ECONOMIC SURVEY
(COMMUNICATED BY GPO ECONOMICS DESK)
NOVEMBER 23, 1994
PEACE ECONOMY:
* DEPUTY FOREIGN MINISTER DR. YOSSI BEILIN HOLDS TALKS WITH SAUDI ARABIAN
BUSINESSPEOPLE FOR FINANCING PALESTINIAN INDUSTRIAL PARK.
Deputy Foreign Minister, Dr. Yossi Beilin, held discussions with a number
of Saudi Arabian businesspeople in Aspen, Colorado, USA, earlier this week
in order to review proposals for financing an industrial park for
Palestinian manufacturers. The Foreign Ministry reported that Beilin's
concept was well received by the Saudis and that they expressed interest
and support for the idea. The industrial park is planned for a site near
the Erez Junction.
Foreign Ministry Danny Shek, (02)-303343
PRIVATIZATION:
* FINAL BIDDING IN SALE OF UNITED MIZRACHI BANK SET TO CLOSE.
MI Holdings, the Government company established to sell the Government's
holdings in the banking sector, is closing the final bidding process for
controlling interest in United Mizrachi Bank this week. Two groups are
competing for control of the bank, the Wertheim-Ofer Group led by Moshe
(Muzi) Wertheim of Central Bottling (Coca Cola) and the Ofer Brothers who
control Cvalim Cables and real estate properties; and the Steinmetz-Akirov
group led by the Steinmetz Family, diamond merchants, and Alfred Akirov, a
real estate developer.
Finance Ministry Eli Yosef, (02)-317201
* FOUR GROUPS CHOSEN TO BID FOR CONTROLLING INTEREST IN ISRAEL CHEMICALS.
The Government Companies Authority has reportedly selected four groups as
the bidders for 24.9%, a controlling interest, in the shares of Israel
Chemicals. One group is led by the Israel Corporation, a second by
Shamrock, Poalim Investments and Dankner Investments, a third by Ted
Arison, and the fourth group by investors from the United States. Three
other groups were eliminated from the competition by the GCA. In the near
future, the groups will reach the due-diligence stage and will then submit
bids for purchasing the shares. Approximately one month after the sale of
ICL's controlling interest, approximately 22% of ICL's shares will be
offered on international exchanges. (Ha'aretz, 22.11.94, p. 4G)
ECONOMIC LIBERALIZATION:
* INDUSTRY AND TRADE MINISTRY APPROVES UNRESTRICTED IMPORT OF MEAT
PRODUCTS.
Industry and Trade Minister Micha Harish announced on 21.11.94, that
beginning 1.1.95, the Ministry will allow the import of meat products into
the country. The meat products include kosher and non-kosher, and frozen
and non-frozen products. This follows years of legal efforts on the part
of meat importers attempting to require the Ministry to allow meat
imports. In order to protect local interests, the Ministry will have the
authority to place duties on the imported meat products. Until now, the
Government has been the only importer of meat all of which was kosher
into the country.
Industry and Trade Ministry Avital Ber, (02)-220340
* ISRAEL TO GET CREDIT RATING FROM MOODY'S.
Earlier this week a group of experts from Moody's visited Israel in order
to examine the Israeli economy and begin the final stages for determining
an economic risk rating for the country. Until now, Israel had not been
rated by Moody's. Bank of Israel Governor Jacob Frenkel said that Moody's
step to include Israel in its rating system is another sign that the peace
process has influenced Israel's and the region's economies. The Bank of
Israel expects the process to last into the first quarter of 1995 when the
rating is expected to be announced. Currently Israel holds a BBB+ rating
with Standard & Poor, a 72 out of 100 rating and 33rd place rating with
Euromoney, and a 47 out of 100 and a 43rd place rating from Institutional
Investor.
Bank of Israel Ohad Bar-Efrat, (02)552712
AGRICULTURE:
* AGRICULTURE MINISTRY PREDICTS A 400 MILLION CUBIC METER SHORTAGE OF
WATER IN THE YEAR 2010.
Agriculture Minister Ya'acov Tzur told the State Comptroller's Committee
on 21.11.94, that according to Ministry forecasts, Israel will face a
shortage of 400 million cubic meters of water in 2010. Tzur said that
expected population, industrial, and agricultural growth measured
against existing water resources are the factors which will create the
shortage. However, Tzur responded that the Ministry had taken these
factors in drafting a long range investment and planning program and would
take steps to prevent the shortage.
Agriculture Ministry Ronny Hassid, (03)-6971749
TOURISM:
* 63% OF ALL TOURISTS IN ISRAEL FROM MAY 1993 TO MAY 1994 WERE CHRISTIAN.
Statistics provided by the Ministry of Tourism show that 63% of all
tourists who visited Israel from May 1993 to May 1994 were Christian.
Statistics show that 26% of all tourists during the period were Jewish,
and the remaining 11% were of other religions. Asian tourists, on average,
spent the most money here, $188 per day, while US tourists spent $168
daily, and Canadian tourists who spent $134 daily. Tourists from Holland
spent only $75 daily, whereas those from England spent $83 per day, and
French tourists $88 per day. Business tourists spent $182 per day whereas
tourists attending conferences spent $130 per day.
Tourism Ministry Orly Doron, (02)-754867