is working to extend overseas business relations in the state. Governor Granholm met with Prime Minister Olmert, Industry Trade & Labor Minister Yishai (Shas) and hi-tech executives in an effort to bring Israeli hi-tech companies to her home state. The governor hopes that the creation of Israeli technology and biotech branches in Michigan will create more than a thousand new jobs in Michigan. The governor and her delegation met with executives from Powermat, a high-tech company that brings wireless electricity to surfaces like walls, tables and floors. Powermat, located near Jerusalem, is collaborating with a Michigan-based high-tech company on a deal that is expected to create several hundred jobs. (IsraelN23.11)

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4.3 Israel Poverty Report Shows Fewer Poor Children

Israel’s National Insurance Institute published its 2007 Poverty Report on 23 November. The report found a slight decline in the prevalence of poverty across most measures examined. However, as the report refers to 2007, it does not take into account the recent economic crisis. Israel's poverty rate was 19.9% in 2007, compared with 20% in 2006. For the first time in years, the 2007 Poverty Report shows a decline in the proportion of children living in poverty, to 34.2% in 2007 from 35.8% in 2006. However, the proportion of elderly living in poverty increased to 22.6% in 2007 from 21.5% in 2006. The National Insurance Institute says that the rise in the quality of life of the elderly was less than the rise in the quality of life of the general population, resulting in an increase in poverty. However, the proportion of families living in poverty rose to 24.5% in 2007 from 23.8% in 2006. The proportion of large families (four or more children) living in poverty fell to 56.5% in 2007 from 60% in 2006, which the National Insurance Institute attributes to the increase in work-related income. The prevalence of poverty among working families was unchanged in 2007, and accounted for 60% of all poor families. This fact indicates that joining the Israeli workforce is not enough to emerge from poverty, apparently because of the high proportion of minimum wage-earners and people who work for job agencies. (Globes 23.11)

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5: ARAB STATE & PAKISTANI DEVELOPMENTS

5.1 Gov. Granholm Meets King Abdullah II During Jordan Visit

On 19 November, Michigan Governor Granholm was in Jordan where she met with King Abdullah II and high-level executives from alternative energy company Millennium Energy Industries. Granholm and a delegation, including the Michigan Economic Development Corporation (MEDC) President, were in Israel and Jordan meeting with the countries' leading business and government leaders to develop new partnerships and encourage companies to invest and grow in Michigan. Granholm had an audience with King Abdullah II at the Royal Palace in Amman to discuss ways Jordan and Michigan can work together to advance alternative energy and water reuse technologies. The governor also met with high-level executives from Millennium Energy Industries, a global solar solutions company operating in the Middle East and North Africa, which is looking to establish a North American presence. Millennium's wide range of applications include space heating and cooling, industrial and domestic hot water systems, steam and power. The company's solar system has been implemented in the Jordache textile factory, heating 250,000 liters of hot water daily to bleach and wash jeans, and in the PMC Chocolate Factory, maintaining the high temperatures needed for chocolate production 24-hours-a-day, seven-days-a-week. While the governor was in Jordan, members of her delegation remained in Israel to meet with high-tech Israeli businesses and researchers and to build on the historic joint declaration of strategic cooperation by Governor Granholm and Israel's Minister of Industry, Trade and Labor Yishai. (MN19.11)

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5.2 Jordan & China Sign Nuclear Protocol

On 24 November, China signed a protocol with Jordan to help the Hashemite kingdom produce nuclear power to meet its growing energy needs and desalinate water. The two countries signed a preliminary nuclear cooperation deal in August. Jordan, which imports around 95% of its energy needs, is one of the most water-deprived countries in the world. The country's 1.2b tonnes of phosphate reserves are estimated to contain 130,000 tonnes of uranium and the government intends to start mining the radioactive ore to fuel its first nuclear plant. It wants the plant to be on line by 2015 and the reactor is targeted to supply 30% of Jordan's energy production by 2030. (Various24.11)

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5.3 Iraq Approves $67 Billion Budget

The Iraqi cabinet has approved a $67b budget for next year after revising its spending plans downward as a result of falling oil prices. The budget would be sent to parliament for ratification. The government had announced last month it was cutting its spending plans from a forecast $80b to $67b in light of falling oil prices. Iraqi officials have said the revised budget would assume an oil price of $62 a barrel while their earlier projections were based on an assumption that prices would average $80. This year's budget, including a supplementary oil windfall spending package, totaled $69b. Iraq earns nearly all of its government revenue from oil exports, which have averaged between 1.6 million and 2m bpd over the course of this year. International oil prices have fallen by more than half from their highs of $147 a barrel in July because of slumping world demand. The country has a huge demand for investment to rebuild infrastructure wrecked by decades of war and economic sanctions, and has been criticized by some in Washington for being slow to spend the income it earned during the oil boom. The budget initially called for $48b in spending, but the government then passed a supplemental budget of a further $21b to spend some of its increased oil revenues this year. (Various12.11)

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5.4 Iraq in Breakthrough To Link Kurd Oilfields To Export

Iraq's oil minister and officials from its largely autonomous Kurdistan region agreed on 24 November to link two Kurdish oilfields to the main northern export pipeline to the Turkish port of Ceyhan. The Iraqi Oil Minister had been asked by reporters in the Kurdish capital Arbil when the Oil Ministry would grant an export license for Kurdistan's Tawke oilfield, on which Norwegian firm DNO has the concession, and for its Shiwashuk field. Disputes between the Baghdad and the Kurdistan Regional Government (KRG) have held up development of oilfields for export in Kurdistan. DNO pumps oil from Tawke but has not managed to gain a license to export it. Without a license, it has to sell oil on the domestic market at a fraction of the world price. Analysts said the news was an unexpected breakthrough. Iraq's cabinet agreed a draft oil law in February last year, but it has failed to get it through parliament partly because of rows between the KRG and Baghdad over control of oil contracts. Iraq has the world's third largest proven reserves at around 115b barrels. In the absence of an oil law, Baghdad has been negotiating contracts with oil majors under old laws. The KRG says the constitution gives it the right to also do deals in its territory, but the dispute has kept the majors away. (Reuters25.11)

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5.5 Citigroup Says $50 Oil Would 'Create Trade Deficit in Most Gulf States'

On 18 November, Citigroup announced in a research note that Gulf Arab countries could witness an abrupt decline in external surpluses next year if oil prices average $50 a barrel. With oil at $50, Citigroup maintains, Saudi Arabia, the UAE and Qatar would all post external trade deficits in 2009, Citigroup. This could have a direct impact on GCC members and their overseas investments. Citigroup said Saudi Arabia's deficit could hit 28% of the gross domestic product, compared with a surplus of 30% this year, when oil prices should average $99 a barrel. Kuwait would be the only member of the Gulf Cooperation Council (GCC) to post an external surplus, Citigroup believes. Regarding the UAE, the bank added: "Two specific concerns are Dubai's real estate sector and how it will refinance the debt it has built up in recent years," adding it expected a correction in Dubai real estate prices and consolidation of its companies. (Various18.11)

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5.6 Qatar Oil Minister Expects 2009 to be Tough Year

Qatari Oil Minister Abdullah al-Attiyah stated that 2009 will be a tough one for the oil market as the global economic slowdown eats into demand. Attiyah pointed to increasingly bleak forecasts for oil demand growth from the Paris-based International Energy Agency. The IEA cut its forecast last week for global demand growth next to 350,000 barrels per day (bpd) next year, down 340,000 bpd from its previous forecast. He declined to say whether the Organization of the Petroleum Exporting Countries might take a decision to cut oil supply when ministers meet for informal talks in Cairo later this month. Attiyah reiterated his concern that slowing investments in high-cost oil projects due to lower oil price could contribute to a long-term shortage in supply when demand picks up. Qatar signed an agreement with Germany's Wintershall, a unit of BASF, on 17 November for oil and gas exploration and production,. Wintershall would spend $100m on exploration in the next three years. Qatar is the world's largest exporter of liquefied natural gas (LNG). Qatar is a small OPEC producer, with output of around 860,000 bpd. (QNA18.11)

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5.7 US Group Wins Qatar Causeway Deal

US-based KBR, a leading engineering, construction & services company has clinched the design management contract for Bahrain-Qatar Causeway. The contract was awarded by the Qatar-Bahrain Causeway Foundation (QBC Foundation) to KBR for providing design management, project management, and construction management services for the causeway. The QBC Foundation was created in 2006 for developing and managing the causeway project. KBR's work on the contract, in association with Halcrow, a UK-based engineering company, is expected to begin immediately with the first two phases consisting of management planning and design oversight. The Qatar Bahrain Causeway is a four lane, 40km long, highway corridor consisting of roadway sections on reclaimed embankment and natural islands, low level bridge structures and signature suspension bridges. The project also includes freight and passenger rail lines, providing a direct connection for high-speed freight and passenger rail between Qatar and Bahrain. It is envisioned that the railway will eventually be extended in each direction connecting Istanbul, Turkey to Muscat, Oman, and becoming the main rail link for the Middle East Gulf Coast Countries. (TradeArabia 16.11)

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5.8 Qatar Plans $1 Billion Fund to Invest in Jordan

Qatar is ready to set up a fund worth at least $1b to acquire diversified investments in Jordan spanning real estate to industrial projects, Jordan's prime minister said on 13 November. Prime Minister Dahabi, who was in Doha, said that senior Qatari officials were ready to bolster investments in the kingdom and raise at least $1b to take advantage of any attractive opportunities available from tourism, real estate, agriculture, industry to services. A top-level investment team would be sent soon to the Gulf Arab state to discuss specific investment projects, including those that could be set up in the country's free trade industrial zones. Qatar already has millions of dollars of investments in Jordan, including a 33.2% stake in the country's second largest lender, Jordan Housing Bank for Trade and Finance. Jordan had been seeking to attract Gulf Arab financial funds along with strategic investors seeking regional opportunities. But officials are worried the global financial crisis will reduce the large inflows of remittances and investments from the oil rich region which had contributed to booming economic growth in recent years. Bankers already cite a drop in investments but officials hope they can still attract select bargain hunting by savvy Gulf Arab investors hit by turbulence in Western markets and now turning to regional opportunities that are perceived safer.-(Petra 13.11)

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5.9 UAE Construction Growth Seen Slowing To 13%

Construction growth rates in the UAE are likely to fall to 15% in 2009 from 20% in 2008 due to global financial woes, an investment bank said in a report. Construction growth rates in the UAE federation, which includes Abu Dhabi and regional trade and tourism hub Dubai, are likely to slow to 13% in 2010, Al Mal Capital said in the report released on 25 November. It said the country could see a cement oversupply at the end of 2010. Al Mal Capital has an overall negative view on the cement sector due to the slowdown of the construction industry, coupled with extensive expansion of clinker and cement capacity in the market (clinker is the raw material necessary to produce cement). Al Mal said it expected cement companies exposed to regional equities to write down significant losses on the back of falling markets in the Gulf region over the last three months. Of the five cement companies covered in the report, Gulf Cement Co and RAK Cement were graded 'market perform' while Union Cement, Arkan Building Materials and National Cement were marked as 'under perform'. Dubai's real estate sector has been hit hard recently as shares tumble, real estate prices fall, construction projects are scaled back and jobs are cut. (Reuters 25.11)

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5.10 UAE Nationals Workforce to Double to 500,000 by 2020

The UAE national workforce is expected to double by 2020 to reach 500,000, the UAE's Minister of Labor said on 16 November. The Minister said that a main challenge was to create job opportunities for UAE nationals, especially for those below 30. The Emirati workforce is around 250,000 workers now but more than 38% of the UAE Nationals are below the age of 15, according to data. Some 15,000 Emiratis graduate every year, according to The National Human and Resource Development and Employment authority (Tanmia) statistics. Another challenge highlighted is the concentration of UAE nationals in the public sector and the concentration of new opportunities in non-productive sectors. (GN16.11)

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5.11 Yemen Lost 25,000 bpd During Flooding

Around 25,000 barrels per day of oil production in Yemen was shut in after torrential rain last month, the country's oil minister said on 19 November. "Today output is 287,000, which dropped from around 310,000-315,000 bpd because of torrential rains and floods, which affected some wells," oil and mineral resources minister Amir Al-Aidarous said during a visit to a gas facility. The affected wells were in the southeastern Hadramout province, he added. About 180 people died or went missing in the floods after downpours in October, UN agencies said last month. The rains caused damage worth around $1 billion in the state on the southern tip of the Arabian Peninsula. Yemen, which is one of the world's poorest nations outside of Africa and is not a member of the Organization of the Petroleum Exporting Countries (OPEC), is prone to flooding during the monsoon season. (Reuters19.11)

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5.12 Piracy Jeopardizing Suez Revenues

Increasingly brazen piracy off the coast of Somalia is jeopardizing traffic heading to and from the Suez Canal, a strategic shipping route and key earner for Egypt's economy. After more than 90 hijackings this year, the penultimate act came on 15 November, when pirates hijacked a Saudi supertanker with 25 crew and a cargo worth $100 million. They are now demanding a ransom of $25 million. Some shipping companies have announced they will reroute shipping via South Africa's Cape of Good Hope instead of through the Suez Canal. Egypt counts on the waterway as an important source of revenue, but emerged empty-handed after hosting an emergency meeting on 21 November for Arab Red Sea states to discuss the threat. Cairo meeting, convened at the request of Egypt and Yemen, came up short on specifics about how the threat should be handled. The Red Sea states said in a final statement at the end of the meeting that they welcomed the support of other countries, as long their sovereignty and territorial waters were respected.

Roughly 18,000 ships pass every year through the 190-kilometre waterway, constructed in 1869 to link the Mediterranean Sea with the Indian Ocean. This traffic accounts for 7.5% of world commerce annually. Every day, earnings from shipping top up Egypt's coffers with $15 million, and projected revenue for 2008 is $5 billion. The canal has become an important passageway for goods from China and India, with its traffic considered an important indicator of global economic health. The piracy threat also worries Egypt because of the world financial crisis. (AB22.11)

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5.13 Egypt’s July-Sept GDP Growth Slows to 5.8%

The world financial crisis has knocked 1.4% off the rate of economic growth in Egypt, where the economy expanded by 7.2% in the financial year which ended in June. Growth in the July-September quarter, the first of the new financial year, fell to an annualized rate of 5.8%. That compares to 6.6% in the April-June 2008 quarter and 6.9% in the July-September 2007 quarter. Growth in the construction sector, one of the engines of overall growth in recent years, fell to 9.5% in the July-September quarter, from 14% in the same quarter of last year. But growth in the tourism and telecommunications sectors held steady at 10% and above. The Egyptian government has said growth in the current financial year, which ends in June 2009, could drop to around 6% as the global crisis hits revenue from tourism, exports and the Suez Canal. Growth at 7.2% in the 2007/08 financial year was the highest in over 20 years, helped by petrodollar investments from the Gulf Arab region. (Various20.11)

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5.14 "Friends of Pakistan" Agree To Road Map

On 17 November, a group of donor countries dubbed as Friends of Pakistan Group agreed to a roadmap with a resolve to enabling Pakistan overcome its present financial crisis. The experts meeting, which was held in Abu Dhabi, was jointly chaired by the UAE and Pakistan, also overwhelmingly offered complete support to Pakistan in providing financial resources, investments, technical assistance and technology to help better its economy. Senior diplomats from 16 nations and multilateral agencies attended the day-long presentations. The participants are trying to put together a frame work for co-operation and have identified four key areas of co-operation which include economic development, energy, security and institution building.

Detailed presentations were made on the health of the country's economy, resource gaps, areas of potential investment, and the recent letter of intent issued to IMF for a $7.6b assistance package. Apart from economic issues a presentation was made on internal security also, where capacity of law enforcement agencies in fighting the war on terrorism was spotlighted, as Pakistan wants to re-build its internal security forces on modern lines, in order to tackle the security challenges it faces. In the course of next two months, meetings will be held at experts’ level, where the areas of co-operation identified, would be further fine tuned in order to prepare concrete proposals for investment projects. In the next meeting experts will present their reports showing their interest in specific areas and present it at the foreign ministers meeting to be held in Islamabad, in the third week of February. (Business Recorder18.11)

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5.15 Pakistani Foreign Investment Down By 30%

Pakistan’s net incoming foreign investment during the first four months of the current fiscal year declined by 30% mainly due to massive outflow of $487.47m from portfolio investment owing to poor law and order situation and uncertainty on political front. The Pakistan State Bank said on 17 November that foreign investment comprising foreign direct investment (FDI) and portfolio investment was constantly on decline. With current decline, overall net foreign investment stood at $1.145b at the end of October as compared to $1.633b of last fiscal year. However, pundits believe that after the financial assistance from International Monetary Fund (IMF), investors were likely to rejoin Pakistan's equity market. They said that $1.145b foreign investment was also an encouraging figure, as despite the uncertainty inflows were more than expectations. Foreign direct investment (FDI) during July-October rose by 0.15%. However, the massive outflow from the equity market posted a decline of 156% in portfolio investment, which played a vital role in the overall decline in the net foreign investment.

FDI has reached $1.321b during the first four months of fiscal year 2009 as compared to $1.319b in corresponding period of last year, depicting an increase of $2m. Portfolio investment stood in a negative position of $175.48m as compared to $313.95m of last fiscal year. Including privatization proceeds, total private investment shows a decline of 30.17% to $1.162b during July-October of fiscal year 2009 which previously stood at $1.664b, depicting a dip of $502.37m. (BR18.11)

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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS

6.1 Cyprus Economy Still Resilient In the Third Quarter

The Cyprus economy was still resilient in the third quarter, rising by 0.6% on a seasonally adjusted basis compared with the previous quarter according to the "flash" estimate from the Cyprus Statistical Service. Although this was the slowest pace of growth seen for almost four years, it easily outpaced the eurozone, where the economy in many countries has started to contract. Compared with the same period of the previous year, growth in the third quarter of 2008 slipped to 3.5%, compared with 3.9% in the second quarter, 4.1% in the first quarter and a peak of 4.6% in the first quarter of 2007. The Statistical Service reported that the deceleration was mainly attributed to construction, hotel and restaurant activities, financial intermediation and real estate activities. (CSS14.11)

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6.2 Cyprus Injects Millions of Euros Into Key Sectors

On 15 November, Cyprus decided on a €52m injection to the flagging tourism and construction sectors as economic growth slowed to 3.5% in the third quarter from 3.9% in the second. The official flash estimate of 3.5% gross domestic product (GDP) growth for June-September from the year-earlier quarter is the smallest increase for more than two years. The slowdown is attributed to a slump in construction, real estate and hospitality services, the Cyprus Statistical Service announced. However, Cyprus still has one of the highest rates of GDP growth in the eurozone. Although the authorities are confident Cyprus can weather a global recession, there is concern over the key construction and tourism industries that contribute a combined 30% to GDP and are major employers. (grhomeboy16.11)

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6.3 Cyprus Presses On With Oil Search, Warns Turkey on EU

On 25 November Cyprus said it would push ahead with oil and gas exploration activities in the Mediterranean and warned that Turkey could face difficulties with its EU entry bid if it tried to stop them. Cyprus has accused Turkey of harassing two Panamanian-flagged vessels conducting seismic surveys for Cyprus in international waters on Nov. 13, and said a second incident occurred on Nov. 24. Turkey said the exploration was encroaching its continental shelf, while Cyprus said the incidents occurred in a maritime zone it has rights over under international conventions. Cyprus angered Turkey last year by charting 11 offshore blocks south and south-east of the island, offering them to companies for exploration. Turkey said the move could upset reunification efforts, since natural resources should belong to all residents of the island, Greek and Turkish Cypriots. Energy officials say they are negotiating exploitation rights with a U.S.-based company for one block. The Cypriot government plans to offer more blocks in a bidding process next year. (FM25.11)

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6.4 Cyprus Spent €1 Billion On Education In 2006

Cyprus spent a total of €1.02 bln on expenditure in public and private education for the year 2006 according to figures released by the Cypriot Statistical Service. The report notes that the current public cost per pupil/student in public schools by level of education was for Pre-school and Pre-primary €4,909, Primary €4,976, Special 3€8,975, Secondary €7,916 and Tertiary €17,180. The cost per student abroad was €4,082. Furthermore, at all levels of education there were 1,258 educational institutions, 172,361 pupils/students and 15,213 teachers, giving a pupil/teacher ratio of 11.3. Of the total number of pupils/students, 74.2% were enrolled in public schools and 25.8% in private schools. The enrolments of pupils/students by level of education were for Pre-school and Pre-primary 26,508, Primary 57,492, Secondary 65,790, Tertiary 22,227 and Special Education 344. Cypriot students abroad totaled 21,188. Their distribution by level of education was for Tertiary non-university 801 or 3.8%, Tertiary University Undergraduate 18,053 or 85.2%, Tertiary Postgraduate (Master's) 1,849 or 8.7% and Doctoral (PhD) 485 or 2.3%. The most popular fields of study were Business Administration 12.4%, Health 10.1%, Engineering 10.1%, Humanities 10.0%, Social and Behavioral sciences 9.8% and Teacher training and Education science 7.2%. The main countries of study were Greece 63.1%, the United Kingdom 26.6%, the USA 2.7%, Bulgaria 2.2%, Hungary 1.1%, France 0.8% and the Russian Federation 0.5%. (FM24.11)

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6.5 Greece Approves €28 Billion Bank Support Plan

Greece gave final approval to a €28 bln bank support plan aimed at ensuring access to loans for small- and medium-sized businesses, which make up over half its slowing economy. Parliament approved the package despite the opposition of left-wing parties which said the package benefited wealthy bankers at the expense of ordinary Greeks, a fifth of whom live below the poverty line. Greece's conservative government, which has fallen behind in polls as the economy has cooled, watered down key conditions of its initial plan in the face of reticence from banks. It lowered commissions and dropped its insistence that lenders must give the state shares to participate in any part of the deal.

Economists have described the plan as a political bid to bolster Greece's economy rather than an effort to bail out banks which have had little exposure to toxic assets and have suffered no writedowns. After growing by around 4% for almost a decade, Greece's economy will expand just over 3% this year and the rate could fall below 2% in 2009, economists say. So far only two banks, state-controlled ATEbank and the country's third-largest lender Alpha Bank, said they will sign up for the deal, despite calls from Prime Minister Costas Karamanlis for all lenders to take part.

Under the terms of the deal, only undercapitalized banks needing to take part in a €5 bln capital injection will have to issue the government with preferred shares, paying a 10$ dividend. Banks wishing to use €15 bln in government debt guarantees will have to allow a state representative on their boards with a veto over dividend payments and executive pay. The leader of the opposition PASOK party, George Papandreou, said there was no guarantee the measures would succeed. Economists say Greece's government has scant room to offer a fiscal stimulus as it struggles to reduce a debt equivalent to 94$ of GDP. (FM21.11)

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6.6 Greek Defense Budget To Be Squeezed

Greece could save in excess of €1b by reducing its defense spending next year, according to cuts announced by Prime Minister Karamanlis in Parliament on 14 November, as it was confirmed that the eurozone had slipped into recession. Speaking after the news that the economic crisis has officially taken grip of Greece as well as the other eurozone members, Karamanlis said that he would cut the defense budget for 2009 by 15% in a bid to save money. Although exact figures are not available, estimates put Greece’s defense budget between €6 and €10m, or 3-4% of GDP per year. The premier said that the reduced spending would not have any effect on the armed forces as the government had already employed some "good housekeeping" that would allow them to keep up their existing role. (Kathimeiri15.11)
6.7 Greece Returns To Kyoto Scheme

On 15 November, the Greek Ministry of the Environment & Public Works announced that a United Nations committee has decided to reinstate Greece in the emissions-trading system of the Kyoto Protocol after a seven-month suspension. Greece was suspended from taking part in the UN scheme in April after inspectors found that methods for testing pollution levels were inadequate. But in a new report, UN officials say Greece is now in line with international standards. In April, Greece was told it must develop a new and more effective system of measuring emissions. The ministry indicated that this new system was up and running. (grhomeboy16.11)

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7: GENERAL NEWS AND INTEREST

*ISRAEL:

7.1 Feast of the Sacrifice – Eid Al-Adha to Fall on 8 December

The first day of the Islamic holiday Eid al-Adha will fall on 8 December. The Islamic Crescents Monitoring Project forecast that 29 November will be the first day of 'Zil Hijja', on which sighting of the crescent will be endorsed in some Muslim countries to be the beginning of the Dhu Al-Hijja month.

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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*REGIONAL:

7.2 Iraq Signs Controversial US Military Pact

On 16 November, Iraq's cabinet approved a wide-ranging military pact that includes a timetable for the withdrawal of all US troops by the end of 2011. Baghdad and Washington have been working towards an agreement that will govern the status of more than 150,000 US soldiers stationed in some 400 bases across the country after their UN mandate expires on Dec. 31. The cabinet approved the agreement after a two and a half hour meeting, with 28 ministers out of 38 voting for it, including Prime Minister Al-Maliki. The draft agreement includes 31 articles and calls for US troops to pull out of Iraqi cities by June 2009 and from the entire country by the end of 2011. Iraq has seen dramatic improvements in security over the past year as US and Iraqi forces have allied with local tribal militias to flush insurgents and militias out of vast swathes of the country that were once ungovernable. The agreement will now go to parliament, where it would have to be approved by a majority before Al-Maliki would sign the agreement with US president George W. Bush. On Nov. 5, the United States gave Iraq its amended version of the pact and stated the negotiations were finished. (Various16.11)

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7.3 Iraq's Kurdish Areas Prepare To Ban Female Circumcision

Parliament in Iraq's northern autonomous region of Kurdistan is preparing to outlaw female circumcision, according to a woman MP and doctor who has long battled to halt the widespread practice. Dr. Hala Suheil said a bill making circumcision illegal was presented in parliament recently. It will impose jail terms and fines on offenders. Kurdistan health minister Zarian Abdel Rahman said that in the region "60% of girls aged four to fourteen undergo circumcision, despite warnings by ministers against this grievous practice committed in the name of religion and hygiene." Female circumcision involves the partial or complete removal of the female external genitals. It can cause death through hemorrhaging and later complications during childbirth. It also carries risks of infection, urinary tract problems and mental trauma. The German non-government group Wadi carried out research in 201 villages in the three autonomous provinces and in the predominantly Kurdish Kirkuk area in September. It found that 3,502 out of 5,628 women and girls surveyed had been mutilated - an average of more than 62%. The practice, encouraged by some clerics, does not appear to exist in other parts of Iraq. While widespread in the African continent, it is not known how female circumcision was introduced into northern Iraq. (AB21.11)

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7.4 UAE National Day Marked on 2 December

The UAE marks the 37th anniversary of its National Day on December 2, 2008. The United Arab Emirates is a constitutional federation of seven emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Qaiwain, Ra's al-Khaimah and Fujairah. The federation was formally established on 2 December 1971. Sheikh Khalifa bin Zayed Al Nahyan was elected as President on 3 November 2004, following the death of Sheikh Zayed bin Sultan Al Nahyan, who held the post from the foundation of the State on 2 December 1971 until his death on 2 November 2004. The Supreme Council meets at five-year intervals to reaffirm the existing President or elect a new one. One initial step was designed to enhance public participation in government, through the introduction of indirect elections to the country's parliament, the Federal National Council (FNC). The changes were first announced by HH Sheikh Khalifa bin Zayed Al Nahyan, in his statement on National Day, 2 December 2005. Formerly the 40 members of the FNC, drawn from each of the seven emirates on the basis of their population, were appointed by the rulers but under the new reforms, each ruler selected an Electoral College for his emirate, with its members amounting to at least 100 times the number of FNC members for the emirate, (eight each for Abu Dhabi and Dubai, six each for Sharjah and Ra's al-Khaimah, and four each for Fujairah, Ajman and Umm al-Qaiwain). The Colleges were then given the responsibility of electing half of the FNC members for their emirate, with the remaining half being appointed by the ruler. The process got under way in August 2006, with the issuing of a decree by the president that spelt out the new procedures and also established a National Electoral Committee, headed by the Minister of State for FNC Affairs, a post created in the Cabinet reshuffle in February.

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7.5 Oman Sets Up Human Rights Commission

The sultanate of Oman has established its first-ever human rights commission, the National Commission for Human Rights, becoming the last of the oil-rich Gulf states to set up such a body. Oman's ruler Sultan Qaboos issued a royal decree on 16 November ordering the establishment of the commission. International rights groups have criticized the rights record of Oman, where any negative comment about the authorities is considered heresy and the media are strictly controlled. However, London-based Amnesty International said in its 2007 report that the Gulf state has seen a very gradual opening of the political process in recent years, including the participation of women. Migrant workers, meanwhile, complain of discrimination and violence at the hands of employers and lack of freedom of movement. (ONA17.11)

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7.6 Algeria Clears Way For Bouteflika To Seek 3rd Term

On 12 November, Algeria scrapped a rule limiting presidents to two terms, a move seen by opposition parties as aimed at letting head of state Abdelaziz Bouteflika stay in office for life. Bouteflika, 71, has yet to say whether he wants to run again but is widely expected to contest a presidential election in April 2009 when his second five-year term expires. His ruling tripartite coalition has an overwhelming majority in the legislature, and the joint sitting of the national assembly and the Senate voted 500 for the amendment to the constitution, with 21 against and eight abstentions. (Various12.11)

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8: ISRAEL LIFE SCIENCE NEWS

8.1 BioLineRx & Yissum Agree to Develop Novel Compound for Inflammatory Bowel Disease Treatment

Yissum and BioLineRx have signed a worldwide exclusive license agreement for BioLineRx to develop and commercialize BL-5040, a new anti-hormone for the treatment of inflammatory diseases. Rights to the compound were also obtained from Tel Aviv Sourasky Medical Center. Financial terms of the license were not disclosed. BL-5040 is a novel drug candidate that utilizes a mutated version of leptin acting as an antagonist with anti-inflammatory properties. Leptin is a hormone that has an important role in regulating inflammation immunity, as well as appetite control. BL-5040 binds tightly to the leptin receptor and thus blocks the binding of leptin. It has been shown that BL-5040 can block inflammation in animal models without discernible side-effects. BioLineRx will be developing BL-5040 to treat inflammatory bowel diseases (IBD) such as colitis and Crohn's disease.

Jerusalem’s Yissum (http://www.yissum.co.il) was founded in 1964 to protect the Hebrew University’s intellectual property and commercialize it. $1b in annual sales is generated by products based on Hebrew University technologies licensed out by Yissum. Jerusalem’s BioLineRx (http://www.biolinerx.com), a clinical stage drug development company traded on the Tel Aviv Stock Exchange, is dedicated to building a robust pipeline of promising therapeutics for unmet medical needs. The Company’s lead programs include BL-1020 for the treatment of schizophrenia, currently in Phase 2b trials; and BL-1040 for the treatment of damaged heart tissue post-myocardial infarction, currently in a Phase 1/2 study. Additional products under development include compounds for the treatment of cancer and CNS, cardiovascular, metabolic, infectious and autoimmune diseases. BioLineRx advances projects from early stage discovery and lead generation to advanced clinical trials. BioLineRx partners with researchers, universities and biotech companies to further the development of promising compounds. (Yissum 12.11)

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8.2 Syneron Acquires San Diego-Based Inlight Corp.

Syneron Medical signed an agreement to acquire San Diego-based laser technology development and research firm, Inlight Corp. Specific terms of the transaction were not disclosed. As part of the agreement, Inlight President and co-founder Shlomo Assa will join the Syneron management team. Assa brings deep experience in the laser device industry, previously holding positions at Laser Industries Ltd. and other companies. In addition, Assa holds multiple U.S. patents for laser-based technology. Syneron continues to diversify the company's deep product lineup with the introduction of proprietary products and technology. The Inlight acquisition is the second major product/technology investment for Syneron in 2008. In February, Syneron invested in Rakuto Bio Technologies Ltd. (RBT), an Israeli-based start-up, to develop an advanced whole skin complexion whitening treatment.

Yokneam’s Syneron Medical (http://www.syneron.com) manufactures and distributes medical aesthetic devices that are powered by the proprietary, patented elos combined-energy technology of Bi-Polar Radio Frequency and Light. The Company's innovative elos technology provides the foundation for highly effective, safe and cost-effective systems that enable physicians to provide advanced solutions for a broad range of medical-aesthetic applications for facial and body shaping applications (Syneron04.11)

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8.3 Teva Announces Agreement on Allegra Patent Challenge

Teva Pharmaceutical Industries announced that its subsidiary, Teva Pharmaceuticals USA, and Barr Laboratories have signed an agreement with Aventis Pharmaceuticals, sanofi-aventis U.S. and Albany Molecular Research to settle patent litigation involving Teva’s and Barr’s U.S. generic versions of Aventis Pharmaceuticals’ Allegra (fexofenadine) 30mg, 60mg and 180mg tablets including all claims for patent infringement and damages. After entering into a separate agreement with Barr, Teva launched its generic fexofenadine tablets in the U.S. in September 2005. The present agreement releases Barr and Teva for all past and future activities in connection with the U.S. marketing and sale of Teva’s and Barr’s generic fexofenadine tablets. Under the terms of the agreement, Teva and Barr will each pay Aventis about $30 million. In addition, Teva and Barr will pay Aventis an undisclosed royalty on future U.S. sales. Under a consent decree related to Sanofi, the agreement is subject to review by the Federal Trade Commission (FTC), which the parties expect will require up to 45 days to complete. The parties may prevent the agreements from becoming effective or terminate the agreements if the FTC or state attorney generals raise objections that cannot be resolved by the parties. Teva Pharmaceutical Industries (http://www.tevapharm.com), headquartered in Israel, is among the top 20 pharmaceutical companies in the world and is the world's leading generic pharmaceutical company. The Company develops, manufactures and markets generic and innovative human pharmaceuticals and active pharmaceutical ingredients, as well as animal health pharmaceutical products. (Teva19.11)

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8.4 Topical Dermatology Drug Developer Sol-Gel Raises $9 Million

Sol Gel Technologies announced the successful completion of an investment round of $9m. The funding will be used to accelerate Sol-Gel’s robust pipeline of innovative topical products for the dermatology market. The company’s pipeline includes a new generation of anti-acne kits that target the $1 billion acne therapy market. The investment was led by Medica Venture Partners, a prominent Israeli venture capital firm, and included other existing investors. Rehovot’s Sol-Gel Technologies (http://www.sol-gel.com) is a specialty pharmaceuticals company that develops innovative topical products for the dermatology market using a proprietary set of controlled-delivery and stabilization systems by enhancing the efficacy and safety of drugs and enabling synergistic combinations of various pharmaceuticals, Sol-Gel is able to produce better products and improve their life cycle management. (Sol-Gel18.11)

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8.5 Teva Receives First U.S. Approval for Generic Pulmicort Respules®; Commences Commercial Launch

Teva Pharmaceutical Industries announced that the U.S. Food and Drug Administration has granted approval for the Company’s Abbreviated New Drug Application (ANDA) to market its generic version of AstraZeneca’s Pulmicort (Budesonide) Respules, 0.25 mg/2 mL and 0.5 mg/2 mL indicated for twice daily treatment of Asthma. Shipment of these products has commenced. Teva is currently involved in patent litigation concerning this product in the U.S. District Court for the District of New Jersey. A trial has been scheduled for January 12, 2009. Teva Pharmaceutical Industries (http://www.tevapharm.com), headquartered in Israel, is among the top 20 pharmaceutical companies in the world and is the world's leading generic pharmaceutical company. The Company develops, manufactures and markets generic and innovative human pharmaceuticals and active pharmaceutical ingredients, as well as animal health pharmaceutical products. (Teva19.11)

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9: ISRAEL PRODUCT & TECHNOLOGY NEWS

9.1 Odysii Introduces Its Leading Marketing Intelligence Software to U.S. Banks

Odysii announced the U.S. availability of two in-branch solutions that enable banks to communicate more effectively with customers using digital screens. Odysii's Queue Area Solution and Teller Solution allow banks to communicate with in-branch customers at both a group and personal level to help influence sales and improve their overall in-branch experience. Unlike offerings that loop the same content over and over, Odysii's Queue Area Solution applies branch rules based on waiting area customer data. Utilizing a bank's insight on its visitors, marketers have the ability to modify and customize messaging in real-time to adjust to changing demographics and interest rates, new promotional offerings, and current and local business conditions. Targeted content can be shared with waiting customers across thousands of digital screens at banks nationwide, or tailored to the unique goals and sales objectives of a single branch. Odysii's Teller Solution allows marketers to take personalization even one step further. By utilizing the teller station to access customer data, Odysii matches that individual's financial profile with relevant offers to customize and present targeted messages on a small, customer-facing digital screen.

With headquarters in New York and Tel Aviv, Odysii (http://www.odysii.com) is a global provider of marketing intelligence software solutions for onsite messaging. With tens of thousands of screen installations now implemented in more than 25 countries worldwide, its SaaS-based solution has delivered targeted messaging for Fortune 2000 customers. Odysii operates as a private company. (Odysii13.11)

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9.2 Spain’s Serenamail Licenses Commtouch Email Security Technologies to Improve Performance

Barcelona, Spain’s Serenamail and Commtouch announced that Serenamail is integrating Commtouch’s Anti-Spam and Zero Hour Virus Outbreak Protection into its managed service offering. Serenamail is a leading managed security service provider in the Spanish market, targeting small and medium businesses, enterprises and Internet Service Providers with its solutions. Netanya’s Commtouch (http://www.commtouch.com) is the source of proven messaging and web security technology for scores of security companies and service providers, founded on a unique datacenter-based approach. Commtouch’s expertise in building efficient, massive-scale security services has resulted in its patented technology being used to mitigate Internet threats for thousands of organizations and hundreds of millions of users in over 100 countries. Commtouch’s Data Centers automatically analyze billions of transactions in real-time to identify new spam, malware and zombie outbreaks as they are initiated. (Commtouch 12.11)

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9.3 GED-I Delivers Advanced Encryption/Security for IBM Storage

GED-I, Ltd. announced that the "GSA 2000 – AIO" has successfully completed interoperability testing with the IBM System Storage DS3000 family of products to become an IBM System Storage Proven solution. GED-I’s GSA 2000 can be used for data encryption to meet compliance guidelines, regulatory requirements and business optimization needs utilizing the IBM System Storage DS3300 and DS3400 storage devices. This solution will allow the DS3000 to be utilized as the storage element in an encryption environment that utilizes the GED-I encryption and encryption key management. GSA 2000 is a storage security appliance, used to secure storage data in Real Time. GED-i Ltd presents the ultimate security for storage devices utilizing multi layered security implemented as GED-I Security Appliance (GSA) product family. Storage data security based on plain encryption is not satisfactory due to storage device’s inherent vulnerabilities: known data structure, huge volume of data, data recovery technologies and the retractable storage disks. GED-i Ltd is the only company that offers suitable level of security to Storage Data, utilizing unique technology that overcomes the inherent vulnerabilities of the storage devices, utilizing 3 layers of standard encryption (AES 256) and proprietary methods.

Netanya's GED-I (http://www.ged-i.com) develops and markets Storage Data Security/Encryption solutions for the Enterprise and SMB markets. The company’s products based on the company's unique patent pending technology, delivers data security that overcomes the inherent vulnerabilities of storage devices. (GED-I06.11)

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9.4 Infima Technologies Launches JPACK

Infima Technologies announced the release of JPACK, an innovative Re-compression software solution for JPEG files which provides fast compression/decompression and storage & bandwidth cost reduction of up to 80% without requiring any additional infrastructure. The most popular JPEG online archiving and social networking sites are already managing hundreds of terabytes of images and the bandwidth overhead required to deliver an enjoyable and responsive user experience for online image viewing is becoming an increasing challenge. Infima’s JPACK solution can be seamlessly and transparently integrated into vendors’ own systems, providing rapid, high-ratio compression paths. JPACK provides both significant latency reduction commonly associated with image uploading and Jpeg storage and bandwidth cost saving to image online vendors. Herzliya’s Infima Technologies (http://www.infima-compression.com) develops and markets bit-level recompression solutions for popular file formats based on an innovative, patent-pending general data compression algorithm. Established in 2006, Infima’s technology is based on a neural network, developed by leading experts in applied mathematics and can be seamlessly integrated into existing applications and appliances. Infima’s flagship solution, JPACK, is a dedicated cost saving solution for Image vendors providing smaller storage requirements and improved throughput. (Infima Technologies 17.11)

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9.5 Siano Receive CES Innovations 2009 Award

Siano Mobile Silicon (http://www.siano-ms.com) announced that the Geosat 6 XTV Navigation device, with Digital TV functionality powered by Siano, was named a winner in the International CES Innovations 2009 Design and Engineering Awards. The Geosat 6 XTV was named an honouree in the ‘In-Vehicle Navigation/Telematics/ITS’ product category, which recognizes products designed to connect and extend the functionality of location-based devices used in automobiles. Based on Siano’s leading mobile TV receiver and antenna chips, the Geosat 6 XTV offers high quality in-car mobile TV entertainment: unparalleled mobile TV reception extending to rural areas and high mobility performance that will support MDTV whilst travelling at high speeds, eliminating the need for external antennae. The Geosat 6 XTV concentrates in one device an unequalled set of features in addition to Digital TV: advanced GPS navigation, a tri-band GSM phone, alcohol test and multimedia player functions. The device will also feature digital maps and content from Tele Atlas.

Netanya’s Siano Mobile Silicon provides integrated silicon receiver and antenna chips for the mobile digital TV (MDTV) market. Tailored specifically for handheld and mobile devices, the company’s multi-standard solutions combine high performance with extremely low power and ease-of-design. Siano’s products are already shipped in mobile and portable devices all over the world and the company has built a vast customer base including tier-1 PC and mobile handset manufacturers. (Siano 17.11)

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9.6 PineApp’s Archive-SeCure Helps Organizations Meet Legislative Requirements for Email Retrieval

With rapidly increasing volumes of email communication and legislation that require some emails to be kept for up to seven years, PineApp has announced its new cutting edge email archiving solution. Archive-SeCure provides a cost-effective solution aimed at small to medium sized organizations, that encrypts and stores all email communications based on pre-defined rules for retention and recovery policy. Archive-SeCure stores an infinite number of emails and supports multiple storage systems including NAS and SAN along with removable drives. By using advanced compression and storing a single copy of an attachment shared across potentially thousands of emails, storage costs can be reduced by up to 90%. A powerful search engine allows auditors and employees to search, view and print archived messages at the click of a button. PineApp also provides support for Microsoft’s envelope journaling and email restoration.

Nesher’s PineApp (http://www.pineapp.com) is a leader in securing networks and email systems and offers comprehensive appliance solutions for small, medium and large organizations. Founded in 2002, PineApp is headquartered in Israel, with branch offices in the UK, US, Canada, Spain, Italy, France, Russia and Singapore. In the past years PineApp has specialized in email and content security systems and already has significant presence in more than 50 countries. (PineApp17.11)

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9.7 Dune Networks Introduces a Line Card on a Chip for Data Center & Carrier Access Applications

Dune Networks announced the availability of the P330, a new member in its PETRA family. The P330 integrates complete 80Gbps full-duplex line card functionality into a single device addressing Data Center and Carrier Access requirements. By integrating packet processing into the PETRA line of devices, the PETRA solution now offers the ability to design high-density switching line cards ranging from 24 to 48 10GE ports for Data Center and Carrier Access applications. For the first time this enables a no-compromise switching system design, including a strictly non-blocking fabric, 100ms packet buffer and densities of up to 768 ports of 10GE or 40GE/100GE equivalent with a single stage fabric. Furthermore, the P330 enables the build of switching systems featuring power and cost metrics similar to legacy 1GE switching systems. The P330 incorporates a flexible packet processor using micro-code engines. The packet processor is purpose built for Data Center and Metro Access applications. Packet-processing features include comprehensive L2 bridging, L3 IPv4 and IPv6 unicast and multicast routing, flexible L2/L3/L4 aware ACLs. For Data Centers, the P330 offers additional benefits such as enhanced TCP performance, TCP starvation avoidance, Lossless Ethernet support, high fan-out ECMPs and LAGs, security and policing, and virtualization support.

Dune Networks (http://www.dunenetworks.com) is a semiconductor supplier of networking devices which facilitate the building of Data Center, Enterprise and Carrier Ethernet Solutions. Dune provides a switching solution that truly scales in capacity, port rate, and service scheme. This extends the life cycle of packet platforms from the legacy 3 years up to 10 years or more, revolutionizing the economics of packet networks. Founded in the year 2000, Dune offices are located in Sunnyvale, California and in Yakum, Israel. (Dune14.11)

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9.8 ColdSpark Integrates Commtouch Messaging Security Suite into Mail Platform for Large Enterprises

Broomfield, Colorado’s ColdSpark and Commtouch announced that ColdSpark will be offering Commtouch messaging security services based on Recurrent Pattern Detection (RPD) and GlobalView Reputation technology with its SparkEngine Mail Transfer Platform. SparkEngine is a high performance message transfer platform, designed specifically with the needs of large enterprises in mind. Its customers include four of the top five large investment banks, America’s top retail brokerage house, and 2 of America’s top retail banks. ColdSpark is integrating the following Commtouch offerings into their platform: GlobalView Mail Reputation, which deflects over 80% of unwanted mail at the network perimeter, providing a significant savings on IT resources such as bandwidth and storage; Commtouch Anti-Spam, which blocks spam in any language, and regardless of its content or attachment type; and Zero-Hour Virus Outbreak Protection, which defends against new types of email-borne malware in the crucial first minutes of an outbreak, during the vulnerable window before traditional anti-virus engines have provided a signature

Netanya’s Commtouch (http://www.commtouch.com) is the source of proven messaging and web security technology for scores of security companies and service providers, founded on a unique datacenter-based approach. Commtouch’s expertise in building efficient, massive-scale security services has resulted in its patented technology being used to mitigate internet threats for thousands of organizations and hundreds of millions of users in over 100 countries. (Commtouch18.11)

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9.9 Dinnovan Selects Surf's AMC & SurfExpress Boards to Develop Media Streaming Apps in Korea

Surf Communication Solutions announced the successful implementation of its SurfRider/AMC boards and SurfExpress boards to develop media streaming server applications with Dinnovan, one of Korea's foremost convergence solution providers. After an intensive market search with competitor vendor products, Dinnovan chose Surf's SurfRider/AMC and SurfExpress/PCIe boards to be integrated into their key customers' applications, including media streaming, fax server, MRFP (Media Resource Function Processor), VRS (Video Response Service), Video Gateway and Video IVR for a range of wire and wireless customers. Dinnovan develops value-added communication solutions based on SS7, SIP, MEGACO and MGCP technologies. The company's experience and market-proven capabilities in the communications industry provides customers with cutting-edge convergence solutions for voice, video and data, wired and wireless networks solutions.

Yokneam’s Surf Communication Solutions (http://www.surf-com.com) is a leading provider of hardware and software products that drive a wide range of high-capacity distribution voice and video applications. Surf's solutions are designed and developed by global media gateway, media server and IMS equipment manufacturers in the telecommunications infrastructure arena. Surf's proprietary engine is an off-the-shelf, fully converged audio/video media processing subsystem that easily integrates into media gateways and servers to provide customers with high-reliable, cost-effective solutions. (Surf 18.11)

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9.10 NICE Receives 7-Digit Order from Miami-Dade Police Department for NICE Inform

NICE Systems announced the Miami-Dade Police Department has selected NICE Inform and other NICE solutions to capture and manage emergency communications at four County-wide emergency communication sites including a new state-of-the-art communications center scheduled to open in 2009. The busiest Public Safety Answering Point (PSAP) in the Southeastern U.S., the Miami-Dade Police Department Communications Bureau fields over two million calls annually. The Miami-Dade Police Department will deploy a fully redundant NICE solution, which will include NICE Inform and other NICE solutions all certified for interoperability with Miami-Dade's mission-critical trunked radio communication system. NICE Inform is the world's first full-spectrum multimedia incident information management solution for the security market. It provides ground-breaking capabilities for effectively managing incident information from various sources, including audio, video, text and data, streamlining information-sharing, investigations and evidence delivery. The capabilities of NICE Inform also enable agencies and command and control centers to move beyond simply capturing voice communications to centrally capturing and managing many different types of multimedia information central to investigations, such as video, mug shots, affidavits and incident reports.

Ra'anana’s NICE Systems (http://www.nice.com) is the leading provider of Insight from Interactions solutions and value-added services, powered by advanced analytics of unstructured multimedia content - from telephony, web, radio and video communications. 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. (NICE 18.11)

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9.11 Check Point Delivers Total Security for Branch Offices with Upgrade to UTM-1 Edge Appliances

Check Point Software Technologies announced a firmware upgrade for its UTM-1 Edge appliances, providing branch offices with greater protection, expanded connectivity options and streamlined management. Check Point UTM-1 Edge appliances combine the industry’s most-proven firewall, remote access, new messaging security, Web filtering and Network Access Control (NAC) into an all-inclusive, centrally managed, security solution. New Total Security models combine one year of update services for SmartDefense intrusion prevention, gateway antivirus, messaging security and Web filtering in an all-inclusive, turnkey solution. New features and benefits for the latest release of Check Point UTM-1 Edge appliances include: New Messaging Security with inline Anti-Spam based on the latest detection technology blocks more than 98% of email-based spam with three layers of protection providing a low false positive rate and enabling rapid response to new spam and phishing outbreaks, Built-in EAP (Extended Authentication Protocol) authenticator enables WPA Enterprise and 802.1x access control without an external RADIUS authentication server, Improved connectivity for legacy systems with built-in terminal server functionality that can network-enable just about any device attached to the appliance in minutes and New SmartDefense protections for SCADA equipment that includes security for Modbus/TCP connections, content scanning, Modbus/TCP compliance enforcement and request limits to a specified set of functions, devices and registers.

Tel Aviv’s Check Point Software Technologies (http://www.checkpoint.com) is the leader in securing the internet. Check Point offers total security solutions featuring a unified gateway, single endpoint agent and single management architecture, customized to fit customers’ dynamic business needs. Check Point’s pure focus is on information security. Through its NGX platform, Check Point delivers a unified security architecture to protect business communications and resources, including corporate networks and applications, remote employees, branch offices and partner extranets. (Check Point 18.11)

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9.12 Mongolia’s Incomnet Expands Its Gilat SkyEdge Network to Include Cellular Backhaul Solution

Gilat Satellite Networks announced that Incomnet has added Gilat's SkyAbis cellular backhaul solution to its satellite communications network to serve Mongolia's mobile operators. Incomnet is one of Mongolia’s largest telecommunications service providers. Gilat's SkyAbis is a prepackaged solution for cellular backhaul, based on the SkyEdge multi-service platform. The solution enables operators to deploy hybrid networks that extend the reach of their terrestrial and cellular infrastructure to remote communities. SkyAbis features traffic optimization and dynamic bandwidth allocation for CDMA/GSM backhaul, with much higher space-segment efficiencies when compared to SCPC. Earlier this year Incomnet deployed a Gilat SkyEdge network, which provides toll-quality telephony to Mongolia's rural citizens as part of Incomnet's Universal Service Obligations. The network also provides interactive data networking to selected Mongolian government agencies and businesses, particularly those in the financial-services sector.

Petah Tikva’s Gilat Satellite Networks (http://www.gilat.com) is a leading provider of products and services for satellite-based communications networks. Gilat’s SkyEdge is a satellite communications system that delivers high-quality voice, broadband data and video services over a powerful unified system. SkyEdge represents Gilat’s extensive knowledge base and field-proven product offering, acquired through two decades of experience. SkyEdge’s flexible architecture and efficient space segment utilization make it an ideal platform for operators and service providers. (Gilat19.11)

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9.13 Siemens Energy Awards New Contract to ClickSoftware for Mobile Workforce Management

ClickSoftware Technologies announced that Siemens Energy has signed a major contract to roll-out ClickSoftware ServiceOptimization Suite to over 4,000 additional resources. The Siemens Energy Sector is the world's leading supplier of a complete spectrum of products, services and solutions for the generation, transmission and distribution of power and for the extraction, conversion and transport of oil and gas. Siemens Energy has been working with ClickSoftware since 2002 to manage both planned and unplanned power plant outages with optimum efficiency for its customers. For the last few years, ClickSchedule has been managing the work for 2,000 field resources. Over half of these jobs last between a week and eighteen months, meaning the software has to be able to manage multi-day tasks, where several resource teams need to be coordinated at different times across several business units. ClickSchedule calculates optimal resource allocation and load balancing, taking into account shifts, visa requirements, regulatory compliance, the use of external contractors, and other parameters. Skill matching is especially critical given the many projects that are always underway and the diverse pool of human capital within the Siemens database. The solution will now be expanded to manage an additional 4,200 resources taking the total number of users in the system to over 6,000.

Tel Aviv’s ClickSoftware (http://www.clicksoftware.com) is the leading provider of mobile 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. (ClickSoftware19.11)

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9.14 Elbit Vision Systems Wins Tender to Provide a High-Speed Rail Inspection System to Israel Railways

Elbit Vision Systems has a won a tender against a number of competitors to provide Israel Railways with a high-speed rail inspection system. The order is valued at over $1.5 million. The final contract is expected to be signed soon. Israel Railways has been a customer of EVS' for many years and has previously been using the Company's first generation rail inspection system. EVS' high speed rail inspection system is a fully integrated ultrasonic inspection car fitted with complete mechanical hardware, a transducer sled and a sophisticated couplant system. The system performs high-speed digital data acquisition, imaging, process and evaluation, and provides reports and analysis on the inspected rails' degradation and defect propagation. Kadima’s EVS (http://www.evs-sm.com) offers a broad portfolio of automatic State-of-the-Art Visual and Ultrasonic Inspection Systems for both in-line and off-line applications, and quality monitoring systems used to improve product quality, safety, and increase production efficiency. EVS' systems are used by over 600 customers, many of which are leading global companies. (Elbit Vision Systems 20.11)

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10: ISRAEL ECONOMIC STATISTICS

10.1 Israel’s CPI Rises by 0.1% in October

The Central Bureau of Statistics announced that Israel's Consumer Price Index rose 0.1% in October. The figure is within the range of market expectations. Since the beginning of 2008 inflation has reached 4.5% and the inflation rate for the twelve months to October currently stands at 5.5%. The main price rises in October were in the housing item (1%) and in clothing and footwear (5.5%), while the price of tomatoes soared 30%. These rises were offset by a steep fall in the price of fuels and by a drop in the hospitality and motor vehicles items.

As to Israeli inflation, while the CPI may have only risen 0.1%, the poor did not feel any drop in inflation. October price increases for the poorest 20% of the population were actually 0.5%, and inflation so far this year is running at 5.2%. However, for the wealthiest 20% of the populace the October CPI was 0.0%, and so far this year totaled 4.2%. The reason for the difference is that the poor spend a much larger percentage of their income on basic goods such as food, fruits and vegetables and public transportation, which have risen faster than many much higher priced items such as cars and communications. (CBS14.11)

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10.2 Israel’s Exports Fall for First Time in 5 Years

On 13 November, the Central Bureau of Statistics announced that there was a seasonally adjusted annualized drop in Israel’s exports of goods (excluding diamonds) of 3.4% and an annualized increase in imports of goods of 2.8% in August-October 2008. This is the first decrease in exports reported in five years, although there have been slowdowns in the rate of growth. Imports of goods totaled $4.8b in October and exports of goods totaled $3.1b. The deficit totaled $1.8b. The figures do not include trade with Palestinian Authority, and does not include foreign trade in services such as software. In January-October, the average monthly trade deficit was $1.2b, which translated to an annualized $14.6b. The trade deficit is expected to reach $17b in 2008, 70% more than the $10.2b traded deficit in 2007. Manufacturing exports (excluding diamonds) constituted 82% of all export of goods in October; diamonds accounted for 15%, and agriculture for 3%. High-tech exports totaled $1b in October, 40% of total manufactured exports. Trend data point to an annualized drop of 18.2% in high-tech exports. (CBS13.11)

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10.3 Israel’s State of the Economy Index Declines

On 20 November, the Bank of Israel announced that the composite State of the Economy Index fell 0.4% in October. The decrease follows a drop of 0.3% in September. The two consecutive months of negative results point to a continued slowdown in the economy, which began toward the end of the second quarter. The fall in the index was the outcome of a fall in the indices of goods exports and manufacturing production, partly offset by a rise in trade and services revenue, services exports and goods imports. The indices for July, August, and September have each been revised downward by 0.1%. (BoI20.11)

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11: In Depth

11.1 MENA: Economy Slowing Down

According to the Economist Intelligence Unit, there is something faintly obscene about the Qatari economy, which is set to grow by almost 20% next year while much of the rest of the world grapples with recession. However, Qatar’s performance will be largely attributable to the start-up of colossal new liquefied natural gas (LNG) plants, and if this anomaly is factored out, the prognosis for the Middle East and North Africa (MENA) region is much more sober, with average real GDP growth forecast to be about 4% next year. This figure could well be adjusted downwards as more actual data becomes available about the impact of the global financial crisis on a region that has been thriving for the past five years on a rich diet of surplus oil revenue.

The past accumulation of fiscal and current-account surpluses in the region’s oil and gas exporting countries will offer some comfort, enabling governments to maintain spending without running the risk of building up unsustainable debt burdens. The anticipated fall in inflation - which has been running at over 20% in some MENA countries - will also provide a measure of relief. However, the adjustment from boom to uncertainty will be painful, even in the best-endowed countries of the region.

Crude Anxiety

The fall in the oil price, despite the best efforts of OPEC, is the critical factor for most of the countries in the MENA region. Dated Brent crude is now trading below $50/barrel for the first time since early 2007, driven down by a combination of shrinking demand and a strengthening dollar. The problem for oil exporters and importers alike is that there is still no sign of the crude price settling into equilibrium. Lower prices will tend to restrict investment in new production capacity, which increases the risk of a supply crunch when demand starts to recover, which in turn would be likely to push the oil price sharply upwards.

However, the pattern of oil investment will also be affected by a shift on the balance of power between the national oil corporations (NOCs) and the international oil companies (IOCs). NOCs such as Saudi Aramco, have to combine the roles of revenue providers to national budgets and prime investors in the oil and gas sector. In the era of high oil prices, NOCs had little need for the capital of the IOCs, and a diminishing need for their technological input. The IOCs continued to reap large profits, but had few opportunities to reinvest them in the industry, and consequently resorted to buying back their own shares. With oil prices falling, the NOCs will have less revenue to spare after they have paid their dues to the central government. If, in these circumstances, governments in oil-producing countries are prepared to provide more attractive commercial terms for IOCs, there is a chance that the worst fears regarding a supply crunch will not be realised. In the MENA region this could have important implications in countries such as Iraq, Iran, Libya, Kuwait and Algeria, which have all labored to meet increased production targets, partly because of their reluctance to yield to the IOCs’ demands.

Gulf Hangover

In the Gulf, lower oil prices and reduced oil production over the next two years will have a marked impact on growth - with the egregious exception of Qatar. We expect the real GDP growth rate to roughly halve in Saudi Arabia, the United Arab Emirates (UAE), Kuwait and Bahrain in 2009 compared with 2008; Oman will register a less dramatic downturn owing to the start-up of a number of major new industrial plants, but these export-oriented projects remain vulnerable to any further weakness in Asian economies.

The adjustment will be sharpest in the UAE, which has been hit hard by the impact of the global credit crunch. It now appears that the construction, financial services and real estate sectors in Dubai may actually contract next year. There is also likely to be a fall-off in re-exports to Iran, both because of tighter sanctions and as a result of the slowdown in the Iranian economy. Major real estate firms in Dubai are already laying off hundreds of salaried staff, and this is likely to result in a big fall in the number of construction workers employed in the emirate. Private consumption has been boosted in recent years by the large annual increases in expatriate population in the UAE (as well as in Bahrain and Qatar). This trend is now likely to slow down, or even go into reverse. Consumption will also be affected by any slowdown in the tourism sector, which seems increasingly likely owing to the recession in the UK - one of the UAE’s main tourism markets - and the weakness of sterling.

Heavy intervention by the UAE federal government and by Abu Dhabi is likely to ensure that the economy continues to grow, but at a very subdued rate of 3.8% (at best), compared with an average of over 9% over the past five years. Saudi Arabia is forecast to register the lowest growth rate in the Gulf Co-operation Council (GCC) next year, at 3.2%, but this will be mainly a reflection of the scale of the kingdom’s oil production cuts. The non-oil private sector in Saudi Arabia is likely to continue to show relatively robust growth based on the sustained high levels of government capital spending.

European Contagion

The MENA states in the Mediterranean basin will be severely affected by the recession in their prime export markets in Europe and the US. This has resulted in much lower growth forecasts for Israel, Turkey, Egypt, Morocco, Jordan and Tunisia. Algeria is likely to witness slightly higher growth over the next two years, but this is largely a function of the very slow build-up of momentum in its public investment program. The MENA average is also likely to be sustained by Libya, which is bouncing back after the ravages of the sanctions era, and Iraq, which has even more ground to make up after years of both war and sanctions. (EIU20.11)

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11.2 JORDAN: Aide-Memoire for the IMF Staff Visit Discussions

An IMF mission team visited Jordan during November 9-16, 2008. The mission reviewed economic and financial developments since the Article IV consultation discussions in March, particularly the impact of the global financial crisis. This statement represents the mission team's views, and not necessarily those of the IMF.

The impact of global economic and financial developments on the Jordanian economy is expected to remain manageable, and the decline in international commodity prices will ease pressures on the trade deficit, the budget, and inflation. The authorities' plans to maintain a tight macroeconomic policy stance will help reduce external and fiscal vulnerabilities.

1. The Jordanian economy maintained a strong growth performance in the first half of 2008, although sharply higher world food and fuel prices intensified macroeconomic challenges. Real GDP growth averaged about 6%, led by robust expansion in the finance and tourism sectors, and with continued gains in overall productivity. Buoyant FDI and portfolio equity flows, higher grants, and a large increase in as-yet unidentified inflows boosted international reserves, and the stock market index reached a new high in mid-June. However, surging food and fuel prices widened the trade deficit, caused inflation to jump, and put pressure on the budgetary position through higher food subsidies.

2. The recent turmoil in global financial markets has so far had limited impact on Jordan. Although the stock market has declined sharply, its performance this year remains better than most other markets in the region, and - in contrast with equity markets elsewhere - inflows from foreign investors have remained positive even in September and October. The banking system's excess reserves have risen since September as the Central Bank of Jordan (CBJ) has reduced liquidity operations (by decreasing CD issuance). In recent weeks, however, interbank interest rates have edged up, likely reflecting a preference by banks to maintain a high degree of liquidity in current circumstances. The announcement of a blanket bank deposit guarantee has supported depositor confidence, and the authorities have intensified monitoring of key economic and financial indicators to provide early warning of any pressures.

3. The economic outlook is generally favorable, but with a high degree of uncertainty in the near term. Growth is projected to slip slightly below 5% in 2009, with the correction in property prices that now appears underway dampening activity in the construction sector. There remain significant downside risks to the outlook if the global or regional downturn proves deeper or more prolonged than presently expected. At the same time, declining international commodity prices are providing welcome relief. Inflation has already started to come down and should continue to moderate to 7% on average in 2009. The import bill and food subsidies are also declining, but the external and fiscal deficits remain large. Thus, tight macroeconomic policies will need to be maintained to reduce the related vulnerabilities.

4. The tight monetary policy stance and the dinar's peg to the dollar have helped maintain confidence. In an effort to counter inflationary pressures and curb the external deficit earlier in the year, the CBJ appropriately allowed interest rate differentials against the U.S. to widen and raised reserve requirements. Although the outlook for inflation and the external balance has improved since that time, including on account of the slowing of bank credit growth that now appears underway, prospects for capital inflows have tightened markedly as global financial conditions have deteriorated. Thus, a premature easing of monetary policy - whether through lower interest rates or lower reserve requirements - could risk weakening the overall balance of payments position.

5. Maintaining strong supervision over the banking system will help keep risks in check. The CBJ has continued to enhance its supervisory arrangements, including the launch of Basel II implementation earlier this year. Banks' financial soundness indicators remain strong - the banking system's capitalization and liquidity ratios are high, funding is predominantly from deposits, and the nonperforming loan ratio is low. Thus, the banking system appears well positioned to withstand a moderate economic slowdown.

6. On the fiscal side, the decision to remove fuel subsidies in early 2008 and implement an automatic price adjustment mechanism was bold but necessary. In its absence, the budgetary position would have deteriorated sharply as world oil prices rose to record levels. Nevertheless, surging world food prices increased the cost of food subsidies and caused the underlying fiscal deficit (excluding grants) to widen further, even though domestic revenue collection surpassed expectations. Higher grants - presently estimated by the authorities at double the 2007 level - are expected to narrow the overall deficit to about 5% of GDP. Public debt, which was reduced earlier in the year via a buyback of Paris Club obligations, is estimated to decline to 56% of GDP by end-2008, compared to 70% at end-2007.

7. Tightening of the fiscal stance in 2009 is needed to mitigate risks and facilitate a decline in inflation and the external deficit. The mission cautions against the introduction of a rigid link between public sector wages and past inflation. In current circumstances, with projected disinflation over the coming year, such a step would lead to an excessive wage increase and significantly delay the anticipated decline in inflation. Based on the draft budget presently with parliament, and assuming an execution rate for budgeted capital projects that is broadly in line with past years (85%) and continued strong grant receipts, the mission estimates the overall deficit to narrow to just over 4% of GDP. While this would imply a sizable reduction in the underlying deficit - about 1% - it would remain significantly higher than in 2006, before the recent escalation in food and fuel prices. The mission therefore recommends that if world commodity prices prove weaker than the conservative budget assumptions, any savings be used to reduce the deficit further.

8. Further fiscal adjustment will be critical over the medium term to bring the fiscal and external balances to a more comfortable level. The mission recommends a more ambitious public debt target of 50% of GDP in order to reduce fiscal vulnerability. This could be achieved by containing the growth of the public wage bill - which accounts for over one half of current spending - and lowering subsidies with improved targeting. Lower fiscal spending will reduce imports, thereby helping to narrow the external deficit and the associated vulnerabilities.

9. Continued structural reform will support the Jordanian economy's strong long-term growth prospects. The mission welcomes recent progress in strengthening public financial and debt management, particularly with respect to the GFMIS and resolution of the government's overdraft facility with the CBJ, and urges expeditious further steps in the implementation of the Treasury Single Account. The mission also welcomes plans to fully liberalize the petroleum sector over the medium term, and to enhance the framework for Public-Private Partnership (PPP) projects in order to boost infrastructure investment without burdening the budget, either directly or via contingent liabilities.

10. The mission urges expeditious progress in resolving data issues, especially the remaining requirements for Special Data Dissemination Standards (SDDS) subscription. These relate to improving the frequency and timeliness of wage and earnings statistics, and aligning the coverage of budget revenue and expenditure data with government financing flows. In addition, the sharp increase in errors and omissions in the balance of payments in 2007 and the first half of 2008 points to potentially serious issues in the coverage of balance of payments statistics. Early steps to address these issues will aid in the analysis of macroeconomic developments. (IMF16.11)

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11.3 LEBANON: WTO Membership on the Horizon

The Oxford Business Group observed that Lebanese officials are confident the country will be granted admission to the World Trade Organization (WTO) by the end of next year, though there is still much to do before Lebanon meets all of the requirements for membership. Lebanon first applied to join the WTO in 1999, and has since been slowly working toward the necessary conditions to meet the trade bloc's membership criteria. According to Lama Ouweijan, adviser to Lebanese Economy and Trade Minister Mohammad Safadi, the process could be completed in 2009.

On November 7, Ouweijan told the local press that Lebanon's WTO bid was not behind schedule, adding that the accession process had required extended periods of formal negotiations, which began in 2002. "Most countries applying to the WTO require five to 15 years for accession," she said. "A six-year period is not too long given that Lebanon was exposed to a very critical security and political situation. I think we are doing a very good job."

Though Ouweijan is confident that Lebanon will be admitted to the WTO next year, many of the reforms required for accession have yet to be enacted. According to the Ministry of Economy and Trade, there are at least 10 items of legislation that are still either at the committee stage or awaiting approval by the parliament. Though the Ministry has set a timeline of having this legislative package enacted by December, it is unlikely this deadline will be met.

The laws still to be voted on by parliament include legislation dealing with issues crucial to the WTO bid, including trade and licensing, animal quarantine regulations and laws on trade marks, industrial design and unfair competition. Some of these laws were forwarded by the relevant committees to parliament well over a year ago.

While there is a backlog of legislation awaiting parliamentary ratification, neither this government nor its predecessor can really be accused of dragging its feet on the issue of WTO membership. Lebanon's long running political crisis prevented parliament from convening for over a year until the agreement in Doha in May induced an end to the deadlock. Though parliament is now in session again, it has a lot of work to do if it wants to even come close to meeting the Ministry's projected schedule, let alone institute the criteria for accession to the WTO. With general elections scheduled for the first half of next year, this process could face further delays.

Though a supporter of Lebanon's WTO bid, Fadi Abboud, president of the Association of Lebanese Industrialists, said there were a number of prerequisites that had to be met before the country could join. "Macroeconomic stability and a properly functioning domestic market are needed to join the WTO," Abboud told a seminar on US commercial ties with the Middle East and North Africa region in Beirut on October 13.

Another speaker at the conference, Anne Simons-Benton, senior trade adviser for the United States Agency for International Development (USAID), said WTO membership would open a corridor between Lebanon and world traders, giving the country a voice in the global dialogue. WTO membership was not an issue that could afford to be rushed, she said. "Time is not important, but doing it right is what is most important," said Simons-Benton.

While many would welcome accession to the WTO, some in Lebanon's agriculture sector are concerned that the country's primary producers will suffer should membership be granted. As the government has amended a number of agricultural laws and regulations that the WTO viewed as contradictory to its charter, and has cancelled a program from the Investment Development Authority of Lebanon to assist financing Lebanese farm exports, primary producers feel threatened by the WTO bid.

Antoine Howayek, president of the Association of Lebanese Farmers, cited the country's 2006 association agreement with the EU in arguing that Lebanon's agriculture sector would not benefit from open markets such as WTO membership. "This is clearly reflected by the association agreement on trade signed between the EU and Lebanon, which was supposed to provide the latter with the opportunity to benefit from the potential EU market for its exports, but did not," Howayek told the local media on November 7.

Since the agreement with the EU came into force in April 2006, Lebanon's agricultural exports to the EU have dropped, with the European bloc accounting for just 12% of sales last year, well down on the 20.6% in the year before the trade deal. Supporters of the WTO bid say this decline has more to do with Lebanese farm goods not meeting stringent EU standards than a weakening of competitive power caused by the association agreement. (OBG12.11)

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11.4 LEBANON: IMF Approves $37.6 Million in Emergency Post-Conflict Assistance

The Executive Board of the International Monetary Fund (IMF) has approved an amount equivalent to SDR 25.375 million (about $37.6 million) in Emergency Post-Conflict Assistance (EPCA) to Lebanon in support of the authorities' economic program for 2008-09. The amount approved adds to the SDR 50.75 million (about $76.7 million) in Emergency Post-Conflict Assistance provided to Lebanon in April 2007.

The IMF's support through EPCA is part of a concerted international effort to provide financial assistance to Lebanon. The IMF supported program aims to further reduce the government debt-to-GDP ratio, build up the international reserve buffer, and start implementation of key reforms. Following the Executive Board's discussion on Lebanon on November 14, Mr. Murilo Portugal, Deputy Managing Director and Acting Chair, stated:

"Following the successful completion of their 2007 economic program, which was supported by an EPCA, the authorities have made further progress toward improving Lebanon's public finances and keeping the debt-to-GDP ratio on a downward path. Despite difficult circumstances, the external position has improved significantly, with a steady increase in international reserves under the fixed exchange rate regime. Moreover, the government has been able to finance its domestic and foreign currency needs largely from the market.

"The impact of the global financial crisis on Lebanon has been limited so far. The effective shielding of the domestic financial sector from exposure to international financial risks, helped by prudent regulation and effective supervision, has contributed to strengthening confidence in the exchange rate peg and the financial system, as reflected by the sustained deposit growth and de-dollarization of deposits.

"Despite these important achievements, Lebanon is still facing sizeable vulnerabilities, notably a very high level of public indebtedness and large external financing needs. Lebanon's drawing under a follow-up EPCA is intended to support the authorities' economic and financial policies through June 2009. These policies are geared toward making continued progress on fiscal consolidation by further improving the primary surplus, strengthening further the international reserve buffer, and initiating the privatization of the telecom sector and a broader reform of the energy sector, consistent with the authorities' medium-term economic and reform agenda presented at the Paris III conference in January 2007. The 2008-09 economic program aims at achieving a further reduction of the debt-to-GDP ratio. The policy commitment under the EPCA should help the authorities sustain the financial support of the international community. The timely disbursement of the pledges made at the Paris III Conference is instrumental in furthering these objectives," Mr. Portugal said. (IMF19.11)

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11.5 GCC: Moody’s Says Currency Union Unlikely To Affect Member States’ Government Bond Ratings

Summary Opinion

The Gulf Cooperation Council (GCC) currency union that is planned for 2010 would be unlikely to affect the government bond ratings of its member states, in Moody’s view. Many of the common advantages of a currency union, including the removal of internal currency risk, the potential boost to intra-union trade and accompanying institutional and structural improvements are muted in the case of the GCC.

At the same time, the disadvantages of a currency union – such as members’ loss of independent monetary and exchange rate policies – are also less applicable given that GCC states already have fixed exchange rate pegs. Paradoxically, the formation of a currency union presents an opportunity for the GCC to move to a more flexible exchange rate regime in an orderly fashion.

For the smaller GCC members, the argument that they will benefit from protection against potential currency crises, which has boosted the ratings of some smaller Eurozone members, is less compelling given these countries’ generally strong balance of payments, sizeable external assets and long history of exchange rate stability. Although GCC states’ economic cycles are broadly in tune, the risk of asymmetric shocks is likely to grow over the longer term as some states’ hydrocarbon reserves deplete more quickly than others. For these countries, exchange rate flexibility could at some point aid diversification and economic adjustment.

Intra-GCC Trade Handicapped By Hydrocarbon Dependence

Although the degree is hotly disputed, most economic studies indicate that currency unions tend to encourage and facilitate trade between member states. The potential boost to trade is one of the benefits most often touted by advocates of Eurozone membership, for instance, and there is considerable evidence that trade within the Eurozone has indeed benefited from the single currency. The main ways in which a common currency facilitates trade is through the removal of exchange rate volatility and transaction costs within the currency area.

In the case of the GCC, the stimulus to trade from the adoption of a common currency would likely be more limited than has been the case with other currency unions for two main reasons.

Firstly, there is already very little exchange rate risk within the GCC because all six GCC member states have long-standing pegged exchange rates – Kuwait’s to a dollar-heavy currency basket and the others straight to the dollar. Hence, traders within the GCC already enjoy a stable exchange rate environment.

Secondly, there is less potential for trade within the GCC than in other currency unions because of a lack of economic diversification. All six GCC economies are heavily concentrated in hydrocarbons. Crude oil and gas account for the bulk of GCC countries’ exports and a significant chunk of their "non-oil exports" are downstream hydrocarbon products such as refined petroleum or petrochemicals. This lack of diversity offers little room for complementary product across national borders. The vast majority of GCC states’ imports are sourced from non-GCC countries because of this. While there is certainly greater potential for trade in services, there remain significant obstacles – most importantly, the high degree of protection provided by national authorities for local franchises and the fact that competition is hampered by widespread government ownership. Factor mobility within the GCC is also still developing.

The GCC’s trade profile is similar to that of the wider Middle East in that intra-regional trade accounts for only a small fraction of the total. Globally, the Middle East region has the lowest proportion of intra-regional trade bar Africa. In 2007, according to the WTO, only 12% of the Middle East’s exports were directed to other Middle Eastern countries.

GCC Currency Union Yet To Be Accompanied By Substantive Institutional Reforms

Institutional shortcomings are one of the main sovereign rating constraints for GCC member states. Hence, an important aspect of our analysis of the pros and cons of the GCC currency union is the degree to which it is being accompanied by material institutional reform. In the case of the Eurozone and the EU, the mandatory adoption of the acquis communautaire, the establishment of the highly regarded European Central Bank and Eurostat and their enforcement of the stringent ERM II Eurozone entry process have led to significant improvements in the institutional frameworks and policy predictability of member states. This can be seen in the improvement of government effectiveness indicators for most countries that have recently joined or are in the process of joining the euro. For example, Article 104 of the EU Maastricht treaty explicitly prohibits central bank financing of member states’ fiscal deficits and lays out penalties for member states that run "excessive government deficits".

In the case of the planned GCC currency union, there is not yet the same degree of accompanying institutional reform. There is no equivalent of the acquis communautaire for GCC member states and the GCC has yet to establish a well-respected and independent GCC central bank and statistical agency. In 2006, the GCC Supreme Council endorsed a set of macro-economic performance criteria which are similar to those of the Eurozone and are aimed at fostering economic policy convergence. However, it is not clear how these criteria will be assessed prior to entry and how they will be enforced once countries are members of the union. The historical lack of progress in institutional improvement within the GCC is apparent in the World Bank’s governance indicators. In fact, the World Bank’s Government Effectiveness scores for four out of six GCC states have actually fallen over the past ten years. The GCC itself was formed in 1981 and the initial agreement to form a currency union was signed by GCC member states in 2001.

GCC States’ Monetary and Exchange Rate Policies Already Lack Flexibility

With the exception of Kuwait, five out of six GCC member states have fixed exchange rate pegs to the US dollar. The Kuwaiti dinar is pegged to an undisclosed basket of currencies in which the dollar is heavily weighted. This gives GCC authorities little room for maneuver in setting monetary policy and GCC interest rates tend to track those in the US closely. This lack of control has been brought into focus in recent years as authorities in the GCC have been unable to use monetary policy as an effective tool in the fight against inflation. Real interest rates remain deeply negative in all GCC countries.

The fact that GCC exchange rate and monetary policies are already inflexible means that the primary disadvantages associated with membership of a currency union are less immediately relevant for GCC members – i.e. ceding control over their own monetary and exchange rate policies. Paradoxically, the formation of a currency union could make monetary policy more flexible for the union as a whole if a decision were made at the time of the union to break away from the dollar peg and to adopt a more independent policy – either by pegging the GCC currency to a wider currency basket or by adopting a managed float. This is not our base case scenario, however. The most likely option at this stage, given the long and strong commitment of Saudi Arabia and most other GCC states, is the maintenance of a fixed dollar peg.

We have discussed the issue of Gulf states’ exchange rate policies in a previous Special Comment published in January 2007. Pressure for a revaluation of Gulf currencies has receded now that inflation seems to have peaked and the dollar has appreciated. As our Special Comment explains, there may well be benefits in introducing flexibility to GCC exchange rate policy, including greater autonomy over monetary policy and the option of appreciating the currency to counter imported inflation during periods of dollar weakness, yet there are also potential downside risks. These include the potential encouragement of currency speculation, excessive exchange rate volatility given the highly changeable terms of trade, and potential implementation and management issues given that such a policy has never been attempted in the GCC before.

Risk of Asymmetry Currently Low But Likely To Grow As GCC Economies Diverge

Given their similar economic structures, with hydrocarbons dominating fiscal revenues and export receipts, the economic performances of individual GCC states are highly correlated. With the exception of Kuwait’s performance around the time of the 1990 Iraqi invasion (excluded from the chart), nominal GDP growth rates for all six GCC countries have tracked each other. This speaks well to the concept of a currency union because it is less likely that a one-size-fits-all monetary policy will create difficulties for individual member states as their economic cycles diverge from the mean.

However, the issue could become relevant over the longer term for smaller GCC states with fewer hydrocarbon resources, namely Oman and Bahrain. As oil and gas receipts gradually dwindle in these countries and export competitiveness falters as the relative price of hydrocarbon production rises, the balance of payments will structurally weaken in the absence of large-scale economic diversification. If these countries are locked into a currency union, they will be unable to use devaluation as a tool to boost external competitiveness. Some Eurozone countries, such as Portugal or Italy, are facing similar issues now. Because they cannot devalue to restore competitiveness, the pain of adjustment in these countries is being felt through lower growth and a decline in real incomes. Fear of a similar predicament is likely to be the main reason why Oman announced in early 2008 that it was not ready to join the currency union, at least in its initial phase.

How Has Moody’s Treated Other Currency Unions?

There are currently three examples of currency unions around the world. These are the Eurozone, the Eastern Caribbean Currency Union (ECCU), and the CFA Franc Zone (which includes the Central African Economic and Monetary Community and the West African Economic and Monetary Union). Moody’s does not rate any member states of the CFA Franc Zone and only rates one member state of the ECCU (St Vincent and the Grenadines). It is therefore the Eurozone that provides the best case study of how Moody’s has treated the government bond ratings of another currency union’s member states in the run-up to its formation.

Firstly, with the exception of Italy, it tended to be the smaller, more peripheral Eurozone countries that were upgraded, rather than the larger core Eurozone members (although most of the core countries were already rated Aaa). The reasons for this were manifold. On the one hand, it was argued that membership of the currency union would protect smaller, more open countries from potential currency crises and thereby reduce their economic event risk. This was explicitly stated as a rating driver in the cases of Malta and Cyprus for instance. The prospect of increased trade with and investment from other Eurozone countries was especially positive for smaller countries’ economic strength over the longer term. Institutionally, the structural adjustments demanded prior to EU and Eurozone membership led to significant improvements in those countries with comparatively weaker institutions and poorer policy predictability. Finally, it was envisaged that the financial strength of governments with lax fiscal discipline would be improved by the stringencies of the Maastricht criteria and the economic reporting requirements of Eurostat.

As argued above, these upward rating drivers are less compelling for the smaller GCC member states. In terms of protection from currency crises, all GCC states have a long history of exchange rate stability, balance of payments surpluses, and sizeable external assets. The prospects for a significant boost to intra-GCC trade are limited by hydrocarbon dependence and the fact that there is already very little exchange rate risk between GCC member states. The institutional ramifications of GCC membership and prospective membership of a GCC currency union do not seem to be comparable to the European experience. There is no equivalent to the acquis communautaire and it has yet to be seen whether a strong, independent central bank and statistical agency will be created in the GCC to enforce the union’s fiscal performance criteria. In any case, the financial strength of GCC member governments is already judged as high or very high in light of their fiscal surpluses and sizeable public financial assets. Finally, those GCC states with fewer hydrocarbon resources may benefit from some exchange rate flexibility over the longer term as a means of aiding external competitiveness. (Moody’s11.2008)

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11.6 GCC: Fitch Says Public Finances Resilient to Lower Oil Prices; Fiscal Surpluses May Shrink

Fitch Ratings (http://www.fitchratings.com) says in a new report published today that Gulf oil producers' public finances are in better shape than they were before the 1998 drop in oil prices, but that a phase of huge fiscal surpluses in the Gulf may be coming to an end. Oil prices have fallen steeply to around $60/barrel for Brent from a high of over $147/b on 3 July 2008. Fitch assumes that Brent will average $60/b in 2009, which is still relatively high by historical standards.

GCC (Gulf Cooperation Council) governments have saved much of the oil price windfall in recent years, but they have also increased spending, pushing up breakeven oil prices. GCC sovereigns' breakeven oil prices vary, depending on their oil wealth and how much oil revenue they choose to spend.

In Saudi Arabia ('AA-'(AA minus)), the general government would break even at $50/b in 2008; Kuwait ('AA'), which is midway through its April 2008-March 2009 fiscal year, would break even at $42/b and Abu Dhabi ('AA') at $31/b. In Bahrain ('A'), the breakeven price is higher. Based on estimated spending for 2008, the budget would balance at $74/b. Bahrain's oil wealth is smaller than that of its neighbors, but its budget dependence on oil is similar.

With the exception of Kuwait and Qatar, the oil price fall has come as GCC governments draw up their 2009 budgets and as governments were already contemplating a moderation in spending growth. Fitch believes that Abu Dhabi, Saudi Arabia and Kuwait will avoid major cuts to spending plans in 2009, and will be content to run much lower surpluses - in the case of Saudi Arabia and Abu Dhabi in single digits of GDP. The agency believes governments will wait and see what happens to oil prices next year and will then make a more gradual adjustment. For the most part, they have the luxury of being able to do this. Bahrain will have to cut spending to adjust to lower oil prices, and the latest draft of the budget, based on an oil price of $60/b, shows the authorities are prepared to do this.

Fiscal surpluses in the region are much higher than in 1998 - sovereign balance sheets have strengthened and sovereign debt is very low, while assets held in sovereign wealth funds (ADIA in Abu Dhabi, and the KIA in Kuwait) and Saudi Arabia's central bank (SAMA) have soared. Abu Dhabi and Kuwait's government non-reserve external assets exceeded 200% of GDP at the end of 2007, while Saudi Arabia's were 90% of GDP. Governments can draw on part of these holdings if necessary. Fitch notes that Bahrain, which has domestic government deposits of up to 20% of GDP, but no publicly disclosed non-reserve external assets, has less of a cushion than the larger oil producers.

Poorly-performing global stock markets (the benchmark MSCI World Index fell 40% in January-October) will have caused sovereign wealth funds in the region (SWFs) to suffer capital losses on their equity holdings in 2008. However, on the plus side, there will have been gains on the stock of US Treasuries. SWFs vary in their degree of risk appetite, but hold substantial equity investments alongside US Treasuries and other fixed income assets. Government non-reserve external assets continue to provide essential support to ratings. (Fitch14.11)

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11.7 BAHRAIN: Light in the Dark

Having long prepared for the day when its own dwindling oil reserves would not meet domestic demand, let alone provide valuable export revenue, the Oxford Business Group noted that Bahrain has gone much further down the track of diversifying its economy than the rest of the countries in the Gulf Cooperation Council (GCC). Partly due to Bahrain's comparative shortage of natural resources that have enriched the other member states of the GCC, the Kingdom is better placed than many of its neighbors in the Gulf region to ride out the worst of the global economic storm.

According to a report issued by the Cairo-based investment bank EFG-Hermes on November 9, Bahrain is unlikely to be affected by the recent decline in oil prices, as it does not rely on energy exports for revenue. Importantly, while the report warned that major oil producers such as Saudi Arabia, Oman and Kuwait could see a slowing in the rate of growth of Gross Domestic Product (GDP), Bahrain could actually expect a modest rise, due to the diversity of its economy.

Not surprisingly, this view is shared by many Bahraini officials, including Industry and Commerce Minister Dr Hassan Fakhro, who described the country as a "beacon of stability" amidst the gloom of the global financial crisis. Addressing the opening session of the first Bahrain World Economic Summit in Manama on November 17, the minister said the Kingdom had made the most of its limited natural resources to broaden the base of its economy. "Here in Bahrain we have not had the luxury of large oil reserves, but what little we have, has been used well by a wise government committed to diversification, and to investment in its main resource - its human capital," said Fakhro.

Dr Essam Fakhro, chairman of the Bahrain Chamber of Commerce and Industry, also emphasized the Kingdom's stability, saying the success of Bahrain's economic, financial and investment policies were based on the balance and integration of various sectors in the national economy. "Being the most diversified economy in the Arab world, Bahrain is a centre for development and innovation, driven by the country's capability and interest in fast movement and capture of opportunities," he told the conference.

Parliament's Financial and Economic Affairs Committee highlighted this level of diversification on November 6 during initial discussions on the state budget for the fiscal years 2009 and 2010. According to the Finance Ministry, it was estimated that oil revenue would continue to represent around 25% of GDP - compared to the 27% generated by the country's financial services sector, Bahrain's main employer.

Another factor that could assist Bahrain in coping with the global economic slowdown is the much maligned peg between the local currency and the US dollar. Having been blamed in the past for some of the inflationary pressures experienced by Bahrain along with other GCC countries - excluding Kuwait, which dropped the peg last year - the resurgence in the value of the dollar is playing a part in reducing inflation. Though some analysts put the figure at closer to 10%, the Central Bank of Bahrain said inflation was running at 3.4% in mid-October, and would likely fall further due to retreating oil and commodity prices.

While it is necessary to take appropriate measures to guard against the fallout from the global crisis, Dr Hassan Fakhro said the economy is robust, and is receiving help from the stronger US currency. "The dollar is now extremely strong and in the light of the falling currencies all over the world, Bahrain now finds itself in a much better position to handle the global financial crisis," he told the local news on November 17.

Though Bahrain has managed to broaden the base of its economy, the country's leaders feel more needs to be done. This was underscored on October 23, with the release of a document entitled Economic Vision 2030, the government's blueprint for the Kingdom's economic and social future for the next two decades. Under the plan, the government is aiming to further reduce dependence on energy revenue by stepping up its promotion of economic diversity, while at the same time trimming down state expenditure. The major themes outlined in the document included a reduction in subsidies for basic services and foods, cutting the size of the civil service and identifying additional sources of state revenue.

Speaking at the launch of the report, Deputy Prime Minister Sheikh Mohammed bin Mubarak Al Khalifa said the national economy had to be modernized, which meant acquiring new skills, boosting productivity and embrace innovation. "Our future prosperity will depend on our country's ability to engineer far-reaching and wide-ranging radical changes to cope with the modern world", he said. Though there may be some opposition to the state scaling back subsidies as well as reducing its role as a services provider, its efforts so far have served the country well in insulating Bahrain from the worst of the global crisis, and should give it a more solid foundation on which to build for the future. (OBG21.11)

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11.8 UAE: Dubai Retail Challenge

Dubai's retail sector is pushing forward with the launch of several large new shopping centers, though there are concerns observed by the Oxford Business Group that the ongoing global economic crisis, combined with fears of an oversupply of outlets, could see retailers come under pressure as they compete for trade in a tightening market.

The spotlight was on the emirate's retail industry again in early November with the gala opening of the first phase of The Dubai Mall, one of the world's largest shopping complexes. Upon full operation, the centre will feature 1,200 retail and more than 160 food and beverage outlets. At the launch on November 3, more than 600 outlets opened their doors, many of them overseas retailers making their Middle Eastern debut, with other retailers set to commence operations as successive stages of the mall are completed. Emaar Properties, the firm that developed the project, has rejected suggestions that the economic crisis could undermine its target of bringing 30m visitors to the shopping complex in its first year.

Mohamed Ali Alabbar, chairman of Emaar Properties, said that the viability of the mall would be ensured by an 11% projected growth in annual Gross Domestic Product (GDP), a corresponding rise in per capita income, and increasing tourist arrivals. "This in turn translates to greater purchasing power and a demand for world-class retailing," he said at the opening ceremony. "The Dubai Mall is a response to that demand and will be the choice retail and leisure destination regionally and a magnet for tourists across the globe."

Not all are as optimistic. Eckart Woertz, an economist at the Dubai-based Gulf Research Centre, believes falling purchasing power due to higher rental charges in Dubai as well as bank-imposed restrictions on lending could impact retailers. "The impact of the financial crisis is being felt everywhere, and that includes the United Arab Emirates, where the appeal of shopping centers could suffer from restrictions imposed by banks on the use of credit cards," he told the international media on November 2.

Woertz added that the potential fall in overseas tourist arrivals could also hurt retailers' bottom line. "The current financial crisis could reduce the number of visitors, especially Westerners," he said. "Even if tourists continue to come to the UAE, they will be spending less than before."

Additionally, the downturn in the international financial sector could directly affect Dubai's retail market. Having established itself as a major financial centre, one that analysts say could rival London and New York in the future, Dubai could also face something of a downturn, though not to the same degree as the traditional financial hubs.

Laurent-Patrick Gally, a retail analyst with Shuaa Capital, said concerns over tightening conditions in the finance industry, including fears of layoffs, could result in a more conservative approach to spending from those in the sector. "They might be starting to be slightly worried about their jobs, depending on which sector of the economy they work in, specifically if they work in the finance industry," Gally told the local media on November 9. "They may not be inclined to spend as much as they might have six months ago."

In the future, retailers may be comforted by a possible fall in rent, as an increase in floor space could mean that supply will exceed demand. According to some estimates, Dubai will have at least 3m square meters of retail space by 2010, double the total as of the end of last year. Should there be excess capacity, property owners may be forced to reduce rents to maintain high levels of occupancy.

According to Robert Ziegler, director of the A.T. Kearney management consultancy firm, per capita retail spending in Dubai would have to increase by 280% from present levels by 2010 to support the expansion of retail space. While high-end retail developments like The Dubai Mall may not be greatly affected, there could be a decline in occupancy rates, Ziegler told the local press on November 3. "The overall market in Dubai is heading towards overcapacity," he said.

Though there may be concerns regarding the short-term future for the retail sector, there are even bigger projects in the pipeline. The Ilyas & Mustafa Galadari Group's Mall of Arabia, which will house more than 1400 retail outlets, is scheduled to start its phased opening in 2010. When completed it will add nearly 930,000 square meters of leasable space to the retail sector. In June, the developer announced that 89% of the first stage, covering over 370,000 square meters, had already been contracted and reserved. Though harder economic times may make life tougher for retailers, it appears that Dubai is determined to maintain its reputation as one of the world's most stylish and vibrant shopping destinations. (OBG18.11)

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11.9 UAE: Ras Al Khaimah - Cementing Demand

Though built on strong foundations, and with expansion plans in the pipeline, the cement industry of Ras Al Khaimah (RAK) could be facing leaner times as the global economic crisis puts pressure on the construction sector in the Middle East. Of the 13 cement production facilities currently operating in the United Arab Emirates (UAE), five are based in RAK. This is mainly due to the emirate's large deposits of limestone and other minerals necessary for the manufacture of cement.

This abundance of raw materials has prompted a sixth firm to set up shop in RAK, with Star Cement, a unit of the Dubai-based ETA Ascon Star Group, announcing it has awarded contracts to three overseas firms to build a facility to process clinker, one of the main ingredients in cement. The $200m facility, to be constructed near RAK Airport, will have an annual capacity of 2.2m tonnes, with initial production scheduled for February next year. All of the plant's output is destined to be shipped to the company's cement grinding facilities in Abu Dhabi and Ajman.

According to Ahmed Salahuddin, general manager of Star Cement, the company's objective is to cater to the increasing demand for cement in the UAE resulting from the recent construction boom. "The existing capacity of 3.2m metric tonnes per annum caters to 18% of the demand of cement in the UAE," Salahuddin said in a press release issued on November 10, adding that the facility "will further reduce our dependency on imports of clinker, especially while the markets are volatile."

Though the construction industry in the UAE has recently thrived, many analysts are suggesting that funding will become difficult to find following the impact of the global credit crisis in the Gulf region.

A number of the region's leading developers, including property giants Emaar and Nakheel, have said they are reviewing current or planned projects in light of the recent economic downturn. The cancellation of construction projects in the region or a rescheduling of completion dates could lower demand for cement in the local marketplace.

There are also concerns that slowing international demand for cement will prompt overseas producers to cut their prices, making it harder for RAK firms to compete. Local producers have to cope with a fixed price instituted by the UAE central government in 2007, a measure adopted to prevent profiteering due to shortages.

This has put cement producers in RAK and elsewhere in the UAE at a disadvantage, with imported cement costing $89 per tonne, compared to the $98 price set by the government. On October 29, the UAE's Economy Ministry announced it had no plans to revise the fixed price, rejecting calls from domestic producers for an increase. Though cheaper imports could threaten local suppliers, Mustafa Gorgunel, marketing manager of Union Cement Company (UCC), remains confident that RAK cement producers will be able to compete. "With imported cement, you never have consistent quality," Gorgunel told the local press on October 28. "Importing cement is very difficult and [supply is] not continuous, so users prefer sticking to domestic producers."

While RAK producers may have a quality advantage, cost is becoming an increasingly important factor for end users in the construction industry, and indeed for the producers themselves.

While blessed with abundant resources of raw material for producing cement, the biggest problem facing RAK's cement producers is energy, or rather the lack of it. Local shortages of natural gas have forced some cement makers to switch to imported coal to power their plants, a sometimes costly exercise due to price fluctuations, with some companies also considering using coal to maintain production. Rising energy costs, which now account for up to 60% of cement manufacturers' expenses, have affected producers' profit margins. Announcing its third quarter and nine month results on October 19, one of the emirate's largest producers, Ras Al Khaimah Cement Company (RAKCC), reported mixed fortunes.

While posting a massive 289% rise in net earnings for the third quarter compared to the same three month period in 2007 - $4.88m compared to $1.25m - the company reported its net profits had been hit by high costs of fuel and power generation. Net profits for the first nine months of the year were $10.9m, down 13% on the $12.6m for the first three quarters of last year, with costs up by 26%. In a step that should ease some of the industry's most pressing problems, the emirate's government is working to boost energy and diversify supplies, with four new power stations due to come on line within three years. In addition, though the construction industry in the UAE may slow from its current pace, the high number of projects already underway or scheduled to come on line should maintain a high level of demand, enough to see the industry through any downturn. (OBG18.11)

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11.10 OMAN: Name Brand

In an effort to enhance its global image, the Oxford business Group reported that Oman has embarked on an ambitious project to brand itself as a country of "natural growth," with the eventual goal of increasing tourism, business investment and cultural exchange. With plans to officially launch the campaign in December, the project will be spearheaded by the Oman Brand Management Unit (OBMU), which was recently formed by the Ministry of National Economy and the Omani Centre for Investment Promotion and Export Development (OCIPED), in association with Landor Associates, a global branding consultancy firm.

According to Sayyid Faisal bin Turki Al Said, CEO of OBMU, just as corporations need to brand themselves to gain an edge over the competition, nations need to differentiate themselves to attract the right type of investment, tourism, trade and talent. "The task of branding a nation involves getting to the essence of that country; it is not merely about designing a logo and stamping it on every publication," he told OBG. "What makes Oman unique in the world is its people, its culture and its heritage. We need to capitalize on these attributes to put the sultanate on the map. We want people everywhere to associate Oman with good things," he added.

Between October 25 and November 3, OBMU ran a series of workshops for key players in the tourism, finance, environment, sports, education, media, ICT and heritage sectors to explore the notion and importance of nation branding. The feedback was used to gain insight into what is required to take the brand of Oman forward.

Sayyid Faisal explained that for a brand to be successful, it must be simple, accessible and must represent the genuine nature of that which is being branded. "We have come to the conclusion that the brand of Oman can be summed up in two simple words: natural growth. Since 1970, the sultanate has pursued a path of measured growth, with no extreme spikes or dips. We have a growing ICT sector, a huge potential for eco-tourism, an enormous amount of investment and trade opportunities and an evolving higher education system. All these are elements of natural growth," he said.

According to Olivier Auroy, general manager of the Dubai office of Landor Associates, the greatest challenge when it comes to branding a destination is to ensure that all stakeholders and decision makers speak with one voice. "The tourism board, chamber of commerce, private companies and citizens must all contribute towards fostering a clear, consistent and strong image of the country. A lack of a unifying message creates confusion and inevitably leads to a failed branding strategy," Auroy told one of the workshops.

Indeed, through its efforts to brand Oman, OBMU may end up fostering better communication and coordination among the various elements of the government, as those involved in the campaign include members from the Royal Oman Police, the Oman Chamber of Commerce and Industry, OCIPED and the Ministries of Tourism, Information and Commerce and Industry.

Sayyid Faisal agreed that one of the most important tasks for the OBMU will be to help set standards and deliver a united front. "For example, if the Ministry of Tourism is targeting tourists from Asia, the US and Western Europe, is Oman Air, our national carrier, sharing that strategy? Are all stakeholders playing the same tune? OBMU will act as a catalyst, a mediator and a link so that Oman portrays a single strong message. This is the holistic approach that Oman needs to take when marketing itself," he said. "Branding Oman, in the end, must be a concerted effort that involves all stakeholders, including the citizens of the country," Sayyid Faisal went on to say. But he conceded that building up the Omani brand will take time. "Change is never easy. People are reluctant to change overnight what they have been doing every day," he said.

As governments in both developed and emerging economies vie to attract tourists, business and investment, the concept of nation branding may prove to be a deciding factor in which countries are successful. (OBG17.11)

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11.11 EGYPT: Moody’s Banking System Outlook

Considerable success in implementing reforms has resulted in a more resilient Egyptian banking system that is better positioned to withstand pressures, says Moody's Investors Service (http://www.moodys.com) in its latest 'Banking System Outlook' report for Egypt. Strong economic growth is also having a beneficial impact on banks' loan growth and business generation. These strengths are, however, counterbalanced by a challenging operating environment and the potential risks from the global economic slowdown, which has had a limited impact on Egyptian banks to date.

Moody's credit outlook for the Egyptian banking system is stable, albeit with risks on the downside. This outlook expresses the rating agency's view on the likely future direction of fundamental credit conditions in the industry over the next 12 to 18 months. It does not represent a projection of rating upgrades versus downgrades.

In addition to the Banking System Outlook, which focuses on performance measures and forward-looking rating drivers for the Egyptian banking system, Moody's has also published a 'Banking System Profile' report for Egypt. The Profile forms part of a new series of reports on banking systems throughout the world, which are designed to complement Moody's Banking System Outlook reports by serving as descriptive reference guides to key structural factors that are reflected in Moody's bank credit ratings.

"Significant progress has been achieved on the banking sector reform program being implemented by the Central Bank of Egypt (CBE) -- including sector consolidation, upgrading the CBE's supervisory and monitoring capabilities, the financial and managerial restructuring of the state-owned banks, and addressing the problem of their high non-performing loans," says Constantinos Kypreos, a Moody's Vice-President/Senior Analyst and author of the reports.

However, in Moody's view, the operating environment for Egyptian banks remains challenging, characterized by low per-capita GDP, high unemployment and soaring consumer price inflation. In addition, although the global financial crisis and economic slowdown has had a limited impact on the Egyptian economy so far, if this changes, it could pose challenges for the country's banks. Such a scenario could, in particular, delay the completion of certain aspects of the banking sector reform program, including the repayment of all public sector non-performing loans and the recapitalization of the state-owned banks with core (Tier 1) capital. The CBE also needs to lengthen its track record of successful enforcement of the relatively new regulations, as well as implement additional regulations - and specifically Basel II.

The Egyptian banking system continues to be dominated by the large state-owned banks. "The Moody's-rated state-owned banks have high market shares and solid funding franchises, but still generally display weak financial fundamentals, primarily because of the high non-performing loans. Implementation of their financial and operational restructuring is improving financials, risk management, processes and systems, but the shedding of their bureaucratic habits will take some time," adds Mr Kypreos.

The leading private-sector banks are smaller in size, but still have good franchises with good management and better systems/procedures than the state-owned banks; these factors translate into stronger financial fundamentals, although excessive loan concentrations are a key weakness for most rated banks.

Moody's views the Egyptian banking system as enjoying a high-support environment, with the country's authorities having historically demonstrated both their willingness and their ability to intervene and prevent a banking default by any of the Egyptian banks, irrespective of their size or relative importance to the system. (Moody’s05.11)

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11.12 NORTH AFRICA: Fitch Says Banks Face Limited Contagion Risk From Global Crisis

Fitch Ratings (http://www.fitchratings.com) says in a special report that the international financial crisis will likely have a limited impact on north African banks and that Moroccan, Tunisian and Algerian banks should be broadly immune to global financial turmoil. The report's conclusions were formed after the agency had consulted the Moroccan Central Bank and assessed publicly available information from other regional central banks and the IMF. Fitch's findings were also drawn from the agency's insights into major local banks.

Fitch believes macroeconomic contagion is more likely as GDP in advanced European countries (the main economic partners of north African countries) is expected to fall notably in 2008 and 2009, according to Fitch forecasts. Some advanced European states are likely to experience recessions during 2009 and unlikely to recover before 2010. The IMF's forecasts indicate that the international financial crisis and subsequent economic slowdown will have a moderate impact on north African countries' GDP growth in 2008 and 2009. However, uncertainty remains over the continued ability of those countries to withstand a protracted global economic downturn.

Fitch believes it is possible that the challenging macroeconomic environment could trigger deterioration in profitability and financial flexibility at some regional north African banks in coming years. If this occurs, it could jeopardize the recent progress on profitability, asset quality and capitalization achieved by Moroccan and Tunisian banks. The special report provides an updated view on the exposure of north African banks to the global financial market turmoil. The agency has also analyzed the potential for the financial crisis to spread to the north African banking sectors it covers in Morocco, Tunisia and Algeria. (Fitch14.11)

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11.13 ALGERIA: Hollow Politics Win

Algeria's president, Abdelaziz Bouteflika, has taken a step closer to securing a third term following the overwhelming endorsement by parliament of his proposal to amend the constitution and abolish the two-term limit on the presidency. Yet behind the show of approval by a compliant legislature, it is clear that his decision to hold on to power at all costs has left many Algerians profoundly uneasy. Such is the power of the office of the president that there is little prospect of Mr. Bouteflika failing to win a third mandate in the election that is scheduled to take place in April 2009, but many within and outside the country see this as a retrograde step and as an indictment of his presidency as a whole.

The vote, taken by a show of hands in the two houses of parliament on November 12th, was 500 in favor of the proposed amendments, with 21 against (mainly from the two parties representing the disaffected Kabyle minority) and eight abstentions. Local newspapers reported that a member of a moderate Islamist party distributing a pamphlet opposing the amendments in Algiers on the eve of the vote was arrested.

Diminished prime minister

The amendment motion easily secured the required three-quarters majority of the two houses. It consisted of two main proposals and several lesser changes. The first removes the current limit of two five-year terms for the president. The second abolishes the current position of "head of government" and replaces it with the post of "prime minister". The new prime minister will have to carry out the president's program, and will be answerable to parliament insofar as parliament will have to vote on the government's program once a year. Failure to have the government's program adopted by parliament will require the prime minister to resign. The importance of this new clause is that as long as parliament remains dominated by parties loyal to the president, it will merely rubber-stamp the president's policy proposals. The former relative independence of the prime minister and cabinet to formulate and implement their own policies appears to be much reduced under the new proposals.

A second element that will also contribute to the shift in power from the prime minister to the president is the appointment of two vice-prime ministers, positions that did not exist previously. Ostensibly, the reason for the creation of these new positions is to enable the prime minister to delegate important matters and thus increase the effectiveness of government. In reality, given that the vice-prime ministers will also be directly appointed by, and answerable to the president, this will allow the president to play the prime minister and his vice-prime ministers off against each other, further weakening the head of government vis-à-vis the president.

The current head of government, Ahmed Ouyahia, is expected to resign, allowing him to be reappointed as prime minister, with the primary task of organizing the presidential election. Other, minor proposals include strengthening the role of women in parliament (a largely symbolic gesture) and protecting the symbols (flag, emblems, national anthem) of the revolution.

A much-anticipated amendment, which would have created a position of vice-president, was finally discarded by the president, who might be wary of too much competition for power at the top. However, in view of the president's probably fragile health, creating a position of vice-president would have offered greater reassurance to those concerned about the continuation of Algeria's institutions. As it stands, the revised constitution will confer almost all executive powers on the president.

Lesser evil?

Mr Bouteflika’s intention to hang on to power has been clear almost from the moment that he secured a second term in 2004, easily beating off a challenge from Ali Benflis, a former close aide who had appeared to enjoy the support of some senior military figures. A petition to prevent him changing the constitution was launched at the start of this year, and attracted some support from prominent political figures from the past. However, most of the current political class have fallen in line behind Mr. Bouteflika, either because of their chronic dependence on his patronage or through a belief that he is the lesser evil.

A few public figures have dared to speak out against the president. Notable among them is Rachid Benyelles, a former commander of the navy, who wrote an eloquent and lengthy diatribe against Mr. Bouteflika that was published in Al Watan on November 8th. Among foreign commentators, Le Monde published an editorial the same day entitled "A mandate too far", describing Algeria’s current situation as catastrophic and opining that a third term for Mr. Bouteflika is the last thing that the country needs. However, as Mr. Benyelles acidly observed, the Western democracies, mindful of their dependence on Algerian oil and gas, are likely to observe Mr. Bouteflika’s power play in "complicit silence". (EIU12.11)

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11.14 TURKEY: Downgrading Growth Forecasts Once Again

On the back of a combination of recent data releases as well as revisions to our global growth forecasts, Morgan Stanley (http://www.morganstanley.com) has downgraded its real GDP growth forecasts for Turkey. Compared to the most recent revision in October, Morgan Stanley (MS) revised down our 2008 forecast to 2.3% from 2.7%. MS made a similar but more sizeable revision to their 2009 GDP growth forecast by slashing it to 1.9% from 2.5%. Their 2010 real GDP growth forecast stands at 4.6%, which foresees a modest recovery in private consumption and investment spending, as well as a pick-up in exports. However, the pace and timing of the recovery is likely to be dominated by the improvement in global markets, rather than Turkey’s internal dynamics, in our view.

Industrial Production Continues to Disappoint

In September, the IP growth rate eased to -5.5%Y, bringing the average growth rate to -2% in 3Q. The slowdown in production had been visible in almost all sectors, especially in certain groups such as textiles (major employer). However, over the past few months, the industrial heavyweights – such as machinery and equipment, motor vehicles and other transportation equipment, as well as electrical machinery – received their share of the slowdown. The recent IP growth data deviated significantly from MS’ forecast of -2%Y, and based on the outlook for exports, as well as domestic consumption prospects, MS has revised down their 2008 growth forecast. In fact, MS expects to witness a negative headline growth rate in 3Q08, which might improve marginally in 4Q08 if government spending and a possible improvement in the contribution of net exports outweigh the slowdown in private consumption.

Meanwhile, capacity utilization data continued to display a weak picture in 3Q, as the long religious holiday was extended by some car manufacturers when the plants were shut down for production temporarily as a result of weak sales and inventory build-up. At this juncture, MS does not expect the capacity usage rate to show any signs of revival until year-end, and the upcoming religious holiday in early December is unlikely to help the picture.

On the sales front, the gloomy news on the global economy, rising unemployment and the deteriorating outlook for job security was illustrated by a noticeable decline in consumer confidence and expectations. Nevertheless, more concretely, MS has witnessed a continued and sharper decline in passenger car/light commercial vehicle sales, possibly signaling the upcoming weakness in growth. Since most of the car sales depend heavily on consumer loans, MS does not expect a pick-up in the sector in the near term, with interest rates at their highest levels in years.

Monetary Easing Unlikely to Be a Panacea for Some Time

Unlike various central banks, the CBT is not going to ease monetary policy, in MS’ view. Looking forward, MS expects the double-digit inflation rate to linger until 2Q09 in the absence of an appreciation in the currency and/or a marked decline in local natural gas/gasoline and/or electricity tariffs. This, coupled with the pressure on the currency, is likely to force the CBT to preserve its cautious stance. Hence, MS maintains their view that no rate cuts will materialize in 2008, and MS has recently revised the timing of their first rate cut call to 2Q09 from Q1/09, while maintaining the 150bp total. However, as indicated by the CBT governor during the presentation of the Inflation Report, MS would expect the de facto policy rate to become the CBT’s lending rate rather than the borrowing rate, which is 300bp higher than the 16.75% policy rate (current borrowing rate). While the base rate or the borrowing rate might remain unchanged in the next 3-6-month period, the de facto policy rate could fall, which would still mean that the monetary policy rate remains tight. In any case, even the envisaged rate cut in 2009 might not prove effective in inducing spending, since both real and nominal interest rates will still be considered high. (MS12.11)

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11.15 TURKEY: Crisis Bites Into Local Economy

The negative impact of the global economic crisis rears its ugly head in many Turkish industries. Especially the companies that are involved in the export industry suffer from declining demand, which pushes them to fire employees and cut production. As the crisis sinks its teeth into the real economy worldwide, various industries in Turkey are also feeling the pinch. Turkish producers operating in the auto, paint, iron and steel industries have begun reducing production, laying off employees and downsizing. Two of the biggest issues for Turkey’s producers are the tendency of banks to halt loans and the decline in domestic and international demand. The export industry has been particularly affected.

Construction companies ’flirt’

The construction industry grew only 0.9% during the second quarter of this year. The industry is expected to end the year with zero growth. The reason for declining growth is a lack of demand caused by loan interest levels hovering around 1.79% to 2.40%. The construction industry hopes to turn things around by fixing exchange rates for those seeking to buy real estate.

Sales in the auto industry deteriorated 38% in October, while production dropped by 20.5%. Hoping to revive sales, almost all brands created new sales campaigns. Discounts started from YTL 2,000, reaching YTL 25,000 for some models. Many companies have decided to downsize and some have suspended production. The latest suspension decision came from Ford Otosan. The firm announced it would halt production between Nov. 13 and Nov. 26. An industry contraction of 20% is expected within the next year.

Meanwhile, supermarkets that used to pay meat and milk product debts within two months are now prolonging payment for four months, making things even more difficult for white meat producers. The price decline in wheat and flour has also put pressure on the Turkish Grain Board, which has 900,000 tons of grain in stock. As the new planting season is around the corner, Turkey’s producers have rushed to sell all the wheat they have, causing prices to decline. The price of 50 kilograms of flour dropped to YTL 38 from YTL 40. Meat consumption has also declined 50%. A liter of milk which cost YTL 0.66 at the beginning of October now costs YTL 0.60. Many factories have closed throughout Turkey, including 14 factories near Istanbul and 60 leather factories in Yorlu, just this year. (Hurriyet19.11)

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11.16 TURKEY: Hitting the Brakes

Turkey's automotive sector, one of the driving forces behind the country's export boom, has shifted down a gear and is in danger of going into reverse as overseas and domestic sales slump. The Oxford Business Group cites a report issued by the Turkish Automotive Industry Association (OSD) on November 11 which showed year-on-year production fell by 20.5% in October, with just 80,300 units coming off the assembly lines. Export figures for the industry were even worse, with just 54,928 vehicles shipped overseas for the month, a 27.5% drop on the same month in 2007. The OSD also revised its projected year-end production and export totals, saying output would be 1.2m units, down from earlier predictions of 1.4m, while overseas sales would total 900,000, rather than the expected 1m.

But the OSD's report was not all bad news, as it showed that automotive production for the first 10 months of the year was up 19.4% compared to the same period in 2007, and that car exports had increased by 15.2%. Nevertheless, the association is pessimistic about the immediate future. "The shrinking of the European market, which accounts for 90% of our exports, began to show its impact on our exports in October, with the cancellation of orders," said the OSD in a statement accompanying the production data. "In the coming months, it is expected that this decline will continue."

In 2007, overseas sales for Turkey's automotive sector stood at $19.3bn, making it the country's most lucrative export industry, according to the Association of Automotive Parts and Components Manufacturers (TAYSAD).

Turkish automotive producers are not only seeing their sales stall abroad. According to Ibrahim Aybar, president of the Turkish Automotive Distributors Association (ODD), domestic banks are rejecting up to 75% of all applications for loans to fund car acquisitions. This resulted in a 35% fall in car sales in October, Aybar told the local financial news on November 10.

Local producers have sought relief from the government, calling for a reduction in sales taxes on vehicles. In late October, Finance Minister Kemal Unakitan had said the government was considering cutting the rate of the private consumption tax for a number of products - news that initially heartened the automotive industry. Vedat Gizer, president of the Authorized Car Dealers Union (YODER) in the southern Cukurova region, said the industry was looking forward to the tax cut to overcome the recent stagnation in sales. "We had been seeing a boom, especially in the last four months of 2007, but now car sales are about to cease totally," he told the local media on October 28. "People will think twice before purchasing a car because of the uncertainty in the economy and the increase in interest rates."

But Unakitan dashed these hopes by ruling out any tax cuts for the automotive industry, saying any reduction in taxes would only lead to higher imports of foreign cars, doing nothing for the local automotive industry. "We already import 75% of the cars we use here in Turkey. Such a reduction would mean an incentive for the foreign exporters. We want to encourage Turkish entrepreneurs, not foreign companies," he said on November 2.

The downturn in the automotive sector is being mirrored across Turkey's industrial landscape. According to figures released by the state's Turkish Statistical Institute (Turkstat) on November 10, industrial output in September fell 5.5% compared to the same month last year, after a decline of 4.1% in August. The September results demonstrated the biggest decline in output figures since 2002 - the first time since February of that year that Turkey recorded two consecutive months of negative growth for industrial production.

On November 13, leading producer Ford Otosan, a joint venture between Ford and Koc Holding, announced it was halting work at its Golcuk plant in northwestern Turkey until November 26, giving paid leave to its staff of 6400. Ford Otosan reported a 31.1% fall in its unconsolidated net profits for the third quarter when it released its latest financial figures on the Istanbul stock exchange on November 8. The company's profits for the July to September period were $56.5m, down from the more than $80m in the third quarter of 2007, the company said. Other producers are expected to report similar falls in profits when they table their third quarter results. Ford Otosan is not the only manufacturer that has suspended production, with Toyota, Tofas Turk, which turns out Fiat vehicles, and Oyak Renault all shutting down lines in either September or October. (OBG21.11)

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11.17 BULGARIA: Pharmaceuticals & Healthcare Report for Q4/2008

Research and Markets (http://www.researchandmarkets.com) has announced the addition of the "Bulgaria Pharmaceuticals and Healthcare Report Q4 2008" report to their offering.

EU accession continues to drive forward the drug market in Bulgaria, while an improved business environment means the country is still a relatively attractive prospect for pharmaceutical companies. While the generics market remains backed by the government reimbursement scheme, innovative firms should see a brighter future in the medium to long term as the intellectual property environment and financial backing for more expensive drugs become apparent. In June the country's Supreme Administrative Court (SAC) decided that the way which pharmaceutical prices in the country were determined was contravening a number of regulations, including rules and order of regulation and registration of medicines, the healthcare law, the law on medicines and the national framework contract for 2006. The ruling related to restrictive margins being enforced on wholesalers and as such any future increases would be of benefit to wholesalers rather than manufacturers.

The World Bank has recently criticized Bulgaria's efforts to reform its healthcare system as chaotic. The government is currently attempting to privatize the health insurance sector, however, its unrealistically short time-scale and stalls in privatizing hospitals make successful reforms look unlikely at present. However, a more positive development is the news that the government plans to spend 50% of its budget surplus on social benefits, education and improving the healthcare sector. The budget surplus increased to BGN4.2bn ($3.12bn) in the first seven months of 2008 from BGN2.4bn a year ago.

Meanwhile in response to the government's delays, construction of private medical facilities has been rife, with investors seeking to capitalize on the population's rising personal income and increasing health awareness. Growing private healthcare expenditure should be one of the key drivers behind medical device sales in the country, for which we have added our five year forecast this quarter. Enforced compliance with EU good manufacturing practice (GMP) regulations should further drive imports of higher value devices, with the market forecasted to reach nearly $260mn by 2012, out-growing the pharmaceutical sector. (R&M19.11)

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- Israeli Shekel conversions done at a rate of NIS 4.00 = $1.00
- Turkish Lira conversions done at a rate of NTL 1.60 = $1.00
- Euro conversions done at a rate of € 1.00 = $1.25
- Jordanian Dinar conversions done at a rate of JD 1.00 = $1.41
- UAE Dirham conversions done at a rate of Dh 3.66 = $1.00
- Omani Rial conversions done at a rate of OR 0.385 = $1.00
- Pakistani Rupee conversions done at a rate of Rs 60 = $1.00

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