2009-02-12
Aero International:

EL AL among the safest airlines

Investment in safety pays off for EL AL Israel Airlines.

According to the yearly review of aircraft accidents by the Jet Airliner Crash Data Evaluation Center (JACDEC), EL AL Israel Airlines ranks among the safest airlines, worldwide.
Together with Qantas, Cathay Pacific, Nippon Airways and Finnair, EL AL ranks among the international airlines which have flown without serious accidents (with fatalities) for over three decades. 
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2009-01-04
Globes:

WiMAX co Runcom acquires Bamboo

This is Runcom's second acquisition in as many weeks.

Mobile WiMAX solutions developer Runcom Technologies Ltd. has acquired Bamboo Media Casting Ltd. in an options swap deal. The acquisition comes less than a week after Runcom acquired most of IXI Mobile Inc. (Bulletin Board:IXMO).
The amount of the Bamboo acquisition was not disclosed, but Runcom founder and CEO Dr. Zion Hadad told "Globes", "The task now is to strengthen these deals and move forward, which requires money."
Runcom has $20 million in cash from its last financing round. The company develops chipsets for Orthogonal Frequency Division Multiple Access (OFDMA) technology for communications services to cellular phones and other mobile devices.
Hadad added that Runcom will hire more employees following the acquisition. Bamboo was founded in 2000 and develops video transmission over cellular networks.
Hadad said that Runcom acquired Bamboo because "ChinaTel wanted to acquire the company, but decided that it was premature to make an acquisition for its planned WiMAX network. We therefore decided that it was worthwhile acquiring Bamboo."
Runcom has a framework agreement with ChinaTel Group Inc. to supply WiMAX equipment and to invest up to $100 million in ChinaTel. 
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2008-11-26
Globes:

French WiMAX company Sequans to widen Israeli activity

The firm hired laid off employees of Go Networks.

French WiMAX processor developer Sequans Communications is expanding its activity in Israel. The company, founded in 2003 by chairman, president and CEO Dr. Georges Karam, has had a sales and support center in Israel for three years. The company has hired four former employees of shuttered Go Networks to set up development work.
Sequans' board includes former Alvarion CEO Zvi Slonimsky. Sequans VP EMEA sales and manager in Israel Pini Sagi says that the company plans to further expand its Israeli development activity. Sequans Israel most closely resembles Israeli start-up Runcom Technologies Ltd., which is reflected in its largest Israeli customer, WiMAX developer Alvarion Ltd. (Nasdaq: ALVR; TASE: ALVR).
The similarity between Sequans Israel and Runcom also appears in Sequans' financial ambitions. The company has been hurt by the financial crisis, and has been forced to postpone its planned IPO for the foreseeable future.
Sagi says that Sequans's activity will not be affected by financial distress, because it raised $28 million earlier this year. Sequans' core activity to date has been fixed WiMAX, providing components for base stations in emerging markets. The company is now developing mobile WiMAX chipsets for mobile networks, which combine telephony and 4G networks, such as the one recently launched in the US. 
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2008-11-19
Jerusalem Post:

Despite the tough times, Israel's high-tech sector thrives

From processors to software, from innovations in online video to security systems, from cellphone technology to better ways to stay safe on the road, Israel is there - at the forefront, designing and producing the high-tech wizardry that has changed the world.

Some of the products produced by the "Israeli brain trust" are well known - like the iconic ICQ chat program, which revolutionized communications, leading to the plethora of internet-based chat and phone solutions available today.
ICQ is just a case in point: Many Israeli companies developed their "killer" device or application with assistance and investments from venture capital investors and funds - investments that paid off big time when the companies they worked with arrived at a successful exit, either getting bought out by a multinational, or going public themselves, turning into worldwide enterprises which, in turn, snapped up promising Israeli startup ventures. With over 100 Israeli companies trading on the NASDAQ - the majority of them in the high-tech business - Israel is one of the world's technology powerhouses.
First, some stats: Over little more than a decade, Israel has grown into a high-tech powerhouse, with the technology boom fueling Israel's amazing GDP growth of the past few years, according to the Ministry of Industry, Trade and Labor. Nearly three quarters of Israel's $70 billion of exports last year were in the high-tech sector, Ministry statistics indicate, and the country has one of the highest per-capita rates of patents filed. In its latest report, the Israel Venture Association (IVA) said that high-tech companies raised $600 million during the third quarter of 2008, an eight-year quarterly high and up 45 percent from a year earlier, and 29% more than the second quarter. The World Economic Forum in its 2007-2008 report called Israel one of the leading countries in the world in technological innovation, ranked first for availability of qualified engineers and total expenditure on R&D.
The high-tech boom, along with the solid fundamentals of Israel's economy, has helped the country sustain strong growth for decades, with GDP rising in most recent years. Israel's GDP in 2006 reached $195b., according to the International Monetary Fund, and GDP per capita was $31,767 in 2007, the IMF said. After adjusting its forecast to take into account the world financial crisis, the Bank Of Israel still predicts that GDP will grow by 2.7% in 2009. Israel has free trade agreements with the European Union, the United States, the European Free Trade Association, Turkey, Mexico, Canada, Jordan, and Egypt, and last year became the first non-Latin American country to sign a free trade agreement with Mercosur, the South American common market. According to Bank of Israel statistics, industrial exports grew by some 27% since the start of 2008 and high-tech exports climbed at an annualized rate of 18.2% over the past three months.
From modest roots, many Israeli companies have grown to be world leaders in their specialties. One such company is Checkpoint Software, the creator of the modern commercial computer network firewall. Checkpoint was established in 1993 in a small Tel Aviv apartment, by Gil Shwed, Shlomo Kramer, and Marius Nacht - and today the company has some 100,000 customers and 1,900 employees worldwide, with a market capitalization of over $4b.
NICE Systems, which is involved in everything from telephony to Web, radio and video communications, has been trading on the NASDAQ since 1996, and has over 24,000 customers in 100 countries, including over 85 of the Fortune 100 companies. Both companies subsisted on investments in their early days, going on to far exceed the expectations of early investors.
In addition to private funding, the government of Israel runs a number of programs that provide help to promising startups. The Office of the Chief Scientist, the Israeli Industry Center for R&D (MATIMOP), and programs like the Israel-US Bi-national Industrial R&D (BIRD) Foundation, among many others, lend a helping hand with logistics, advice, and even funding.
The BIRD Foundation was established by the US and Israeli governments in 1977 to generate mutually beneficial cooperation between the private sectors of the US and Israeli high tech industries, including start-ups and established organizations. BIRD supports approximately 20 projects annually with a total investment of around $11m. per year. To date, BIRD has invested over $245m. in 740 projects, which have produced sales of over $8b. Since the establishment of the Foundation 30 years ago, the accumulated repayments have totaled $82m.
Israel, in other words, is a bright - very bright - spot on the high-tech world map, with so much innovation going on, many entrepreneurs who take their companies to a successful exit come back for another round, hoping to build yet another startup into a successful world-changing company. In an interview with the Israel Investment Newsletter earlier this year, Gemini's Carmel Sofer said that the rise of the "serial entrepreneur" was an increasing factor on the Israeli high-tech scene. "We were some of the earliest to spot a key trend we see playing out right now: the return of successful entrepreneurs," Sofer said. "We're seeing serial founders of startups rebound off successful exits and with money in pocket, begin building new businesses.
"We're seeing more and more of this caliber of professional starting new companies. They're not necessarily interested in the money. They have a strong commitment to building a company and they're coming from a variety of different fields."
One such "serial entrepreneur" is Zohar Zisapel, one of the most successful and prolific high-tech entrepreneurs in Israel, or anywhere. With 27 startups under his belt, Zisapel's RAD Group of companies, which he co-founded with brother Yehuda, is considered the top developer of telecommunications startups in the world. In an interview this week with The Jerusalem Post, Zisapel said that he has worked with nearly all the VC companies in Israel, plus a good number from the US.
"In the early days, before there were VCs, we raised money ourselves. We got some help from the Chief Scientist on some projects as well," he said.
In fact, Zisapel said, the assistance the government offers encourages VC investors to do business here.
"The Chief Scientist and others run excellent programs, which pay off for the country, encouraging not only specific projects, but an atmosphere of development, and a feeling that with enough hard work, a company can succeed. That drive encourages VC investors, to be more willing to put money into startups, and in the end, when there is a successful exit, both the investors and the country benefit. Even if a company doesn't make it, the technology they developed will find its way into another project," Zisapel said.
But hasn't the world financial crisis changed the rules? What are the prospects for Israeli high-tech in the coming years?
Zisapel remains optimistic, saying he expects growth to continue. "So far, I haven't seen a falloff in technology sales, at least by established companies, although I do expect a dip next year. But things will definitely not get as bad as they were in 2001," when the dot com bubble burst.
"This bubble is for the banks and real estate, so it will affect high-tech less," Zisapel says. While VC "angels" may temporarily be intimidated by the market and may hold off on their investing activities in the short term, and some brand new and almost-mature (pre-exit) companies that have a high burn rate may face real problems, he expects most well-run developers to survive the crunch.
"If anyone asked me, I would tell them that the time to buy or invest is when everyone else is afraid to, because you can get better terms," Zisapel said. "Those investing in new companies now are looking at exits in perhaps five years," when things should be looking much better, he said.
And if there's one thing Zisapel has proven, investments in Israeli tech pay off for those willing to take the investment risk. When it comes to the innovation that is a feature of Israel's high-tech developers, nothing's changed, he says; the fundamentals remain the same. "What's changed is the market, but the ideas are still out there," he says.
And those ideas are as great as ever, according to Gemini's Sofer. "We're now witnessing the emergence of the mobile Internet, and this is coming from Israel. The mobile phone is no longer being looked at just for its voice capabilities, it's being considered as a data device," he told Israel Investment Newsletter.
"Many are trying to take Web applications and make them work on the phone. This is just part of the story. Those companies, and many of them are located in Israel, who can start developing mobile applications from the ground up as they look how users will interact with the Mobile Internet are going to be the winners. These companies are working on application development as much as building sustainable businesses."
Regardless of investment climate, that development will continue - and investors like Gemini, who know a good thing when they see it, will continue to bring the future Israeli "stars" to successful exits. 
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2008-11-18
Jerusalem Post:

Multinationals discover Israel's wealth of hi-tech talent

Why some of world's largest computer companies have labs in Israel.

Discover why Google, Cisco, IBM, Microsoft and many others have set up shop in Israel.
With a rich pool of talent to draw from, large multinational companies have discovered that setting up shop in Israel - taking advantage of engineers, programmers, and even marketing and sales experts - is a wise move. With the need to maximize profit and cut expenses urgent in today's business climate, companies are expanding their research and development activities in Israel, and are doing business with Israeli firms and businesses on an unprecedented level.
Google, for example, believes in Israel's hi-tech potential to such an extent that it has opened not one, but two research and development centers in the past four years - one of the few countries outside the US where the company has multiple R&D offices, says Google Israel CEO Meir Brand. "That's an honor reserved for large countries, like Russia and China," Brand says, "so it's an indication of just how advanced Israel's hi-tech capabilities are that the company would open two R&D centers here," in Tel Aviv and in Haifa. "We've found a huge pool of scientists, engineers and mathematicians full of innovative ideas. Israelis tend to think 'out of the box,' a trait highly valued at Google," he adds.
Besides converting Google products, such as Gmail and Google Docs, for use in Hebrew, the 100 employees of Google Israel are at the forefront of delivering some of Google's latest and greatest products. Among them are Google Trends, which lets you research and compare what people are looking for online, contests and annotations for Youtube, and Google Insights for Search, which lets you compare search volume patterns across specific regions, categories, and time frames. And Google believes in Israel's hi-tech future, as well, Brand says: Among other projects, the company has developed, in cooperation with the Ministry of Education, layers for Google Earth that will help Israeli students learn history, geography, and other core subjects.
Cisco, another worldwide technology powerhouse, also has a huge presence in Israel - with some 750 employees, mostly engineers, working at the company's R&D facility in Netanya, says Cisco's Israel director Bina Rezinovsky, making it the company's second largest research center outside the US. Many of those workers came to Cisco as the result of the company's purchases of Israeli companies; to date, Cisco has acquired nine Israeli companies, which, says Rezinovsky, have furnished the technology for some of Cisco's most important products, such as the network management systems designed by Israel's Sheer Networks. Cisco acquired Sheer in 2005 for some $100 million, part of the over $1 billion Cisco has invested in Israeli companies over the past decade.
"Israelis are imaginative, and they are familiar with technology, two traits that make the human resources of the country very valuable to Cisco," says Rezinovsky. While they can sometimes be a bit "provincial," she adds, the "Israeli brain is dynamic and creative, and that's what we need on our development teams.
"For Cisco, Israel is a second home, an island of stability in a difficult world economy. We have no plans to stop investing here." Cisco has had great success in Israel, Rezinovsky says, and gives back to the community as well: Besides job training programs in peripheral areas, the company runs the Mediterranean Youth Technology Club (MYTecC), an education initiative aimed at giving ninth and tenth grade pupils from the Mediterranean region the skills needed for them to become future business and social leaders, and the Digital Cities project, which includes more than 20 different projects aimed at improving relations between Israeli Jews and Arabs in Nazareth and Nazareth Illit.
When it comes to working with Israel, however, the "grandfather" of all multinational investors here is, of course, IBM, which began working in the country in 1949. Invited to help the fledgling country with defense needs, the company stayed, and grew from its initial three employees to about 2,200 today, says IBM Israel CEO Meir Nissensohn. "We also had the privilege of opening the first R&D lab, in 1972, when we established the IBM Science Center, developing projects in the medical, agricultural, and other fields."
Today, IBM has three research labs, with almost 1,000 employees - including the company's largest research lab outside the US, in Haifa. And despite its image as a large, mature corporation with very specific policies, IBM actually prefers the less rigid mentality of Israeli workers when it comes to development. "Israelis are very big on innovation, which is key for any corporation today, including ours. There is a huge amount of innovation on all levels in Israel, and the workforce is well educated and motivated."
IBM also pioneered the practice of acquiring Israeli companies, and last year it snapped up three more, including XIV, FilesX, and Diligent Technologies. Those acquisitions made IBM the largest foreign investor in Israel in 2008.
IBM is a strong player in data storage, says Nissensohn, "and companies like XIV and FilesX, developed using the strong talents of the Israeli hi-tech workforce, provide top of the line solutions for IBM to bring to its customers worldwide. Israel has become a worldwide center for data storage innovations, and we intend to continue our growth in this area."
IBM is also well known for giving back to the community, and has a long history of supporting educational and cultural institutions, and supplying schools with computers, libraries, and scholarships for promising students.
Microsoft, which sells more software worldwide than anyone else, is also heavily invested in Israel. Microsoft Israel has a large research and development center here, and has acquired several Israeli companies, says Microsoft Israel CEO Danny Yamin; today, about 700 people work for MS Israel. "Microsoft sees Israel as an excellent source of innovative workers, and we at MS Israel are proud of our contribution to Microsoft's worldwide development," Yamin says. Those traits are essential in the software business, says Yamin, and Israel has more than pulled its weight in developing important Microsoft products. "Their ability to think out of the box and get past formal strictures is a big advantage," Yamin says.
MS Israel is also heavily involved in the local market, helping large and small businesses, as well as consumers, with software solutions. "Microsoft was one of the first companies to commit to translating its products into other languages. In fact, any new version of Windows or Office is available in Hebrew the same day it is released worldwide," Yamin says. "We see ourselves has having an important responsibility to the local market.
"According to an IVC survey, about 90,000 workers in Israeli hi-tech use Microsoft products. That's a large group, and they look to us for solutions."
Microsoft Israel's commitment to the country also expresses itself in the many philanthropic and education projects the company runs; the Maala index for Social Responsibility consistently gives the company its highest ranking for philanthropy and community involvement. 
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2008-05-26
CLS News:

CLS Bank live with Israeli Shekel

Enhances the integration of Israel into the global economy.

CLS Bank International (CLS Bank) announces that it will settle payment instructions in two new currencies for the first time this week. This brings to seventeen the number of currencies eligible to settle through CLS Bank. Following regulatory approval, the Mexican Peso and Israeli Shekel have been designated as CLS Bank Settlement Eligible Currencies by the CLS Bank Board of Directors. The extension of the CLS Bank service to these currencies enhances systemic stability in the settlement of foreign exchange transactions, and over half of all CLS Bank Members will be able to settle in these two currencies immediately.
The new currencies join the existing fifteen, the Australian Dollar, Canadian Dollar, Danish Krone, euro, Hong Kong Dollar, Japanese Yen, Korean Won, New Zealand Dollar, Norwegian Krone, Singapore Dollar, South African Rand, Swedish Krona, Swiss Franc, UK Pound Sterling, and US Dollar as CLS Bank eligible currencies.
CLS Bank eliminates FX settlement risk through the world’s first simultaneous global multi-currency settlement system, settling payment instructions derived from foreign exchange deals. CLS Bank is currently settling an average daily volume of over 500,000 instructions with a gross value of $4 trillion. CLS Bank currently provides its settlement service to over 2,500 participants. Of these, 61 are CLS Bank Members, including two new Members from Israel: Bank Hapoalim and Bank Leumi. Over the last few months, CLS Bank has extended its service to include non-deliverable forward (NDF) foreign exchange transactions and a central settlement service for over-the-counter (OTC) credit derivatives transactions in partnership with The Depository Trust & Clearing Corporation (DTCC).
Rob Close, Chief Executive Officer of CLS Group and President and CEO of CLS Bank, said: “Bringing the benefits of CLS Settlement to an ever wider community of stakeholders is central to our strategy of growing the value of CLS to the market. CLS eligibility can bring many benefits to a currency and its economy, including support for currency internationalisation and increased cross border trading and investment. The local banking systems in Israel and Mexico will also experience the risk and efficiency benefits that CLS participation will bring, and we are very pleased to welcome these two new currencies to the CLS community.”
Stanley Fischer, the Governor of the Bank of Israel, noted that “The inclusion of the Israeli Shekel as a settlement currency in CLS is a significant further step in Israel’s increasing integration into the global economy. By reducing settlement risk in FX transactions, vital to Israel’s open economy, it reinforces the stability and efficiency of Israel’s banks and financial system, and benefits the entire economy. We are pleased that the ongoing reform of the payments system undertaken by the Bank of Israel, including the introduction of an RTGS system and adoption of a modern payments system law, along with the Bank’s close cooperation with CLS Bank, the new Israeli members of the CLS service and others has made this possible.” 
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2007-10-08
telekom.com:

Deutsche Telekom expands partnerships in Israel

• The Group working closely with Israeli high-tech companies
• Focus on new services and applications
• Agreement with the Ministry of Industry, Trade and Labor signed in the presence of Chairman of the Board of Management, René Obermann

Deutsche Telekom intends to cooperate even more closely in the future with Israeli high-tech and start-up companies in the information and communication technology (ICT) area. An agreement signed by representatives of the Israeli government and Deutsche Telekom on Sunday in Jerusalem forms the basis of this cooperation.
Also present were Eli Yishai, Minister for Industry, Trade and Labor, and René Obermann, Chairman of the Board of Management of Deutsche Telekom AG. Deutsche Telekom's aim is to be able to more rapidly develop innovative information and communications services and offer these to customers.
Companies participating in the Global Enterprise R&D Cooperation Frame­work program, and who are supported in research and development by Deutsche Telekom as selected partner companies – for example, through integration in proprietary platforms, joint developments or consulting – receive complementary financial support from the Office of the Chief Scientist (OCS) in the Department of Trade. This enables them to expand and intensify their marketing, technology development and access to customers. Furthermore, the Chief Scientist will support Deutsche Telekom with the development of pioneering new technologies and applications.
"The extreme application-oriented approach of Israeli ICT companies allows Deutsche Telekom to rapidly convert future-oriented solutions for innovative new services into commercially viable products," emphasized René Obermann. In this context, the Chairman referred to the promising results of partnerships with Israeli high-tech and start-up companies. Initial results will be presented to interested parties from research and development, and industry partners from Germany and Israel, at the first Deutsche Telekom Innovation Day on October 29 in Berlin. Displays will include a portal for mobile information, booking and payment systems, a broad range of WLAN-based applications for use in hospitals by, for example, enabling increased logistics efficiency in areas such as bed management, and the beta portal at T-Online (www.beta.t-online.de), where innovative Web 2.0 solutions are already being trialed.
Eli Yishai, Minister for Industry, Trade and Labor, emphasized that the "Israeli ICT industry's leading global position will be recognized and used by global players in the trade." Deutsche Telekom is the first telecommunications service provider in the world to enter into an MoU of this nature with the Israeli Department of Trade. The program has already been agreed with respected industry partners, i.e., Oracle, IBM, Alcatel-Lucent, Microsoft and, most recently, Sun Microsystems.
For René Obermann, the contract signing represented “a further commitment to the successful and long lasting cooperation with Israeli companies and institutions.”
In 2006, for example, Deutsche Telekom and Ben Gurion University (BGU) set up a joint research and development institute in the Israeli town of Beer Sheva in the Negev Desert. The BGU is known as one of the world's leading universities in the areas of information technology and telecommunications, and especially IT security. The institute is an academic satellite of the Deutsche Telekom Laboratories based at Berlin's Technical University. By 2008, Deutsche Telekom will have spent around $12.1 million on funding the institute in Israel.
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2007-10-02
Ynet News:

AT&T buys Israeli web conferencing company Interwise

13 year-old Israeli startup sold to American giant for $121 million.

Telecommunications giant AT&T Inc. said Monday it agreed to buy Israeli web conferencing service provider Interwise for about $121 million in cash.
Interwise, based in Cambridge, Mass., uses voice-over Internet protocol technology to provide voice, web and video conferencing for businesses.
AT&T expects to close the deal in the fourth quarter.
Following the acquisition, the company will operate as a business unit within AT&T Global Business Services. AT&T expects to retain Interwise's management team and its domestic and international operations, including its R&D center in Israel.
"We are very excited about the opportunities that joining AT&T brings to our organization and to our customers," said Frank Zvi, co-founder, president and CEO of Interwise.
"Interwise has demonstrated its ability to deliver exceptional conferencing and collaboration solutions to some of the largest and most demanding companies in the world. Combining our technology with AT&T's global MPLS-based IP network, sales and marketing reach, financial strength and trusted brand is excellent news for our customers. It also creates an unparalleled opportunity for growth and the basis for continued leadership for years to come," said Zvi.
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2007-08-02
The Marker:

Israel leading investor in civilian R&D in OECD

Invested 28.3 bln NIS in 2006.

According to a recent statistics published by the Israeli Central Bureau of Statistics, 77% of R&D investments was by the private sector.
The Israeli Central Bureau of Statistics (CBS) published a report yesterday, according to which investments in civil research and development (R&D) amounted to 28.3 bln NIS, which equals 4.5% of the GNP.
The trend of growth as a percentage of the GNP in civil R&D investments continued in 2006 albeit at a lower rate. In 2005 the investment was 4.4% of the GNP. In 2006, 77% of R&D investment ware in the private sector. 
Comparing R&D investments as a percentage of the GNP for OECD countries for 2005, Israel leads with 4.4%, followed by Sweden (3.7%), Finland (3.5%), and Japan (3.3%). The average for OECD countries was 2%.
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2007-07-02
Reuters:

Israel's ECI Telecom to be bought for $1.2 bln

Transaction expected to be completed by the end of the year.

Israel's ECI Telecom Ltd. (ECIL.O) said it has agreed to be acquired by a group of investors led by Swarth Group for about $1.2 billion, sending the shares up nearly 5 percent.
ECI shareholders will receive $10 per share in cash on closing, representing a premium of 22 percent over ECI's average closing share price during the 30 trading days to June 15, the telecom equipment maker said in a statement.
Its shares were up 4.9 percent at $9.60 on Nasdaq.
The company said on June 17 that it was in discussions with a group led by Swarth regarding a possible transaction. Analysts at the time said $10 a share was a fair price for ECI.
Swarth is an investment vehicle controlled by telecom businessman Shaul Shani. The group of investors includes certain funds that have appointed Ashmore Investment Management as their investment manager.
The transaction is expected to be completed by the end of the year, at which time ECI would no longer be traded on Nasdaq.
Israel's Koor Industries (KOR.TA), Clal Industries & Investments (CII.TA) and a group led by Carmel Ventures, the owners of an aggregate 44 percent of ECI, have agreed to vote their shares in favor of the transaction.
Under the terms of the agreement, ECI may actively solicit alternative proposals from third parties until July 31.
ECI Chairman Shlomo Dovrat said ECI was able to emerge from a crisis in the telecom industry as a successful company increasing its market share in a competitive market.
"At the board we evaluated our strategy going forward and while excited with the opportunities we also recognized the challenges of continuing the path as an independent public company operating in a competitive and consolidating market" he said.
Rafi Maor, president and chief executive of ECI, said that as a well-backed private company, ECI will have greater flexibility to focus on its long-term strategy to be a leading provider of network infrastructure equipment.
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2007-05-17
Ynet:

Israel invited to join the OECD

Negotiations for Israel's official joining will take about a year. Other new invitees include Russia, Estonia, Slovenia and Chile.

Israel, along with Russia, Estonia, Slovenia and Chile was invited Wednesday to join the Organization for Economic Cooperation and Development (OECD).
"The OECD's invitation is a reflection of Israel's firm economic standing in the world, and will further our integration with the world's economies," said Bank of Israel governor Stanley Fischer.
"The OECD has decided to invite Israel, Russia, Estonia, Slovenia and Chile to join in the process of becoming OECD members," said a statement by the organization.
Negotiations and the necessary screening process required for Israel to fully join the organization may take up to a year, since it involves a series of evaluations as to the prospective country's ability to meet the OECD's standards in various political and financial aspects.
''The process of globalization is inexorable,'' OECD Secretary General Angel Gurria said in a statement Wednesday. ''The OECD has an important role to play. Its analysis and policy advice has helped o shape the world economy.''
"There is no doubt that a full membership in the OECD will give Israel's economy the same status as that of some of the world's most advanced economies," said President of the Israeli Chamber of Commerce Uriel Linn.
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2007-05-07
Ynet:

Dollar sinks below NIS 4

US dollar loses 1.089 percent to drop below NIS 4 for first time in seven years.

The US dollar dropped below NIS 4 on Monday for the first time in seven years, closing at NIS 3.998.
The last time the dollar sank below the NIS 4 mark was in March 2000.
By the end of trading at the Tel Aviv Stock Exchange the dollar had lost 1.089 percent, while the euro dropped by 0.779 percent against the shekel to NIS 5.4405.
Moshe Wasserman, CEO of the international foreign exchange firm Easy Forex, predicted the dollar could reach NIS 3.70 by the end of the year.
"If foreign investments in the economy continue … predicting a value of NIS 3.70 for the dollar will not be a far cry," Wasserman said.
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2007-02-01
Deutsche Bank:

German bank recommends Israeli investments

Deutsche Bank analysts note low interest, drop in unemployment, low inflation in Israel's favor.
Iranian threat factored in as central threat.

The Israeli market will continue to grow in 2007 and is expected to reach 5 percent, so say analysts for German investment giant Deutsche Bank in their guide to developing markets (the Middle East, Africa and Eastern Europe – with the Mideast among the most recommended markets to invest in 2007).
Deutsche Bank cites the low interest rate in Israel, which they say has the potential to decline even further, a drop in both unemployment and inflation rates coupled with strong Shekel (NIS) as the primary reasons for their positive projections regarding the Israeli market.
Regarding the low interest rate Deutsche Bank estimates that the first half of 2007 may see a further 0.5 percent drop.
“There can be little doubt that the macroeconomic environment provides a strong backdrop for equities, with over 5 percent GDP growth, low rates with a potential for a further 50 basis points cut in the first half, a non-inflationary environment, a current accounts surplus, declining debt to GDP ratio, falling unemployment, and strong shekel outlook," Deutsche Bank said of the Israeli market.
Deutsche Bank's top five stock picks for 2007 are Teva Pharmaceuticals, Bank Hapoalim, Makhteshim Agan Industries, Alyarion Ltd. and Israel Discount Bank.
The investment bank also recommends the retail branch as a solid investment, singling out Strauss-Elite, Blue Square Israel, Super-Sol, Osem and Delek Automotive Systems.
Africa-Israel Investments and Danya Cebus – a subsidiary of Africa-Israel - are both noted as recommended infrastructure companies, with Deutsche Bank calling Lev Leviev's Africa-Israel a major player in awakening markets due to the company's massive business in Russia.
The local banking industry is also noted, with a recommendation for Mizrahi Tefahot and Israel Discount and Hapoalim making the top-five. Deutsche Bank notes however, that both Bank Hapoalim and Bank Leumi will struggle with growth difficulties in the market this coming year – despite the strong economy.
Deutsche Bank notes that 2006 has proven that economics have a stronger effect on the market than political or regional events.
Iran will have global effect:
“In our view, 2007 will be a more volatile year for EMEA (Europe, the Middle East and Africa), with an anticipated upside of only 13 percent,” the guide said.
However regional threats are also taken into account by Deutsche Bank, who factor in rising tensions with Iran but say that any effect Teheran might have is most likely to be on a global scale and not necessarily only the local one.
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2007-01-21
Globes, The Marker:

Seabridge to sell network solution to BT

This is the first time that a Tier 1 Telecommunications Operator is installing non MPLS technology switches for its Core and Edge Networks.

Ethernet solutions provider Seabridge Networks Ltd. has won a BT Group plc  (British Telecom) contract as one of suppliers for a Carrier Ethernet solution for Core and Edge networks as part of BT’s 21st Century Network project.
This is the first time that a Tier 1 telecommunications operator is installing non MPLS technology switches for its Core and Edge networks. 18 months ago, BT selected Seabridge solutions for its Metro network as part of the same project. That contract was part of a comprehensive solution that Siemens AG, Seabridge’s parent company, offered BT. BT has now again chosen Seabridge to provide its Connection Oriented Ethernet for Edge and Core networks to reduce costs and simplify installation procedures.
The Seabridge Connection Oriented Ethernet solution selected by BT contrasts to MPLS based solutions offered by Cisco and Juniper, which are broadly deployed at many operators.
According to estimates, BT will invest several tens of millions of US$ in the project.
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2007-01-01
News:

MTS wins tender to build Tel Aviv light rail line

Africa Israel and its partners in the MTS group beat Metrorail to the biggest private-sector contract.

MTS was announced the winner in the tender for the tender to build the Tel-Aviv light rail line by Transportation Minister Shaul Mofaz yesterday.
Lev Leviev's Africa Israel and its partners in the MTS group have beaten Shari Arison's company and partners to the biggest private-sector contract in Israeli history, which will bring light-rail service to Tel Aviv. A third contender ‘Spidan‘ was eliminated from the tender last August for non compliance of the tender conditions, despite entering the lowest bid.
This is the biggest tender ever held in Israel. MTS' bid was sweeter than rival Metrorail's by just NIS 400 million: it bid about NIS 7.16 billion versus Metrorail's NIS 7.5 billion.
MTS' partner list reads like a who's who of business. MTS consists of Africa Israel, Siemens of Germany, the Egged bus cooperative, CCECC (a Chinese infrastructure company), the Portuguese infrastructure firm Da Costa Soares and the leading Dutch transportation company HTM.
MTS will have to prove many things, including that its controversial method for digging the tunnels is feasible, and that Siemens' train cars - which are in use in only one city in the world, and not very successfully - are reliable.
The win will also turn Africa Israel into the leading infrastructure contractor in Israel, with over NIS 18 billion in projects, and the company is competing for billions more. Among the projects Africa Israel has built is the Trans-Israel Highway (no. 6).
The interministerial tenders committee convened in Jerusalem yesterday morning to rule finally on the winner of the plum contract. MTS' technical bid received a higher score, and its financial model also seems to give it an advantage over its only remaining competitor, Metrorail.
But it seems that MTS will have to fight another battle first - in court. Metrorail is expected to file suit to stop the MTS' victory. If the court decides to examine the tender process and the committee's actions, the light rail project could be buried for years.
However, even if MTS succeeds in court, it will have another two major challenges. First, it will have to finish detailed planning with five different municipalities along the route, each of which has a mayor with no small ego.
Also, MTS will have to reach a final financing agreement for the project. Sources say that two years is definitely a realistic time frame for closing such a complex financial deal. This means that work on the project is not expected to start before 2008, and after at least five years of intensive construction, the Red Line trains - the first stage of the project - will leave in 2014.
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