TOP STORIES

• Bank of Israel Announces Economy Strong & Stable
• CopperGate Communications Named Most Promising Start-up in Israel
• Israel Builds Its First 'Eco-Friendly' Town
• Jordanian-US Talks Held On Nuclear Energy
• Greece's First Biogas Plant Inaugurated In Kavala
• Old Turkish Banknotes to Fuel Manufacturing Plants

TABLE OF CONTENTS:

1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS

1.1 Bank of Israel Announces Economy Strong & Stable
1.2 Netanyahu Says "My Policies Worked"
1.3 Netanyahu Says Government Must Protect Economy

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2: ISRAEL MARKET & BUSINESS NEWS

2.1 Moog Supplying Integrated Flight Control System on Gulfstream G250
2.2 IMDS Receives its First Order for its CT Laser Mammography System for Israel
2.3 Orsus Deploys Situator at the Israel Diamond Exchange (IDE)
2.4 CopperGate Communications Named Most Promising Start-up in Israel

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3: REGIONAL PRIVATE SECTOR NEWS

3.1 Kuwait Group in Canadian Motor Sport Complex Deal
3.2 Calypte Receives Large Order for Aware Diagnostic Test from Middle Eastern Distributor
3.3 Hill International Selected as Construction Supervisor Al Fateh University Expansion in Libya

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4: ISRAEL MACRO-DEVELOPMENTS

4.1 Most Israeli Factories Exceed Pollution Limits
4.2 Israel Builds Its First 'Eco-Friendly' Town

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5: ARAB STATE & PAKISTANI DEVELOPMENTS

5.1 Jordanian-US Talks Held On Nuclear Energy
5.2 Lebanese Healthcare System Likely To Be Hobbled By Political Instability
5.3 Kuwait Posts $28.2 Billion Surplus in First Half
5.4 Qatar Tops Persian Gulf in World List of Best Economies
5.5 Qatar Childhood Diabetes Cases Double
5.6 India's Tata Unit to Develop Green Technology in Qatar
5.7 Abu Dhabi Crown Prince Makes Surprise Iraq Visit
5.8 Ontario Seeks To Widen Trade Base with UAE
5.9 Diabetes Costs the UAE Millions in 2007
5.10 Yemen Economy Takes $2 Billion Hit From Terrorism
5.11 Libya to Cut Swiss Economic Ties in Protest

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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS

6.1 Cyprus' Competitiveness Index Ranking Improves
6.2 Greece's Ambitious Budget Sees Deficit Cut & Softer Growth
6.3 Greece Hopes For Fiscal Flexibility From EU
6.4 Greece's Central Bank Sees Growth At 3.3%
6.5 Greek Medical Devices Sector Continues To Offer Substantial Opportunities for Foreign Players
6.6 Greece's First Biogas Plant Inaugurated In Kavala

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7: GENERAL NEWS AND INTEREST

*ISRAEL:

7.1 Simchat Torah Celebrated

*REGIONAL:

7.2 UAE Swears in First Woman Judge
7.3 Old Turkish Banknotes to Fuel Manufacturing Plants
7.4 Cyprus Population Increases

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8: ISRAEL LIFE SCIENCE NEWS

8.1 Nicast's AVflo for Hemodialysis Patients Receives CE Mark
8.2 GWU Hospital Purchases Orthocrat's TraumaCad for Orthopedic Preoperative Planning
8.3 Given Imaging Launches RAPID 5 Access Software

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9: ISRAEL PRODUCT & TECHNOLOGY NEWS

9.1 Yitran Announces Next Generation 150Kbps Powerline Communication (PLC) Chip
9.2 ECI Telecom Selected for Multi-Million Dollar Fiber Network Caribbean Deployment
9.3 Come2Play Releases First Version of an Open Source API for Multiplayer Flash Games Development
9.4 ATK & Elbit Systems Conduct Successful Flight Test of GATR
9.5 Magal Awarded Contracts Totaling $7.5 Million for International Airports Protection
9.6 Optibase's Encoders Integrated in UTStarcom's IPTV Solution Headend in India
9.7 NEC Adopts Waves MaxxAudio Sound Enhancements
9.8 Atos Origin & InfoGin Deploy Innovative Mobile Internet Services in Spain
9.9 Mellanox ConnectX 10GigE Mezzanine Adapter for IBM BladeCenter Is Blade.org Compliant
9.10 Storage Startup Axxana Announces Birth Of "EDR" – A New Domain in Data Protection
9.11 C.R. England Outfits Trucking Fleet With Mobileye Vision-Based Driver Assistance
9.12 Gizmox Announces Release of Visual WebGui 6.2
9.13 Korea's Largest Bank Deploys 5,000 Aladdin eToken Authentication Devices

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10: ISRAEL ECONOMIC STATISTICS

10.1 Israel's Exports of Commodities by Country & Industry for 2007

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11: In Depth

11.1 JORDAN: Moody's Ba2 Rating Reflects Economic Challenges
11.2 QATAR: Laundry Closed
11.3 BAHRAIN: Maintaining the Flow
11.4 OMAN: Pedal to the Metal
11.5 SAUDI ARABIA: Aiming High
11.6 PAKISTAN: 'Outlook Negative': S&P Lowers Foreign Currency Rating

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1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS

1.1 Bank of Israel Announces Economy Strong & Stable

On 7 October, t he Bank of Israel issued a statement on the local economic and financial situation. The central bank cites four reasons why the Israeli economy is in a "good and stable situation." The Bank of Israel stated that the stable economy enables Israel to cope with the current challenges. The growth rate is relatively high, there is a balance of payments surplus, the government debt-to-GDP ratio is falling and the foreign currency reserves are high and increasing. The Bank of Israel said that it would use monetary policy to pursue economic growth and financial stability, provided that inflation returns to within the price stability target range. The Bank of Israel added that Israel's banking system is strong and that it would use all means available to help depositors, if necessary. No such assistance is necessary at this time. Finally, the Bank of Israel said it will continue to buy dollars at the current rate, of $100m a day. However, in view of uncertainty in international markets, the Bank of Israel may extend its dollar purchasing program even after it reaches its target for increasing the country's foreign currency reserves. (Globes 07.10)

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1.2 Netanyahu Says "My Policies Worked"

Opposition Leader Binyamin Netanyahu, currently favored to become Israeli Prime Minister after the next national elections, says Israel is doing relatively well financially because of the policies he set in place as Finance Minister three years ago. Netanyahu, who served as Finance Minister from 2003 until 2005, brought Israel towards a more liberalized economy, while reducing social benefits in the process. Israel's GDP growth rate increased as a result and Netanyahu has said that social benefits can now be restored to some extent. "The reason why we are where we are and are taking this world crisis relatively well," Netanyahu said in a special pre-Rosh HaShanah interview, "is precisely because of the economic revolution I brought about. Before I was appointed Finance Minister," he said, "we faced collapse. You have to think what would have happened to us had I not carried out that economic plan. The reason we are in a good position now is because of the growth of the last five years, the rise in wages and the help to the weak. All these things made the Israeli economy more stable." Analyzing the world economic crisis, Netanyahu, who earned the equivalent of an MBA from the MIT Sloan School of Management, said, "The crisis stems from a certain problem [in the free-market economy] that must be fixed - but this doesn't mean to throw out the baby with the bath water. We must institute improvements just like they did after the collapse of Wall Street in 1929. All the talk about abandoning the free economy is totally baseless." (IsraelNN02.10)

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1.3 Netanyahu Says Government Must Protect Economy

Opposition leader Binyamin Netanyahu of the Likud party called on 6 October for government intervention to protect Israel from an economic downslide. Speaking at a Likud conference in Tel Aviv, Netanyahu said, "A free market is not free of limits." While a free market economy does not always require government intervention, the economy can reach "extreme situations" requiring the government to step in, Netanyahu said. "We're in a crisis right now, and we need effective policies." Netanyahu gave examples from his own political past, saying, "In 1996 and in 2003, we took action that led us to growth." However, he implied that the current government would be incapable of taking such action, adding, "But those actions were taken after the government won the elections and was clearly stable." Experts have expressed confidence in the stability of Israel's financial institutions. Regulation has kept Israeli banks from some of the risky investment practices that led to the downfall of major United States institutions, they say. (IsraelNN07.10)

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2: ISRAEL MARKET & BUSINESS NEWS

2.1 Moog Supplying Integrated Flight Control System on Gulfstream G250

New York's Moog was selected by Gulfstream Aerospace, a wholly owned subsidiary of General Dynamics and Israel Aerospace Industries as the complete flight control system supplier for the Gulfstream G250 business jet. The Company has been working on design and development activities since 2007. The system includes flight control computers, primary and secondary flight control actuators, high lift system, cockpit sensors and miscellaneous components. Moog will also provide integration and certification support for the G250. Moog s a worldwide designer, manufacturer and integrator of precision control components and systems. (Moog06.10)

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2.2 IMDS Receives its First Order for its CT Laser Mammography System for Israel

Florida's Imaging Diagnostic Systems, a pioneer in laser optical breast cancer imaging systems, announced that its distributor The Oyamo group has place an order for the first CT Laser Mammography System (CTLM) for Jerusalem, Israel. The Oyamo group obtained the import license from the Israel Ministry of Health which permitted the shipment and initiated the purchase order. The CTLM system will be placed in the prestigious hospital Hadassah, located in the heart of Jerusalem. The Hadassah University Medical Center is a tertiary care referral facility, known for pioneering new medical techniques. A premier teaching hospital and research center, the Medical Center is equipped with the most sophisticated diagnostic, treatment and research equipment enabling its world renowned faculty to furnish the most modern medical care in an atmosphere that embraces excellence. (IMDS07.10)

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2.3 Orsus Deploys Situator at the Israel Diamond Exchange (IDE)

Orsus, together with Orad, has recently been awarded a contract for its Situator product suite, with the Israel Diamond Exchange (IDE). Situator provides a seamless integration between thousands of access control/intruder detection devices and cameras spanning three buildings, bridges, trading rooms and hallways. On any given day, 10,000 people can visit the IDE and must use biometric fingerprint readers to gain entrance into the facility. Security personnel monitor entrances and exits by surveillance from its command and control room. The IDE complex, located in Tel Aviv, houses about 1,000 offices of diamond merchants. With Orsus' Situator, the IDE can integrate incident reporting, simulate security-related events for training purposes and integrate system analysis tools to provide better planning and continuous improvement. Situator is a comprehensive Situation Management software platform that delivers clarity and control to enterprise control rooms - enabling better coordination of the interaction between people, alerting sources and responses.

Or Yehuda's Orsus (http://www.orsus.com) is a Situation Management pioneer. Situation Management is a new, holistic approach to optimizing situation planning, response and analysis. Holon's Orad (http://www.orad.cc) is the Israel representative for the world's leading manufacturers of advanced technological equipment and low voltage systems such as Siemens. Orad is an authorized Israel Ministry of Defense supplier and has installed security systems and management and control systems for various high profile customers in various fields. (Orsus07.10)

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2.4 CopperGate Communications Named Most Promising Start-up in Israel

CopperGate Communications, the Everywire Home Networking Company, announced that Calcalist, the business news arm of Yediot Group, the leading daily newspaper publisher in Israel, ranked CopperGate the most promising start-up in Israel. In addition, the newspaper ranked CopperGate "one of the most successful start-ups in the country". The selection was based on voting by a panel of venture capitalists and Israeli technology industry experts. CopperGate sales are already growing rapidly. The company supplies chips that power AT&T's U-verse in-home IPTV service, and recently announced the beginning of deployments by Canada's second largest telco, TELUS. As a result, CopperGate's technology is now the most widely deployed in-home IPTV entertainment network silicon technology worldwide. In addition, CopperGate is successfully penetrating China with a just-announced million-residence design win in Shanghai with B-STAR.

Headquartered in Tel Aviv, CopperGate Communications (http://www.copper-gate.com) is the only company whose standards-based chipsets enable carrier-class distribution of broadband digital content over all three types of existing wires in the home: coax, phone and power. The company sells its technology to OEMs who build solutions for multimedia home networking and multi-dwelling unit (MDU) broadband access markets. CopperGate's technology is used in set-top boxes, residential gateways, optical network terminators and Ethernet bridges deployed by four of the top five telcos in North America who are deploying IPTV. (CopperGate 09.10)

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3: REGIONAL PRIVATE SECTOR NEWS

3.1 Kuwait Group in Canadian Motor Sport Complex Deal

An investment consortium led by Kuwaiti Islamic investment bank Bayt Al Mal Investments will spearhead finance for a major motor-sport, entertainment and commercial complex in the Niagara region of Ontario. Bayt Al Mal has already acquired 623 acres of land in Fort Erie, where this master-planned complex will be built. The project aims to create 1,200 jobs and a $35m annual tax revenue. (TradeArabia 14.10)

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3.2 Calypte Receives Large Order for Aware Diagnostic Test from Middle Eastern Distributor

Portland, Oregon's Calypte Biomedical Corporation, a developer, manufacturer and marketer of HIV diagnostic tests, received an order for 50,000 tests of its Aware HIV-1/2 OMT product from LifeLine Scientific, its newly appointed distributor for the UAE and several other countries in the region. The purchase is the first large order resulting from a newly implemented sales initiative. Calypte will begin production as soon as the purchaser's irrevocable letter of credit is approved. Calypte Biomedical Corporation is a US-based healthcare company focused on the development and commercialization of rapid testing products for sexually transmitted diseases such as the Aware HIV-1/2 OMT test that are suitable for use at the point of care and at home. (Calypte13.10)

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3.3 Hill International Selected as Construction Supervisor Al Fateh University Expansion in Libya

New Jersey's Hill International, the global leader in managing construction risk, has been awarded a contract from the Libyan Organization for the Development of Administrative Centers (ODAC) to provide construction supervision services in connection with the $2b expansion of Al Fateh University in Tripoli, Libya. Hill is already providing project management services for the expansion under a contract that began in 2007. The new 21-month contract has an estimated value to Hill of approximately $42.0m. Founded in 1957, Al Fateh University is the largest and most respected institute of higher education in Libya. The expansion of Al Fateh includes new facilities, extensions to existing facilities and general infrastructure improvements to support the facilities upgrade. Hill International provides program management, project management, construction management, and construction claims and consulting services. (HIL-G10.10)

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4: ISRAEL MACRO-DEVELOPMENTS

4.1 Most Israeli Factories Exceed Pollution Limits

Globes reported that more than 60% of large factories in Israel tested by the Ministry of Environmental Protection over the past year exceeded the pollution level permitted in their business licenses or ordinances. The ministry conducted 377 tests at 50 factories and 87 facilities, including the taking of air samples and analyzing them. Thirty factories exceeded their permitted emissions levels, in some cases by thousands of times, jeopardizing the environment. Some of the emissions are suspected carcinogens and others harm the lungs. The worst offender is RonoPolydan Packaging, a color printing plant at the Barkan industrial zone near Ariel. Ministry of Environmental Protection inspectors found that the factory emission level of ethyl acetate, a toxin, exceeded permitted levels by 3,713%, and its emissions of suspected carcinogenic organic particulates exceeded permitted levels by 5,067%. The ministry cancelled the factory's toxin permit until the factory complies with all standards. The emissions of ethyl alcohol by the Haifa Bay factory of Taro Pharmaceutical Industries were found to exceed permitted levels by 1,007%. The ministry's report said that the factories' waste evaporators were no longer operated, and that since then emissions no longer exceeded the allowed levels. Other major polluters included Haifa Chemicals, Cham Food (Israel), Vulcan Batteries, food companies Soglowek and Pri Nir, textile plant Kitan Dimona, Negev Textiles, Yehuda Steel, Lime & Stone Production and Vitamed Pharmaceutical Industries. (Globes 06.10)

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4.2 Israel Builds Its First 'Eco-Friendly' Town

The Gilboa Regional Council is planning the town of Nurit to be the first planned, eco-friendly community in Israel, with infrastructure and services designed not just to encourage, but to actually enforce environmentally responsible behavior. The idea for Nurit stemmed from discussions conducted by Gilboa Regional Council officials nearly a decade ago, as they were seeking to build tourism in the area, as well as comply with new government requirements to introduce environmentally responsible educational programs and activities. After intense study and consultations with environmental experts around the world, the town is ready for prime time; work has begun on infrastructure, and the first 100 homes will be ready next year. By 2012, it is planned that 400 families will be living in Nurit. Located on Mt. Gilboa itself, Nurit will take advantage of the mountain's wind and sun to generate power, and will install dozens of wind turbines and photovoltaic (PV) solar panels, enough to provide electricity for all the public buildings in Nurit - and then some. The regional council has a program that provides loans for residents to buy and install the PV panel setup, or residents can design the systems into their construction plans. (Israel 21C08.10)

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5: ARAB STATE & PAKISTANI DEVELOPMENTS

5.1 Jordanian-US Talks Held On Nuclear Energy

On 14 October, Jordan's Minister of Energy & Mineral Resources Quteishat discussed with a US delegation nuclear cooperation between the two countries, and ways of enabling Jordan to produce nuclear energy for peaceful purposes to reduce burden of energy costs. The minister reviewed with the delegation, which represents the Office of International Security and nuclear non- proliferation at the US State Department, the strategy of the energy sector for the years 2007 - 2020 which aims at increasing local energy sources, developing the current resources of energy and focusing on new and renewable energy projects such as the energy of winds, Solar and nuclear energy. Quteishat hailed the distinguished relations between Jordan and the United States, noting the importance of developing them to serve the common interests of the two peoples. The meeting was attended by The U S Ambassador to Jordan Robert Beecrofet , and Secretary General of Ministry of Energy & Mineral Resources Farouk Al-Hiyari. (Petra14.10)

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5.2 Lebanese Healthcare System Likely To Be Hobbled By Political Instability

Research and Markets (http://www.researchandmarkets.com) announced the addition of the "Lebanon Pharmaceuticals and Healthcare Report Q3 2008" report to their offering. Lebanon's drug market was estimated to be worth $472m in 2007. BMI forecasts slow growth, averaging 3.5% year-on-year over the forecast period, with the market reaching just $560m by the end of 2012. Per capita drug expenditure is relatively high for the country's level of economic development. In 2007, per capita expenditure on prescription and over-the-counter (OTC) medicines came to an estimated $132 – on a par with richer nations in the Middle East. Indeed, relative to GDP, Lebanon continues to devote a high proportion of GDP to pharmaceuticals, largely as a consequence of strong demand for more expensive, patented drugs. Political instability is likely to continue to hold back development in a healthcare system that has been severely damaged by conflict. Indeed, only 8% of the population benefit from government-run healthcare. (R&M06.10)

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5.3 Kuwait Posts $28.2 Billion Surplus in First Half

Kuwait posted an approximately $28.2b preliminary surplus in the first half of its 2008/09 fiscal year on higher than expected oil revenues. Revenue of the world's seventh-largest oil producer stood at 14.52b dinars in the six months to Sept. 30, of which oil exports amounted to 13.9b dinars. Kuwait had assumed its crude would fetch $50 a barrel over the year to March 31 in calculating the budget. According to the initial forecast of production levels and oil prices total revenue was expected to amount to 12.68b dinars for the whole year including 11.65b dinars in revenue from oil exports, the desert country's main revenue earner, the data showed. Kuwait posted a surplus of 9.32b dinars in 2007/08. (Various13.10)

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5.4 Qatar Tops Persian Gulf in World List of Best Economies

Qatar is the most economically competitive country in the Gulf region, according to the latest Global Competitiveness Report (GCR), released on 8 October by the World Economic Forum. The Gulf state ranked 26th in the world list, a jump of five places on the previous report. Saudi Arabia was ranked 27 (up from 35th last year), the UAE 31 (37), Kuwait 35 (30), Bahrain 37 (43) and Oman 38 (42). The US topped the overall ranking with Switzerland in second position followed by Denmark, Sweden, Singapore, Finland and Germany. The rankings are calculated from both publicly available data and the Executive Opinion Survey, a comprehensive annual survey conducted by the World Economic Forum together with its network of leading research institutes and business organizations in the countries covered by the report. As in previous years, Israel, in 23rd position, led the Middle East and North Africa ranking, despite a drop of six places since last year. The competitiveness of most Gulf countries showed a robust upward trend. The most competitive among them, Qatar, has been buoyed by the country's well-assessed institutions, but also by advances in the functioning of financial markets, as well as enhanced innovative capacity.

However the report identified rising inflation as a threat that could put Qatar's future competitiveness at risk. Saudi Arabia, which improved by eight places this year, has made big strides with respect to the institutional framework for doing business. Recent reforms, such as the greater ease of setting up new businesses and the overhaul of the judiciary are major plusses, the report added, but more needs to be done to improve the quantity and quality of education. The UAE improved its rating across all pillars of the GCI, with a more stable macroeconomic environment and a better assessment of the quality of the educational system, the report said. (WEF08.10)

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5.5 Qatar Childhood Diabetes Cases Double

The number of cases of childhood diabetes in Qatar has doubled over the past ten years, according to experts. This is in keeping with the trend worldwide, where diabetes in children is on the rise, but the situation in the Middle East region is critical, the inaugural session of the International Childhood Diabetes and Obesity Conference heard. Delegates in Doha were told that in 1997, the incidence of childhood diabetes in Qatar was 17.3 in every 100,000. Studies conducted last year show this has increased to 35 per 100,000. There has been a tremendous increase in diabetes in children below five. In 1997, 13.7% of the children were found to be diabetic, but now it is 28.2%. It was also revealed that the UAE spent $436m on diabetes-related treatments in 2007. The UAE currently has the second highest rate of diabetes in the world, with 19.5%, or one in five members of the population affected by the disease. A major link was found between obesity and diabetes. Studies have found that 45% of the people in Qatar are obese and 55% of the diabetic patients are obese. (Various12.10)

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5.6 India's Tata Unit to Develop Green Technology in Qatar

TCE Consulting Engineers, a subsidiary of Indian engineering conglomerate Tata Group, will invest $12m over the next five years at Qatar Science & Technology Park (QSTP) to develop engineering solutions for the environment industry. The center will initially focus on software to design "green" buildings, create a blueprint for a solar-thermal power station and come up with practical applications for new nanotechnologies. The company will open at QSTP's new research and development facilities in late 2008 and will eventually employ around 14 staff, half of whom will be researchers. (AB08.10)

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5.7 Abu Dhabi Crown Prince Makes Surprise Iraq Visit

Abu Dhabi crown prince Sheikh Mohammed bin Zayed Al-Nahayan paid an unannounced visit to Iraq on 7 October that he said was aimed at "confirming our total support" for the war-ravaged nation. Iraqi Prime Minister Al-Maliki, who welcomed the crown prince at Baghdad international airport, said he was appreciative of the support from the United Arab Emirates. Baghdad said the crown prince, who is also the number two in the UAE armed forces, would be finalizing a location for a UAE diplomatic mission in Baghdad. On 4 September, Abdullah Ibrahim Al-Shehhi presented his credentials as UAE envoy, becoming the first Arab ambassador to be stationed in Iraq in two years. He had been named in July. In July, the UAE announced a $7b debt forgiveness for Iraq. The crown prince's visit came after a visit by Egyptian Foreign Minister Ahmed Abul Gheit on 5 October. The UAE withdrew its most senior diplomat - a charge d'affaires - from Baghdad in May 2006 after another diplomat was kidnapped by Islamist militants and held for two weeks. (AB08.10)

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5.8 Ontario Seeks To Widen Trade Base with UAE

Ontario is aiming to double the size of its trading base with the UAE over the next five years through wider bilateral trade initiatives, the province's Minister for International Trade and Investment said on 7 October. The UAE is Ontario's 18th largest trading partner. Trade ties between Ontario and the UAE has risen sharply. Between 2003 and 2007, the two-way trade increased 255%. Ontario's exports to the UAE rose more than 400%, while goods imported from the UAE increased a bit more than 10%. The UAE is Canada's largest merchandise export market in the Middle East and North Africa region. Ontario's major exports to the UAE include unwrought gold, helicopters, aircraft, spacecraft, telephone equipment and computers. Its imports from the UAE include mainly jewellery, iron, diamonds and perfumes. (GN08.10)

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5.9 Diabetes Costs the UAE Millions in 2007

The UAE spent $436m on diabetes-related treatments in 2007, a huge cost which could easily be prevented. Speaking at the launch of a diabetes awareness campaign in Dubai, a healthcare management consultant, told Arabian Business if even a tenth of this expenditure had been invested in prevention, the emirate's high diabetes rate would decrease significantly. The UAE currently has the second highest rate of diabetes in the world, with 19.5%, or one in five members of the population affected by the disease. A report titled Unite for Diabetes 2007, which includes research taken from 7000 checkups in the UAE involving people from 100 different nationalities, found 62% of people were above normal weight, while almost 75% of UAE nationals were above overweight. The average annual cost of treatment in 2007 was $993 for each person with diabetes, while the UAE's expenditure on diabetes-related treatment is expected rise to $1 billion by 2025. (AB09.10)

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5.10 Yemen Economy Takes $2 Billion Hit From Terrorism

Terrorist attacks by Al-Qaeda and other Islamic extremist groups have cost Yemen's economy more than $2 billion, Yemen's foreign minister said on 1 October. Abu Bakr Al-Qirbi said terrorist attacks had impacted the economy of the country, one of the poorest in the world, and called on the international community to provide more aid. Yemen has witnessed a recent upsurge in attacks by groups linked to Al-Qaeda in the last year, including a deadly attack on the US embassy in Sana'a on Sept. 17 in which 18 people were killed. Al-Qirbi also welcomed international observers to attend the country's parliamentary elections in April next year and pledged to take all measures to ensure the elections were fair. (AB01.10)

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5.11 Libya to Cut Swiss Economic Ties in Protest

Libya will withdraw $7 billion of assets in Swiss banks, cut economic ties with Switzerland and stop supplying it with oil to protest against poor treatment of Libyan diplomats and businessmen, the Libyan state run news agency JANA announced. The decision comes three months after a diplomatic row broke out when a son of Libyan leader Muammar Gaddafi was arrested in Geneva and charged with mistreating two domestic employees. Hannibal Gaddafi denied the charges and was freed on bail, but the case caused uproar in Tripoli and led to the detention of two Swiss nationals, who were later released. Geneva's chief prosecutor dropped the case against Gaddafi last month after the plaintiffs, a Tunisian woman and Moroccan man employed by Gaddafi, withdrew their formal complaint. It was unclear which events had prompted Libya's latest move. Libyan fuel refining and distribution firm Tamoil said that Libya, a major supplier, had stopped delivering crude oil to Switzerland. Tamoil says it supplies 20% of the Swiss market, or 2.5 million tonnes of oil products a year, and has around 330 service stations in the country. (NYT10.10)

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6: TURKISH, CYPRIOT, GREEK & BULGARIAN DEVELOPMENTS

6.1 Cyprus' Competitiveness Index Ranking Improves

Cyprus' Global Competitiveness Index ranking has significantly improved, according to the Global Competitiveness Report 2008-2009 released by the World Economic Forum. Cyprus ranks 40th in the Geneva- based organization's annual rankings of 134 nations. In 2007 Cyprus was at the 55th place. As concerns the ranking of EU countries, Cyprus is positioned in the middle, with 13 EU countries having secured high scores and 13 EU countries lower scores. (HRI11.10)

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6.2 Greece's Ambitious Budget Sees Deficit Cut & Softer Growth

On 7 October, Greece's government unveiled its 2009 budget plan, which predicts economic growth slowing to 3% and the budget deficit falling to 1.8%. National Economy & Finance Minister Alogoskoufis also said Greece's banking system was "completely safe and solvent," and he reiterated a pledge to fully guarantee all bank deposits in the country – without passing new legislation. The draft budget predicts gross domestic product (GDP) will expand by 3% next year, down from a targeted 3.4% expansion rate for 2008. The minister said the 2007 deficit was 3.4% of GDP, well over the EU limit of 3%, and not 2.7% as originally reported. He also unveiled yet another ambitious deficit target of 1.8% of GDP in 2009, and revised this year's budget deficit to 2.3% from 1.6% of GDP. Greece has struggled to boost revenue collection and cap spending. The government plans to collect revenues next year of €64.8b. The 12% increase from this year is the largest since 1998. Total spending will increase 8.2% this year and 8.6% next year, to €65.5b. In September, lawmakers adopted a series of new taxes on dividends and stock options and abolished a tax-free threshold for self-employed workers. The measures have hurt the ruling New Democracy party's popularity, with opinion polls showing the opposition Socialists ahead for the first time in eight years. Higher interest rates will boost Greece's debt-servicing bill by €800m to €11.3b this year. Inflation next year is predicted to be 3.2%, according to the government's 2009 spending plan submitted to Parliament. Analysts said budget targets were optimistic because they assumed Greece will remain largely immune to the international market turmoil, thanks to higher GDP growth than its eurozone peers. (AN08.10)

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6.3 Greece Hopes For Fiscal Flexibility From EU

Greece will be hoping for flexibility from the European Commission in the application of its 3% rule as data show the country's budget deficit for 2007 hitting 3.5%. Eurostat is expected to announce by the end of November that Greece's deficit last year reached 3.5% of gross domestic product (GDP), rather than 3.4%, as announced by the Finance Ministry. The government, however, will be looking to get off the hook and avoid the excessive deficit procedures and oversight, as a number of EU countries seek more flexibility in their budget targets due to the global economic downturn. There is no change expected in the Commission's restrictions but member states are pushing for more time to correct any fiscal breaches. Finance Ministry officials will also be keen to show Eurostat that Greece has taken the necessary steps to keep the deficit within allowable limits in the near future. In August, the Finance Ministry introduced a series of new taxes, including those on dividends and share capital gains, in a bid to up revenues by some €4b each year. According to government estimates, the budget deficit in 2008 is expected to be cut to 2.3% with a further reduction to 1.8% of GDP in 2009. (Kathimerini14.10)

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6.4 Greece's Central Bank Sees Growth At 3.3%

The global financial and credit crisis is dampening the Greek economy this year but the country's banking system remains in good shape, the Bank of Greece announced on 8 October. The country's central bank said in its annual monetary report that economic growth is seen as slowing to 3.3% in 2008 from 4.0% in 2007, mainly due to a slowdown in consumption. The private consumption growth rate is showing a major slowdown, which reflects lower household incomes from rising petrol and food prices and the general climate of uncertainty» the report said. Greece's €246b economy expanded by 3.5% in H1/08, slightly down from 3.6% in Q1/08, as higher lending costs weighed on investment activity, particularly in residential housing. Despite the drop-off, Greece's economic growth this year will remain above the eurozone's average, supported by domestic demand, the central bank added. Bank of Greece Governor Provopoulos said the crisis is rubbing off on Greece, forcing banks to adopt a more flexible stance toward changing conditions. Greek bankers have repeatedly said local lenders have limited exposure to US subprime loans after having based strong growth rates in recent years on expansion into Southeastern Europe and robust credit expansion at home. The difficult international economic environment has further exposed the structural weaknesses of the Greek economy, added Provopoulos. On the price front, headline consumer inflation is expected to average out at 4.6% this year, according to the report. (grhomeboy09.10)

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6.5 Greek Medical Devices Sector Continues To Offer Substantial Opportunities for Foreign Players

Research and Markets (http://www.researchandmarkets.com) has announced the addition of the "Greece Pharmaceuticals and Healthcare Report Q3 2008" report to their offering. Greece represents one of the least developed pharmaceutical markets within the established European Union (EU) members. However, when judged against Emerging Europe, Greece continues to occupy pole position in our Business Environment Ranking for Q308, ahead of the other 16 markets surveyed in the region. Some of the market's positives include the potential for the growth of its over-the-counter (OTC) market following the 2006 removal of such products from the reimbursement list. On the other hand, pharmaceutical prices are continuously revised downward, with the author actually forecasting market contraction through 2012, to $5.41bn, down from some $5.68bn in 2007.

There are other worrying signs. For example, a recent report by Eurostat warned that the ageing and less mobile population across the EU may have a marked disadvantage for the Bloc's ability to innovate in science and technology. Specifically, Greece had the lowest job-to-job mobility within the EU, alongside Hungary and Slovenia. Given that such mobility is beneficial to the overall economy, through the means of knowledge transfer, Greece is seen as being disadvantaged by this fact, which results from a less flexible labor market. Similarly, in April 2008, the Advocate General of the European Court of Justice (ECJ) ruled that UK pharmaceutical giant GlaxoSmithKline (GSK) must lift self-imposed restrictions on supplying wholesalers in Greece, which had been put in place to prevent parallel exports. The court stated that the restrictions constituted an abuse of dominant market position, while also potentially breaching EU antitrust rules. Apart from being set to negatively impact financial performance of the company in question, the ruling also represents a significant blow to opponents of parallel trade. Multinationals are already sidelining Greece when choosing where to launch innovative medicines, with the latest development further discouraging their presence in the country.

On the other hand, the medical devices sector continues to offer substantial opportunities for foreign players. The medical devices industry in Greece is worth an estimated $850m, with imports supplying the vast majority of the market, especially on the high-tech end of the scale. In fact, in the 2002-2006 period, imports rose by almost 100% in terms of value. Domestic producers of medical devices are mostly engaged in the manufacture of low-value but high-quantity products, such as medical supplies. (R&M06.10)

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6.6 Greece's First Biogas Plant Inaugurated In Kavala

Greece's first biogas plant was inaugurated in Kavala on 4 October night. The new, ultra-modern plant will produce biogas and organic fertilizer through a state-of-the-art integrated animal waste management system. The €3.5m model unit, unique in Greece, was built by the public company KREKA S.A., based in Kavala. The animal waste management system comprises a furnace where dead animals and material hazardous to the public health, such as bones, blood, entrails are incinerated, and an anaerobic digestor - an aneorobic digestion processing and biogas production unit in which manure, expired milk and other foodstuff unfit for consumption will be destroyed. A treatment process of the above waste produces biogas, namely methane, which is used as fuel for the needs of the venture, such as heating or for combining of the organic waste in the bio-reactor, as well as for the production of steam and heat for the sterilization of solid waste and the operation of the incinerator. The biogas left over from the above activities is stored in a special container and is used for the production of electricity. (HRI06.10)

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7: GENERAL NEWS AND INTEREST

*ISRAEL:

7.1 Simchat Torah Celebrated

On the evening of 20 October and the 21st, the holiday of Simchat Torah is observed. The day after the seventh day of Sukkot is the holiday Shemini Atzeret. In Israel, Shemini Atzeret is also the holiday of Simchat Torah. Simchat Torah means "Rejoicing in the Torah." This holiday marks the completion of the annual cycle of weekly Torah readings. Each week in synagogue Jews publicly read a few chapters from the Torah, starting with Genesis Ch. 1 and working around to Deuteronomy 34. On Simchat Torah, Jews read the last Torah portion and then proceed immediately to the first chapter of Genesis, demonstrating that the Torah is a never ending circle. This completion of the readings is a time of great celebration. There are processions around the synagogue carrying Torah scrolls and plenty of high-spirited singing and dancing in the synagogue with the Torahs. Shemini Atzeret and Simchat Torah are holidays on which work is not permitted. The close of Simchat Torah ends the Jewish fall holiday period.

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*REGIONAL:

7.2 UAE Swears in First Woman Judge

Khulood Ahmed Jawan Al-Dhaheri, the first national woman to become a judge in the UAE was sworn in on 7 October before Sheikh Mansour bin Zayed Al-Nahyan, Minister of Presidential Affairs and Chairman of the Abu Dhabi Judiciary Department. Sheikh Mansour said that the appointment of the UAE's first female judge came as part of the comprehensive reforms currently taking place at the Judiciary Department and in continuation of the policy aimed at increasing women's participation in society. He expressed the hope that more UAE nationals will join the judiciary and called for preparing a well-qualified generation of national judges. UAE court judges are often citizens of other countries. (WAM08.10)

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7.3 Old Turkish Banknotes to Fuel Manufacturing Plants

The Central Bank of Turkey will get rid of YTL banknotes, which will gradually disappear from circulation as new TL notes are introduced into the market at the beginning of next year, by delivering them to cement factories for fuel or by handing them over to the Izmit Waste and Residue Treatment Incineration and Recycling Co. Inc. (IZEYDAI). The bank used the same method to get rid of notes that were used prior to the launch of the YTL in 2005. According to the central bank's daily banknote emission volume records, cash in circulation carries a total value of YTL 29.4 billion and is estimated to weigh roughly 500 tons. The bank has limited options to dispose of the old currency. Burying these notes is an option, but is not preferred because it is considered extremely hazardous to the environment. Using the notes as additives in asphalt was another idea, but municipalities were not interested, pointing out that this would only increase costs while not contributing to the quality of the asphalt. Giving old money to cement factories is, on the other hand, a much more feasible and less costly option to pursue and also benefits the manufacturing plants as well. The bank has 21 offices across the country, each dealing with sub-regions, including several cities. These offices will collect the banknotes from cities they are affiliated with and dispose of them by sending them to nearby factories or recycling facilities. (Zaman07.10)

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7.4 Cyprus Population Increases

The population of Cyprus in the Government controlled area was estimated at 789.300 at the end of 2007, recording an increase of 1.4% from the previous year. According to data released by the Cyprus Statistical Service (CyStat), the population in the district of Nicosia was 310.900 at the end of 2007, in Famagusta 43.700, in Larnaka 131.900, in Limassol 226.700 and in Paphos 76.100. A 69.9% of the population resided in the urban areas of Cyprus, whereas 30.1% resided in rural areas. (HRI06.10)

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8: ISRAEL LIFE SCIENCE NEWS

8.1 Nicast's AVflo for Hemodialysis Patients Receives CE Mark

Nicast announced the receipt of a CE Mark for its flagship product, the AVflo artificial vascular graft. The device is intended to help end stage renal failure (kidney failure) patients who must undergo hemodialysis treatment three or more times a week. AVflo enables hemodialysis to continue without further disturbance to the veins and arteries in the patient's arms already severely damaged by the habitual needle punctures required by the treatment. The AVflo is the first vascular access graft to apply the many beneficial properties of electrospun nanofabric. Its self-sealing, non-woven, synthetic fiber structure provides excellent primary and secondary patency (unobstructed blood flow); allows for dialysis within 24-48 hours after implantation; and self-seals within less than five minutes following the withdrawal of the dialysis needles. It is simple to implant and to suture to blood vessels; the needle punctures and suture holes do not bleed. AVflo is strong enough to withstand the pressure of blood flow, yet thin enough for blood flow to be easily felt through it. Lod's Nicast (http://www.nicast.com) is a pioneer in the development of superior implantable medical devices made of electrospun polymer nanofabrics for a wide range of applications. The company is currently focused on the development and marketing of the AVflo vascular access graft and the NovaMesh ventral hernia mesh. (Nicast07.10)

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8.2 GWU Hospital Purchases Orthocrat's TraumaCad for Orthopedic Preoperative Planning

Orthocrat announced that the George Washington University Hospital has purchased TraumaCad, a web-based pre-operative planning and digital templating software solution. Orthopedic surgeons have traditionally used X-ray films and acetate overlays to determine the size of prosthetic implants when planning for joint-replacement surgery. With the adoption of digital imaging technologies for x-rays, TraumaCad will allow the orthopedic surgeon to perform preoperative planning from any computer, with greater accuracy. TraumaCad will be integrated with the digital imaging systems at George Washington Hospital, allowing orthopedic surgeons and residents to perform pre-surgical planning from any computer, anywhere. Petah Tikva's Orthocrat (http://www.orthocrat.com) has a simple mission: To dramatically improve the orthopedic surgeon's workflow, so that more time can be spent with patients. Orthocrat's flagship product, TraumaCad, has been installed in over 1,000 locations in ten countries, including hospitals, clinics and academic institutions. OrthoFlow, the company's newest workflow solution, is already proving that a busy surgeon can expect to get rid of an hour of repetitive drudgery each day, and spend that time with patients instead. (Orthocrat07.10)

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8.3 Given Imaging Launches RAPID 5 Access Software

Given Imaging announced the launch of RAPID 5 Access, new software that facilitates physicians' reading PillCam videos anytime, anywhere with the most advanced software tools. This new software also enables network-based storage of PillCam studies and the import and export of patient data to and from electronic medical record systems. RAPID 5 Access brings many advantages to the Capsule Endoscopy Program: - Utilizes existing computers and network system to create, manage and store PillCam studies - Imports patient demographic data for easy patient check-in - Exports procedure reports and images for use in electronic medical record systems. In addition, RAPID 5 Access makes available all of the latest capabilities and features offered by RAPID 5, the latest PillCam capsule endoscopy reading software. Yokneam's Given Imaging (http://www.givenimaging.com) is redefining gastrointestinal diagnosis by developing, producing and marketing innovative, patient-friendly products for detecting gastrointestinal disorders. The company's technology platform is the PillCam Platform, featuring the PillCam video capsule, a disposable, miniature video camera contained in a capsule, which is ingested by the patient, a sensor array, data recorder and RAPID software. (Given Imaging06.10)

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9: ISRAEL PRODUCT & TECHNOLOGY NEWS

9.1 Yitran Announces Next Generation 150Kbps Powerline Communication (PLC) Chip

Yitran Communications announces plans for its new generation 150Kbps PLC (Powerline Communication) chip; IT900. The chip will be available from multiple sources, including a major semiconductor company that has licensed Yitran technology in the past. The chip will be down compatible to Yitran's current IT800 and IT700, which are HomePlug Command and Control (C&C) ready. Yitran's leadership in PLC began with IT800 (7.5Kbps), which was selected by HomePlug as the baseline technology for the HomePlug C&C open standard. Yitran's goal is to establish the new IT900 as an extension to HomePlug C&C standard as an open specification. IT900 will feature a full protocol stack to meet the demands of AMR/AMM/AMI and Home/Building Automation. IT900 will provide nearly 20 times greater throughput than the IT800 series using Yitran's highly robust DCSK modulation technology. Beer Sheva's Yitran (http://www.yitran.com) designs, develops and markets high performance, low cost PLC modem chips that provide extremely robust and reliable communication over existing electrical wiring and power grids to enable a variety of Command and Control applications, such as Energy Management and Demand Response; Home, Building and Commercial Automation. (Yitran06.10)

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9.2 ECI Telecom Selected for Multi-Million Dollar Fiber Network Caribbean Deployment

ECI Telecom announced that its 9000 Carrier Ethernet Switch Router (CESR) family and the XDM Multi-Service Provisioning Platform (MSPP) have been selected by Triton Telecom, a wholly-owned subsidiary of Cobian International Group Inc., for a multi-million dollar network project spanning the distance of Florida, Puerto Rico, the Dominican Republic and Jamaica. This network is the first in the region to use submarine cable based on a native 10 Gigabits (10G) system, supporting up to 40G per channel, and significantly improving bandwidth capacity and service delivery to customers. The platforms, both part of ECI's 1Net business framework, will deliver IP traffic across the Caribbean, supporting the growing bandwidth requirements in the region. The 1Net framework supports optimized migration to next-generation networks. As such, the 9000 CESR and XDM platforms will provide Triton with an end-to-end transport solution, supporting both legacy SONET/SDH capabilities along with new IP traffic requirements with speeds of 10 Gig and beyond. Both platforms help reduce operational and capital expenditures while meeting the requirements of working with existing and future technologies. Petah Tikva's ECI Telecom (http://www.ecitele.com) delivers innovative communications platforms to carriers and service providers worldwide. ECI provides efficient platforms and solutions that enable customers to rapidly deploy cost-effective, revenue-generating services. Founded in 1961, ECI has consistently delivered customer-focused networking solutions to the world's largest carriers. (ECI06.10)

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9.3 Come2Play Releases First Version of an Open Source API for Multiplayer Flash Games Development

Come2Play released an open-source application program interface (API) that enables game developers to turn single player flash games into social gaming networks. Come2Play will wrap those new games in a SWF file with a branded GUI, widgets & application, in order to enhance advertisers' engagement with their potential customers and grow games developers' business opportunities. In addition, Come2Play offers developers 100% of the in-game advertising revenue generated from their games on any Web site around the world. Come2Play invites developers to use, change and improve the API and emulator where the future versions of it will be developed in a public, collaborative manner. The open source API is a developer generated software and Come2Play wishes to empower game developers by giving them a sense of ownership. Come2Play is putting game developers back in control and offering them the opportunity to exploit the full potential of their Flash game in terms of revenues, distribution and branding, and still retain all copyright. This approach is also intended to offer in-game branding to support a sponsorship deal with international brands for new original games that will reach wide-spread popularity among addictive online gamers. This will enhance the potential revenues of talented game developers compared to ad networks advertising base tags program.

Haifa's Come2Play (http://www.come2play.com) is a developer of innovative white-label social gaming platforms for multiplayer online Flash games. Come2Play's platform allows digital content providers to create multiplayer Flash game channels and widget galleries with social features including player databases for tracking scores, tournament management systems and player comment and friends' connection areas that can be distributed to any Web site using Come2Play's online tools. Come2Play's products and services create new social gaming opportunities for any Web site or blog, regardless of size, location or language, while eliminating the costs associated with feature development. (Come2Play 06.10)

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9.4 ATK & Elbit Systems Conduct Successful Flight Test of GATR

Minneapolis, Minnesota's Alliant Techsystems and Elbit Systems announced that they have successfully conducted flight tests of the Guided Advanced Tactical Rocket (GATR) at White Sands Missile Range in New Mexico. Targets were engaged at ranges up to six kilometers when the GATR semi-active laser seeker guided the rockets to within one-meter accuracy, resulting in "direct hits." All rockets were fired from an M261 launcher. The rocket benefits from a robust design, which combines combat-proven performance, a minimum smoke signature and the reliability of an ATK-produced propulsion system, similar to a system employed on millions of rockets produced for the United States Army. GATR contains a guidance and control system built with the experience of Elbit's heritage in high-performance laser seekers for the United States and international customers. It employs advanced acquisition, tracking and guidance algorithms to achieve one-meter accuracy against stationary and moving targets. In its tactical configuration, GATR will incorporate an Insensitive Munitions (IM) rocket motor and a family of IM warheads to include blast/fragmentation and penetration. GATR will be a low-cost, precision strike weapon that minimizes collateral damage, while providing stand-off deployment against a wide array of target sets. GATR supports lock-on before or after launch as well as autonomous or remote laser designation. The system can be deployed against targets at ranges of 1.5 to 8+ kilometers from fixed and rotary-wing aircraft, as well as unmanned aerial vehicles.

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. The Company also focuses on the upgrading of existing military platforms and developing new technologies for defense, homeland security and commercial aviation applications. (Elbit06.10)

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9.5 Magal Awarded Contracts Totaling $7.5 Million for International Airports Protection

Magal Security Systems has been awarded contracts totaling approximately $7.5m to protect two international airports in South East Asia and North Africa. Both projects are based on turnkey solutions, and will be completed during 2009. The project in South East Asia is based on the DTR 2000 Taut Wire System and MagBar Intrusion Grids, as the first security layer and the Omnitrax Buried Cable, as the second security layer. An array of both stationary and PTZ cameras will be deployed along the perimeter to verify incoming alarms. Some of the fixed cameras will have Intelligent Video Analysis capabilities. In addition, the customer had decided to add radar coverage, which will be integrated with Magal's MTC 1500E Thermal Camera. The various layers of sensors and all of the systems will feed into a command and control center that will be managed by Magal's FORTIS C4I Management Software. The control center will communicate with patrol cars in the airport's vicinity by means of a wireless LAN and will be able to transmit video and data to the vehicles, thus enabling a higher level of security for the airport. The project in North Africa utilizes the IntelliFiber Fiber Optic Outdoor Intrusion Detection System and Magnet Security Management System. Following completion of the installation, management expects the project to be expanded to enable the incorporation of additional surveillance capabilities.

Yehud's Magal Security Systems (http://www.magal-ssl.com) is engaged in the development, manufacturing and marketing of computerized security systems, which automatically detect, locate and identify the nature of unauthorized intrusions. The Company's products are currently used in more than 70 countries worldwide to protect national borders, airports, correctional facilities, nuclear power stations and other sensitive facilities from terrorism, theft and other threats. (Magal 06.10)

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9.6 Optibase's Encoders Integrated in UTStarcom's IPTV Solution Headend in India

Optibase announced that its advanced encoders were selected by UTStarcom, a global leader in IP-based, end-to-end networking solutions and services, as part of an integrated IPTV solution to United Telecoms, Bangalore that was chosen to supply and implement Goa Broadband Network. UTStarcom's RollingStream advanced IPTV solution, incorporating Optibase's H.264 streaming platforms, will provide Goa's citizens top broadcast quality TV and advanced on-demand entertainment services over IP networks. This deployment by United Telecoms represents another strategic project for UTStarcom and Optibase in India, one of the world's largest IPTV markets. It further solidifies Optibase's position as the market leader in India, serving three major Telco providers: Aksh Optifibre Limited, Time Broadband Services and Bharti Airtel Limited. Herzliya's Optibase (http://www.optibase.com) provides professional encoding, decoding, video server upload and streaming solutions for telecom operators, service providers, broadcasters and content creators. The company's platforms enable the creation, broadband streaming and playback of high quality digital video. Optibase's breadth of product offerings are used in applications, such as: video over DSL/Fiber networks, post production for the broadcast and cables industries, archiving; high-end surveillance, distance learning; and business television. (Optibase07.10)

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9.7 NEC Adopts Waves MaxxAudio Sound Enhancements

Waves Audio announced that its MaxxAudio sound enhancement algorithms are now being implemented by NEC in its Valuestar N and LaVie C computers. Just released in Japan, the Valuestar all-in-one desktop and the LaVie C notebooks are the latest in NEC's extensive product line. NEC has previously used Waves MaxxBass in its Valuestar W and VR series computers, and now, for the first time, they are implementing the full MaxxAudio suite. MaxxAudio consists of 5 technologies which enhance and optimize the audio performance of consumer electronics: MaxxBass for improved perceived bass response; MaxxTreble for increased high frequency fidelity; MaxxVolume for dynamic conditioning and level maximization; MaxxStereo for expanded stereo imaging of headphones and speakers; and MaxxEQ for balanced frequency response.

Tel Aviv's Waves (http://www.waves.com) is the world's leading developer and provider of audio signal processing tools, with award-winning software and hardware for the professional and consumer electronics audio markets. Waves has more than fifteen years of expertise in the development of psycho-acoustic signal processing algorithms which leverage knowledge of the human perception of hearing to radically improve perceived sound quality. Waves processors are used to improve sound quality in the creation of the hit records, major motion pictures, and popular video games the world over. (Waves07.10)

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9.8 Atos Origin & InfoGin Deploy Innovative Mobile Internet Services in Spain

Atos Origin, an international IT services company and InfoGin have implemented a web to mobile content adaptation solution. This solution has enabled Telefonica de Espana mobile business, the largest wireless operator in Spain, to quickly introduce advanced mobile data services to its Spanish subscribers in a successful manner. As the prime contractor, Atos Origin was in charge of providing complete project management services and responsible for overall integration of InfoGin's Intelligent Mobile Platform (IMP). Powered by InfoGin's patented platform, Telefonica is positioned to offer its mobile users advanced Internet services in the most user friendly way on their mobiles. With this new service, Telefonica offers its customers the best possible experience to surf on the Web allowing mobile users access to any Internet web site from their mobile independently of their devices' capabilities. This new solution supports Telefonica's strategy to facilitate access to mobile content and deliver innovative and attractive services to its subscribers giving an optimized access to web sites that aren't mobile compliant. With an internationally proven track record, Kfar Saba's InfoGin (http://www.infogin.com) is a world leader and pioneer in the field of Web to Mobile content adaptation, enabling mobile users to access any Web site they desire, optimized to their mobile device. The company's technology centers on the fundamental belief that in order to adapt Web content designed for large screen display to a mobile device, a platform must first "understand" the visual aspect of the page and then present the information according to its importance. InfoGin's patented technology offers a range of solutions, from a fully automatic intelligent conversion engine to professional content-editing and marketing tools that enable full control over the delivered information. (Info Gin07.10)

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9.9 Mellanox ConnectX 10GigE Mezzanine Adapter for IBM BladeCenter Is Blade.org Compliant

Mellanox Technologies announced its performance-leading ConnectX EN 10GigE Mezzanine adapter for the IBM BladeCenter achieved Blade.org compliance. Mellanox's ConnectX 10 Gigabit Ethernet adapters incorporate many of the physical layer technologies required to provide a cost and power-optimized 10 Gigabit Ethernet solution. The Mellanox ConnectX EN supports virtualization acceleration features like NetQueue and SR-IOV and I/O consolidation Ethernet features like Data Center Ethernet (DCE) and Fiber Channel over Ethernet (FCoE). Mellanox offers a complete family of ConnectX EN 10 Gigabit Ethernet adapters to support a wide variety of cabling options including UTP, Twinax and CX4 for copper and SR, LR and LRM for fiber optics. Mellanox ConnectX EN provides data centers with a rich set of availability, performance and QoS features enabling virtualization, and supports emerging technologies like FCoE and DCE on a single adapter providing I/O consolidation.

Yokneam's Mellanox Technologies (http://www.mellanox.com) is a leading supplier of semiconductor-based, interconnect products to world-class server, storage and infrastructure OEMs servicing Fortune 500 data centers, the world's most powerful supercomputers, and mission critical embedded applications. The company's Virtual Protocol Interconnect (VPI) enables standard communication protocols to operate over any converged network (InfiniBand, Ethernet, Data Center Ethernet) with the same software solution. (Mellanox13.10)

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9.10 Storage Startup Axxana Announces Birth of "EDR" – A New Domain in Data Protection

Axxana emerged from "stealth mode" today at Storage Networking World with the introduction of its unique Enterprise Data Recording (EDR) technology. Axxana's innovation is the first-ever to enable 100% disaster recovery with no data loss, over any geographical distance; all with significant cost savings. Axxana's first EDR system combines the data-recovery certainties of synchronous replication with the distance and cost advantages of asynchronous replication. The result is a complete shift in the way enterprises will architect their data-center strategies. Until today, existing data protection methods – such as backup/restore, replication or CDP – have been bound by same limitation: all data that required protection had to be transported out of the primary data center prior to a disaster. In contrast, Axxana's technology completely protects enterprise data inside a "disaster-proof" EDR device, an enterprise equivalent to the indestructible "black box" flight-data recorders used to recover post-crash aircraft data.

Tel Aviv's Axxana (http://www.axxana.com) was co-founded by veterans of the storage industry in order to address the number one challenge in data protection; recovering data at any distance with zero data loss. Axxana provides a compelling solution that is set to change the face of Disaster Recovery. Axxana has introduced a new domain in the Data Protection arena, namely Enterprise Data Recording (EDR). (Axxana13.10)

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9.11 C.R. England Outfits Trucking Fleet with Mobileye Vision-Based Driver Assistance

Mobileye has been selected by Utah's C.R. England, the US' largest refrigerated trucking company, to equip its fleet of more than 3,500 trucks with its innovative driving assistance product AWS-4000. The camera-based safety features to be installed on each truck will include a lane departure warning (LDW) system, a forward collision warning (FCW) system, and a headway monitoring and warning (HMW) system. The only driver safety solution offering the three essential accident-prevention warnings in one unit, Mobileye AWS includes a smart camera located on the front windshield inside the vehicle and utilizes Mobileye's advanced vision technologies to detect and measure the distance to vehicles and to lane markings, providing the driver with timely alerts. The forward collision warning assists in preventing collisions with vehicles ahead by alerting drivers to both moving and stationary vehicles, while filtering cars in adjacent lanes posing no threat. The lane departure function monitors the vehicle position in the lane and alerts the driver to departures from a lane without using the appropriate turn signal.

Jerusalem's Mobileye (http://www.mobileye.com) is a technological leader in the area of advanced image sensing and processing technology for automotive applications, with a product offering covering the entire range of vision applications. Mobileye's unique monocular vision platform works as a third eye to help drivers improve safety and avoid accidents, and has the potential to revolutionize the way we drive. (Mobileye 13.10)

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9.12 Gizmox Announces Release of Visual WebGui 6.2

Gizmox announced the release of Visual WebGui 6.2. The upgrade will introduce a complete integration into the Visual Studio designer, allowing Visual WebGui Projects to be configured without any need for manual configuration. The Silverlight Package has also been upgraded to include the Silverlight Packager into the Visual Studio Project Property Pages. In addition, the new version can also be installed without Visual Studio and allows developing web from almost any machine with either the free Visual Studio Express edition, the open source SharpDevelop, or even Notepad. The upgraded version allows Visual WebGui to expose the entire set of desktop development tools exactly as in WinForms, a level that was unreachable in previous versions. The new version also contains an upgraded installation protocol which consolidates all Visual WebGui's Products, Open source Installation, Documentation and Samples into a single step-by-step process.

Gizmox is the Company that released Visual WebGui to the public in early 2008, is poised to create a new standard in cloud computing. Tel Aviv's Gizmox, the developer of Visual WebGui (http://www.visualwebgui.com) open source platform and a member of Microsoft's Visual Studio Industry Partner (VSIP) program was founded in July 2007. Gizmox enables web like desktop platfortms; its DHTML SDK has been downloaded by over 250,000 software houses and individual developers with more than 23,000 active and registered community members. More than 25,000 VWG applications have been built, and are in production at enterprises such as SAP, Israel Aerospace Industry, Israeli leading Leumi Bank, Trysis, NetworkD, Net Size, American File Net, Phoenix insurance company, Blue Phoenix and many more. The company is funded by Venture Capital and private investors. (Gizmox 13.10)

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9.13 Korea's Largest Bank Deploys 5,000 Aladdin eToken Authentication Devices

Aladdin Knowledge Systems announced that KB Bank, Korea's largest private bank, has chosen the Aladdin eToken strong authentication solution to provide secure internal authentication. Preventing fraud by verifying customers' identities through PKI authentication, KB Bank will initially deploy 5,000 Aladdin eToken devices internally (see photo), and projects that another 25,000 will be deployed to customers throughout 2009. Certified by the Korea Information Security Agency (KISA), Aladdin eToken complies with the most stringent security standards for online banking. Aladdin eToken is the world leader for USB-based authentication solutions. eToken provides strong user authentication and cost-effective password management solutions, enabling secure network access, improved data security through enhanced encryption and digital signing, as well as compliance with a wide range of regulatory requirements worldwide.

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 eSafe delivers real-time intelligent Web gateway security that helps protect data and networks, improve productivity, and enable compliance. (AKS07.10)

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10: ISRAEL ECONOMIC STATISTICS

10.1 Israel's Exports of Commodities by Country & Industry for 2007

The Central Bureau of Statistics announced that during 2007, total exports grew by 72% in comparison to 2000. The more significant grew was recorded in export of pharmaceutical products industry, non-metallic mineral products industry, basic metal industry and field crops and vegetables industry. The most significant weight changes, between years 2000-2007, were recorded on the weight of exports of electronic communication equipment industry (13.0% of total exports in 2000, 6.7% in 2007), exports of electronic components industry (8.2% in 2000, 2.9% in 2007). The weight of chemicals and chemicals products industry grew from 11.1% in 2000 to 17.7% in 2007.

Exports by Industry to European Union Countries

In 2007, exports to European Union countries totaled $16.0b ($12.3b excluding diamonds). The most significant exports industries to these countries during 2000-2007 were: chemicals and chemical products industry (22.3% of exports to EU countries in 2007), diamonds (23.2%), industrial equipment for control and supervision, medical and scientific equipment industry (8.3%), plastic and rubber products industry (7.0%), agricultural exports (6.3%) and electronic communication equipment (6.1%). It should be notice also that exports of electronic communication equipment industry to European Union countries shrunk in 2007 to 70.2%, compared to year 2000 on current prices. Agricultural exports to European Union countries constituted 5.8% (in year 2000) of total exports to EU countries and reach 6.3% in 2007.

In 2007, the industries in which exports to EU countries constituted at least 50% of total exports were: agricultural industry (76.5%), plastic and rubber products industry (55.1%) and food' beverages and tobacco products industry (51.4%).

Exports by Industry to U.S.A.

In 2007, exports to U.S.A. totaled $18.9b ($10.0b excluding diamonds). The most significant export industry excluding diamonds), to this country during 2000-2007, was: chemicals and chemical products industry (18.0% of exports to U.S.A. in 2007) that includes pharmaceutical products industry. Exports of pharmaceutical products industry grew 8 times during 2000-2007, from $309m in year 2000 to $2,626m in 2007. In 2007, exports of industrial equipment for control and supervision, medical and scientific equipment industry constituted 7.1% of the total exports to USA, electronic communication equipment 5.3% and machinery and equipment industry 3.2%. It should be noted also that exports of electronic communication equipment industry to U.S.A. shrunk in 2007 to 74.6%, compared to year 2000; and exports of electronic components industry dropped to 37.7%.

In 2007, the industries in which exports to USA constituted at least 50% of total exports were: pharmaceutical products industry (72.2%), diamonds (60.3%) and jewellery, goldsmiths' and silversmiths' articles industry (58.3%).

Exports by Industry to Asian Countries

In 2007, exports to Asian countries totaled $9.8b ($5.3b excluding diamonds). The most significant exports industries to these countries in 2007 were: industrial equipment for control and supervision, medical and scientific equipment industry (10.5%), electronic components industry (10.2%), electronic communication equipment industry (8.6%), and chemicals and chemical products industry (5.0%). In 2007, the industry in which exports to Asian countries constituted at least 50% of total exports was: electronic components industry (64.5%). In 2000-2007, the fastest growth in exports, by industries, to Asian countries was recorded in agricultural products, furniture products industry, aircraft industry and basic metal industry.

Exports by Industry to Other Countries Group

In 2007, exports to Other Countries group totaled $9.4b ($8.1b excluding diamonds). The most significant exports industries to these countries in 2007 were: chemicals and chemicals products industry 22.4% of exports to Other Countries group, transport equipment industry (13.5%), aircraft equipment industry (13.1%), electronic communication equipment (8.6%) and industrial equipment for control and supervision, medical and scientific equipment industry (7.3%). In 2007, the industries in which exports to Other Countries group constituted at least 50% of total exports were: refined petroleum industry (88.6%), transport equipment industry (63.8%). In 2000-2007, the fastest growth in exports, by industries, to Other Countries group was recorded in basic metal industry, pharmaceutical products industry and fruit industry. (CBS05.10)

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11: In Depth

11.1 JORDAN: Moody's Ba2 Rating Reflects Economic Challenges

Moody's Investors Service (http://www.moodys.com), in its new sovereign credit report on Jordan, said Jordan's Ba2 foreign currency government bond rating is supported by a robust level of official foreign exchange reserves, a relatively sound and improving institutional framework and a healthy general government balance. It is also reassuring that the domestic banking system does not seem to have been significantly affected to date by the global financial turmoil.

However, Moody's cautions that Jordan's sovereign rating is constrained by a low level of economic strength that is exacerbated by weaknesses such as a high reliance on oil imports and a very wide current account deficit that creates a dependency on potentially volatile inflows of private capital. The high level of inflation is a concern as is the public debt which, although well-structured and declining, remains large. "Jordan's economic strength is quite weak. Compared to other countries that we rate globally, Jordan has a low level of GDP per capita. Although the economy is relatively well diversified, it is small and has structural weaknesses, which limits its robustness," says Tristan Cooper, a Moody's Vice President and Senior Analyst.

The quality of governance and institutions in Jordan continues to improve gradually but lags that of higher rated countries. The government does however display a strong willingness to repay its obligations, illustrated by its recent external debt buyback.

Jordan has a moderate level of government financial strength. Although the central government deficit (excluding grants) is wide, the overall general government is close to balance owing to substantial external grants and government agencies' surpluses. Notwithstanding a recent debt buyback, the public debt is comparably large. The government's shrinking external debt has a favorable structure, an important consideration in light of the country's balance of payments vulnerabilities.

Jordan's susceptibility to event risk is also considered to be moderate. While Moody's considers the risk of serious domestic political upheaval to be low, the volatile regional political environment is unsettling. As Mr. Cooper explains, "The main economic risks are the high level of inflation and the very wide current account deficit. We are wary of the balance of payments' heavy reliance on potentially changeable inflows of private capital. Although it is comforting that these are largely in the form of FDI from wealthy oil-exporting countries and that the authorities have a large stock of foreign exchange reserves at their disposal".

"Jordan's banking sector remains in relatively good health and does not seem to be exposed significantly to the current turmoil in global financial markets, although strong domestic credit growth in recent years could be a source of vulnerability in the event of an economic downturn, especially if domestic real estate prices were to slide", concludes Mr. Cooper. (Moody's 14.10)

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11.2 QATAR: Laundry Closed

A recent report issued by the International Monetary Fund (IMF) has found no evidence of terrorist groups receiving finance through Qatar and only minimal levels of money laundering, which comes as good news for the country's international standing and for its banking sector. Released on October 2, the IMF's "Qatar: Detailed Assessment Report on Anti-Money Laundering and Combating the Financing of Terrorism" said there had been no reports of suspicious transactions related to terrorist financing from Qatar, nor had there ever been any significant terrorist activity on its soil. Using methodology laid down by the Financial Action Task Force (FATF), the report also noted that Qatar had enacted a series of laws dealing with anti-money laundering and combating the financing of terrorism (AML/CFT) since 2002.

In its assessment, the IMF said that Qatar was, after the United Arab Emirates (UAE), "the most financially developed economy" in the region. However, while the country has a growing financial sector, driven in part by a booming property market, the report warned that Qatar could be a victim of its own success. "These developments have the potential of creating a suitable environment for money launderers seeking to exploit these conditions to exercise their illegitimate activities," it said.

Following on from that warning, the report highlighted some weaknesses in Qatar's AML/CFT legislation that needed to be addressed. In particular, the report said the allocation of resources to AML/CFT appeared to be uneven, especially in view of the rapid development and diversification of Qatar's economy. "The professional standards, including those related to confidentiality, are not fully developed," the report said. "There is a lack of specialist skills training in law enforcement authorities, including prosecution agencies, the Financial Intelligence Unit, supervisors and other competent authorities involved in combating money laundering and financing of terrorism."

The report said Qatar should consider centralizing its AML/CFT activities, rather than having a multiple number of agencies including the ministry of interior's economic crimes prevention division, the Public Prosecutor's Office, the State Security Bureau and the Customs bureau all having an investigative role. "The various agencies do not appear to be sufficiently structured, funded and resourced to effectively carry out their functions," it stated.

Sheikh Fahad bin Faisal al-Thani, Qatar Central Bank's (QCB) deputy governor and chairman of the country's National Anti-Money Laundering and Terrorist Financing Committee, said that while the report found no evidence of any significant money laundering activity, more measures would be implemented to ensure full compliance with the FATF's guidelines and recommendations. "We acknowledge that the report identifies a number of areas for improvement and we will act swiftly and efficiently to address these matters," he said in a statement on October 4. "The work of safeguarding Qatar's financial system in line with internationally accepted norms is important to us all and I am fully committed to maintaining our rapid progress on this front."

Even before the results of the IMF study were released, Qatar had acted to further strengthen its regulations governing money transfers. New rules issued by the QCB in early September require that all the transactions made by personal banking customers, including those conducted via the internet, must include the full details of the remitter and beneficiary. Under the new regulations, the full name, account number and address of the person or organization receiving the funds, along with the name, address and phone numbers of the remitter must be provided, as well as the purpose of the transfer. These new regulations will go a long way to address the criticism in the IMF report that there was some "inconsistency in the measures in place to detect cross-border transportation of currency and bearer negotiable instruments in Qatar".

The IMF's generally favorable report, and Qatari authorities' positive response to its calls to bolster financial monitoring and anti-laundering regulations can have direct implications for the country's banking industry. Being given a clean bill of health, with a few reservations, means it is unlikely that Qatar's banks will come under the same kind of scrutiny or receive the same adverse publicity as some of the other financial institutions in the region. Earlier this year, the US Treasury Department announced sanctions against Bahrain-based Future Bank, due to its supposed close ties with Iran's Bank Melli, which Washington claims aided Tehran's alleged nuclear proliferation activities.

While not a criticism of Bahrain's banking sector as a whole, the adverse publicity was not welcome, and is something Qatar would naturally like to avoid as it strives to improve its credentials as a regional finance centre. (OBG10.10)

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11.3 BAHRAIN: Maintaining the Flow

Bahrain is moving to overhaul its water industry, boosting coordination of service providers while investing heavily in both production capacity and value-added industries. As noted by the Oxford Business Group, the country wants to guarantee that taps keep flowing at the same time that it looks to profit from one of mankind's most basic needs.

To ensure better management of the kingdom's water, the government is establishing a new water resources council. The council will both manage water resources and help draft plans for future projects needed to maintain Bahrain's water supply. Legislation to set up the council as well as a draft national strategy to protect water resources will go before the upper house of the Bahraini legislature later this month.

Currently, Bahrain's water industry is overseen by three independent bodies: the Electricity and Water Authority (EWA), which is in charge of providing and managing water supplies; the Ministry of Works and Housing, which is responsible for waste water collection and treatment; and the Ministry of Municipalities and Agriculture, which manages ground water stocks.

Works Minister Fahmi Al Jowder said the existing situation left an "institutional gap" in water management that the new council would bridge. "Through this important step in the institutional reform, a closer interaction and a more integrated water resources management will be realized," he said upon the announcement of plans for the new body.

When up and running, the council will have a massive new project to oversee. On October 6, South Korea's Hyundai Heavy Industries announced it had won a $1.7bn contract to build a desalination facility and associated power station in Bahrain. Construction of the plant is part of a $2bn build-own-operate project, awarded by the government to French firm GDF Suez and Kuwait's Gulf Investment Corporation, for the Al Dur 1 desalination and power station project, which is due to come on line in 2011. When fully operational, the desalination plant is expected to produce 218,000 cubic meters of water per day, making it the largest reverse osmosis technology facility in the Middle East. The EWA will be the sole beneficiary of the plant's output through a 20-year power and water purchase agreement.

There are plans to develop three more power and water plants at Al Dur in the coming years, with the Al Dur 2 facility, of a similar size to the first, expected to be launched by 2009 at the latest, and two other units to be built within 20 years. In addition to focusing on supply increase and management, Bahrain is now seeing water services as an avenue for business and investment.

At the end of September, the Bahrain-based United International Bank (UIB) announced it had sealed a deal to buy the British firm BWA Water Additives (BWA), which develops and produces chemicals for various water treatment processes. Though the Sharia-compliant bank did not make the exact asking price for the company public, industry experts estimated the sale was worth around 100m pounds ($175m).

According to Asaad Albanwan, chairman of the UIB board, the acquisition will help give the bank a strong profile in an increasingly important sector. "The global water treatment demand is forecast to grow significantly in the foreseeable future and we feel strongly about investing in this sector," he said in a statement on September 30. According to Abdulla Janahi, UIB's general manager and acting chief executive officer, buying BWA was in line with the bank's strategy of investing in niche sectors. "From a regional perspective, BWA has a significant presence in the Middle East and has positioned itself as the leader in the high performance chemicals sector for water treatment," he said.

The acquisition of BWA is a good fit for Bahrain, given the company's wide range of products, all of which have applications in the Gulf region. BWA markets chemicals that are used in water desalination, industrial water treatment processes and secondary oil recovery - applications that are of growing importance in the kingdom and beyond. The company already has a well-established market share, with sales in 85 countries and an annual turnover of $100m, and is looking to expand.

With many countries in the Gulf embarking on new desalination projects at the same time as they experience increasing demand for the chemical protection for pipes and equipment, BWA appears to have the potential to grow right on its owner's back doorstep. With the EWA citing an average daily per capita consumption of water at 440 liters, more than twice that of many developed countries, Bahrain has a clear need for greater production capacity. With new plants coming on line, better management and the wherewithal to improve quality, it should be able to meet the demands made by a growing population and industry base. (OBG10.10)

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11.4 OMAN: Pedal to the Metal

Oman is positioning itself to become one of the region's leading steel producers, as the country works to wean itself off oil in favor of a more diversified economy. As reported by the Oxford Business Group, on September 29, authorities announced plans to invest $5bn in the burgeoning domestic steel industry. The investment is part of the government's ambitious plan to increase the manufacturing sector's GDP contribution to 15% by 2020.

The sultanate has already witnessed impressive growth in the steel industry over the past couple years, with various new projects coming on line. One example is Sohar Steel LLC's new steelmaking plant, which was commissioned on May 18 to produce 200,000 tonnes per year of continuous cast mild steel billets for Sharq Sohar Steel Rolling Mill LLC, the country's largest steel rebar producer. There are plans to eventually increase production capacity to 500,000 tonnes per year.

According to Suresh K Goswami, CEO of Sohar Steel, Oman is an ideal place for the steel industry to develop. "Steel production is an energy-intensive industry, so the availability of relatively cheap gas in Oman contributes to the location's attractiveness," he told OBG on September 24. "With the fast-developing Port of Sohar and proximity to export markets, Oman is truly poised to become a serious player in the region."

One project that is putting Oman on the steel industry's map is Shadeed Iron and Steel, the country's first fully integrated iron and steel plant. Owned by Abu Dhabi's Al Ghaith Holdings, the plant is located on a 1,850,000 sq meter site at Sohar Industrial Port. It will be able to annually produce 1.5m tonnes of steel by the time the first phase is complete, scheduled for the end of this year. The second phase will see the facility produce an additional 1.1m tonnes of steel per year.

Bhaskar Dutta, CEO of Al Jazeera Steel Products Co., views the quality of the sultanate's steel production as setting it apart from competitors in other countries. "Omani steel companies have a very good reputation in the market. That is why our company's exports to demanding markets like the US, Canada, Australia and the EU are surging from just under 15,000 tonnes last year to almost 38,000 tonnes this year," he told OBG.

Oman's concerted effort to develop its steel industry is not going unnoticed by other foreign players, who wish to capitalize on the country's industrial and construction boom. On September 29, the UAE's Danube Building Materials - a leading construction, interior decoration and shop fitting firm - announced it would invest $13.6m to develop a new steel facility in Mabella, just north of Muscat. The 51,000 sq ft facility will function as a logistics hub for Danube's operations in Oman. Rizwan Sajan, chairman of Danube, told local press, "The unprecedented growth of the real estate market in Oman has been fuelling intense activity in the construction scene, with the government focusing high interest into further advancing its local steel trade. ...This is truly the perfect time to invest significantly in expanding our operations here."

Despite growing excitement over Oman's steel industry, a recent glut of steel in the Gulf Cooperation Council (GCC) has been forcing prices down. On September 24, a tonne of Turkish steel was priced at $950, down almost 50% since July. As a result, steel mills throughout the region have recently cut production to shore up prices. According to industry experts, prices should stabilize after Ramadan, when consumption of steel will increase due to more construction taking place outside the months of summer heat.

Oman's steel sector seems unconcerned about the recent steep decline in steel prices, as in the long run the fundamentals of the industry are strong. "As Oman's local steel consumption is expected to balloon to over 1m tonnes by 2010 and as export markets' demand for high-quality steel increases, the sultanate's steel industry is in a very good position," said Dutta. (OBG06.10)

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11.5 SAUDI ARABIA: Aiming High

Saudi Arabia's economy has been ranked 16th in the world and best in its region in regards to ease of doing business, moving up eight places from its ranking last year. The "Doing Business 2009" report, which was released by the IFC and the World Bank in mid-September, evaluated 181 economies on overall ease of doing business, covering the period from April 2007 to June 2008. The report's index averages the country's percentile rankings on 10 indicators of business regulation, though it does not reflect such areas as macroeconomic policy, quality of infrastructure, currency volatility, investor perceptions or crime rates.

Saudi Arabia was ranked as the most competitive economy in the Middle East and North Africa region, followed by Bahrain, Qatar and the UAE. Similarly, the country was rated one of the region's leaders in terms of reforming regulations, alongside Egypt and Tunisia. Saudi Arabia's high score coincides with its stated goal to become one of the world's ten most competitive economies by 2010.

"Economies worldwide are increasingly committed to regulatory reforms, and this is evident in the Middle East and North Africa, the region with the second-largest share of economies that made it easier to do business," said Dahlia Khalifa, a co-author of the report. "Many economies, including Egypt and Saudi Arabia, are consistently making improvements and are advancing in the global rankings. Across the region, countries are making it easier to do business by looking to early pacesetters for ideas on how to reform," she wrote in a statement that accompanied the report.

In the category of registering property, Saudi Arabia was ranked first in the world, moving up two places from last year. In particular, speed of registration benefited from a new comprehensive electronic system for registering title deeds; it now takes an average of just two days to register property, compared to 37.4 for the region.

Saudi Arabia's score also improved significantly in the categories of protecting investors and closing a business, moving up 25 places overall in each. In fact, Saudi Arabia was the only reformer in the region in regards to ease of closing a business, the category that evaluates the time and cost required to resolve bankruptcies. Saudi Arabia was able to reduce the time to go through the insolvency process from 2.8 years last year to 1.5 years, as well as increase the stakeholder recovery rate from 29.3 cents on the dollar to 37.5.

In terms of investor protection, Saudi Arabia&