|
ATID, E.D.I.'s
"FORTNIGHTLY"
A Review of Israeli & Regional Business, Developments
& News
for
7 March 2007
Written & Edited by Seth J. Vogelman*
TABLE OF
CONTENTS:
1:
ISRAEL
GOVERNMENT ACTIONS &
STATEMENTS
1.1 Knesset
Passes IEC Reform
1.2 Knesset Support for Increased Compensation
for
Gaza
Expellees
1.3 Cabinet Approves IMI Privatization
2:
ISRAEL
MARKET & BUSINESS NEWS
2.1 Elron Announces Acquisition by ChipX of
Oki’s
U.S.
ASIC Business Assets
2.2 NextWave Wireless Finalizes Acquisition of GO
Networks
2.3
London
Stock Exchange & Tel Aviv Stock Exchange Sign MOU
2.4 Frost & Sullivan Recognizes Do-Coop
Technologies' Innovative Neowater Water-Based Nanotechnology
2.5
Zion
Oil & Gas Closes Third IPO Round
2.6 Mobixell Networks & Adamind Sign a Merger
Agreement
2.7 Infinity Equity Capital Announces the First
Investment of the New Infinity Israel-China Fund
2.8 Acro Consummates $1.5 Million Private
Placement
3: REGIONAL PRIVATE SECTOR NEWS
3.1
Pennsylvania Hardwoods Promoted at
Dubai
Woodshow
3.2 Saudi's King Abdullah Economic City in
Discussions with MIT
3.3 Papa John’s Opens First Restaurant in
Egypt
4:
ISRAEL
MACRO-DEVELOPMENTS
4.1 $110 Million to Set Up Kiryat Shmona “
Biotech
Valley”
5: ARAB STATE & PAKISTANI DEVELOPMENTS
5.1 Jordan-US Commercial Exchange Exceeds $2
Billion In 2006
5.2 India-UAE Economic Ties Brisk as Trade
Balloons
5.3 Expatriates in
Saudi Arabia
Remit $14 Billion
5.4
Egypt
Cuts Deficit
5.5 EU to Give
Egypt
€558 Million Aid Package
5.6
Libya
Conservatives & Reformers
Tussle Over Economy
5.7
Libya
Quadruples Wages
5.8
Libya
Faces Oil Rig Shortages,
Calls on National Participation in Oil Services
5.9 IMF Finds Data Collection Process in
Pakistan
as
Transparent
5.10
Pakistan
’s July-Jan 06/07 Export
Increased By 3.86%
6: TURKISH & CYPRIOT DEVELOPMENTS:
6.1 Number of New
Turkish Businesses Grows By 22% over 2006
6.2
Turkey
's Exports to Neighboring &
Regional Countries On The Rise
6.3 No Money for Izmir-Ankara Fast Train
6.4
Cyprus
Retail Volumes Rise
Provisional 7% In 2006
7: GENERAL NEWS AND INTEREST
*
ISRAEL
:
7.1 Arab MK Appointed to Ministry of Science,
Culture & Sport
7.2 Rise in
Western Aliyah In 2006
7.3 Study Finds Each Year
of Education Raises Salary by 8.6%
*REGIONAL:
7.4
Louvre
Museum to Build a Branch
in UAE
7.5 Poor Diet & Lack Of Exercise Ravages UAE
7.6 EU Critical Of Erdogan's Stance on Article
301
8:
ISRAEL
LIFE SCIENCE NEWS
8.1 Teva Announces Approval of
Rabeprazole Sodium Delayed-Release Tablets
8.2 Pluristem Announces First Licensing Agreement
and Stock Swap with Stem Cell Innovations
8.3 GammaCan Signs $6.5 Million Private Placement
with Institutional Investors
8.4 Teva Announces Agreement with Biovail &
Anchen
Regarding Generic Wellbutrin
XL
8.5 FDA Approval of New Version of InSightec's
ExAblate 2000
8.6 Kamada Begins phase III Clinical Trial With
its Alpha-1 Antitrypsin Product for Congenital Emphysema
8.7 Teva to Sell Oxycodone Through the End of
2007
9:
ISRAEL
PRODUCT & TECHNOLOGY
NEWS
9.1 NICE Systems Announces NICE
SmartCenter
9.2 Gilat Provides SkyEdge Broadband Satellite
Network to Hyperia, a Leading ISP in
Nigeria
9.3 e2v
Selects
Tower
as Supplier of Choice for CMOS Image Sensor Devices
9.4 Alvarion Expands Its OPEN WiMAX Ecosystem
Increasing Multi-Vendor Interoperability
9.5 NUR Introduces the New Auto-Correction
Double-Sided Printing Option for Its UV Roll-to-Roll Printers
9.6 Defense Industries International Announces a
$2.2 Million Order from Israeli Defense Ministry
9.7 Kontera Launches Contentlink Rich Media
Bringing Video and Animation to In-Text Advertising
9.8 TraceGuard Announces R&D Award from
Israel
’s
Ministry of Industry and Trade
9.9 Telecom
Namibia
Deploys WiMAX Network Using
Alvarion’s BreezeMAX
9.10 Pixer Technology Receives Order from Major
DRAM Flash Manufacturer
9.11 Commtouch Expands Into Fast-Growing Indian
Market
9.12 NICE Receives Order for its Integrated VoIP
based Solutions from RAFAEL
10:
ISRAEL
ECONOMIC STATISTICS
10.1
Israel
’s Exports
Increase by an Annualized 22% in November-January
10.2
Israel
’s
Economy Grew Annualized 8% in 2006’s Last Quarter
10.3 Unemployment Down To 7.7% During Fourth
Quarter
10.4
Israeli
Unemployment
Falls
To Lowest Level In A Decade
10.5 Automobile Imports Increase By 69% During
February
10.6
Israel
’s Industrial Output Soared
In 2006
In Depth
11.1 HSBC Says
Israel
's
Fundamentals Have Never Looked Better
11.2
Israel
’s
Technology-Intensive Economy Supports the Shekel’s Appreciation
11.3
Bahrain
: Growing Tourism Appeal
11.4
Qatar
: Rising Inflation
11.5
Qatar
: Infrastructure Investments
11.6
Abu
Dhabi: Shopping
Spree
11.7 Morgan Stanley: The Cranes of
Dubai
11.8
Dubai:
Healthy Economy
11.9
Dubai:
Business Boom
11.10
Egypt
: Bright Franchising Future
11.11
Libya
Economy: Banks Wanted
11.12
Turkey
: Unshaken
11.13
Turkey
: Too Many Hazelnuts
11.14
Turkey
: A Survey of Inflation Risks
11.15 IMF Executive Board Concludes 2006 Article IV
Consultation with
Cyprus
1:
ISRAEL
GOVERNMENT ACTIONS &
STATEMENTS
1.1 Knesset
Passes IEC Reform
On 28 February, the Knesset
approved the Israel Electric Corporation (IEC) reform bill in its second and
third readings. The vote was 61:12. This move was opposed by Labor Party chairman
Peretz, though supported by Labor National Infrastructures Minister Ben-Eliezer. Peretz was not present in the plenum and
did not vote, because as a minister, he bears collective responsibility and a
vote against the bill would have given Prime Minister Olmert sufficient cause
to fire him. The government waged a
general recruitment drive ahead of the vote. Labor ministers, Minister of Social Affairs
Isaac Herzog and Minister of Agriculture Shalom Simhon voted in favor of the
IEC reform, and against Peretz. Likud
chairman MK Benjamin Netanyahu also voted in favor. The reform will be implemented in 2013 or
2015, compared with the 2008 target in the previous law. The government would keep a 51% controlling
interest in IEC. (Globes 28.02)
1.2 Knesset Support for Increased Compensation
for
Gaza
Expellees
More than 60 Knesset members from
across the political spectrum have supported a bill by the Kadima coalition
whip MK Itzchaki and MK Ariel (National Union) for increasing compensation for expellees
from the Gush Katif and northern
Samaria. They also propose 25 major amendments to
the original compensation law, including a massive increase in adjustment
payments and retirement
benefits,
and lowering the eligibility age from 55 to 46. The government, the Ministry of Finance and
the Disengagement Administration estimate the cost of the proposed increase in
compensation at several billion shekels. (Globes 20.02)
1.3 Cabinet Approves IMI Privatization
On 6 March, the Israeli cabinet
approved the break-up of Israel Military Industries (IMI) by merging two of its
units with Rafael Armament Development Authority or Israel Aerospace Industries
(IAI), and the privatization of its core businesses: the munitions division and
Slavin land systems division. Twelve ministers
voted in favor, including Prime Minister Olmert, and two opposed: Minister of
Defense Peretz and Minister of National Infrastructures Ben-Eliezer. The decision to break up IMI and privatize its
core business is a victory for Minister of Finance Hirchson, who led the
measure with the backing of Olmert. The
current vote reaffirmed a cabinet vote to privatize IMI in two stages made in
August 2005. Under that decision, the
IMI Givon advanced systems division and Maltam Rocket System Division will be
merged with Rafael, followed by the privatization of the munitions and Slavin
division. When Peretz became minister of
defense, he said that the decision was not valid because it had been taken by
the previous government. The decision to
break up IMI in two stages is based on a plan prepared several years ago by
Ministry of Defense economics advisor David Vaish. The Vaish committee concluded that there was
little chance of IMI becoming profitable, in contrast to the other government
defense companies, Rafael and IAI. (Globes
06.03)
2:
ISRAEL
MARKET & BUSINESS NEWS
2.1 Elron Announces Acquisition by ChipX of
Oki’s
U.S.
ASIC Business Assets
Elron Electronic Industries
announced that ChipX Corporation, 29% held by Elron and a provider of
differentiated ASIC solutions, has completed the acquisition of the
US
ASIC
business assets of Oki Semiconductor Company, a division of Oki America Inc. Oki is a global semiconductor company
headquartered in
Japan
with offices worldwide offering a full range of digital ICs from Real Time
Controllers, to Micro Processors and Network Devices focusing on the
Communication and Security industries. In
addition, ChipX and Oki Semiconductor have signed a collaboration agreement
which will enable ChipX to gain access to Oki semiconductor’s technology,
libraries and foundry services. This
transaction will boost ChipX’s ASIC team capabilities and enable it to offer
its customers a range of differentiated ASIC solutions of embedded arrays, gate
arrays, structured ASICs and standard cell ASICs. Elron Electronic Industries (http://www.elron.com), a member of the IDB
Holding group, is a leading Israel-based technology holding company directly
involved in the long-term performance of its group companies. Elron identifies potential technologies,
creates strategic partnerships, secures financing, and recruits highly
qualified management teams. (Elron21.02)
2.2 NextWave Wireless Finalizes Acquisition of GO
Networks
San Diego,
California’s
NextWave Wireless has completed its acquisition of GO Networks Inc., a
privately-held company headquartered in
Mountain
View,
CA with
research and development facilities in Tel Aviv,
Israel
. GO Networks provides advanced Wi-Fi network
systems to service providers looking to deploy campus and metropolitan Wi-Fi
systems with carrier-class quality, coverage, capacity and performance. NextWave Wireless is engaged in the
development of next-generation mobile broadband and wireless multimedia
products, technologies, and services for mobile device and network
infrastructure manufacturers and for wireless service operators. GO Networks (http://www.gonetworks.com) provides
carrier-class, 802.11 based mobile broadband wireless solutions for wide-area,
high-capacity metropolitan deployments that can deliver the performance,
scalability, quality and economics that network operators require. GO Networks was founded in 2003 and has its
corporate headquarters in
Mountain
View,
CA. GO Networks' R&D facility is based in Tel
Aviv,
Israel
. (NextWave21.02)
2.3
London
Stock Exchange & Tel Aviv Stock Exchange Sign MOU
The London Stock Exchange and the
Tel Aviv Stock Exchange signed a Memorandum of Understanding to formalize the
existing strong ties between the two organizations. To mark the signing of the Memorandum, the
CEO of Tel Aviv Stock Exchange opened trading at the London Stock. On 21 February, the Tel Aviv Stock Exchange also
opened its annual international investor conference in
London, showcasing a number of their largest
listed companies. Under the agreement,
the London Stock Exchange and the Tel Aviv Stock Exchange will establish a
series of regular meetings between senior executives and agree to exchange
information, in order to facilitate orderly trading in the shares of companies
admitted to both markets. A total of 50
companies of Israeli origin are listed on the London Stock Exchange’s Main
Market and AIM. Of these, 36 have joined
in the last two years. Over this period,
more Israeli companies have listed on the London Stock Exchange then any other
exchange outside of
Israel
. The London Stock Exchange is the most
international equities exchange in the world and
Europe's
largest pool of liquidity. By the end of
2006, the market capitalization of
UK
and international companies on
the London Stock Exchange’s markets amounted to £4.4 trillion, with £6.7
trillion of equity business transacted over the year. Regulated by the Israel Securities Authority,
the TASE (http://www.tase.co.il) provides
a highly advanced platform for trading in shares, bonds, treasury bills and
derivatives, along with the full range of market services. The TASE also offers clearing and data vending
services and the calculation of indices. (TASE21.02)
2.4 Frost & Sullivan Recognizes Do-Coop
Technologies' Innovative Neowater Water-Based Nanotechnology
The 2007 Frost & Sullivan
Technology Leadership Award in the European polymerase chain reaction (PCR)
reagents market has been conferred on Israel-based Do-Coop Technologies for its
series of novel nanotechnology-based reagents, which are all based-on the
innovative Neowater, and for their role in enhancing the efficacy and accuracy
of PCR results. The company is also
lauded for its consistent market leadership. A patented nanotechnology procedure enables
Neowater to uniquely mimic the intra cellular properties of water. Neowater exhibits hydrophobic and hydrophilic
properties, and is fundamentally a water solution with hydrated particles that
reduce its entropy. In addition to being
used as a reagent, Neowater can be used as a biocatalyst, media growth
enhancer, solvent and buffer. It can be
boiled, autoclaved, sheared, filtered, frozen and also shipped and stored at
room temperature. The advantage of
Neowater is that it provides a better physical environment for chemical
reactions without altering it. The
addition of Neowater requires only minimal alterations in the laboratory
procedure but the results that are delivered are voluminous. The product has already achieved significant
market penetration and has strengthened Do-Coop Technologies' global presence. The Frost & Sullivan Award for Technology
Leadership is bestowed each year upon the company that has demonstrated
excellence in technology leadership within its industry. (Frost & Sullivan21.02)
2.5
Zion
Oil & Gas Closes Third IPO Round
Zion Oil & Gas (http://www.zionoil.com) of
Dallas,
Texas
and
Caesarea,
Israel
announced that the company
has issued 118,557 shares of common stock in the third round of its initial
public offering. The shares were issued
at $7 per share, and the amount raised in this third round was $829,899. In the first, second and third round closings
of the offering,
Zion
has issued 842,337 shares in consideration of a total of $5,896,359. Zion Oil & Gas, a
Delaware corporation, explores for oil and
gas in
Israel
on its Ma'anit-Joseph License and Asher Permit areas located onshore between
Tel Aviv and
Haifa. The net proceeds of Zion's offering will
mainly be used for a completion attempt on the Ma'anit #1 exploratory well
drilled by Zion in 2005 to a total depth of 15,842 feet and, if the maximum
offering is successfully completed, to drill an appraisal well on its license.
Zion
and its drilling contractor have entered into an agreement for the use of a rig
to renew work on the Ma'anit #1 in March 2007. In the event of a commercial discovery, following
recovery of certain exploratory costs,
Zion
intends to donate 6% of its gross revenues from the license to two charitable
trusts to be established by
Zion,
one in
Israel
and one in the
U.S.
The common stock of
Zion is traded on the American Stock Exchange
under the ticker symbol “ZN”. (
Zion 22.02)
2.6 Mobixell Networks & Adamind Sign a Merger
Agreement
Mobixell and Adamind signed on
the terms of sale of Adamind's assets to Mobixell. Mobixell intends to merge Adamind’s products
and technologies to form a powerful market leader in the Mobile Multimedia
domain. Adamind’s assets to be sold to
Mobixell include intellectual property, software, and contracts with customers
and suppliers relating to the development, marketing, and sale of all Adamind’s
transcoding and Mobile Multimedia software (the "MediaSpire" product
family). In addition, the majority of
the Adamind's employees will become employees of Mobixell. Mobixell will stand by its commitment to
continue the support of existing customers from both companies. Mobixell further intends to continue the
development plans according to previously communicated roadmaps, and invest
greater resources in the development of new and exciting mobile multimedia
solutions. The company intends to lead
the mobile lifestyle revolution by continuing to develop and deliver innovative
Mobile Multimedia solutions to enable Peer-2-Peer content sharing, User
Generated Content Communities, mobile advertising, and more. Service and content providers around the world
will thus be enabled to generate new revenue streams, maximize the mobile
multimedia business, and enjoy higher ARPU which derives from these services.
Ra’anana, Israel’s Mobixell
Networks (http://www.mobixell.com) provides
innovative multimedia technologies and business solutions that facilitate the
expansion of mobile operators, content and service providers' mobile multimedia
services by enabling content consumption, Peer-2-Peer content sharing, User
Generated Content communities, mobile advertising, and more. Mobixell’s reliable network-based solutions
deliver the highest quality multimedia, raising user satisfaction while helping
operators drive traffic growth, safeguard crucial content revenue streams, and
realize new revenue streams. Adamind (http://www.adamind.com), with its R&D
center in Ra’anana,
Israel
,
is a developer of software that provides a comprehensive framework to enable
and promote mobile multimedia content and converged communications services. The company addresses the interoperability
challenge that exists between different mobile devices to receive media rich
content and provides tools to track, process, control and promote rich content
services. (Mobixell 22.02)
2.7 Infinity Equity Capital Announces the First
Investment of the New Infinity Israel-China Fund
Infinity Equity Capital has led a
$6m round, in which it has invested $3.2m, in Mate Intelligent Video. Other investors in the round include I-CSVC,
Infinity’s Chinese partner, as well as existing Mate shareholders such as The
Peleg Group. This marks the first
investment by Infinity’s new Infinity Israel-China Fund. Concurrently with the Mate investment,
Infinity helped Mate to build relations that led to the signing of an agreement
with one of
China
’s
leading IT providers, which will be identified in a future announcement. According to the agreement, the Chinese
company will license Mate’s technology for use in
China
, adapt it to the needs of the
Chinese market and market it in
China
. Infinity also announced its intention to
invest $3m in the Chinese company. The
investment strategy supports investing in Israeli companies, which own proven
technology that can be licensed. It also
supports investing in the Chinese companies that license these proven, advanced
Israeli technologies and then produce or market products, based on these
technologies, in
China
under their own brand name. Value is
created by structuring companies in
China
which bring together real
businesses and proven technologies at attractive valuations. Value is also created by generating IP in
China
which is
currently protected by the Chinese government. The Israeli company earns from the licensing
fees as well as the royalties gained from product sales in
China
. The combination helps to increase the
valuation of the Israeli company. Both
the Chinese companies and the Israeli companies are M&A and/or IPO
candidates.
Infinity (http://www.infinity-vc.com) is one of
the leading Israeli-related funds managing more than $300m and a portfolio of
45 companies.
Yehud,
Israel
’s MATE (http://www.mate.co.il) specializes in
advanced intelligent video
surveillance content analysis and transmission,
management products for intelligent
video surveillance and security applications. Through its innovative Tri-Layered Shield
approach, MATE extends the security ‘brain’ from the
Control
Center
to local and remote sites – recognizing real threats and eliminating false
alarms. (Infinity27.02)
2.8 Acro Consummates $1.5 Million Private
Placement
Acro announced that the company
completed a private placement with an investor aggregating $1.5m. In connection with the subscription agreement,
Acro’s CEO agreed to a lock-up of their shares until
May 1, 2008.
Timrat,
Israel
’s Acro (http://www.acrosec.com) is a company
catering to global homeland security markets at the forefront of explosive
identification. Acro Inc. researches,
develops and markets groundbreaking safe and cost-effective technologies and
applications. The patented Peroxide Explosives
Tester (ACRO-P.E.T.) is the first of its kind to identify non-nitrate-based
Improvised Explosive Devices (IEDs). (Acro
28.02)
3: REGIONAL PRIVATE SECTOR NEWS
3.1
Pennsylvania Hardwoods Promoted at
Dubai
Woodshow
About 125 companies from over 40
countries took part in the second edition of Dubai Woodshow which opened on 27
Feburary and ran until 1 March. Dr
Mohammed Saeed AI Kindi, UAE Minister of Environment and Water, opened the
Middle East’s only dedicated wood and wood machinery
exhibition at the Dubai International Exhibition Centre. Dubai Woodshow 2007 has grown by 118% over the
previous year and showcases a wide range of products and services from across
the wood industry spectrum. Dubai
Woodshow 2007 provided an ideal platform for the regional wood companies to
interact with key professionals and decision-makers from the global wood and
wood machinery industry. The exhibition
has brought together manufacturers, traders, suppliers and distributors of
plywood, MDF, veneer, laminates, parquet, paper products, treatment products,
and wood processing & woodworking machinery. Further, the event was attended by timber
merchants, interior designers, furniture manufacturers, carpenters, architects,
engineers, wholesale dealers, retailers, building material manufacturers and
construction suppliers. The
Commonwealth of
Pennsylvania’s Hardwoods Development Council, which had a booth at
the event, was represented by Hardwoods Development Specialist Wayne Bender and
Pennsylvania’s
Eastern Mediterranean Office’s Seth Vogelman. Atid, EDI serves as
Pennsylvania’s
trade representative in the
Middle East. (TradeArabia 27.02)
3.2 Saudi's King Abdullah Economic City in
Discussions with MIT
King Abdullah Economic City
(KAEC) recently held discussions with the Massachusetts Institute of Technology
(MIT) to help in developing KAEC as the first ‘
Smart
City’
in the world. A delegation from MIT the
CEO of Emaar.E.C to discuss strategies that will shape KAEC as the world’s
first truly IT-driven ‘
Smart
City’. KAEC is the single largest private sector
development in
Saudi Arabia
that spreads over 168 million sq m of
greenfield
land along the
Red Sea coast. The project has six key components – a
Sea
Port,
Industrial District, Central Business District featuring a
Financial
Island,
Educational Zone, Resort District and Residential Zone. Saudi Arabian General Investment Authority
(SAGIA) is the prime facilitator of the project. The MIT team will help KAEC integrate all its
services through one call centre. All
modern conveniences in telecommunication including mobile connectivity, fiber
lines, video conferencing facilities and wireless Internet solutions will be
offered at KAEC. Other e-driven
solutions include e-logistics support of traffic and fleet management;
e-security solutions including whole city monitoring; e-commerce facilities;
e-media including cable television and electronic billboards; telemedicine
facilities; e-education options; smart home integration and e-climate
management in the form of smart reactions to city climate. KAEC will also have a wizi feedback module
that enables to interact with the environment and people swiftly. The MIT delegation toured the KAEC site in
Rabegh. They suggested solutions that
further make KAEC an ‘agile’ and ‘quick to react’ city. The team will visit KAEC during the course of
construction to implement procedures that make it a ‘
Smart
City’. (AAA13.02)
3.3 Papa John’s Opens First Restaurant in
Egypt
Louisville,
Kentucky’s
Papa John’s International continued its global expansion with the recent
opening of the first Papa John’s restaurant in
Egypt
. A grand opening celebration was held in
Cairo, attended by local
dignitaries, and Papa John’s representatives. The opening represents the first of five planned for this year in Egypt,
and 40 over the next four years, by Papa John’s franchisee Vantage Egypt for
Tourism and Entertainment. The Cairo
Papa John’s restaurant is a full-service restaurant with a pasta bar featuring
create-your-own pasta, a 28-item salad bar, and Papa John’s pizza. Papa John’s is the world’s third largest pizza
company. (Papa John01.03)
4:
ISRAEL
MACRO-DEVELOPMENTS
4.1 $110 Million to Set Up Kiryat Shmona “
Biotech
Valley”
The Ministry for the Development
of the Negev & Galilee and the Ministry of Industry, Trade & Labor,
together with the United Joint Israel Appeal (UJIA), the United Israel Appeals
Federations Canada, Sacta Rashi Foundation, the Jewish Colonization Association
and the Jewish Agency are due to invest $110m in establishing “
Biotech
Valley” near
Tel
Hai
College. The project will be presented to investors,
entrepreneurs and the Ministries of Industry and Science and Technology during
a conference to be held in Kiryat Shmona in June. The project’s planners believe that a
Biotech
Valley industrial park will be set up
with an initial 20 start-ups, half of which will be in the development stage,
and at least one large anchor company. Teva
Pharmaceutical Industries already has a facility at
Tel
Hai
College. These companies can potentially raise $250m
and are expected to employ 250 - 300 people. The project planners say that the industrial
park will leverage other business activity in the area. Each high-tech job generates an estimated 2.5
jobs in other sectors. (Globes 26.02)
5: ARAB STATE & PAKISTANI DEVELOPMENTS
5.1 Jordan-US Commercial Exchange Exceeds $2
Billion In 2006
Commercial exchange between
Jordan
and the
US
totaled more
than $2b last year, according to figures released by the American Chamber of
Commerce (AmCham) in
Amman
on 22 February.
Jordan
’s
exports to the
US
in 2006 amounted to $1.4b, while imports from the
US
during the same period stood at
$650m. The Jordan Economic and Trade
Bulletin released by AmCham indicated that the qualified industrial zones
(QIZs) and the Jordan-US Free Trade Agreement (FTA) were the main driving
forces behind the five-year surge in Jordanian exports to the
US
. Between 2001 and 2005, exports to the
US
increased by
453%, or 91% a year on average. This
trend continued during the first 10 months of 2006, albeit at a much slower
rate of 12.4%. The main exported
products were textiles and apparels, jewelry, machinery and mechanical
appliances, electrical machinery and equipment, plastics and pharmaceuticals. The
US
is now
Jordan
’s second
largest trading partner after
Saudi
Arabia
, accounting for over 33% of exports. Overall imports from the
US
over the
past five years also increased by 90%, or by 18% a year on average. (JT22.02)
5.2 India-UAE Economic Ties Brisk as Trade
Balloons
The relations between
India
and the
UAE were poised to strengthen even further as
India
has emerged as
Dubai’s largest export
destination, ahead of
Pakistan
,
Iran
and
Kuwait
. The trade between the UAE and
India
has
diversified and rapid economic growth of the Indian economy has made it an
attractive destination for investments from UAE. Indian companies have become more robust and
confident with the rapid economic growth and are entering
Dubai and northern Emirates in larger
numbers.
Dubai is increasingly an important
trans-shipment point and logistic hub for the Indian goods. According to Dubai Customs statistics, the
total trade between
Dubai
and
India
over a period of 5 years, from 2002 to 2006 has increased from $2.5b to $10.9b,
reflecting an increase of 336%. Over 80%
of the trade between
India
and UAE are routed through
Dubai. Exports from
India
to
Dubai in 2006 were $6.4b. Imports into
India
from
Dubai were $4.5b.
China
leads as the top exporter to
Dubai, followed by
India
. On the re-export front,
India
was
second after
Iran
as destination of re-exports from
Dubai. In 2006, major import from
India
to
Dubai was diamond valued
at $1.3b. In fact, top five commodities
comprised of diamond, jewelries, platinum, gold and scrap of precious metals. In 2006, of the total exports of $4.5b from
Dubai to
India
, $1.2b comprised
of gold. The top five commodities
exported from
Dubai
to
India
were ferrous waste & scrap, aluminum waste & scrap, copper waste &
scrap and paper waste & scrap. (Arab
News27.02)
5.3 Expatriates in
Saudi Arabia
Remit $14 Billion
Expatriate workers in
Saudi Arabia
sent home some $14b in 2006, ranking the kingdom second only to the
US
, according
to the Arab Monetary Fund (AMF). Remittances
from
Saudi Arabia
represented more than half of the total transfers made by foreign workers in
the GCC. The GCC bloc, that includes
Saudi Arabia
,
Bahrain
,
Kuwait
,
Oman
,
Qatar
and the
United Arab Emirates
,
saw outflows of some $25.7b in remittances during 2006. Expatriates make up more than a quarter of
Saudi Arabia
's
total population of around 23 million, according to official figures published
in September 2004. Expatriate workers in
the
US
made the highest amount in transfers at $39b.
Switzerland
came third with around
$13b, followed by
Germany
with around $10b. The total amount of
remittances sent to Arab countries, especially
Egypt
,
Lebanon
and
Morocco
, was
around $24b in 2006, a rise of 53% from 2001. (AMF24.02)
5.4
Egypt
Cuts Deficit
The Egyptian government cut its
budget deficit to $685m in the first half of the 2006/7 financial year, Prime Minister
Nazif told parliament in
Cairo. Nazif also said the Egyptian economy grew 6.8%
during the same July-December period. Nazif said last month that the economy
had been growing at 7% and should expand by 7.5% in 2007 as a whole. He said the budget deficit was a decline from
$1.966b, but did not say whether that was the figure for the first half of 2006
or the second half of 2005. The cabinet
said in November that the budget had a surplus of $527m in the July-September
quarter of the 2006/7 financial year, which started on July 1, compared with a
deficit of $1.37b in the same period of the previous year. Boutros-Ghali said then that the extra
receipts came from general revenue such as taxation and from windfall gains
through privatization deals, such as the sale of the Bank of Alexandria. Nazif said that the government had been able
to cut the deficit because revenue had increased 42% to 11.3 billion pounds. He did not state the comparative period. The size of the budget deficit, which was
running at about 8% of gross domestic product (GDP) for the last two years, had
been of concern to economists and investors because it pushed up domestic
interest rates and diverts potential investment funds from productive projects. The focus of attention has shifted to
consumer price inflation, which rose to 12.4% at the end of January from a low
of 3% in October 2005. (Reuters27.02)
5.5 EU to Give
Egypt
€558 Million Aid Package
EU External Affairs Commissioner
Ferrero-Waldner met with Egyptian President Mubarak on 26 February and
presented him with a proposed assistance package aimed at supporting
Egypt
's reform
process. The €558m ($735m) package over
three years, which includes €58m ($76m) in interest rate subsidies, is part of
the European Neighborhood Policy, which offers economic and social benefits for
countries beyond the EU's borders. The
assistance, which applies from 2007 to 2010, will focus on supporting the
reform process in
Egypt
in areas such as trade, the development and management of human and natural
resources as well as democracy and human rights. But the EU has come under criticism from
human rights organizations for failing to engage local civil society groups. "It is regretful that... some of the
Action Plans with Mediterranean partners have already been elaborated and
negotiated secretly between the EU and
Mediterranean
governments without any consultation of civil society," a joint statement
from Euro-Mediterranean Human Rights Network and Cairo Institute for Human
Rights Studies said. "Egyptian
civil society has not been consulted during the current negotiations," the
statement said.
Egypt
is one of
the main beneficiaries of EU support in the region and the EU is the second
largest donor to
Egypt
after the
United States
. (MEO26.02)
5.6
Libya
Conservatives & Reformers
Tussle Over Economy
A tussle over economic policy
between reformers and conservatives is unlikely to sink Libya's post-sanctions
opening to private enterprise but may inject more uncertainty into the process
than some investors can tolerate. Conservatives
who thrived under statist policies are opposing reforms pushed by the
modernizing Saif al-Islam, leader Muammar Gaddafi's most prominent son, playing
on long-held popular suspicions about capitalist exploitation, Libyans say. Reformers are confident they will eventually
prevail, in part because the leadership will come to see a flourishing market
economy as no threat to its power and in part because globalization will offer
irresistible benefits to all Libyans. Foreign
observers of the North African oil-exporting OPEC member nation tend to agree,
but say liberalization may turn out to be a lot slower in coming than Saif
would like. The government's aim is to
use the private sector to drive reform of the Soviet-style economy, which
remains burdened by red tape, a bloated civil service and complicated tax,
customs and financial regulations that deter foreign investment. First results can be seen in downtown
Tripoli - a dozen good
new private hotels have sprung up, some offering direct internet access from
customers' rooms. Foreign retail
clothing chains and luxury goods suppliers have arrived en masse.
Central Tripoli,
once sleepy, is snarled with queues of four-wheeled drive vehicles and smart
limousines. Some cafes offer free
wireless internet links for laptop-toting executives. For years Gaddafi has voiced support for free
market reforms and railed against graft in state-run enterprises, pointing a
finger at those who seek to slow and control the pace of change. But he has also said that Libyans must not
confuse economic reform with political reform: The ban on political parties and
the ballot box will never change, he says. His continued use of revolutionary terms unsettles some reformers. (Reuters06.03)
5.7
Libya
Quadruples Wages
Libya
will raise the wages of
government employees and workers in state-owned companies up to 275%, the son
of leader Muammar Gaddafi said. Gaddafi
has repeatedly urged the government to improve the living conditions of the
population and spread oil revenues more fairly. He said the minimum monthly wage for civil servants would rise 110% from
next month. The minimum stands at 200
Libyan dinars ($155). Saif Al Islam,
Gaddafi's son and most trusted envoy, made the announcement during a meeting of
top government officials, underlining his role in influencing Libya's domestic
policy even though he has no official government position. He has repeatedly called for bold political
and economic reforms, including raising wages, to free the country and its five
million population from the shackles of what he calls the 'Libyan mafia' that
controls power and wealth. Most of
Libya
's workers
are civil servants, estimated at 800,000. Thousands of them are 'shadow employees',
getting monthly salaries without going to work for years, according to
government officials who spoke privately. Social welfare allowances will increase between 45% and 100% depending
on the number of family members. Almost
half of
Libya
's
1.2 million families get such allowances which could total up to 300 dinars per
month for an average family of five. (Reuters 24.02)
5.8
Libya
Faces Oil Rig Shortages,
Calls on National Participation in Oil Services
According to Phoenicia Group,
Libya
is
suffering from an acute shortage of oil drilling and work over rigs,
significantly delaying exploration programs of oil majors prospecting in the
North African country. Asymptomatic of
the wider global glut in rig availability,
U.S.
newcomers ExxonMobil, Chevron,
Occidental Petroleum, and the former Oasis Group (Marathon Oil, Conocophillips,
and Amerada Hess) are finding themselves struggling to secure rigs on schedule
for their expanding operations in the country, from exploring new blocks to
revamping existing unproductive fields. The
demand is translating into high rates for contracted rigs. It is estimated that
Libya
needs at
least 40 rigs for the next 10 years to support IOC exploration programs, which represents
a great opportunity for the Libyan private sector to get involved with overseas
companies.
Libya
has enacted legislation
requiring international oil services companies wishing to do business in
Libya
do so
through JVs with a Libyan partner according to GPC Decision 443/2006, which was
passed last November by the General People’s
Committee,
Libya
’s
executive decision-making body. Joint
Ventures, which take the form of Joint Stock or “Mushtirika” companies,
formerly required a 51% to 49% ownership structure in favor of the Libyan
partner and majority Libyan board, but was amended to allow foreign partners to
maintain a maximum 65% stake and majority of the board, effectively giving
control to the foreign partner. The
Libyan partner, however, legally must have a minimum 35% stake in any Joint
Stock Company. The move has major oil
services companies like Schlumberger, Halliburton, Weatherford and others
scrambling to conform to the new decree, and newcomers keen to pinpoint Libyan
partners. (
Phoenicia
Group27.02)
5.9 IMF Finds Data Collection Process in
Pakistan
as
Transparent
The International Monetary Fund
(IMF) announced on 20 February that the data collection and issuance process by
State Bank of Pakistan (SBP) as transparent. IMF issued its report on pooling, analyzing and issuance of the data for
the general awareness. The report says
that the central bank has improved its monetary data after 2003. SBP department related with data collection identifies
any possible error after a prompt analysis of the received data. IMF report says that there is no interference
from the government in the affairs of State Bank regarding the issuance of the
monetary data. IMF delegation visited
Pakistan
from November
1 to 15 for about the data collection and analysis. (Various21.02)
5.10
Pakistan
’s July-Jan 06/07 Export
Increased By 3.86%
Pakistan
's exports during July 2006
– January 2007 recorded an increase of 3.86% to $9.63b over last year's
$9.272b. According to the provisional
figures compiled by the Federal Bureau of Statistics, exports from Pakistan decreased
by 21.10% in January, 2007 to $1.197b when compared with December 2006’s
$1.517b and by 2.24% as compared to January, 2006’s $1.225b. Imports during July-January, 2006-2007
totaled at $17.225b as against $15.795b during the corresponding period of last
year showing an increase of 9.05%. In
January 2007, imports decreased by 9.13% to $2.33b as compared to December,
2006 $2.564b, but increased by 8.66% as compared to January, 2006 $2.144b. Main commodities of imports during January,
2007 were petroleum crude and related products, telecom equipment, plastic
materials and raw cotton. The balance of
trade figures cumulative from July-January, 2006-2007 were -$7.595b. (APP24.02)
6: TURKISH & CYPRIOT DEVELOPMENTS:
6.1 Number of New
Turkish Businesses Grows By 22% over 2006
The number of newly established
corporations and cooperatives in
Turkey
increased by 21.9% from
January 2006 to January 2007, up from 4,568 to 5,567. The number of liquidated corporations and
cooperatives, however, decreased by 1.4%, from 1,549 to 1,527. According data released by the Turkish
Statistics Institute (TUIK), 93.4% of newly established corporations and
cooperatives are limited liability companies, 4.6% of which are joint stock
companies, 0.04% newly established limited partnership and 1.9% cooperatives. The distribution of newly established firms
by economic activity can be summarized as follows: 1,847 corporations and
cooperatives belong to wholesale and retail trade, the repair of vehicles and
personal and household goods; 1,233 to manufacturing; 744 to construction; 644
to real estate renting and business activities; 340 to transportation, storage
and communication; 163 to hotels and restaurants; 132 to health and social
works; 120 to education; 86 to other community, social and personnel service
activities; 69 to financial intermediary activates; 56 to agriculture; 48 to
electricity, gas steam and hot water supplying; 46 to mining and & forestry
and nine to fishing. (Zaman 21.02)
6.2
Turkey
's Exports to Neighboring &
Regional Countries On The Rise
Turkey
's export to neighboring
countries increased 17.4% in 2006 and reached $8.7b. Exports to 45 regional countries showed a 23.6%
increase and settled at $21.2b. The
total share of exports to neighboring and regional countries in overall export
stands at 34.8% and
Iraq
tops neighboring countries with a 3% share. According to data the
Anatolia
news agency complied from export unions,
Turkey
exported goods to a total of
52 countries, seven of which are neighboring countries, in 2006. The exports in value reached $29.9b, a 21.7%
increase. The total share of neighboring
and regional countries in
Turkey
's
overall exports has risen to 34.8%. Export
to seven neighboring countries in 2006 jumped to $8.7b from $7.4b, a 17.4%
increase. Within the group,
Iraq
leads with
a share of 3%,
Greece
and
Bulgaria
follow with 1.9% each and
Iran
with 1.3%. Exports to
Iraq
amounted
to $2.6b, $1.6b for
Greece
,
$1.6b for
Bulgaria
and $1.1b for
Iran
. Export to
Greece
rose 44%, a 41% export
increase with
Georgia
,
36.5% increase with
Bulgaria
,
30.6% with Azerbaijan-Nahcivan and 19.3% with
Iran
. (AA27.02)
6.3 No Money for Izmir-Ankara Fast Train
The fast train project planned to
link
Izmir and
Ankara is currently on
hold due to lack of funds, but work will commence as soon as sufficient
resources are found, possibly after the completion of other higher-priority
projects. Speaking to reporters in
Parliament on 20 February, Transportation Minister Yildirim said their priority
was the Ankara-Istanbul line and then the Baku-Tbilisi-Ankara line. The Minister noted that the infrastructure
survey for the Izmir-Ankara line had been completed and the securing of funds
is all that remained in terms of barriers to the project's completion. Yildirim added that the same was true of the
Ankara-Yozgat line. Yildirim also noted
that the modern practices of systematic surveying and the consideration of
issues such as infrastructure problems were tackled before any work had begun
on these kinds of projects, in contrast to the past when construction
frequently began without adequate preparation or coordination. (TDN21.02)
6.4
Cyprus
Retail Volumes Rise
Provisional 7% In 2006
Cypriot retail sales volumes
climbed by 7% compared with the previous year in 2006, while retail sales value
rose by 8.9% in the same period, according to provisional figures for December. Final figures for November show that
volumes rose by 6.9% year on year in that month, although they slipped compared
with October. For the whole of 2006 the
biggest rise was recorded in sales of “Pharmaceuticals, cosmetics &
toiletries”, which is thought to be dominated by sales of medicines. This category rose by 14.4% in volume terms in
January-December. The second biggest
rise (13.9%) was recorded by sales in specialized stores where food, beverages
& tobacco dominate. (FM23.02)
7: GENERAL NEWS AND INTEREST
*
ISRAEL
:
7.1 Arab MK Appointed to Ministry of Science,
Culture & Sport
As part of Prime Minister Olmert
recent cabinet reshuffle, an Israeli Arab, Labor MK Raleb Majadle, has been
appointed as Israel’s Minister of Science, Culture & Sport. Majadele is the first Arab ever to be named to
the government’s inner cabinet. Majadle
was appointed Minister without portfolio several weeks ago when fellow Labor
Party Minister Pines-Paz resigned the Science, Culture & Sport portfolio. Pines-Paz quit the post when the Yisrael
Beiteinu party joined the coalition government. Labor party chairman and current Defense
Minister Peretz decided to promote Majadle to the cabinet to replace Pines-Paz. Olmert’s government took several weeks
to approve the appointment, yet only affirmed Majadle as Minister without
portfolio at the time. Now, the first
Israeli Arab to ever sit in the executive branch of the government will be
charged with the task of improving
Israel
’s culture. (INN23.02)
7.2 Rise in
Western Aliyah In 2006
Immigration to
Israel
from
several key countries increased in 2006 as compared to 2005. A report released on 20 February by the
Central Bureau of Statistics (CBS) revealed a slight rise in the number of
immigrants coming from English-speaking countries, with the highest percentage
arriving from
North America. According to the report, 11.2% of the new olim [immigrants] in 2006 came from
North America,
an increase over the previous year, in which they comprised 9.7% of new
immigrants. CBS statistics indicated
that a total of 2,157 North American Jews immigrated in 2006, as opposed to
2,045 the year before. A similar trend
was seen from
Great Britain
whose Jews comprised 3.2% of aliyah in 2006, an increase of 1.3% over 2005. In 2006, 595 British Jews came to live in
Israel
, as
compared to 383 in 2005. From
Ethiopia
as
well, more Jews came home to
Israel
in 2006. The new olim, numbering
3,595, comprised 18.7% of all immigrants, as opposed to 3,571 in 2005. Jewish and non-Jewish immigrants from the
former
Soviet Union dropped in numbers by 3.9%
as compared to 2005. The former
USSR
nationals,
who still comprise the lion’s share of total immigration to the Jewish State –
66.7% in 2006, included people from Asian, Eastern European, Russian and
Ukrainian countries. Of those, 32.1%
came from
Eastern Europe. Taking into account the mixed Jewish and
non-Jewish immigration from the former
Soviet Union,
the total immigration figures dropped to its lowest levels since 1988, with
less than 20,000 people choosing to live in the Jewish State, a drop of 9% over
2005. (INN21.02)
7.3 Study Finds Each Year
of Education Raises Salary by 8.6%
A study by the Bank of Israel found
that raising education by one year had the effect of raising wages by 8.6% in
2004 - 2005, similar to the effect in 1996-97. The study found that the return to one year of education among young
workers of Asian and African descent (who had reached secondary school age
after the Free Secondary Education Law (1979) came into effect) was, on
average, 8% in the period 1996 - 2005 and 12.4% in 1995. The report concludes that wage gaps between
the educated and uneducated was wholly explained by the level of education,
thus rebutting the claim that wage gaps stem from other variables such as
differences in IQ or motivation between the groups. It can also be learned from the experience of
the Free Secondary Education Law that return on state investment in education
is not lower than the return on private investment and that state investment in
education does contribute to reducing economic inequality. (BoI25.02)
*REGIONAL:
7.4
Louvre
Museum to Build a Branch
in UAE
On 6 March,
France
and the
United Arab Emirates
signed an agreement to open a branch of the Louvre museum in
Abu Dhabi, despite criticism that the French
government is peddling the country's artistic treasures.
Abu
Dhabi officials want the Louvre to be one of five
satellite art museums they hope to build on uninhabited
Saadiyat
Island,
just off the city's Gulf-side corniche.
New York's Guggenheim
museum also has signed on to build a franchise in the wealthy Gulf state. The latest deal was said to be worth hundreds
of millions of dollars. The Louvre Abu
Dhabi will display works from its museum in
Paris as well as from other museums in and
around the French capital, including the Pompidou Centre, the Musee d'Orsay and
the
Versailles
palace. In
Paris, protesters warned that French museums
could be selling their souls by lending too many works to museums abroad and
questioned whether the government is turning
France
's rich artistic heritage
into a commercial brand. French Culture
Minister Donnedieu de Vabres and the head of
Abu Dhabi's tourism authority, Sheik Al
Nahyan signed the agreement, which provides for the construction of a
260,000-square-foot museum that will open in 2012. Designed by the French architect Jean Nouvel,
the Louvre Abu Dhabi will be a white discus-shaped building with
irregular-shaped windows in the roof. (AP06.03)
7.5 Poor Diet & Lack Of Exercise Ravages UAE
The UAE's Ministry of Health,
World Health Organization and the Council of Health Ministers for the GCC met on
5 march to formulate a strategy on Diet, Physical Activity and Health. With 78% of males and 86% of females failing
to carry out sufficient levels of exercise, and obesity levels in the UAE
greater than the
United
States
, a country known for its long-term
battle with obesity, the forum seeks to address the issue and formulate a
regional and GCC-wide strategy in-line with International standards. The rationale for prevention is high; of the 5,434
deaths registered in the UAE in 2000, 25.4% were due to cardiovascular disease,
with the prevailing contributing factors our sedentary lifestyles and faulty
eating habits. (Mena05.03)
7.6 EU Critical Of Erdogan's Stance on Article
301
The European Union has expressed
concern over the Turkish government's stance on possible amendments to a
controversial article of the penal code, saying refusal to change the article
in the hope that no one will end up in jail in the end is unacceptable. The EU is pressuring candidate
Turkey
to
change or, better yet, abolish Article 301 of the Turkish Penal Code, saying it
restricts freedom of expression. Criticism
of the law increased when Turkish Armenian journalist Hrant Dink, who had been
tried and convicted for "insulting Turkishness" under Article 301,
was gunned down by a teenage assailant on Jan. 19 in
Istanbul. EU sources said the Turkish government holds
that the article is harmless since those who have been tried under it are eventually
acquitted of charges. EU sources added
that this approach is causing concern because the problem with Article 301 is
actually a problem of mentality. The
same sources pointed out killing of Dink after he had been tried under Article
301. According to the EU sources, the
article restricts freedom of expression and needs substantial revision and
amendment. Recalling that the EU is not
in a position to dictate a specific text, the sources underline that their job
is to point to the flaws that constitute threat to the enjoyment of freedom of
expression. The government has said it
was open to the idea of amendments to Article 301 but insists that it needs
proposals from the non-governmental organizations since amending the law
requires a social consensus. EU sources
said government’s attempts to get proposals from the NGOs were “interesting”
but added that it was up to governments to push for legal amendments, not the
NGOs. (Zaman21.02)
8:
ISRAEL
LIFE SCIENCE NEWS
8.1 Teva Announces Approval of Rabeprazole
Sodium Delayed-Release Tablets
Teva Pharmaceutical Industries
announced that the U.S. FDA has granted final approval for the Company’s
Abbreviated New Drug Application (ANDA) for Rabeprazole Sodium Delayed-Release
Tablets, 20 mg. Teva’s Rabeprazole
Sodium Delayed-Release Tablets are the AB-rated generic equivalent of Eisai’s
acid pump inhibitor Aciphex Tablets. The
brand product had annual sales of approximately $1.3b, based on IMS sales data. As one of the first companies to file an
ANDA containing a paragraph IV certification for this product, Teva has been
awarded a 180-day period of marketing exclusivity. Teva is currently in patent litigation
concerning this product in the U.S. District Court for the Southern District of
New York. A suit was brought against
Teva in November 2003 involving Teva's paragraph IV certification to U.S.
Patent No. 5,045,552. A trial has been
scheduled for March 2007. Teva
Pharmaceutical Industries (http://www.tevapharm.com),
headquartered in
Jerusalem,
Israel
, is
among the top 20 pharmaceutical companies in the world and is the 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. Over 80% of
Teva's sales are in
North America and
Europe. (Teva22.02)
8.2 Pluristem Announces First Licensing Agreement
and Stock Swap With Stem Cell Innovations
Pluristem Life Systems announced
a licensing agreement and stock swap with Stem Cell Innovations, for certain
marketing rights of Pluristem’s PLX I product in
Asia,
excluding
Japan
and 3-D stem cell expansion capability. SCI
is a cell biology company with facilities in
Scotch Plains,
NJ,
Houston,
TX
and in
Leiden,
the
Netherlands
. The licensing agreement provides Stem
Cell with certain rights to Pluristem’s PLX I product and 3-D stem cell
expansion capability, in exchange for an upfront fee of 23 million shares of
Stem Cell's common stock, milestone payments and royalties.
Haifa,
Israel
’s Pluristem
Life Systems (http://www.pluristem.com)
is life sciences driven Company that is developing and commercializing non
personalized stem cell expansion technology products for the potential
treatment of a variety of disorders. The
Company is developing cell-based therapeutics that utilizes adult stem cells
expanded in a three-dimensional proprietary bioreactor (PluriX) mimicking different
naturally occurring physiological environments. Pluristem expects its first products to be
cell grafts that will provide an efficient and superior alternative to the
currently accepted standard procedure of bone marrow transplantation. (Pluristem22.02)
8.3 GammaCan Signs $6.5 Million Private Placement
with Institutional Investors
GammaCan International completed
a $6.5m private placement with a group of investors lead by T.R. Winston &
Company, LLC. The Company issued
16,250,000 common shares at a price of $0.40 per share, and warrants equal to
the amount of shares issued, exercisable at $0.48.
Kiryat
Ono,
Israel
’s
GammaCan (http://www.GammaCan.com) develops
innovative immunotherapy and related approaches to treat cancer. GammaCan's platform technology is based on
IgGs, a safe, relatively non-toxic human plasma-based product used to treat a
variety of immune deficiencies and autoimmune diseases. In cancer, IgG-based therapies work by
strengthening the patient's immune system. VitiGam is a first-in-class IgG-based
anti-cancer immunotherapy being developed for the treatment of Stage III and
Stage IV melanoma. GammaCan is planning
to submit its Investigational New Drug Application (IND) for VitiGam to the FDA
in the near future. The Company is
expecting to commence human clinical trials shortly thereafter. VitiGam is an IgG-based product manufactured
from the plasma of donors with Vitiligo, a benign skin condition affecting up
to 2% of the general population. (GammaCan28.02)
8.4 Teva Announces Agreement with Biovail &
Anchen
Regarding Generic Wellbutrin
XL
Teva Pharmaceutical Industries
has reached an agreement with Biovail Corporation regarding Bupropion
Hydrochloride Extended-Release Tablets (Bupropion HCl ER tablets), the generic
version of the antidepressant Wellbutrin XL Tablets, for the United States
market. The agreement, following U.S.
Federal Trade Commission review, resolves litigation between Teva's supplier of
the 300 mg product, IMPAX Laboratories and Biovail involving a patent which
expires in 2018. The agreement also
releases both Teva and IMPAX for past sales of that product, launched by Teva
on December 2006 in collaboration with IMPAX and Anchen Pharmaceuticals. Teva will continue to market generic Bupropion
HCl ER tablets, 300 mg, on an exclusive basis for 6 months from launch and
non-exclusively thereafter. In addition,
Teva received a license to sell Bupropion HCl ER tablets, 150 mg, in 2008 and
possibly earlier under certain circumstances. That license is also exclusive for 6 months
from launch and non-exclusive thereafter. Teva plans to commercialize the 150 mg product
by agreement with Anchen, which was awarded 180-day statutory exclusivity for
the product. Teva Pharmaceutical
Industries (http://www.tevapharm.com),
headquartered in
Jerusalem,
Israel
, is
among the top 20 pharmaceutical companies in the world and is the 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. (Teva06.03)
8.5 FDA Approval of New Version of InSightec's
ExAblate 2000
InSightec announced that the U.S.
FDA has approved software that significantly speeds up the treatment time of
the company's ExAblate 2000 Magnetic Resonance guided Focused Ultrasound
(MRgFUS) system, while ensuring the system's high level of safety and efficacy. In addition, the FDA also approved the
ExAblate 2000 to be used with a 3.0 Tesla MRI scanner, in addition to the 1.5
Tesla. The new software version,
utilizes an "interleaved" mode of treatment whereby the system
targets different parts of the fibroid, allowing the recently ablated tissue
area to cool while the focus moves onto other areas of the fibroid. This reduces the cooling time required. Another new feature allows physicians to
leverage the beam steering in phased array transducer to maximize the energy in
the focal point, allowing significantly more volume to be treated for the same
amount of energy applied. The new system
version includes improved safety features that help the physician identify
anatomical details (such as bowels, bones, nerves, etc.) to help plan the
treatment and minimize damage to non-targeted tissue. ExAblate 2000 is the only MRgFUS system
approved by the FDA as a non-invasive, outpatient procedure to treat uterine
fibroids. The company has begun clinical
trials to study the technology's use in other indications including breast,
bone, liver and brain tumors. Headquartered
near
Haifa,
Israel
, InSightec (http://www.insightec.com) is a privately
held company owned by Elbit Medical Imaging (EMI), General Electric, MediTech
Advisors and employees. It was founded
in 1999 to develop the breakthrough MR guided Focused Ultrasound technology and
transform it into the next generation operating room. (InSightec05.03)
8.6 Kamada Begins phase III Clinical Trial With
its Alpha-1 Antitrypsin Product for Congenital Emphysema
Kamada is beginning the third and
last stage of clinical trials before licensure of its flagship product
Alpha-1 Antitrypsin (AAT), also known as Alpha-1 Proteinase Inhibitor (API). The clinical trial, which follows FDA-approved
protocol, will include 50 patients from the
U.S.
Already marketed in several countries, AAT is
an injectable drug indicated for Congenital Emphysema, a disease caused by an
inborn deficiency of AAT. According to
available information, Kamada's product is the only ready-to-use AAT therapy
that does not require reconstitution with water. Based on this and other unique
characteristics, Kamada is developing the next generation AAT which will
deliver the drug by inhalation directly to the lungs, thus reducing the length
and cost of treatment and rendering it much more convenient for patients. This aerosolized version is currently
undergoing phase I clinical studies in accordance with a clinical program that
was approved by the EMEA. Kamada
anticipates that final FDA approval for the commercial use of AAT will generate
a substantial and sustainable contribution to the company’s revenues. Based at
Kiryat
Weizmann
Science
Park,
Ness Ziona,
Israel
,
Kamada (http://www.kamada.com) is a
biopharmaceutical company engaged in the development, production, and marketing
of high quality, ready to use, plasma therapeutics. In addition to AAT, Kamada’s product line
includes specific and general immune globulins and other plasma-derived
products which are manufactured using sophisticated chromatographic
purification technology. (Kamada 01.03)
8.7 Teva to Sell Oxycodone Through the End of
2007
Teva Pharmaceutical Industries
continue to sell its generic version of OxyContin tablets at least through the
end of 2007. In October 2006, Teva
settled a patent dispute with the Purdue Frederick Company and certain of its
affiliates pertaining to Teva’s generic version of Purdue’s OxyContin
(oxycodone HCl extended-release) tablets. The settlement provided a full release of Teva
and its distributors, purchasers and patients and requires Teva to cease sales
of the product upon the occurrence of certain contingencies. Teva Pharmaceutical Industries (http://www.tevapharm.com), headquartered
in
Jerusalem,
Israel
, is among the top 20
pharmaceutical companies in the world and is the 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. (Teva06.03)
9:
ISRAEL
PRODUCT & TECHNOLOGY
NEWS
9.1 NICE Systems Announces NICE
SmartCenter
NICE Systems announced NICE
SmartCenter, an innovative solution designed to enable organizations to manage
their contact centers in an insightful proactive manner and take action at the
right-time. NICE SmartCenter builds upon
the success of NICE Perform by expanding significantly the offering and taking
it to a yet higher level of added value for customers. NICE SmartCenter leverages the synergies of
the combined capabilities of NICE Perform, IEX TotalView and Performix, and is
the culmination of the joint effort undertaken by the domain experts in the
three areas. NICE SmartCenter provides a
holistic view of contact center operations and business insight into market and
customer dynamics. These capabilities
are unified within an open Service Oriented Architecture (SOA) based framework,
the emerging industry standard, and are now offered together with NICE’s new
field-proven, structured service and implementation methodology. NICE is pioneering the use of SOA in its
markets and has enhanced and adapted it to the specific environment of the
contact center, providing improved sharing of information and business
processes and investment protection. NICE
will make this enhanced framework available to third parties and will continue
to develop it as the industry standard. NICE
SmartCenter places the contact center at the heart of the enterprise. With NICE SmartCenter contact centers gain a
single view of their business, improve efficiency, effectiveness and quality of
customer service while better aligning their objectives with the enterprise. The SOA-based framework allows contact centers
to
benefit from the synergy between
the entire spectrum of NICE SmartCenter best-in-class solutions – compliance,
quality management, workforce management, interaction analytics, coaching,
customer feedback and performance management. Ra'anana, Israel’s NICE Systems (http://www.nice.com) is the leading provider of
Insight from Interactions solutions, based on advanced analytics of
unstructured multimedia content – from telephony, web, radio and video
communications. NICE is revolutionizing
VoIP interactions management with state-of-the-art solutions for IP contact
centers, branches, and command and control centers. (NICE 21.02)
9.2 Gilat Provides SkyEdge Broadband Satellite
Network to Hyperia, a Leading ISP in
Nigeria
Gilat Satellite Networks has been
chosen by one of
Nigeria
's
leading Internet Service Providers, Hyperia, to provide a SkyEdge broadband
satellite hub, and initially, several hundred VSAT terminals. The VSAT network will enable Hyperia to expand
its services in
West Africa and to provide
multiple services such as broadband IP, telephony, mesh voice, mesh IP and
video conferencing. Gilat's SkyEdge
redundant hub, supporting multiple transponders on both C-band and Ku-band,
will be deployed at Hyperia’s network operations center in
London. Gilat’s SkyEdge is a satellite communications
platform that delivers high quality voice, broadband data and video services
over a powerful unified system. The
platform represents Gilat’s deep knowledge base and field-proven product
offering, acquired through nearly two decades of experience. SkyEdge’s flexible architecture and efficient
space segment utilization make it an ideal platform for operators and service
providers.
Petah Tikva,
Israel
’s
Gilat Satellite Networks (http://www.gilat.com)
is a leading provider of products and services for satellite-based
communications networks. The Company
operates under three business units: (i) Gilat Network Systems (GNS), which is
a provider of network systems and associated professional services, including
turnkey solutions and outsourcing, to service providers and operators
worldwide; (ii) Spacenet Inc., which provides managed services in North America
for businesses and governments through its Connexstar service brand and for
consumers through its StarBand service brand; (iii) Spacenet Rural
Communications, which offers rural telephony and Internet access solutions to
remote areas primarily in Latin America. (Gilat 21.02)
9.3 e2v
Selects
Tower
as Supplier of Choice for CMOS Image Sensor Devices
Chelmsford,
England
’s e2v, a leading developer and
manufacturer of high-technology electronic components and sub-systems, and
Tower Semiconductor announced that e2v has selected Tower Semiconductor as its
supplier of choice for its CMOS (Complementary Metal Oxide Semiconductor) image
sensor devices. The design expertise of
e2v, combined with the high performance CMOS manufacturing capabilities of
Tower Semiconductor, will result in a brand new generation of ‘System on a
Chip’ sensors
benefiting from high
image quality as well as embedded capabilities. e2v’s CMOS Image Sensor (CIS) products target
a broad range of industrial and medical applications. The CMOS sensors will be produced in Tower’s
advanced Fab2, using the CIS 0.18 micron process and its advanced capabilities. e2v and Tower are currently focusing on
ten key development projects.
Migdal Ha’Emek,
Israel
’s Tower Semiconductor (http://www.towersemi.com) is a pure-play
independent specialty wafer foundry established in 1993. The company manufactures integrated circuits
with geometries ranging from 1.0 to 0.13-micron; it also provides complementary
technical services and design support. In
addition to digital CMOS process technology, Tower offers advanced non-volatile
memory solutions, mixed-signal & RF-CMOS, and CMOS image-sensor
technologies. (e2v21.02)
9.4 Alvarion Expands Its OPEN WiMAX Ecosystem
Increasing Multi-Vendor Interoperability
Alvarion announced the expansion
of its OPEN WiMAX ecosystem through successful initial interoperability testing
with an increasing number of 3rd party mobile devices. The company’s 4Motion solution has achieved
successful initial interoperability with numerous devices, using embedded
chipsets from top vendors such as Beceem Communications, GCT Semiconductor,
Intel Corporation, Runcom Technologies and Sequans Communications, all in
preparation of Wave 1 and 2 802.16e-2005 certification. Providing high quality radio performance and
answering to the strict security measures incorporated into the WiMAX and
802.16e-2005 specifications, Alvarion has completed yet another significant
technology milestone in its interoperability testing program. The successful testing of WiMAX security
features with other vendors includes authentication and data encryption
methods, as well as radio resource management features, automatic power control
and channel quality management. Today’s
WiMAX technology demands full interoperability among vendors, forming a new
market approach and placing the operators and consumers in the center. With the vast potential in WiMAX networks,
more and more leading vendors are taking an active role in WiMAX Forum
activities to further reinforce the OPEN WiMAX ecosystem.
Tel Aviv,
Israel
’s
Alvarion (http://www.alvarion.com) is
the world’s leading provider of innovative wireless broadband network solutions
enabling Personal Broadband to improve lifestyles and productivity with
portable and mobile data, VoIP, video and other services. Leading the market with the most widely
deployed WiMAX system in the world, Alvarion is leading the market to Open
WiMAX solutions with the most extensive deployments and proven product
portfolio in the industry covering the full range of frequency bands with both
fixed and mobile solutions. Alvarion’s
products enable the delivery of personal mobile broadband, business and
residential broadband access, corporate VPNs, toll quality telephony, mobile
base station feeding, hotspot coverage extension, community interconnection,
public safety communications, and mobile voice and data. (Alvarion 21.02)
9.5 NUR Introduces the New Auto-Correction
Double-Sided Printing Option for Its UV Roll-to-Roll Printers
NUR Macroprinters announced the
availability of the new Auto-Correction Double-Sided printing option kit for
NUR Expedio 5000 and NUR Expedio 3200 wide format UV roll-to-roll machines. The new feature enables customers to print
high quality UV backlit and block out applications at printing speeds of up to
120 Sq.m (1300 Sq.ft)/hour. The
double-sided printing option includes an on-the-fly auto-correction mechanism
as well as a manual on-the-fly fine-correction mechanism to be used during the
print process. The newly released
double-sided printing option for NUR Expedio 3200, a 3.2 meter wide UV
roll-to-roll machine, provides double-sided printing at speeds of up to 120
Sq.m (1300 Sq.ft)/hour. NUR guarantees a
front-to-back image deviation of no more than 2mm on a 25 meter long by 3.2
meter wide print. NUR offers printing on
a variety of approved substrates from leading vendors such as Avery and Getter. This optional feature is now available
on new printers or as an upgrade to existing printers at customer sites.
Lod,
Israel
’s NUR
Macroprinters (http://www.nur.com) is a
leading supplier of wide-format inkjet printers for the printing industry. NUR develops, manufactures and markets
wide-format inkjet printers and high-quality companion inks for a wide variety
of businesses including commercial printing companies, sign printers, screen
printers, billboard and media companies, photo labs, and digital printing
service providers. NUR’s cost-effective,
reliable printing solutions are helping customers worldwide deliver the high
quality and fast turnaround they need to meet their clients’ exacting demands
and succeed in today’s competitive marketplace. (NUR Macroprinters22.02)
9.6 Defense Industries International Announces a
$2.2 Million Order from Israeli Defense Ministry
Defense Industries International announced
that it has received orders totaling $2.2m for tactical vests from the Israeli
Defense Ministry. The orders are the
result of winning tenders and are expected to be delivered by July 2007. These orders follow the $4.7m orders from the
Israeli Defense Ministry for bulletproof vests, personal gear and dry storage
units, which was already announced on 17 January.
Ashkelon,
Israel
’s
Defense Industries International (http://www.defense-industries.com)
is a leading manufacturer and global provider of personal military and civilian
protective equipment and supplies. Defense
Industries' main products include body armor, bomb disposal suits and
bullet-resistant vests and jackets; ballistic wall covers, ceramic armor plates
and lightweight armor UHMW-PE plates; personal military equipment, battle pouch
units and combat harness units; dry storage units, liquid logistics, tents and
vehicle covers; winter suits, sleeping bags and backpacks. (DII22.02)
9.7 Kontera Launches Contentlink Rich Media
Bringing Video & Animation to In-Text Advertising
Kontera announced the launch of
ContentLink Rich Media, which brings video and animation ads to In-Text
Advertising. What sets ContentLink Rich
Media apart from other In-Text Advertising solutions is Kontera's technology -
its unique real-time web page analysis that continuously fine-tunes the
relevancy it delivers between the content, the keywords, the ad copy, and the
advertiser's products and services. ContentLink
is the only In-Text Advertising solution using a patent-pending text analysis
technology to discover relevant keywords on a publisher's web page in real-time
and automatically match them to relevant ads that are shown upon user
mouse-over. Kontera is introducing
several new advertising units including the ContentLink Flex - the industry's
first In-Text ad unit (up to 300 x 250 pixels) that enables not only video and
flash creative but also interactive user control and forms that allow for
advanced functionality, branding experience, and data capture that could be
used for lead-generation.
Herzliya Pituah,
Israel
’s Kontera (http://www.kontera.com) is a leading
provider of In-Text Advertising Solutions, based on patent-pending contextual
analysis technology that increases revenue and ROI for both web publishers and
advertisers. The company's flagship
product, an In-Text ad unit called ContentLink, is a contextually relevant
keyword that is discovered in real time on a web page from within Kontera's
vast network of publishers and is automatically turned into a link to the most
relevant ad from among Kontera's thousands of advertisers. (Kontera22.02)
9.8 TraceGuard Announces R&D Award from
Israel
’s
Ministry of Industry and Trade
TraceGuard Technologies has been
selected to receive an award from
Israel
’s Chief Scientist, within
the Ministry of Industry & Trade, to further the development of technology
for improving explosives detection. The
Office of Chief Scientist (OCS) approved a research and development project with
TraceGuard for $800,000, of which OCS will provide $240,000 of the funding. The aim of the project is to advance
TraceGuard’s unique technology for Automated Trace Extraction (ATE), which is
designed to significantly improve capabilities for collection and sampling of
traces in the inspection process for explosives and other hazardous materials. ATE employs isolating, decompressing and
pumping air around and within inspected items in order to facilitate improved
collection of traces of substances, which are then fed to a trace detector for
analysis and threat determination. TraceGuard
is currently developing ATE for use in the aviation security field, to enable
improved detection of explosives at passenger checkpoints and hold baggage
screening inspection points. The company
is also focused on ATE applications across the homeland security market,
including border crossings, protection of critical infrastructure and narcotics
detection. The Ministry of Industry and
Trade contributes funding to support research and development efforts, as well
as processes or methods for the manufacture of a new product or the significant
improvement of an existing one.
TraceGuard Technologies (http://www.traceguard.com) develops
innovative security technologies and solutions for explosives detection, a
growth segment of the homeland security market. The Company’s systems are designed to improve
the screening and detection of explosives, narcotics, biological contaminants
and other hazardous materials, and are targeted to meet the needs of aviation
and homeland security agencies worldwide. TraceGuard maintains an
R&D
Center
in Tel Aviv,
Israel
and has an office in
New York. (TraceGuard 27.02)
9.9 Telecom
Namibia
Deploys WiMAX Network Using
Alvarion’s BreezeMAXTM
Alvarion announced that incumbent
carrier Telecom
Namibia
has selected its BreezeMAX to upgrade wireless local loop systems with WiMAX,
in order to provide primary telecommunication voice services, broadband data and
high speed internet access, throughout the country. In addition, Telecom
Namibia
will
offer primary voice and data services to residential and business subscribers;
Rampoint Communications is Alvarion’s local partner for the project. Alvarion's feature rich BreezeMAX platform,
based on extensive field experience, enables supporting primary voice with high
quality, as well as smooth integration with existing Telecom
Namibia
core
networks. Consequently, customers
benefit from a fast and cost effective integration process into their already
existing infrastructures, via open interfaces. BreezeMAX, Alvarion’s award winning WiMAX
platform, complies with IEEE 802.16 standards and uses OFDM technology for
advanced non-line-of-sight functionality. Its carrier-class design supports broadband
speeds and quality of service, enabling carriers to offer triple play broadband
services to thousands of subscribers via a single base station. Tel Aviv,
Israel
’s Alvarion (http://www.alvarion.com) is the world’s
leading provider of innovative wireless broadband network solutions enabling
Personal Broadband to improve lifestyles and productivity with portable and
mobile data, VoIP, video and other services. Leading the market with the most widely
deployed WiMAX system in the world, Alvarion is leading the market to Open
WiMAX solutions with the most extensive deployments and proven product
portfolio in the industry covering the full range of frequency bands with both
fixed and mobile solutions. (Alvarion 27.02)
9.10 Pixer Technology Receives Order From Major
DRAM Flash Manufacturer
Pixer Technology announced the
sale of a CDC101 system to a major DRAM Flash Manufacturer in Asia-Pacific. The system will be installed before the end of
Q1. CDC101 will support customers'
efforts to achieve higher lithography productivity through improvement of
Critical Dimension Uniformity (CDU). CDC101
is an industry-first solution for Critical Dimension Control, improving global
and local CDU across masks and wafers. CDC101 modifies the mask transmission in
order to modify and correct the CD on the wafer resist. Deep UV transmittance of the mask is
selectively and locally altered by partially scattering shading elements
(Shade-In Element) inside the quartz. This
creates local pixels with a different refractive index relative to the quartz. An array of such pixels with a constant
density constitutes one shading element. Optical CD (OCD) systems, CD SEM or reticle
AIMSTM predetermine the required corrections. Pixer (http://www.pixertech.com)
is a supplier of semiconductor capital equipment based in
Karmiel,
Israel
. The company provides IC manufacturers
and mask makers with solutions to correct, improve, and selectively optimize
the photolithography masks that are used to imprint an IC design onto wafers in
the manufacturing process. Pixer
develops and manufactures highly integrated systems based on its innovative
optical laser technologies. (Pixer27.02)
9.11 Commtouch Expands Into Fast-Growing Indian
Market
Commtouch announced four new OEM
licensing agreements for its real-time anti-spam and Zero-Hour Virus Outbreak
Protection solutions with leading Indian secure messaging providers. These strategic deals mark the entry of
Commtouch into one of the world’s most important technology markets. Cyberoam Unified Threat Management (UTM)
appliances of Elitecore Technologies will incorporate the Commtouch anti-spam
engine, offering integrated Internet Security. Gajshield will include the Commtouch anti-spam solution in all new
Spamgaj products including: software gateway, hardware appliance and a managed
service. K7 will integrate Commtouch
anti-spam and Zero-Hour Virus Outbreak Protection into its new desktop and
corporate gateway products. Netcore will
offer Commtouch anti-spam and Zero-Hour Virus Outbreak Protection as part of
its suite of managed email security services. Spam in
India
has recently reached a point
where it now constitutes over 92% of all email, an increase of 15% from this
time last year, according to a report of Netcore’s corporate customers. The number of email users in
India
is
expected to double in the next four years, according to Ferris Research; the
total number of users is expected reach 59 million in 2010.
Headquartered in
Netanya,
Israel
,
Commtouch Software (http://www.commtouch.com)
is dedicated to protecting and preserving the integrity of the world's most
important communications tool - email. Commtouch
has over 15 years of experience developing messaging software and is a global
developer and provider of proprietary anti-spam, Zero-Hour virus protection and
IP Reputation solutions. Using core
technologies including RPD (Recurrent Pattern Detection), the
Commtouch
Detection
Center analyzes billions
of email messages per month to identify new spam and malware outbreaks within
minutes of their introduction into the internet. (Commtouch 28.02)
9.12 NICE Receives Order for its Integrated VoIP
based Solutions from RAFAEL
NICE Systems has received an
order from RAFAEL Armament Development Authority, a leading Israeli defense
systems provider, for an advanced Voice over IP (VoIP) and Radio over IP (RoIP)
capturing and debriefing solution, to be implemented in RAFAEL C4I
environments. NICE has been chosen to
supply its integrated IP-based capturing and debriefing C4I solution as part of
RAFAEL’s comprehensive Command, Control, Communications, Computers and
Intelligence (C4I) offering. C4I is
recognized by military and other organizations worldwide as a force multiplier,
a factor that dramatically increases the combat effectiveness and
productiveness of existing military resources. C4I is used for battle procedures as well as
for conduct of operations. Ra'anana,
Israel
’s NICE
Systems (http://www.nice.com) is the leading
provider of Insight from Interactions solutions, based on advanced
analytics of unstructured multimedia content – from telephony, Web, radio
and video communications. NICE is
revolutionizing VoIP interactions management with state-of-the-art solutions
for IP contact centers, branches, and command and control centers. (NICE28.02)
10:
ISRAEL
ECONOMIC STATISTICS
10.1
Israel
’s Exports
Increase by an Annualized 22% in November-January
The Central Bureau of Statistics announced
on 28 February that
Israel
’s
export of goods, excluding diamonds, rose by an annualized 22.1% in November
2006-January 2007, and imports of raw materials, excluding diamonds and fuel,
rose by an annualized 13.1%. Industrial
exports rose by an annualized 8%. Hotel
overnights by Israelis rose by an annualized 6.5% and tourist overnights rose
by an annualized 26.8%. Private
consumption is also rising. Trade and
services proceeds rose by an annualized 3.6%, including an annualized increase
of 5% retail proceeds. Only imports of
investment goods fell by an annualized 1.4% in November-January. Inflation was 0.4% in November-January, after
falling by an annualized 3.1% in July-October 2005, but is still well below the
lower limit of the government’s price stability target of 1-3%. Low fuel prices and the low shekel-dollar
exchange rate were mainly responsible for the low inflation rate. (CBS28.02)
10.2
Israel
’s
Economy Grew Annualized 8% in 2006’s Last Quarter
The Central Bureau of Statistics announced
on 22 February that
Israel
’s
economic growth fell to an annualized 3.1% in H2/06 from 5.9% in H1/06 because
of the second
Lebanon
war during the summer. After GDP slumped
by 0.7% in Q3, it rapidly recovered to grow by an annualized 8% in Q4. Growth in 2006 was 5.1%, following 5.2% in
2005 and 4.8% in 2004. The war cost a
lower-than-expected 0.3% of GDP, or
NIS
2 billion. The Bank of Israel originally
estimated the cost of the war at 1% of GDP, and the Ministry of Finance
estimated it at 1.5-2%. The ministry’s
estimate may have been intended to block exorbitant budgetary demands resulting
from the heavy defense spending.
Despite the war, the standard of
living rose by 3% during the second half of the year. Except for a 9% drop in the purchases of new
cars, Israelis’ shopping spree continued unabated. Purchases of durable goods rose by 7.7% per
capita in the second half, including a 14.2% increase in purchases of furniture
and a 23% increase in purchases of appliances. Investment in fixed assets rose by 9%. Investment in residential construction rose by
5.7%, investment in public construction rose by 10%, and investment in industry
by over 11%. Exports rose by only an
annualized 1.4% in the second, and imports rose by an annualized 2.8%. The business product rose by 2.8% in the
second half, after rising by 7.7% in the first half; business product rose by
6.6% in 2006 as a whole. GDP totaled
NIS 624 billion, business
product was
NIS
456 billion, and GDP per capita reached
NIS
88,500 at the end of 2006. (CBS22.02)
10.3 Unemployment Down To 7.7% During Fourth
Quarter
Israel
’s unemployment rate is
falling faster than expected. The Central
Bureau of Statistics announced on 28 February that unemployment declined to
7.7% of the civilian workforce in Q4/06, the lowest level since the mid-1990s. The unemployment rate was 8.3% in the
preceding quarter and 8.9% in Q4/05. The
number of unemployed was 218,700 in Q4, down from 232,000 in Q3 and 247,000 in Q4/05. The number of unemployed fell by 28,300
within a year and the unemployment rate was down by 1.2%. The unemployment is 3.2% below the all-time
high of 10.9% in early 2004. The number
of unemployed has fallen by 73,400 persons since the all-time high of 292,100
in Q1/04. The unemployment rate among
men fell to 7.1% of the male civilian workforce in the fourth quarter, down
from 7.9% in the preceding quarter. The
unemployment rate among women fell to 8.5% of the female civilian workforce in
the fourth quarter, down from 8.7% in the preceding quarter. (CBS28.02)
10.4
Israeli
Unemployment
Falls
To Lowest Level In A Decade
On 1 March, the Central Bureau of
Statistics announced that
Israel
’s
unemployment decreased significantly in 2006, especially in the last quarter of
the year, when it sank to its lowest level in a decade. In 2006, unemployment averaged 8.4% (236,100)
from 9% in 2005 (246,400). Some 80,000
workers joined the workforce, a rise of 3.2% that brought the number of
employed people to 2.5 million. In the
final quarter, unemployment dropped to 7.7%. The reduction has been attributed in large
part to economic growth, which measured 8% in Q4/06 and 5.1% for the whole
year. However, participation in
Israel
's
workforce is still some 10% lower than in developed countries. The Finance Ministry is acting to decrease
this gap with various programs to encourage employment, especially among
ultra-Orthodox men and Arab women.
At the end of 2006 the Israeli
labor force was at around 2.8 million - 55.6% of the adult population (2.6
million employed and some 219,000 unemployed). The number of people in the labor force rose
by 2.5%. Among those employed, 1.4
million were men and 1.2 million women. Men's
workforce participation was falling until 2003, when it reached 55.1%, but then
started increasing gradually, hitting 60.3% in 2006, buoyed by men aged 55 to
69. Women's workforce participation
increased in 2006 by 3.1% (some 36,000) compared with an increase of 3.3% among
men (some 44,000).
The number of people holding a
full-time job (35 hours or more a week) rose by 2.9%, while the number of
part-time workers rose by 2.1%. The
number of part-time workers who sought a full-time job but couldn't find one
was 125,000 in 2006, constituting 23% of all part-time workers, compared with
some 139,000 in 2005 (27%). Of the
80,000 who joined the workforce in 2006, the largest group found work in the
technical and free professions (27,000), bringing the total number of workers
in these areas to 402,000. Some 19,000 found work in business services, where
by the end of 2006 there were 354,000 employees. Some 12,000 joined the education professions,
bringing the total to 326,000. Around
11,400 workers joined community, social, personal and other services, 10,000
people found work in industry, 9,000 people found work in transportation,
storage and communication and 17,400 started working in industry and
construction. (CBS01.03)
10.5 Automobile Imports Increase By 69% During
February
The Israel Tax Authority announced
on 5 March that
Israel
’s
automobile imports totaled 17,684 in February 2006, 69% more than the 10,470
imported in February 2006. Automobile
imports totaled $200m. Imports of
vehicles and appliances in February, compared with last February included:
televisions - up 45% to 3,262, worth $30m; motorcycles and motor scooters - up
14% from 585 to 667; trucks and tractors - up 20% from 435 vehicles to 521;
refrigerators - up 48% from 10,560 units to 15.586; washing machines - up 24%
from 18,073 units to 22,357; clothes dryers - up 13% from 3,250 units to 3,667;
DVDs - unchanged at 35,739 units; and dishwashers - down 4% from 4,570 units to
4,387. Imports of vehicles and
appliances in January-February, compared with the corresponding period
included: cars up 35% from 26,275 to 35,450; motorcycles and motor scooters up
29% from 1,432 units to 1,846; and trucks and tractors - up 31% to 1,122. Some 48 million cigarette cartons worth $20m were
imported in January-February, 7% more than in the corresponding period. (ITA05.03)
10.6
Israel
’s Industrial Output Soared
In 2006
On 21 February, the Central
Bureau of Statistics announced that the Israeli economy grew significantly
during 2006.
Israel
’s industrial production grew
by 10.5% in 2006, after growing a moderate 3.7% in 2005. The increase in industrial production was led
by the high-tech sector, which rose 24%. The number of industrial sector employees rose
by 3.1%, or by 10,000 workers. The
number of work hours per employee rose 3.5%. Total industrial proceeds rose by 8.4%, led by
the real-estate and business-services sectors, which rose 15.4%, while proceeds
from commerce and services rose 9.2%, following a rise of 7.8% in 2005. (CBS21.02)
In Depth
11.1 HSBC Says
Israel
's
Fundamentals Have Never Looked Better
On 27 February, HBSC published a
new review of the Israeli economy, in which the bank raised its growth forecast
to 4.9% in 2007, because
Israel
’s
“economic fundamentals have never looked better.”
HSBC says that rapid consumption
and investment growth will offset slower industrial export growth, and it
expects the shekel to weaken slightly during the second half to NIS 4.25/$ by
the end of the year as slower global growth restrains exports and investment
flows. The bank also predicts that the
interest rate will be 3.75% for most of the year, which will encourage capital
outflows.
“The Bank of Israel sees a weaker
shekel as a prerequisite for an increase in inflation into the 1-3% target
band. Inflation is set to rise to 2.1%
in 2007 with increasing signs of demand pushing inflation, higher wages and a
housing recovery. Rapid growth and
rising productivity coupled with low policy rates will be positive drivers for
equity markets. Somewhat higher
inflation and a weaker shekel (especially in the second half of the year),
could be negative for fixed income markets depending on the path of US rates. The major risk to Israeli assets remains
geopolitical. Low-level violence with the
Palestinians will continue and a ceasefire with Hezbollah is likely to hold. The Iranian nuclear threat will most likely
become a focus of attention in 2008-2009.’
HSBC notes that
Israel
’s
economy proved “far more resilient” to the 34-day second
Lebanon
war in
mid-2006 than previously thought, with GDP growth rebounding to 5% for the
year. “The tourism sector, which fell
sharply, rebounded by year’s end. Industrial
exports expanded by 9.0% quarter-on-quarter in fourth quarter, lead by
high-tech exports. In addition,
industrial production rose by 10% quarter-on-quarter, while strong growth in
imports of raw materials and investment goods points to buoyant GDP growth
ahead.”
HSBC’s growth prediction of 4.9%
assumes “a soft landing scenario in the
US
. The cooling of the
US
economy is expected to be mostly
consumer-led, while the bulk of Israeli industrial exports are geared to US
technology investments. In addition,
assuming global growth decouples somewhat from the
US
economy,
Israel
’s non-US
exports (63% of all exports) will most likely continue to expand rapidly. Most sectors of the Israeli economy are
expected to witness fairly rapid growth.”
In the political arena, HSBC
says, “Despite the declining popularity of the government following the war,
the coalition seems more stable than before. The protest movement following the war has
dissipated, or at least seems to be directed more at decision-making within the
Israeli army and at the Minister of Defense Amir Peretz than at the government
level.”
HSBC predicts that “early
elections are unlikely in the coming year.” In addition, “The present coalition approved
the 2007 budget proposal in the Knesset without major alterations. The deficit target of 2.9% is a credible one,
and appears somewhat on the cautious side. On the revenue side of the budget the GDP
growth assumption is a conservative 3.8% (versus an HSBC growth forecast of
4.9%). We do not expect the fiscal
deficit to be lower than 2% of GDP this year due to several fiscal threats, most
notable among them being pressure for additional defense spending and demands
for public sector wage hikes.” (Globes 27.02)
11.2
Israel
’s
Technology-Intensive Economy Supports the Shekel’s Appreciation
MorganStanley’s (http://www.morganstanley.com) Serhan
Cevik commented on
Israel
’s
economy:
“From whatever direction you look at it,
Israel
’s
economic and financial performance has come out much better than expectations. Growth is running at around 5% for the fourth
consecutive year; there is practically no inflation; nominal interest rates and
spreads over American bonds are at historical lows; the stock market just
passed the 1,000 threshold; and the shekel has appreciated against the
trade-weighted currency basket. So far,
so good, but could this be also as good as it gets? We think not. Nominal interest rates may no longer be as
striking as they were just a few months ago, but growth and real interest rate
differentials still make an attractive investment case, especially considering
the shekel’s undervaluation. Even after
appreciating by 4.5% last year, the real effective exchange rate remains 23.8%
below the 2000 peak and 15.2% lower than the average of the 1990s. Of course, if you base the analysis purely on
interest rate differentials (which are at an all-time low), the case for
further strengthening of the shekel does not look compelling. But our call is based on economic fundamentals
and structural factors, which justify sustained appreciation. We can list numerous factors — such as fiscal
normalization, productivity growth and low inflation — supporting a higher
valuation for the shekel, but the heart of the matter is
Israel
’s
technology-intensive economy, which generates higher value-added exports and a
structural current account surplus.
With greater specialization in high-tech
sectors,
Israel
benefits from the global investment cycle.Sectors specializing in high-technology goods and services now account
for almost one-third of
Israel
’s
GDP and 75% of its industrial exports. With
such an extraordinary link to the global investment cycle,
Israel
has
benefited from strong growth all around the world in the last couple of years. Although the US-China-India axis — accounting
for more than half of Israel’s total exports — has obviously played a crucial
role in increasing exports and accelerating GDP growth in the past four years,
growth dynamics have become more balanced and therefore resilient to cyclical
changes in the global economy.
The composition of human capital and economic
sectors is a major source of productivity growth.Despite another burst of volatility in financial markets, Morgan Stanley
does not foresee a recessionary rebalancing in the world economy. There are of course risks stemming from
cyclical variables and changes in risk appetite, but our optimism about
Israel
’s
economic prospects and the shekel’s valuation depends more on structural
factors that will not disappear just because of market jitters. The economy’s shift to higher value-added
technology-intensive sectors is a structural move that goes beyond usual
business-cycle fluctuations, in our view. With the highest number of engineers and PhDs
per thousand in the world,
Israel
has a stock of human capital that will keep supporting its comparative
advantage in high-tech manufacturing industries and services. Moreover, this is not idle capacity, but is
being actively used in R&D investment (reaching 5% of GDP a year) and
entrepreneurial pursuits. As a result,
the positive feedback loop — from technological orientation of human capital
and economic activity to total factor productivity and income growth — enhances
the economy’s growth potential.
Positive externalities of technology-intensive
production support the shekel, in our view. Thanks to higher value-added exports of goods and services,
Israel
enjoys a
current account surplus of 5% of GDP, even against the burden of higher
commodity prices. This is yet another
reflection of structural changes in the economy, and unlikely to fade away in
the foreseeable future, in our view. Furthermore, in today’s global system of
supply chains, the composition of human capital and economic sectors is an
important point of attraction for foreign investment flows. We believe that
Israel
is already at the forefront
of the global technology trends and will gain a prominent role in the coming
wave of life sciences and nanotechnology. That is only good news for the shekel. (MorganStanley06.03)
11.3
Bahrain
: Growing Tourism Appeal
Bahrain
's tourism sector has been
buoyed by a number of positive developments in recent times, highlighting the
kingdom's growing promise as a travel destination. A recent report, as noted by the Oxford
Business Group, revealed that
Bahrain
has emerged as one of the fastest growing destinations for meetings,
incentives, conferences and events (MICE) tourism in the region with more than
50% of events held in the kingdom attracting international interest.
The growth of tourism has also
benefited
Bahrain
's
retail sector. Faisal Jawad, chairman
and CEO of the Jawad Business Group, recently praised the tourism industry's
positive influence on the sector, citing the positive contribution made by
visitors to
Oman
,
Bahrain
and
Dubai. These comments were reinforced by the news
that Bahrain Duty Free saw its sales increase from $69m two years ago to $80m
in 2006 while the company's operating profit increased from $9.4m to $11.4m
last year.
As part of a plan to increase the
country's exposure overseas, two
US
groups recently announced plans
to promote
Bahrain
. Omega World Travel, headquartered in
Fairfax,
Virginia,
will promote
Bahrain
as a tourism, conference and business destination through its 200 offices
around the world. Unison Agency, a
Washington DC-based brand and advertising communication agency, will oversee
the Bahrain Open Society campaign in the
US
. The campaign, associated with
Bahrain
's
embassy in the
US
,
will focus attention on
Bahrain
's
people and culture. It will include
branded events, advertising, multimedia and other activities in an effort to
position the kingdom as a cosmopolitan and modern nation to American businesses
and tourists interested in the
Middle East.
Bahrain
should be confident of its
tourism appeal. In December 2006, the
German luxury cruise liner, AIDAcara, successfully concluded its maiden voyage
to
Bahrain
,
bringing 1,160 passengers to the country. The cruise line recently announced that its
ships will have called at
Bahrain
eight times by the end of February 2007 and many more cruises are planned for
2007-2008.
Tourism in
Bahrain
has
been growing in recent years. Arrivals
in 2005 reached 5.6m visitors, up from 3.29m in 2004. In addition, tourism contributed 6-7% of GDP
in 2005. In light of these developments,
Bahrain
's
economic development board unveiled plans for a new family-focused tourism
project on the west coast of
Bahrain
. The project, which will focus on a range
of leisure and entertainment facilities, is to be developed in partnership with
Ithmaar Bank, a leading Islamic investment bank in
Bahrain
.
However,
Bahrain
must
still overcome obstacles that may threaten the sector's growth. One such instance was in 2005 when the
government and a number of hotels clashed when the state banned alcohol in public
places just days before Ramadan; the problem stemmed largely from the fact that
the industry had not been given sufficient notice of the policy. The issue was further compounded by the fact
that nearby
Abu Dhabi
allowed alcohol to be served during Ramadan that same year.
Additionally,
Abu Dhabi was recently awarded a seven-year
contract to host a round of the Formula One Grand Prix (GP), starting in 2009. Although
Bahrain
's GP future has been
secured until 2013, some observers think that the addition of a second race in
the region will detract from the prestige of the
Bahrain
event, which has
contributed over $100m to the country's economy each year since the inaugural
race in 2004. In spite of
Abu Dhabi's rise to
prominence in motor sports, other industry insiders do not believe another race
will pose a great threat to
Bahrain
. Yigit Sezgin, general manager of
tournament promoter SP Middle East, recently told OBG that the fact the two
races are quite far apart in the F1 season will actually help
Bahrain
. (
OBG27.02)
11.4
Qatar
: Rising Inflation
Qatar
's inflation rate has been a
recent cause for concern. The government
has made efforts to emphasize that this is just a transitional phase brought on
by explosive growth. The Consumer Price
Index (CPI) average for the four quarters in 2006 was up dramatically from
2005, resulting in an inflation rate of 11.83%, a significant jump from the
previous year's rate of 8.8%. This means
Qatar
's
inflation rate touched an all-time high in 2006 with the CPI jumping to 133.23
from 119.23 in 2005. Soaring rent prices
were seen as the main culprit.
Data released by the government's
planning council recently revealed that rents leapt 25.3% in 2006. Higher rents also had a cascading effect on
the rest of the economy, pushing up prices in other areas as well. According to the local media, high rents,
caused in part by a housing shortage, are now taking their toll on attracting
labor to
Doha.
Qatar
is steadily becoming
unaffordable for employers to house imported labor and their families. This, coupled with shortages in raw materials,
has lead to added inflationary pressures on the market.
Some experts say inflation is an
unavoidable by-product of the kind of rapid growth
Qatar
has seen in recent years. According to the co |
News & Updates 
