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TOP STORIES
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TABLE OF CONTENTS:
1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS
1.1 Coalition Parties Unite in Opposition to Kadima Budget
1.2 Central Bank Defends Bank-Fee Reform
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2: ISRAEL MARKET & BUSINESS NEWS
2.1 Carl Zeiss SMT acquires Pixer Technology - Pixer Technology Becomes Part of Carl Zeiss
2.2 Tower Semiconductor & Jazz Technologies Announce Merger
2.3 Israel's Osem to Buy Tribe Mediterranean for $57 Million
2.4 Iberia Raises Capacity On Israel Route
2.5 Siano Raises $17.5 Million in Round C Funding To Expand its Mobile TV Markets
2.6 US Airways Files Application to Operate Tel Aviv Service from Its Philadelphia Hub in 2009
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3: REGIONAL PRIVATE SECTOR NEWS
3.1 CryptoMetrics Receives Contract from UAE for Nation-Wide Wanted Person Detection System
3.2 Quiznos Announces Significant International Expansion in Mid East
3.3 Health Robotics New Exclusive Partnership for CytoCare in Turkey
3.4 Elephant Talk to Enter Turkish Market
3.5 Direct Petroleum Announces Results of Initial Completion in Bulgaria
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4: ISRAEL MACRO-DEVELOPMENTS
4.1 Israel Completes First Stage of OECD Membership Process
4.2 Lehman Impressed With Economy But Concerned With Shekel
4.3 Environment Ministry Files Indictments for Air Pollution
4.4 IEC Says Power Consumption Has Risen 163% Since 1990
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5: ARAB STATE & PAKISTANI DEVELOPMENTS
5.1 Middle East Leads Way in US Investment
5.2 Excellent First Half for Jordan in 2008
5.3 Jordan & Canada to Sign Joint Free Trade Agreement
5.4 Jordan's King Abdullah Visits Iraq & Urges Arabs to Support
5.5 Analysis of Jordan's Pharmaceuticals and Healthcare Industry
5.6 Giant "Kurdistan Gas City"
5.7 Persian Gulf to Replace Import Duty System
5.8 Kuwait Sees Iraq Budget Surplus & Wants Debt Repaid
5.9 Kuwait Allows Co-Ops to Import Products
5.10 Bahrain Clampdowns on Fake Degrees
5.11 UAE Invites Bids For Nuclear Power Project
5.12 UAE Among World's Top 30 Importers
5.13 UAE to Embark on Large-Scale Dam-Building Project
5.14 Dubai Warning On Gas Emission
5.15 Oman Inflation Close To 14%
5.16 Private Sector Companies in Oman Urged To Adopt Five-Day Week
5.17 Saudi Nuclear Plan Gets Green Light
5.18 Egypt Suez Canal Revenue Soars To $490 Million
5.19 Inflation in Egypt Hits Highest Level Since 1992
5.20 Egyptian Pharmaceuticals & Healthcare Industry
5.21 Algeria's Pharmaceuticals and Healthcare Industry 2008, Q3
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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS
6.1 Turkey Rejects a Precondition for an IMF Agreement
6.2 Turkey to Renew Railways With Two-Way System
6.3 Greece's GDP up 3.4%
6.4 Costs & Benefits of Athens 2004 Olympics
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7: GENERAL NEWS AND INTEREST
*ISRAEL:
7.1 UN Elects Israel to Postal Council
7.2 Ramadan Begins on 1 September
*REGIONAL:
7.3 More Than 1 Million Jordanian Students Start School on 18 August
7.4 President Musharraf of Pakistan Resigns
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8: ISRAEL LIFE SCIENCE NEWS
8.1 VitiGam Inhibits Melanoma Growth in a Dose Dependent Manner
8.2 Pluristem's PLX-MS Shows Potential Benefit in the Prevention of Multiple Sclerosis
8.3 BrainsGate Raises $27.5 Million Financing Led by Johnson & Johnson
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9: ISRAEL PRODUCT & TECHNOLOGY NEWS
9.1 IDE Technologies to Supply €100 Million Desalination Plant to Australia
9.2 OTI to Supply ERG with Contactless Card Readers for Utah's Transit Payment Solution
9.3 AudioCodes Collaborates With Intelleca to Deploy VoIP Services
9.4 RADA Electronic Industries Receives $1.5 Million Follow-on Orders
9.5 AMIMON Makes IDX CAM~WAVE HD Camera Wire-free
9.6 Aladdin HASP SRM Adds Automatic File Wrapping to Secure IP in Java-Based Applications
9.7 Rafael Partners with General Dynamics in $37 Million Contract for Reactive Armor Production
9.8 SCD Awarded a Contract With DARPA for the Development of xBn Devices
9.9 Mellanox InfiniBand Accelerates Toshiba Medical's AquilionONE
9.10 Lucid HYDRA 100 Chip Series Available for Customer Validation
9.11 Voltaire Switches Drive World's Most Power-Efficient Supercomputers
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10: ISRAEL ECONOMIC STATISTICS
10.1 Israeli's CPI Rises by 1.1% During July
10.2 Israeli Technology Leads Continued Export Growth
10.3 Israel's Pharmaceutical Exports Increase
10.4 Tourist Arrivals On Pace For Record Year
10.5 Israel Railways Second Quarter Passenger Numbers Up 14%
10.6 Israel's January to July Car Deliveries Were Up 17.5% From 2007
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11: In Depth
11.1 ISRAEL: Effects on Capital Inflow of Israel's Joining the OECD
11.2 Arab Middle East Economy: Trading Places
11.3 LEBANON: Long on Hope, Short on Time
11.4 KUWAIT: Tensions Escalate in Hormuz
11.5 BAHRAIN: Women at Work
11.6 BAHRAIN: Best Yet To Come
11.7 UAE: Fitch Affirms Abu Dhabi at 'AA'; Outlook Stable
11.8 UAE: Abu Dhabi Rolls Out the Barrel
11.9 UAE: Northern Emirates - Private Supply
11.10 OMAN: Mining the Ceramics Industry
11.11 SAUDI ARABIA: IMF Executive Board Concludes 2008 Article IV Consultation
11.12 EGYPT: Fitch Changes LTFC Outlook to Stable; Affirmed at 'BB+'; Downgrades LTLC to 'BBB-'
11.13 MALTA: IMF Executive Board Concludes 2008 Article IV Consultations
11.14 TURKEY: Politics - the Great Escape or A Stay Of Execution?
11.15 TURKEY: Hopes for Calmer Political Sea
11.16 BULGARIA: Fitch Affirms Bulgaria at 'BBB'; Outlook Negative
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1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS
1.1 Coalition Parties Unite in Opposition to Kadima Budget
Ministers from Labor, Shas and the Gil Pensioners Party came out strongly against the two budget proposals presented by Minister of Finance Bar-On at the 17 August cabinet meeting on the budget for 2009, the first it has held so far. During the meeting Bar-On presented two options - a budget slanted toward defense and another in which priority would be given to welfare issues, but his proposals prompted Kadima's coalition partners to threaten a coalition crisis. Labor ministers made it clear before the meeting began that they were opposed to both proposals. They were later joined by their colleagues from Shas and the Gil Pensioners Party. With the primaries in Kadima less than a month away, the cabinet was also divided over the date for the approval of the budget by the government. Senior Kadima members said that party partisans, Labor and Shas were seeking a postponement in the budget in order to increase their bargaining power in the coalition negotiations following the election of the new Kadima leader. (Globes 17.08)
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1.2 Central Bank Defends Bank-Fee Reform
On 18 August, Supervisor of Banks Hizkiyahu defended the controversial bank-fee reform after the consumer price index for July showed a rise in the cost of banking services. Preliminary research conducted by the Banking Supervision Department shows that basic banking services fees, including management fees of checking accounts, have come down as a result of the bank-fee reform that came into effect at the beginning of July, the Bank of Israel's Banking Supervision Department announced. The bank-fee reform, which came into effect on July 1, was supposed to bring down fees. However, the consumer price index published on 15 August by the Central Bureau of Statistics revealed that the bank-services item of the index, which includes bank fees, rose by 16.2% in July. Despite this increase, and the public and media attention it is receiving, the rise was a negligible factor in the 1.1% jump in July's CPI, the Banking Supervision Department said. Bank fees account for 0.05% of the monthly inflation rate, it said. The bank-fee reform reduced the number of fees from 198 to 72; certain fees, such as for credit frameworks, were abolished altogether, but most fees on checking account transactions were raised. The Banking Supervision Department said the CBS figures were distorted since they are based on average fees across the sector, which do not yet take into account the reduction in the number of fees and trend to lower fees due to stronger competition among the banks. In addition, the department said, the CBS based its figures on the banks' fee/tariff schedule, but many customers are not paying the full rates, which are not reflected in the CBS calculation. (JP19.08)
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2: ISRAEL MARKET & BUSINESS NEWS
2.1 Carl Zeiss SMT acquires Pixer Technology - Pixer Technology Becomes Part of Carl Zeiss
Pixer Technology of Karmiel, Israel is to become part of Germany's Carl Zeiss. The two companies signed an agreement to this effect on 6 August. With this move, Carl Zeiss aims to further strengthen its position as a leading equipment provider for the semiconductor industry in the world market and expand its innovative product portfolio with the unique yield enhancement systems for photomasks developed at Pixer for semiconductor production. Organizationally, Pixer Technology will belong to the Semiconductor Metrology Systems (SMS) division. The transaction is scheduled to be finalized in Q3/08. Carl Zeiss SMT utilizes its globally leading know-how in light, electron and ion-optical technologies to offer its customers in the manufacturing industry and R&D a broad portfolio of products, services and application solutions. Carl Zeiss is a globally leading international group of companies in the optical and optoelectronic industry. Pixer Technology (http://www.pixertech.com) was founded in 2003 as spin-off of UC Laser. With deep expertise in semiconductor equipment manufacturing Pixer is specialized in photomask solutions. Based on its proprietary Shade-In Element technology the CDC system allows to correct illumination defects on photomasks. Galileo detects deterioration of quality on photomasks in an early stage preventing yield loss. (Pixer06.08)
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2.2 Tower Semiconductor & Jazz Technologies Announce Merger
Tower Semiconductor and Newport Beach, California's Jazz Technologies, a leader in Analog-Intensive Mixed Signal (AIMS) foundry solutions, announced that their previously announced proposed merger is progressing toward timely closing, currently expected in September 2008. Tower's registration statement on Form F-4, containing information relating to its proposed merger with Jazz, was declared effective by the Securities and Exchange Commission, clearing the way for a Jazz stockholder vote on the merger. The merger is subject to customary closing conditions, including the approval of majority of Jazz's common stock outstanding. Migdal Ha'Emek's Tower Semiconductor (http://www.towersemi.com) is an independent specialty foundry that delivers customized solutions in a variety of advanced CMOS technologies, including digital CMOS, mixed-signal and RF (radio frequency) CMOS, CMOS image sensors, power management devices and embedded non-volatile memory solutions. Tower's customer orientation is complemented by its uncompromising attention to quality and service. (Tower08.08)
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2.3 Israel's Osem to Buy Tribe Mediterranean for $57 Million
Osem Investments announced that its Tivall subsidiary has signed an agreement to acquire Taunton, Massachusetts' Tribe Mediterranean Foods Company for $57 million. Osem said the acquisition would be financed through its own funds as well as external funding. The company said it does not expect to have to make any substantial investments in Tribe in the near term. The deal is subject to regulatory approval. Osem said in a statement to the Tel Aviv Stock Exchange that Tribe had sales of $20.6 million in 2007, up from $17.9 million in 2006. Tribe has a 17% share of the Mediterranean chilled salad market in the United States. Osem (http://www.osem.co.il), 53.8% owned by Swiss food maker Nestle is one of Israel's largest food producers and exporters. Osem said the acquisition had the support and cooperation of Nestle with the aim of developing the chilled salad market in North America. (Osem14.08)
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2.4 Iberia Raises Capacity On Israel Route
Spanish carrier Iberia will reportedly increase its seating capacity on its Madrid-Tel Aviv route by 13%. Beginning in September, the airline plans to operate two weekly flights using Airbus 340s, and will make twelve other weekly flights using smaller planes. The Airbus 340s will also enable Iberia to boost its cargo capacity on the route to 70 tons a week. The airline expects to significantly increase freight haulage between Spain and Israel, and also between Israel and the rest of Europe, Latin America and the US. Iberia noted that the Airbus 340 is mainly used on long-haul and intercontinental routes. Use on a European route indicates the airline's confidence in its Israeli routes. Iberia added that, in the past three years, it has nearly quadrupled its seat capacity on the Madrid-Tel Aviv route. It carried 169,000 passengers on the route in 2007, up 19.2% on 2006. Some 132,000 of these passengers made connecting flights from and to other Iberia destinations, especially Buenos Aires, Sao Paulo, Mexico City and Rio de Janeiro. (Globes 18.08)
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2.5 Siano Raises $17.5 Million in Round C Funding To Expand its Mobile TV Markets
Siano Mobile Silicon has secured a third round of funding, of $17.5m. DFJ Tamir Fishman Ventures, the exclusive Israeli partner of the US based global venture capital - Draper Fisher Jurvetson (DFJ), led the round and was joined by all of the existing investors from previous rounds - JVP, Star Ventures, Walden Israel, Bessemer Venture Partners, and Inventec Appliances. Siano has now raised $52m, in three rounds of funding. The present financing round follows an eventful year for Siano, as the company expanded its footprint in the soaring Asian mobile TV market with the opening of offices in Korea and Japan, in addition to extensive activity in China that included the launch of its SMS1180 receiver chip, supporting the Chinese mobile TV technology that is currently making its debut at the Olympics Games. Netanya's Siano Mobile Silicon (http://www.siano-ms.com) provides integrated silicon receiver and antenna chips for the mobile digital TV (MDTV) market. Tailored specifically for handheld and mobile devices, the company's multi-standard solutions combine high performance with extremely low power and ease-of-design. (Siano Mobile Silicon13.08)
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2.6 US Airways Files Application to Operate Tel Aviv Service from Its Philadelphia Hub in 2009
US Airways applied to operate year-round service between its hub in Philadelphia and Tel Aviv, Israel. Linking the two sister cities with a daily nonstop flight, the service is set to begin in July 2009 and is subject to both U.S. Department of Transportation (DOT) and Israeli government approval. Tel Aviv makes the twenty-first trans-Atlantic destination served from its Philadelphia hub. At more than 5,700 miles, the Tel Aviv flight will be the longest nonstop segment in the US Airways network made possible by the delivery of new, longer-range A330-200 aircraft set for delivery in spring 2009. US Airways is the fifth largest domestic airline employing more than 35,000 aviation professionals worldwide. (USA19.08)
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3: REGIONAL PRIVATE SECTOR NEWS
3.1 CryptoMetrics Receives Contract from UAE for Nation-Wide Wanted Person Detection System
Tuckahoe, NY's CryptoMetrics, a leading global provider of critical infrastructure and key asset protection systems, announced a contract with the government of the United Arab Emirates (UAE) to deploy a state-of-the-art, face recognition-based wanted person detection system at Abu Dhabi International Airport. This installation represents the first phase of an anticipated nation-wide deployment in which CryptoMetrics is expected to implement the system at all points of entry to the UAE to proactively detect persons who are wanted or pose a threat to the State. This deployment makes the United Arab Emirates the first country to implement a proactive critical infrastructure protection and warning system using facial recognition on a comprehensive national basis. Financial terms of the contract between the UAE's Ministry of Interior and CryptoMetrics were not disclosed. CryptoMetrics delivers its technology to the Government of the UAE through BioDentity Systems, which was created to exclusively install and maintain CryptoMetrics critical infrastructure protection technology and systems in the UAE, GCC and MENA region. (CryptoMetrics 15.08)
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3.2 Quiznos Announces Significant International Expansion in Mid East
Denver based Quiznos, one of the nation's fastest growing quick service restaurant chains, announced that it will significantly expand its international restaurant operations. The chain announced agreements in the UAE and Saudi Arabia. In addition, Quiznos has recently completed deals in Eastern Europe and the Dominican Republic. Celebrating its 27th anniversary, Quiznos is a national chain designed for busy consumers looking for a tasty, freshly prepared alternative to traditional fast food restaurants. Using only premium quality ingredients, Quiznos restaurants offer creative, chef-inspired recipes for sandwiches, soups and salads. (Quiznos 19.08)
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3.3 Health Robotics New Exclusive Partnership for CytoCare in Turkey
King of Prussia, Pennsylvania's Health Robotics announced an exclusive agreement with Can-Med, a leading IV Solution provider and medical device company in the Republic of Turkey, in order to safely, accurately and cost-effectively automates the preparation of life-critical patient-specific Oncology IV Admixtures with Health Robotics' CytoCare. With its CytoCare Robot, Health Robotics has developed and deployed the world's first and only totally automated system for safe preparation of patient-specific Oncology IV doses. Health Robotics is the global leading supplier in the automation of life-critical intra-venous patient-specific medication preparation, compounding, and dispensing, providing health care facilities around the world with robotics and software automation solutions. The world-leading solutions CytoCare and IV Station have and will greatly contribute to ease global pharmacies' growing pressures to improve patient safety through the effective and efficient production of sterile, accurate, and ready-to-administer IVs, to decrease life-threatening medication errors and contamination risks, and to work more efficiently, increase throughput, reduce waste, and contain spiraling costs. (HR05.08)
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3.4 Elephant Talk to Enter Turkish Market
California's Elephant Talk Communications, an international telecom and multimedia content distributor, has obtained board approval to expand its international telecom network and converged services for information and communication technologies (ICTs) into Turkey. In addition to providing its wide range of telecom services to the attractive local market, Elephant Talk (ET) will also use this latest addition to service its current customer base wanting to expand into new and emerging markets. ET Turkey will be based in Istanbul to offer traditional telecom services, Mobile Virtual Network Operator (MVNO) and Mobile Virtual Network Enabler (MVNE) solutions, including streaming and data services. MVNEs provide infrastructure, systems integration and management services that enable MVNOs to offer services that improve relationships with their customers or end-users. (ET18.08)
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3.5 Direct Petroleum Announces Results of Initial Completion in Bulgaria
Denver, Colorado's Direct Petroleum Exploration (DPE) has finished the initial phase of the completion of its Deventci R1 gas discovery well in northern Bulgaria. Limited flow testing was undertaken on the high pressure Lower Jurassic Ozirovo zone on Sunday 17-August at the well site some 150 kilometers northeast of the capital, Sofia. Substantial gas and rich condensate flows were observed at the surface though no verifiable measurements were taken due to the limited availability of testing equipment for the high pressures encountered. The 12 hour shut-in tubing pressure was measured at 8,000 psi. The indicated BHP was ~ 11,500 psi. Flowback of the well was suspended, awaiting the arrival in September of specialized high-pressure testing and production equipment from the United States. The well is located on a geological feature known as the West Koynare Structure, measuring some 15 to 20 km2 in size as defined by seismic and DPE's proprietary ADD_HR geophysical technology. (DPE18.08)
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4: ISRAEL MACRO-DEVELOPMENTS
4.1 Israel Completes First Stage of OECD Membership Process
Israel has completed the first stage of joining the Organization for Economic Co-operation and Development (OECD). In this stage, Israel committed itself to adopting the accepted legal foundations for group members regarding policy, legislation and implementation, among others. In May 2007 the OECD invited Israel to start the accession process. Israel's target for meeting the organization's standards is the end of 2009. Finance Minister Bar-On said on 5 August that completing the first stage during a period of economic uncertainty highlights the Israeli economy's advantages. (Globes05.08)
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4.2 Lehman Impressed With Economy But Concerned With Shekel
Globes reported that Lehman Brothers recently announced that it is impressed with the Israeli economy and finds that shekel is poised to strengthen in the medium term. Nonetheless, it is concerned about the Bank of Israel's foreign currency purchases and the effect on the near-term value of the shekel. Its overall optimism is based on a strong current account and foreign direct investment, as well as strong local demand for shekels. Lehman notes that rental contracts are more often priced in shekels, providing a "structural flow" for shekels. Finally, Lehman notes that the high value added content of its exports and production has helped protect Israel's economy from global weakness. But despite the positive structural story, Lehman sees potential near-term weakness in the shekel. Nonetheless, it still recommends a long position in dollar-shekel trades, which implies the expectation that the shekel-dollar rate will fall in the medium term. The investment bank also notes that the dollar recovery "in the context of recovering risk sentiment could slow down the local selling of the greenback in favor of the shekel." (Globes 10.08)
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4.3 Environment Ministry Files Indictments for Air Pollution
The Ministry of Environmental Protection has filed indictments against Israel's three large energy companies, Paz Oil Company, Delek Israel Fuel Corporation and Sonol Israel and against executives at the companies, for delaying the installation of fuel fume reclamation systems at the companies' fuel depots in Haifa. The lack of these facilities causes air pollution and exposes employees to toxic gases. The indictments state that, in April 2003, the Ministry of Environmental Protection ordered the companies to comply with EU standards for reducing benzene emissions at fuel terminals. Benzene fumes contain toxic chemicals and carcinogens, as well as hazardous ground-level ozone. The companies asked the ministry to delay installation of the system until August 2005, which the ministry agreed to. However, the companies failed to comply with the deadline, even with the two-year postponement. (Globes 18.08)
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4.4 IEC Says Power Consumption Has Risen 163% Since 1990
According to the Israel Electric Corporation (IEC) environmental report for 2007, 70% of the electricity produced in Israel in 2007 came from coal, 10% from fuel oil and 20% from natural gas. The IEC, it appears to Globes, continues to lag behind the rest of the world not just in its method of production, but also its effort to reduce consumption. Between 1990 and 2007, for example, power consumption rose by 163%, and by 6% in the past two years alone. IEC stresses, however, that despite higher consumption, levels of toxic gas emissions have fallen. Emissions of sulfur dioxide, for example, fell 59%. Particle emissions fell 1%, but emissions of carbon dioxide, one of the causes of global warming, rose 6.5% in 2007, compared with 2006. The IEC attributed the lower emission levels to the switch to natural gas, which is a considered a fossil fuel, but causes less pollution. Another factor contributing to the fall in emissions is the switch to unleaded fuels at power plants such as the Orot Rabin plant at Hadera. Also contributing to the lower emissions was the installation of gas purification scrubbers which, according to the IEC, have a 90% efficacy rate and have made a vast improvement in the quality of air. As for the future, the IEC predicted that following completion of the building of the national gas pipeline from Dor to Hagit, and the new power plant at Gezer, use of natural gas will increase, reducing pollution levels in the process. The company did not, however, give any undertakings regarding the reduction of consumption or use of alternative energy in production. (Globes 18.08)
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5: ARAB STATE & PAKISTANI DEVELOPMENTS
5.1 Middle East Leads Way in US Investment
Research has shown the Middle East is now the leading foreign property investor in the US as buyers in the region take advantage of the North American housing slump. Multi-million dollar investments from buyers in the Middle East have seen the region overtake more developed countries to become the largest foreign investor in the US property market, The National reported on Thursday. Abu Dhabi Investment Council's 90% purchase of Manhattan's Chrysler Building for $800 million and Istithmar's $750 million purchase of the Fontainebleau Hilton on Miami Beach are two of the biggest recent deals. Middle Eastern buyers have already made at least $2 billion in US property purchases so far this year, putting the region ahead of foreign buyers from Australia and Europe, according to the latest data from the US consultancy, Real Capital Analytics (RCA) in New York. (AB07.08)
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5.2 Excellent First Half for Jordan in 2008
Despite rocketing prices of oil derivatives and essential commodities, Jordan maintained to dip foreign debt by 30% in the first half of 2008. Foreign debt shrank by 30% in June to $5.15b from $7.41b, which constitutes 28.5% of the Kingdom's gross domestic product. Foreign debt stood at $7.41b in 2007, representing 46.8% of the Kingdom's gross domestic product, the Ministry figures said, adding the internal debt increased by 35% in the first half of 2008 to reach $5.6b, representing 31% of the Kingdom's gross domestic product in 2008, whereas in 2007 the internal debt represented 26.2% of the Kingdom's gross domestic. The Ministry's figures showed that there was remarkable drop in the foreign and internal debt. It dropped by 7% in the first half to reach $10.76b. The debt recorded 60% of the estimated Kingdom's gross domestic product for 2008, whereas in 2007 it recorded 73%. (Petra07.08)
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5.3 Jordan & Canada to Sign Joint Free Trade Agreement
Jordan and Canada will initially sign a joint free trade agreement at the end of August and will be officially approved by the end of this year, Jordanian General Secretariat for the Ministry of Industry & Commerce Al-Aqla said on 5 August. The official said that positive outcome regarding a joint free trade agreement with Canada was reached during a second round of talks between 24 – 31 July, where he was a representative of the Jordanian side. The two sides agreed on cooperation in the labor sector, environment, health, and government commercial facilities, Al-Aqla said. The two sides also discussed lower custom taxes, he said, noting that the agreement will include a tax relief on Canadian goods upon the date of signing of the agreement. (Petra05.08)
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5.4 Jordan's King Abdullah Visits Iraq & Urges Arabs to Support
Jordan's King Abdullah II held talks on 11 August with Iraq's prime minister after arriving in Baghdad on an unannounced visit, the first by an Arab head of state since the US-led liberation toppled Saddam Hussein in 2003. Abdullah called on Arab governments to "extend their hand to Iraq" because a strong Iraq "is a source of strength for the Arab nation." King Abdullah had positive talks with Prime Minister Al Maliki on relations between the two countries. Al Maliki told the King that Iraq wanted to improve relations with all Arab countries. Ties between the two neighboring countries had been strained since the fall of Saddam because of Jordanian fears that Iraq's Shiite-led government was too friendly with Shiite-dominated Iran. Jordanian officials have been concerned about Iranian influence in Iraq and the loss of discounted oil, which Saddam once provided. Abdullah warned in 2004 about the emergence of a "Shiite crescent" including Iran, Iraq and Lebanon - remarks that angered Iraqi officials. Al Maliki visited Jordan in June for the first time in nearly two years, and since then, the two nations appear willing to put their differences behind them. During that visit, Al Maliki agreed to renew oil supplies to Jordan for the next three years at discounted prices. Jordan agreed to ease restrictions on the entry of Iraqi students and those transiting to a third country. Tens of thousands of Iraqis have sought refuge in Jordan to escape the sectarian violence that swept the country two years ago but has receded. Jordan has also named an ambassador to Iraq, joining other Arab countries that have agreed to upgrade their relations as the Iraqi government becomes more stable and security has improved, despite sporadic attacks and ongoing military operations. (AP12.08)
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5.5 Analysis of Jordan's Pharmaceuticals and Healthcare Industry
Research & Markets has announced the addition of the "Jordan Pharmaceuticals and Healthcare Report Q3 2008" report to their offering. Jordan's pharmaceutical market is small at $339mn in 2007. Expenditure on pharmaceuticals should grow at an average of 7.2% year-on-year over the forecast period (2008-2012) to reach a value of $480mn by the end of 2012. The prospects for GDP-beating drug market growth will be constrained by the fact that the country already devotes a high proportion of GDP to healthcare and the pharmaceutical sub-sector compared to its regional peers (2.2% in 2007). A key reason for high pharmaceutical expenditure relative to wealth in Jordan is high drug prices. One solution that the government is reportedly considering in order to lower prices is the removal of import duties and sales tax from medicines. However, over the longer term, BMI expects a trend away from a traditional reliance on patented drugs. The preference for patented drugs has been exacerbated by the practice of prescribing by brand name, something that the government is likely to take steps to remedy, so increasing generic penetration.
Despite the strength of local pharmaceutical manufacturing, the domestic drug market remains reliant on imports for over 80% of demand. This figure highlights the lack of therapeutic reach of the domestic industry, with most local drug makers remaining focused on the manufacture of basic medicines. Problems are exacerbated by a lack of R&D expenditure by Jordanian companies. On the export market, Jordan's pharmaceutical industry continues to perform better. Indeed, it is the only Arab country with a positive pharmaceutical balance of trade. Led by Hikma Pharmaceuticals, Jordan's domestic industry exports much of its output to the Middle East, so should continue to benefit from strong growth in the regional pharmaceutical market, particularly the oil-fuelled economies of Saudi Arabia and the UAE, and the emerging generics market of Algeria in north Africa. Jordan's health sector continues to struggle under the weight of a significant number of Iraqi refugees, who have fled the instability in neighboring Iraq. It is estimated that at least 500,000 Iraqi refugees have settled in Jordan since the beginning of the conflict in 2003, adding around 8% to Jordan's population. In early 2008, the government estimated that it would need $248mn to build clinics and expand hospitals in Amman, Irbid and Zarqa in order to cope with the high numbers of refugees in these areas. (R&M12.08)
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5.6 Giant "Kurdistan Gas City"
The Kurdistan Regional Government (the Kurdish autonomous region in northern Iraq) announced the designation of 461 million square feet of land for the construction of "Kurdistan Gas City" to be developed by an UAE company jointly owned by Dana Gas and Hilal Petroleum, also of the UAE. The new city is considered an industrial project that would take advantage of the huge quantities of natural gas available in the area. The project calls for the establishment of integrated petrochemical and heavy industries operated by natural gas. The new industries will create tens of thousands of new jobs and benefit the entire area economically. The new city will also include residential units and commercial facilities. The initial infrastructure is estimated to cost $3b designed to eventually attract foreign direct investment of $40b. Dana Gas has been active in Kurdistan since April 2007. It is constructing 2 plants for liquefied natural gas as well laying a network of 110 miles of pipelines for the transport of the LNG. The Kurdistan Gas City will be officially launched on 21 September 2008. (Al-Sharq29.07)
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5.7 Persian Gulf to Replace Import Duty System
The six-nation Gulf Cooperation Council plans to end its system of charging import duty for the country of final destination and may replace it with a simpler mechanism. The new system will be in place and all issues concerning a GCC customs union will be completed by the end of this year. The customs union has been beset by problems that have stopped it from being fully implemented since it was first introduced in 2003. A proposed Gulf single currency is dependant upon the formation of a Gulf common market, which, in turn, relies on the successful implementation of the customs union. The customs union stipulates that goods coming into the Gulf are charged at a consistent tariff of 5% and can move around freely among the six member states. Under the current system, import duty is collected at the port of entry and is forwarded to the country of final destination. The UAE, Saudi Arabia, Oman and Kuwait are backing a proposal to allow the country where the goods arrive to keep 95% of the duty paid and distribute the remaining 5% to the other Gulf states based on a pre-determined formula. Approximately 3% of GCC customs duties are currently redistributed under the final destination system. The UAE paid $570m to its GCC neighbors under the final destination system in 2007. Other outstanding issues, such as a list of goods on which countries can charge more than five% tariff, will be completed by the end of the year. (GN18.08)
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5.8 Kuwait Sees Iraq Budget Surplus & Wants Debt Repaid
Kuwait announced on 9 August that since fellow oil exporter Iraq is likely to report a budget surplus in 2008, it should then repay its debts. The debt, estimated at $15-16b, represents loans Kuwait made to Baghdad in the Saddam Hussein era, mostly during the 1980-1988 Iraq-Iran war. Kuwait said it would not allow debt repayment to become a burden on Iraq, but reiterated that only the Kuwaiti parliament could write off such debt. Several Kuwaiti deputies oppose debt forgiveness as many Kuwaitis are still bitter about Saddam's 1990 invasion of their country. The United States has, since liberating Iraq in 2003 from Saddam, been pressing its Arab allies to forgive Iraq's debts and restore top-level diplomatic ties. The United Arab Emirates waived all of Iraq's almost $7b debt to the UAE last month. Kuwait named its ambassador to Baghdad last month. (AB09.08)
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5.9 Kuwait Allows Co-Ops to Import Products
Kuwait is allowing cooperative supermarkets to import products directly from the source in an effort to cut costs as the Gulf state battles inflation. Minister of Commerce & Industry Baqer has already unveiled a package of measures including higher subsidies on basic food items, in an effort to curb inflation that held above 11% in April and May. Cooperative supermarkets, where nationals can buy subsidized food under a special card scheme, are now allowed to import commodities directly, cutting out wholesale importers in an effort to reduce prices at the till, according to a decree published in the official gazette. The Union of Cooperative Consumer Societies would also collect orders from its members to get better prices in bulk and report unjustified price increases in its stores. Baqer had said earlier the country could work with Gulf states to invest in food production and farming abroad. (Reuters11.08)
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5.10 Bahrain Clampdowns on Fake Degrees
Strict checks in Bahrain have kept the door closed on bogus degrees, it was declared on 17 August. The Higher Education Council said that it had not received any bogus degrees under its accreditation system. The council, which is responsible for accrediting degrees, says that every submission is evaluated according to strict regulations. This comes after 10 people from Bahrain appeared on a US government watchlist accused of buying counterfeit college and university degrees. They were among 10,000 people who spent $7.3m between them purchasing qualifications from a so-called 'degree mill' based in Washington. Among those implicated are hundreds of people with links to the US military, educational institutions, government and security agencies such as the CIA. All higher education degrees issued outside the country are presented to the National Committee for Degree Evaluation. Media reports say the buyers paid anything from a few hundred dollars for bachelor's and master's degree and up to $7,770 for a PhD (doctorate). However, some of those on the watchlist claim to have spent time studying and submitting assignments and say they have been the victims of an elaborate con. (TradeArabia 18.08)
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5.11 UAE Invites Bids For Nuclear Power Project
The UAE's Emirates Nuclear Energy Corporation (ENEC) has invited bids by September 7 from pre-qualified firms for the contract to manage the country's nuclear power program. The contract is expected to be awarded by the end of 2008. Top government officials who were contacted by Gulf News, however, declined to comment on the report that appeared in MEED. Prospective bidders for the contract are US-based companies Bechtel, CH2M Hill, Fluor with Sargent & Lundy and PB Power, as well as Australia's WorleyParsons. The UAE is poised to join the ranks of nations generating nuclear power for peaceful purposes by the end of the next decade. Hamad Al Ka'abi was appointed the UAE's ambassador to the International Atomic Energy Agency this year as part of the country's intention to launch a nuclear program for power generation. ENEC was created to oversee the development of the UAE's nuclear power plants. (GN16.08)
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5.12 UAE Among World's Top 30 Importers
The UAE has become the first Arab country to enter a top 30 nation list of world's largest services importer, according to official figures. Both the UAE and Saudi Arabia were also on the list of the world's top exporters of goods following a sharp increase in their crude and non-oil exports in 2007, the report by Kuwaiti-based Inter-Arab Investment Guarantee (IAIGC), an Arab League affiliate, revealed. The US topped the list of services importers, with a value of around $336b or 11%, followed by Germany with a value of $245b and a share of about eight%. Britain came third, with around $193b and a share of 6.3%. The report also showed the UAE was the world's 28th largest importer of goods, with a value of around $121b and a share of 0.9% of the total global imports last year. In exports, the UAE was ranked 24th on the list of top 30 exporters of goods, with an export value of $154b and a share of 1.1%. (AB08.08)
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5.13 UAE to Embark on Large-Scale Dam-Building Project
The UAE will build 68 dams over the next five years to meet increasing water demand. Deputy Minister of Water & Soil Affairs Al-Mulla, was reported as saying that the ministry was preparing a new federal law draft to protect the country's water resources in a bid to meet the future water demand. Al-Mulla did not give a figure for how much would be spent on the new dams. The UAE now has 140 dams. He said that in future, industrial and agricultural sectors would be supplied with treated waste water rather than desalinated water as part of an improved waste water management policy. The Ministry believes that the major consumers of the UAE's water resources are the agricultural and industrial sectors. The aim is to use desalinated water only for domestic purposes. (GN13.08)
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5.14 Dubai Warning On Gas Emission
Dubai Municipality has asked all companies working in the air conditioning and refrigeration industry to abide by the rules concerning gas emission. The Environment Department of the municipality has sent out a circular to the companies urging them to adhere to the UAE Federal Decree 72/2004, and the Environment Department Technical Guideline No. 58 on the prohibition of venting of refrigerant gas used in air conditioning and refrigeration systems. The circular asked the companies to adequately collect, handle and dispose all waste refrigerants which are considered controlled substances. They should do this in line with the Material Safety Data Sheet (MSDS) instruction and directive or advice from the department, a statement said. It further asked them to obtain approval from the Environment Department for activities related to air conditioning and refrigeration system maintenance and services. These companies, the circular stipulated, should have trained technicians and recovery equipment to make sure that refrigerants are recovered and/or recycled for reuse, reprocessed (reclaimed), or properly disposed of whenever removed from air conditioning and refrigeration systems. It warned of legal actions including fines and license cancellation in case of violation of these rules. (TradeArabia 14.08)
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5.15 Oman Inflation Close To 14%
The Oman Ministry of National Economy announced that inflation in Oman rose to a record near 14% in June as increasing food prices and a currency peg to the weak US dollar pushed costs in the Gulf state higher for a 14th consecutive month. Food, beverage and tobacco costs, which account for almost a third of the consumer price index, jumped by 23.7%. Inflation is soaring across the world's biggest oil-exporting region, where economies that have boomed on the high price of oil are being hit by higher import costs. Inflation, which hit 13.73% in June, has been accelerating since May 2007, with the consumer price index jumping to 125.1 points on June 30, compared with 110 points a year earlier, ministry data showed. Oman and most of its neighbors, including Saudi Arabia, peg their currencies to the US dollar, which is driving up import costs. Currency weakness is only part of the problem, as countries across the world suffer from high global commodity prices. Rents, which account for just over 15% of Oman's index, eased to 14% in June from 16.6% in May, the data showed. The central bank's deputy chief said in July inflation had probably hit its peak at a record 13.2% and is likely to stabilize as the impact from a global food crisis wanes. (AB10.08)
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5.16 Private Sector Companies in Oman Urged To Adopt Five-Day Week
Following closely after the Manpower Ministry's appeal to young Omanis to take up jobs in the private sector, the Chairman of the Oman Chamber of Commerce and Industry (OCCI) has urged the sector to make its option attractive by adopting a five-day week. It is felt that the five-day week would not only support the government efforts to nationalize jobs but help increase the private sector's contribution to the Omanization drive. The preference is for two days off on Fridays and Saturdays for the private sector. The Oman Chamber of Commerce and Industry (OCCI) has already implemented a five-day week. The Saud Bahwan Group, a major automobile player in the country, has already started working five-days a week from this month. According to the new schedule, the group's corporate offices work from Sunday to Thursday with Friday and Saturdays being a weekend holiday and have a straight working shift from 8.30am to 6pm with a half-hour lunch break. Earlier this year, the Zubair Group also adopted a five-day week and many others are expected to follow suit. (AB03.08)
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5.17 Saudi Nuclear Plan Gets Green Light
The Saudi Arabian cabinet has decided to approve the country's agreement with the International Atomic Energy Agency (IAEA) on the protocols and application of safeguards under the Nuclear Non-Proliferation Treaty. The Saudis established their Atomic Energy Research Institute in 1988 to conduct research for declared peaceful purposes. In December 2006, Saudi Arabia and the other members of the GC - Gulf Cooperation Council (Kuwait, Qatar, Bahrain, the UAE and Oman) announced that they were setting up a commission to study the peaceful uses of nuclear energy. For technical expertise most of GCC countries turned to France and not their traditional ally, the US. While it might seem strange that the world's largest producer of oil and the one believed to have the largest oil reserve would need nuclear power to supply the county with electricity, many analysts say that with crude oil prices at record levels it makes economic sense to sell the oil abroad and use nuclear power at home. (AN16.08)
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5.18 Egypt Suez Canal Revenue Soars To $490 Million
Egypt's revenues from the Suez Canal rose to $490m in July 2008 from $406.3m in the same month last year, the government said on 13 August. The canal is an important source of foreign currency for Egypt, along with tourism, oil and gas exports and remittances from Egyptians living abroad. The number of vessels passing through the waterway rose to 1,854 in July from 1,819 in June and 1,761 in July 2007, the government said. (Reuters13.08)
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5.19 Inflation in Egypt Hits Highest Level Since 1992
Rising food prices drove Egypt's urban inflation to 22% in the year to July, the highest since January 1992, according to the state-run statistics agency CAPMAS said on 10 August. Urban inflation stood at 20.2% in the year to June. Monthly inflation rose 2.2%, compared to 0.6% in June. The Egyptian Central Bank raised its key overnight interest rates for the fifth time this year on 7 August by 50 basis points to tame inflation, bringing the rates to 11% for deposit and 13% for lending. Investment bank EFG-Hermes said the central bank was likely to allow the Egyptian pound to appreciate against the US dollar "as a more effective means of addressing inflation. The pound has gained more than 7% against the US dollar since the start of 2007. With the economy growing at its fastest pace in decades, rising inflation has emerged as a tough challenge for the government in a country that has a low per capita income and high poverty rate relative to other Middle East nations. Soaring food prices triggered violent protests in some areas in the country this year. This prompted the government to raise public sector salaries by 30% and then nudge up fuel prices to finance the wage increase. Price rises in urban food and beverages, which slowed down in the month to June at a rate of 0.8%, accelerated again in July to a rate of 3.1%. Egypt has responded to public anger over inflation by making more cheap food available on a ration card system. Food inflation has hit the poor especially hard because many of them spend more than half their income on food. Prices for transport in urban areas, which stabilized in June, rose 1.7% in the month to July, while urban telecommunication inflation stood at 5.3%. Prices in the country as a whole, an indicator released every two months, rose 23.1% in the year to July, from 21.1% in the year to May. In the countryside, inflation rose to 24.3% in the year to July, from 22.9% two months earlier. (AB10.08)
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5.20 Egyptian Pharmaceuticals & Healthcare Industry
Research & Markets has announced the addition of the "Egypt Pharmaceuticals and Healthcare Report Q3 2008" report to their offering. Egypt's pharmaceutical market is a relatively unattractive prospect. Tough pricing regulation limit the market's potential, despite its size and government plans to roll out basic universal health coverage. In 2007, BMI estimates that drug expenditure was $1.75bn. By 2012, we expect the market to be worth more than $2.73bn. However, expectations that the Egyptian pound will strengthen further against the US dollar over the forecast period and significant price inflation serve to limit market growth in real terms. Local currency growth should average 5.5% a year between 2008 and 2012 – primarily driven by expanded basic government healthcare coverage.
Indeed, one of Egypt's leading drug-makers, the Egyptian International Pharmaceutical Industries Company (EIPICO), has decided to locate more production abroad to counter the effects of tough pricing regulation in its home market. EIPICO has a strong presence in Middle Eastern export markets, but has increasingly found that restrictive pricing in Egypt has translated to make for a tough export climate. Not only has a strong Egyptian pound squeezed profit margins, but countries that insist products are not priced higher than in their country of origin has made it difficult for EIPICO to continue its remarkable profitability. As a consequence, EIPICO is exploring the possibility of building factories in Saudi Arabia and Algeria.
Unsurprisingly, Egypt performs poorly in BMI's Business Environment Ratings. For Q3/08, the country is again ranked in 11th place of the 13 Middle East and Africa (MEA) markets surveyed. The country scores particularly poorly in the market risks category due to its restrictive pricing policy. As foreseen by BMI, a bright spot for the country's regulatory environment came with the announcement that Egypt was downgraded from the USTR Special 301 report Priority Watch List to the Watch List in the organization's 2008 report. Cairo remains committed to its goal of achieving basic universal healthcare by 2010. The formidable task of healthcare system modernization should prove a welcome boost for the healthcare industry as a whole. The medical device market, for which BMI provides five-year forecasts for the first time in Q3/08, is poised to benefit from improvements in the healthcare system. Indeed, we expect the medical device market to grow at close to 10% a year over the forecast period - significantly faster than the pharmaceutical market. (R&M12.08)
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5.21 Algeria's Pharmaceuticals and Healthcare Industry 2008, Q3
Research and Markets announced the addition of the "Algeria Pharmaceuticals and Healthcare Report Q3 2008" report to their offering. Algeria is the second-largest African country by territory, and one of the key markets on the continent. While the standard of healthcare provision across the country is uneven, the market's relatively large size (Algeria's population is in excess of 34mn), high dependence on imported medicines and steady forecast growth are key attractions. By 2012, BMI forecasts that the market value will top US$1.26bn, with an average annual growth of around 6%. Generics will continue to represent the bulk of consumption in terms of volumes, although improving conditions for multinationals will gradually result in the further erosion of their market value share by patented drugs.
Algeria has been included in BMI's Business Environment Ranking table for Q308 for the first time, sharing 11th place with its North African peer, Egypt. Algeria is found above all the other African markets in the table, namely Kenya, Nigeria and Zimbabwe – bar the more advanced market of South Africa. Algeria's score for risks to potential returns is negatively impacted by the government's progenerics stance and some shortcomings of the country's intellectual property rights (IPR) regime. In addition, the country's excessive red tape and corruption are also viewed with concern, as are certain macroeconomic indicators. On a positive note, the forecast pharmaceutical value growth and rising numbers of urban dwellers are factors in favor of local investment, as is the fact that the country is making progress towards World Trade Organization (WTO) membership. Illustrating the above situation, local press in October 2007 revealed that French pharmaceutical major Sanofi-Aventis is considering creating a local manufacturing facility in Algeria, which would be engaged in the production of generic medicines. Although no further details have been revealed, it is known that Sanofi-Aventis continues to record annual growth rates of over 10% in Algeria. Pharmaceutical market growth over the next five years will be stimulated by the continuation of the $2bn healthcare modernization 2005-2009 program, which envisages the building of numerous hospitals and clinics. Authorities are aiming to improve healthcare access, with adequate provision of health services being a challenging proposition, given the vast inhospitable areas of the country. Additionally, the World Bank has warned that projects should be implemented gradually and that the government should return to the viable level of spending for the longer term. (R&M12.08)
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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS
6.1 Turkey Rejects a Precondition for an IMF Agreement
Turkey has rejected a precondition of a potential stand-by deal with the International Monetary Fund requiring it to reverse recent moves towards additional expenditures. The IMF had asked the government to revoke investment decisions increasing spending and implementing new taxes that would create new financing to compensate for the expenditures. Turkey's economy minister said a precautionary stand-by deal would be the most appropriate agreement and that Turkey did not need the financial resources of the IMF, adding it would be more difficult to reach an agreement if the IMF insists on preconditions. The new deal is expected to be signed by mid-October. The Turkish government had decided to cut social security premiums by 5% to promote new investments and employment as well as to create a financial source for agricultural investments in the country's poorer southeastern region. The government allocated $1.94b for the Southeastern Anatolia Project, or GAP, and $760m to local administrations. The cut in social security premiums would create a loss of $321m in income. Turkey would also pay a total of $380m in aid to drought-hit farmers. According to official figures, such decisions would add $3.37b to the government's spending. A precautionary stand-by arrangement allows for a fair degree of IMF oversight of fiscal policy but only provides financing in emergencies, unlike the agreement that expired in May in which the $10b was guaranteed. (TDN13.08)
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6.2 Turkey to Renew Railways With Two-Way System
The Turkish State Railways (TCDD) has entered a new era in the country's 100-year-old railway system by proceeding with a project to lay a second track next to the country's current one-way railroad as part of efforts to retrofit the system. The Ministry of Transportation decided to upgrade the country's railway system, a project that has been postponed for many years, after observing the success of double lane highways in the country, which were constructed after the Justice and Development Party (AK Party) came to power in 2002. All new railways to be constructed will have two sets of tracks, as is the case with the Ankara-Istanbul and Ankara-Konya high-speed train tracks. The project also involves improving the current railway network by constructing a second railway track alongside current tracks. The first phase entails the maintenance and renewal of the current tracks. The second phase involves the electrification of the lines and an improvement of the signal system. The final phase will see the laying of an additional track. Once completed, the project is expected to double the freight transportation capacity. The Ministry of Transportation has developed predictions for three, five and 10-year investment plans as part of the TCDD's modernization project. If $8.3b is invested in the railway network, the TCDD will save $253m over three years from personnel costs alone. Likewise, if the Ministry of Transportation invests $10.7b, the TCDD will save $410m in personnel costs over five years. This figure would increase to $467m over 10 years. (Zaman14.08)
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6.3 Greece's GDP up 3.4%
The Greek Gross Domestic Product (GDP) increased by 3.4% in Q2/08, compared to last year's corresponding period, the National Statistics Service (ESYE) announced on 11 August. Investments during the same period fell by 2.8% compared to the 2007 corresponding period. Exports increased by 3.7%, while imports decreased by 3.8% in the same period, ESYE said. (ESYE11.08)
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6.4 Costs & Benefits of Athens 2004 Olympics
Four years have passed since the Olympic flame burned in Athens' Olympic Stadium, heralding the start of the last Summer Games. In the run-up to that memorable occasion, Athens enjoyed a construction boom not seen since the Periclean age. The rush of spending gave the capital a lavish, brand-new infrastructure. Athens made particularly huge strides in transportation, with a state-of-the-art airport, a modern subway system, a commuter rail system, a metropolitan tramway and a beltway. Urban planning scholar Giorgios Tziralis credits those improvements with reducing pollution and boosting economic growth. Moreover, construction crews racing the clock built a plethora of stadiums and support facilities. Other Athenians turned their energies to the private sector, renovating most local hotels and replacing dilapidated taxis. All three major domestic telecom firms established a universal mobile telecom system for the benefit of incoming tourists.
Most Greeks look back at this era with nostalgia and pride. They perceived hosting the 2004 Games as rightful recompense for being outbid in 1996 (the centennial of the modern Olympics) by Atlanta. However, they must wrestle with the staggering cost, officially put at €11.2b, but possibly much higher. Security alone for the first post-9/11 Games cost €1b. Another host city, Montreal, needed 30 years to pay off the deficit it incurred from the 1976 Olympiad.
The major problem was and still is the use of the costly infrastructure that Athens inherited. The organizing committee rejected Atlanta's option of building temporary facilities that could be rapidly dismantled. Instead, it went the more expensive route of building state-of-the-art stadiums, such as the 50m-euro weightlifting arena. The government, now faulted by many for poor post-Olympiad planning, has found unlikely tenants for some of the buildings. There are plans to convert that weightlifting arena into university classrooms, and the badminton arena is now a 2,000-seat theatre. But other facilities, such as the pool, are abandoned or nearly so, and the open area around the principal complex remains barren and dusty, causing Tziralis to muse about the value of placing a "large park" there. The debate boils down to whether the intangible benefits outweighed the bill to Greek taxpayers. Those who point to the gains see a "coming-out party" resembling that for previous host cities, such as an economically ascendant Tokyo in 1964 or a democratizing Seoul in 1988. Athens sought to shake off its image as the capital of the EU's poorest Western member and by all accounts successfully hosted the world's greatest sporting event. Foreign Minister Dora Bakoyannis, Mayor of Athens at the time, believes it was "worth it". Now it is Beijing's turn to ponder the same equation. (HMN15.08)
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7: GENERAL NEWS AND INTEREST
*ISRAEL:
7.1 UN Elects Israel to Postal Council
For the first time in the history of the organization, the Postal Operations Council of the United Nations' Universal Postal Union elected the Israel Postal Service to serve on its professional decision-making body. Israel has been a member of the Universal Postal Union since December 1949. The Postal Operations Council makes decisions relating to international postal services, financial issues and setting standards in quality of service. Israel will serve on the council for four years. The election of Israel to international organizations is virtually impossible due to the anti-Israeli atmosphere generally prevailing in the United Nations institutions. Thus, every vote won is the result of a complex process of bilateral negotiations in the multilateral context. Israel's election by almost 90 votes is the result of almost two years' work, and of cooperation between the Israel Foreign Ministry, the Israel Postal Company and the Ministry of Communications. (IsraelNN11.08)
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7.2 Ramadan Begins on 1 September
Ramadan in 2008 will start on Monday, 1 September and will continue for 30 days until Tuesday, 30 September. It is the ninth month of the Muslim calendar. The Month of Ramadan is also when it is believed the Koran was sent down from heaven. Fasting is one of the Five Pillars of the religion of Islam and one of the highest forms of Islamic worship. Abstinence from earthly pleasures and curbing evil intentions and desires is regarded as an act of obedience and submission to God as well as atonement for sins, errors and mistakes. Muslims fast during Ramadan from the moment when it first starts to get light until sunset. Muslims fast as an act of faith and worship towards Allah, seeking to suppress their desires and increase their spiritual piety. Fasting together as a worldwide community - Ummah - affirms the brotherhood and equality of man before Allah. This fast lasts the entire month. Ramadan is a time when Muslims concentrate on their faith and spend less time on the concerns of their everyday lives. It is a time of worship and contemplation. During the Fast of Ramadan other strict restraints are also placed on the daily lives of Muslims. They are not allowed to smoke and sexual relations are also forbidden during fasting. At the end of the day the fast is broken with prayer and a meal called the iftar. In the evening following the iftar it is customary for Muslims to go out visiting family and friends. The fast is resumed the next morning. It is also a period in which business activity is significantly slower and usually no major business decisions are taken.
The last ten days of Ramadan are considered highly blessed, especially the 27th night which is also called the 'Night of Power', or the 'Night of Destiny'. It is believed that on this night the prophet Muhammad received the first revelation of the Koran. For many Muslims, this period is marked by a heightened spiritual intensity and they may spend these nights praying and reciting the Koran. After 30 days of fasting, the end of the month of Ramadan is observed with a day of celebration, called Eid-el-Fitr.
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*REGIONAL:
7.3 More Than 1 Million Jordanian Students Start School on 18 August
On 18 August, some 1.129 million students from all parts of Jordan began their 2008/2009 scholastic year. Secretary General of the Education Ministry for Administrative and Financial Affairs Asfour said the ministry had taken all administrative and technical measures to receive students at all schools. Asfour added that the ministry will employ around 4,100 teachers, adding the ministry's needs of teachers this scholastic year stands at 5,100 teachers. The ministry, he said had received 31 new schools that could accommodate 28,000 students, noting it will also receive 4 new schools over the next two months. (Petra17.08)
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7.4 President Musharraf of Pakistan Resigns
Under pressure over impending impeachment charges, Pakistani President Pervez Musharraf announced that he would resign on 18 August, ending nearly nine years as one of the United States' most important allies in the campaign against terrorism. Speaking on television from his presidential office, Mr. Musharraf, dressed in a gray suit and tie, said that after consulting with his aides, "I have decided to resign today." He said he was putting national interest above "personal bravado." Mr. Musharraf said the governing coalition, which has pushed for impeachment, had tried to "turn lies into truths." His resignation came after 10 days of intense political maneuvering in Pakistan and cleared the way for the four-month-old coalition government to choose a new president by a vote of Parliament and the provincial assemblies. But there were intense concerns in Washington that Mr. Musharraf's departure would open a new era of instability in Pakistan, a nuclear-armed country of 165 million people, as the fragile coalition jockeys for his share of power.
Mr. Musharraf, 65, will stay in Pakistan in the immediate future, a condition he had insisted on. The ruling coalition, led by Asif Ali Zardari, the leader of the Pakistan Peoples Party, and Nawaz Sharif, the chairman of the Pakistan Muslim League-N, were to meet in Islamabad to discuss the way forward. The senior leaders of the coalition immediately began deliberations, but there were few indications of who the next president would be. According to the Constitution, a new president must be chosen within 30 days. The choice will be made by an electoral college of the parliament and four provincial assemblies. Mr. Musharraf leaves office as the Taliban insurgency in the tribal areas has taken on renewed vigor, prompting civilians to leave their homes there and pitting the paramilitary Frontier Corps, directed by the army, directly against the insurgents. (Various18.08)
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8: ISRAEL LIFE SCIENCE NEWS
8.1 VitiGam Inhibits Melanoma Growth in a Dose Dependent Manner
GammaCan International announced further progress in its VitiGam development program. In preparation for its upcoming IND submission for VitiGam, the Company successfully completed additional experiments using its established mouse melanoma model. These studies demonstrate a dose response of tumors (human melanoma cells) when treated with IgG preparations derived from vitiligo donors. In addition, the Company has conducted a meta-analysis (a statistical analysis of a large number of experiments) based on a series of previously announced studies with its mouse melanoma model. The results of this meta-analysis further confirm the effectiveness against melanomas of IgG preparations derived from vitiligo donors. The Company also conducted a meta-analysis to further confirm the overall effectiveness of vitiligo-derived IgG preparations against melanoma cells. This analysis revealed a specific and highly statistically significant inhibition of tumor growth in mice treated with vitiligo-derived IgG preparations.
Kiryat Ono's GammaCan (http://www.GammaCan.com) develops proprietary immunotherapy and related approaches to treat melanoma and other cancers. GammaCan's patented platform technology is based on the use of IgGs (gamma-immunoglobulins), a safe, relatively non-toxic human plasma-derived 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. Many experts currently view immunotherapy as a future alternative to chemotherapy. (GammaCan11.08)
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8.2 Pluristem's PLX-MS Shows Potential Benefit in the Prevention of Multiple Sclerosis
Pluristem Therapeutics announced that the Company's PLacental eXpanded (PLX-MS) cells have demonstrated in vivo efficacy in the prevention of Multiple Sclerosis (MS). PLX cells are Pluristem's placental-derived mesenchymal stromal cells (MSCs) that have been expanded in the Company's proprietary PluriX 3-D bioreactor. In a further analysis aiming to demonstrate the in vivo efficacy of PLX-MS cells for the prevention of MS, Experimental Autoimmune Encephalitis (EAE) was induced in mice via immunization with the MOG35-55 protein on day 0. EAE is an autoimmune inflammatory disease of the CNS that represents the paradigmatic model for MS. The animals then received, on day 8, intravenously either PLX-MS or PlasmaLyte, which served as a control. PLX-MS administration prevented the appearance of clinical symptoms and signs associated with MS throughout the 35-day study period compared to those animals receiving the control. Additionally, the beneficial effects were similar to when Zappia et. al. used MSCs that were non-placental in origin in this EAE animal model.
Haifa's Pluristem Therapeutics (http://www.pluristem.com) is a bio-therapeutics company dedicated to the commercialization of non-personalized (allogeneic) cell therapy products for the treatment of several severe degenerative, ischemic and autoimmune disorders. The Company is developing a pipeline of products, stored ready-to-use, that are derived from human placenta, a non-controversial, non-embryonic, adult stem cell source. Pluristem's first product in development, PLX-PAD, is intended to improve the quality of life of millions of people suffering from peripheral artery disease (PAD). The Company's products in development also include PLX-BMT, targeting the global shortfall of matched tissue for bone marrow transplantation (BMT) by improving the engraftment of hematopoietic stem cells (HSCs) contained in umbilical cord blood; PLX-STROKE, targeting ischemic stroke; PLX-MS, targeting Multiple Sclerosis; and PLX-IBD, targeting Inflammatory Bowel Disease (IBD), which includes Crohn's disease and Ulcerative Colitis. (Pluristem11.08)
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8.3 BrainsGate Raises $27.5 Million Financing Led by Johnson & Johnson
BrainsGate completed a $27.5 million series C financing round in which both new and existing investors participated. Johnson & Johnson Development Corporation (JJDC) led the round, joined by Israeli VC-Fund Agate Medical Investments. Prominent existing investors who also participated in the current round included Elron Electronic Industries, Pitango Venture Capital, MB Venture Capital and Alice Lab. Caesarea's BrainsGate (http://www.brainsgate.com) is a developer of a novel therapeutic platform based on electrical neuro-stimulation of the Spheno-Palatine Ganglion (SPG). BriansGate's leading indication is acute ischemic stroke with a 24 hour treatment window. The company is nearing completion of a multi-national multi-center pilot clinical study which to date has recruited over 90 stroke patients, and is about to initiate a pivotal study to gain market approval for its stroke therapy. (BrainsGate13.08)
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9: ISRAEL PRODUCT & TECHNOLOGY NEWS
9.1 IDE Technologies to Supply €100 Million Desalination Plant to Australia
Kadima's IDE Technologies, jointly owned (50:50) by The Israel Corporation Group subsidiary Israel Chemicals and the Delek Group, signed a contract to supply a desalination plant worth over a €100 million to a major industrial client in Australia. The client will use the desalinated water for its production processes. Slated for completion during 2010, the new plant will be based on reverse osmosis technology - a modern process technology used for desalinating water in a wide range of applications. The plant will provide 140,000 cubic meters/day (50 million cubic meters/year) of high quality desalinated process and drinking water, using innovative technologies implemented by IDE in its projects worldwide. Other projects include the plants in Ashkelon and Hadera (over 100 million cubic meters/year each), Cyprus (20 million cubic meters /year) and in Eilat (3.6 million cubic meters/year). This project is one of the most complex in the world and one of the largest of its kind supplied by IDE to a foreign client. The quality of the feed water necessitates more precise and complex treatment than in similar installations elsewhere and will be subject to the rigid and meticulous standards of the local industry. Established in 1965, IDE Technologies (http://www.ide-tech.com) is a world leader in water desalination, specializing in commercial applications of thermal and membrane technologies for desalinating and converting sea- and brackish water to drinking and process water. (IDE12.08)
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9.2 OTI to Supply ERG with Contactless Card Readers for Utah's Transit Payment Solution
On Track Innovations will supply its contactless readers to the ERG Group, a world leader in smart card automated fare collection solutions, for Utah Transit Authority's (UTA) contactless credit card bus payment solution. This ERG-UTA roll-out is another U.S. project based on OTI's reader solutions, including projects in Boston and Houston. The contract for the full rollout of the system in the Salt Lake City metropolitan area follows the recently reported successful pilot project completed by ERG and UTA. For the pilot, buses serving Salt Lake City area ski resorts were equipped with the new system which allowed customers to use contactless credit cards and other smart cards for both transit payment and ski resort access. UTA's system will similarly allow passengers the choice of contactless credit cards and other smart cards for mass transit payment and ski resort access.
OTI is supplying the front-end solutions, including readers and its proprietary software, to support ISO 14443 proximity payments and ISO 15396 vicinity payments. The ability to support both payment and vicinity cards gives UTA the flexibility to implement various types of contactless cards according to their specific use, and establishes a flexible and modular contactless payment platform.
Established in 1990, Rosh Pina's OTI (http://www.otiglobal.com) designs, develops and markets secure contactless microprocessor-based smart card technology to address the needs of a wide variety of markets. Applications developed by OTI include product solutions for petroleum payment systems, homeland security solutions, electronic passports and IDs, payments, mass transit ticketing, parking, loyalty programs and secure campuses. (OTI05.08)
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9.3 AudioCodes Collaborates With Intelleca to Deploy VoIP Services
AudioCodes and Intelleca, a division of the Bytes Technology Group and South Africa's fastest growing call center specialist, announced their collaboration to deploy AudioCodes Mediant 8000 Media Gateway in conjunction with Genesys' VoiceGenie system for contact centers into a Tier 1 South African, network operator. The Mediant 8000 Media Gateway bridges the gap between the IP and TDM networks, allowing centralized SIP based IVR to service all calls initiated in the Operator's nationwide switching centers. The combination of VoIP media gateways and the VoiceGenie Call Center Solution gives the Operator the ability to introduce a cost-effective SIP based IVR service for their broad spectrum of contact centers. This deployment is a step forward in the transition from a legacy network to VoIP. The Mediant 8000 VoIP Gateway is the large-scale member of the AudioCodes' family of market-ready, scalable, standards-compliant media gateway systems for wireline, wireless, cable, broadband access and fixed-mobile-convergence networks. Designed for the carrier environment, the Mediant 8000 is a robust system solution which incorporates AudioCodes' leading Voice over Packet technology.
Lod's AudioCodes (http://www.audiocodes.com) provides innovative, reliable and cost-effective Voice over IP (VoIP) technology, Voice Network Products and Value Added Applications to Service Providers, Enterprises, OEMs, Network Equipment Providers and System Integrators worldwide. AudioCodes provides a diverse range of flexible, comprehensive media gateway, and media processing enabling technologies based on VoIPerfect - AudioCodes' underlying, best-of-breed, core media architecture. (AudioCodes05.08)
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9.4 RADA Electronic Industries Receives $1.5 Million Follow-on Orders
RADA Electronic Industries it has recently received follow-on production and maintenance orders with total value exceeding $1,500,000 to deliver Video Recorders, Head Up Display Cameras, Ground Debriefing Stations and other products to various customers. Deliveries are scheduled to start in Q4/08 and to conclude within 12 months. Netanya's RADA Electronic Industries (http://www.rada.com) is an Israel based company involved in the military and commercial aerospace industries. The Company specializes in Avionics systems (Digital Video Recorders, Ground Debriefing Stations, Stores Management Systems, Flight Data Recorders, Inertial Navigation Systems), Trainers Upgrades, Avionics systems for the UAV market, and Electro optic cameras for airplanes and armored vehicles. (RADA07.08)
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9.5 AMIMON Makes IDX CAM~WAVE HD Camera Wire-free
AMIMON has cooperated with IDX, a premier manufacturer and supplier of batteries and equipment to the international broadcast and professional video industry, in the introduction of its CW-5HD, the world's first Wireless Uncompressed HD system for professional HD cameras. The IDX CAM~WAVE system, a recipient of the NAB 2008 STAR Award, uses AMIMON's revolutionary Wireless High-Definition Interface technology. Operating in the 5.1-5.8GHz unlicensed band, the CAM~WAVE HD (Model CW-5HD), along with AMIMON's technology, is capable of delivering wireless full-bandwidth uncompressed HD-SDI and SD-SDI pictures, live and in real time with virtually no latency (less than 1 millisecond delay). AMIMON's technology uses a unique video-modem approach to deliver clear, artifact-free images, wirelessly up to 150 feet in line-of-sight shooting or 100 feet through walls. Unique to CAM~WAVE HD wireless systems, no compression allows productions to seamlessly intercut cameras with other wired cameras and avoid lip-sync errors.
Herzliya's AMIMON (http://www.AMIMON.com) is a fabless semiconductor company pioneering wireless uncompressed high-definition video for universal connectivity among CE video devices. AMIMON's uncompressed Wireless High-Definition Interface technology enables HDTV manufacturers to offer consumers wireless flat panel displays that can interface wirelessly to all HD video sources throughout the home at a quality equivalent to that achieved with wired interfaces such as HDMI. (Amimon09.07)
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9.6 Aladdin HASP SRM Adds Automatic File Wrapping to Secure IP in Java-Based Applications
Aladdin Knowledge Systems announced the release of Aladdin HASP SRM v 3.50, adding automatic file wrapping for Java applications, enhanced security and ease-of-use to Aladdin's award-winning, fully-integrated hardware and software-based copy protection and licensing solution. The HASP SRM Java Envelope provides advanced protection for Java Archive (JAR) files through strong encryption, protecting against reverse engineering at the class-level through the encryption of user-selected class files. Within just minutes, the HASP SRM v 3.50 Java Envelope automatically "wraps" Java applications in HASP SRM's award-winning copy protection without requiring any changes to the source code itself. A cross-platform environment based on intermediate code, Java is highly prone to reverse-engineering, making Envelope protection critical to securing intellectual property. Unlike other software DRM solutions, the HASP SRM Java Envelope does not require the conversion of Java files into another format in order to implement HASP SRM software- or hardware-based locking. HASP SRM v 3.50 is the only automatic file wrapping system that supports both hardware and software locking.
Petah Tikva's Aladdin Knowledge Systems (http://www.Aladdin.com) is an information security leader with offices in 12 countries, a worldwide network of channel partners, and numerous awards for innovation. Aladdin eToken is the world's #1 USB-based authentication solution, offering identity and access management tools that protect sensitive data. Aladdin HASP SRM boosts growth for software developers and publishers through strong anti-piracy protection, IP protection and secure licensing and product activation. (Aladdin 11.08)
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9.7 Rafael Partners with General Dynamics in $37 Million Contract for Reactive Armor Production
The U.S. Army awarded General Dynamics Armament and Technical Products a $37m contract for the qualification and production of reactive armor side skirt tiles for the Bradley Fighting Vehicle System. Work under this contract will be performed at the General Dynamics' facility in McHenry, Miss., and is expected to be completed in November 2009. As a strategic partner, RAFAEL Armament Development Authority, Ordnance Systems Division, will share the production workload in Haifa, Israel. The reactive armor system is comprised of tiles that fasten to the exterior of a vehicle allowing it to better withstand a direct hit from a variety of anti-armor munitions. In addition to manufacturing the reactive armor tiles for the Bradley Fighting Vehicle and the Abrams Tank, General Dynamics provides complete assembly, integration and storage capabilities. Designed specifically for the U.S. Army Bradley Fighting Vehicle, the reactive armor is saving lives and preventing severe damage to combat vehicles in Iraq. General Dynamics' site in McHenry, Miss., is the load, assemble and pack facility for the company's reactive armor tile program. General Dynamics manufactures reactive armor tiles for the Bradley Fighting Vehicle and Abrams Tank and provides complete assembly, integration and storage capabilities. Rafael (http://www.rafael.co.il) designs, develops, manufactures and supplies a wide range of advanced defense systems. These leading edge products include naval, air and ground precision weapons, electro-optic systems, electronic warfare (EW) systems, C4I and unmanned systems, acoustic defense systems, armored protection, breaching munitions and space technologies. (General Dynamics 13.08)
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9.8 SCD Awarded a Contract With DARPA for the Development of xBn Devices
SCD has announced the receipt of a phase I contract from DARPA, valued at $1.75m, for the development of a new "XBn" infrared detector technology. If all phases of the development program are completed, the total value of the funding could be up to $5m. This program considers a new type of semiconductor hetero-structure detector, in which no depletion layer exists in any narrow bandgap region. Instead, the depletion layer is confined to a wider bandgap barrier material. In such a "barrier device" the dark current can be made lower than in a conventional homo-structure device operating at the same temperature. This will allow operating temperatures to be achieved in the region of 150K without degrading the detector's performance relative to homo-structure devices with a similar photo-response operating at lower temperatures. SCD SemiConductor Devices (http://www.scd.co.il) is a partnership of Rafael (50%) & Elbit Systems (50%), and located at Leshem industrial park, Galilee mountains, Israel. SCD develops and manufactures cooled and uncooled infrared detectors and laser diodes. SCD offers a range of off-the-shelf and custom-designed detectors in various configurations.
Haifa's Elbit Systems (http://www.elbit.co.il) is an international defense electronics company engaged in a wide range of defense-related programs throughout the world. The Company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance (C4ISR), unmanned air vehicle (UAV) systems, advanced electro-optics, electro-optic space systems, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and radios. Rafael (http://www.rafael.co.il) designs, develops, manufactures and supplies a wide range of advanced defense systems. These leading edge products include naval, air and ground precision weapons, electro-optic systems, electronic warfare (EW) systems, C4I and unmanned systems, acoustic defense systems, armored protection, breaching munitions and space technologies. (Elbit Systems13.08)
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9.9 Mellanox InfiniBand Accelerates Toshiba Medical's AquilionONE
Mellanox Technologies announced that its InfiniBand adapters accelerate Toshiba Medical's AquilionONE, a new dynamic volume computed tomography system which significantly shortens patient diagnosis time, by enabling diagnosis of figure, dynamic image and function within a single scan, decreasing the need for multiple, duplicative tests and invasive procedures. The AquilionONE acquires large volumes of thin-slice, high resolution data which can be rendered by advanced 3D volume and vessel visualization software to streamline image interpretation. Mellanox InfiniBand adapters provide high bandwidth and low latency to keep overhead away from the processor, allowing more CPUs to be used for the visualization process, reducing the overall job runtime. Mellanox Technologies (http://www.mellanox.com) is a leading supplier of semiconductor-based, high-performance, InfiniBand and Ethernet connectivity products that facilitate data transmission between servers, communications infrastructure equipment and storage systems. The company's products are an integral part of a total solution focused on computing, storage and communication applications used in enterprise data centers, high-performance computing and embedded systems. Founded in 1999, Mellanox Technologies is headquartered in Santa Clara, California and Yokneam, Israel. (Mellanox18.08)
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9.10 Lucid HYDRA 100 Chip Series Available for Customer Validation
Reference designs for LucidLogix Technologies' new real time distributed processing technology are now available, enabling manufacturers to begin deploying parallel graphics power into PCs, laptops, motherboards or other creative implementations. The Lucid SoC technology – called the HYDRA 100 Series – offers a groundbreaking approach to scaling 3D graphics performance in a multi-GPU environment. The first HYDRA real-time distributed processing engine is a solution that efficiently load-balances graphics processing tasks, delivering linear performance improvement with two or more graphics cards. Because it is the industry's first parallel graphics technology that works with any GPU, any CPU or chipset and on any application, the HYDRA engine allows people to customize and optimize their PC to achieve the price and performance balance they want – whether it is a mainstream system or a high-performance gaming package. The HYDRA 100 reference design system ensures OEMs can rapidly prototype, develop, test and validate the technology on their current systems. The HYDRA 100 SoC works with PC motherboards, notebook motherboards and add-in cards, and any GPU from the same brand family can be mixed and matched for performance and price targets as well. LucidLogix Technologies (http://www.lucidlogix.com) is reinventing multi-core graphics with its HYDRA real-time distributed processing engine that will exponentially improve visual computing for both business and gaming applications. Lucid is a fabless SoC provider headquartered in Kfar Netter, Israel. (LucidLogix19.08)
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9.11 Voltaire Switches Drive World's Most Power-Efficient Supercomputers
The high performance and power efficiency of Voltaire's switching solutions are connecting the world's most energy efficient supercomputers, according to the new Green500 List. Voltaire Grid Director InfiniBand switches are powering the world's most energy-efficient supercomputer at IBM Boeblingen Lab and the world's fastest Los Alamos Laboratory petaflop supercomputer, which took the No. 3 position for energy performance. The supercomputers are based on industry-standard technologies and interconnected by Voltaire Grid Director DDR/20 Gbps InfiniBand switches. Delivering 20 Gbps InfiniBand performance, Voltaire switches require on average only 5 watts of power per port, making them a much more energy efficient networking technology than 1 and 10 Gigabit Ethernet. Voltaire also delivered the high performance interconnect for many of the other supercomputers on the list. Headquartered in Herzliya, Voltaire (http://www.voltaire.com) designs and develops server and storage switching and software solutions that enable high-performance grid computing within the data center. Voltaire refers to its server and storage switching and software solutions as the Voltaire Grid Backbone. Voltaire's products leverage InfiniBand technology and include director-class switches, multi-service switches, fixed-port configuration switches, Ethernet and Fibre Channel routers and standards-based driver and management software. (Voltaire 19.08)
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10: ISRAEL ECONOMIC STATISTICS
10.1 Israeli's CPI Rises by 1.1% During July
Israel's July inflation figure - the Consumer Price Index (CPI) - rose by 1.1%, double the estimates. This means that inflation over the twelve months to July was 4.8%, similar to the rate in the twelve months to June. Since the beginning of 2008, the CPI has risen by 3.5%. The rate of inflation is currently 1.8% above the government's target range. Eight main items in the CPI rose sharply, prominent among them being housing, home maintenance, public transport, cultural and entertainment services, fresh fruit and vegetables. Banking service prices rose 16.2% following the reform in bank charges. The exchange rates for both the dollar and the euro against the shekel fell after the CPI figure was announced. (IBS15.08)
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10.2 Israeli Technology Leads Continued Export Growth
Despite growing worries about a recession, the Central Bureau of Statistics reported on 13 August that industrial exports, spanning the spectrum from low tech to high tech, are still showing double-digit growth. Export of goods, except diamonds, rose by an annualized 16.8% in May-July 2008 in trend figures, after growing 23.4% in February-April. Industrial exports rose by an annualized 17.7% in May-July, after rising 24.8% in the preceding three months. High-tech exports, which account for 42% of industrial exports excluding diamonds, rose by an annualized 18.1% in May-July. Mixed high-tech exports, which account for 30% of industrial exports, rose by an annualized 23.4%; mixed low technology exports, 22% of industrial exports, rose by an annualized 18.1% and low technology exports, 6% of industrial exports, rose by annualized 4.9%. Even exports of textiles, clothing and footwear exports rose by an annualized 1.6% in May-July, after declining steadily for years. Exports totaled $4.8b in July, imports totaled $6.4b and the balance of trade deficit was $1.5b. Imports of | 
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