How Isolated is Israel?

Israel economyThe Ettinger Report (Feb 14) — How Isolated is Israel?

1.  A record of 5.3 million tourists in Israel in 2013.

2.  A record of $83.2BN foreign exchange reserves reflects the strength of Israel’s Shekel, at a time when the currencies of the emerging markets plummet.

3.  A record of $2.3BN invested in 662 Israeli startups in 2013 (21% above 2012), according to KPMG and IVC (Globes, January 23, 2014).

4.  Over 250 multinational research & development centers operate in Israel (Globes, February 13).

5.  “Funds from the US, Europe and China are showing interest in dozens of Israeli companies that will be forced on to the auction block by Israel’s efforts to increase competition…. The sale [of dominant Israeli companies] is required by a law passed in December, 2013 to loosen the grip conglomerates have on the economy…. [Israel’s economic] growth is projected to outpace both the US and the euro area this year and next.  The stability of the Israeli economy, and its fundamentals, make it attractive to foreign investors…. You are buying not because of a crisis in Israel, but because there is a desire to boost competition (Bloomberg, February 4, 2014, Alisa Odenheimer and Sharon Wrobel).”

6.  Australia’s Woodside Petroleum, Ltd. will join explorations in Israel’s Leviathan offshore natural gas field, accepting a Memorandum of Understanding – to be completed by March 27 – which will provide the Australian giant with a 25% equity for $2.7BN (Globes Business Daily, February 10, 2014). Cyprus negotiates a $3BN natural gas import from Israel.

7.  Intel’s CEO, Brian Krzanich on Intel’s 40 year operations in Israel: “It’s a microcosm of Intel, a complete Intel within a single country. It’s about the only place where you have a complete cross-section of the company in one country.”

8.   Lockheed Martin’s Vice President of International Engineering and Technology, John Evans announced a joint investment, with EMC, in Israel’s cyber technologies: “We recognize evolving global needs, as well as the wealth of innovation taking place within Israel and its universities.”

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