ECONOMIC SURVEY - 30-Nov-95

(COMMUNICATED BY GPO ECONOMICS DESK) 30 November 1995

PEACE ECONOMICS:

* ISRAEL TO RECEIVE 4% OF MIDDLE EAST AND NORTH AFRICA REGIONAL DEVELOPMENT BANK'S FOUNDING SHARES.
Israel will receive 4% of the Middle East and North Africa Regional Development Bank's shares, the Bank's steering committee decided at its meeting in Cairo on 22.11.95. It decided that 75% of the Bank's shares would go to the regional and non-regional founding countries, with the European countries retaining an option to acquire the remaining 25% through November 1997. The Bank's initial equity capitalization will be $5 billion. The EU announced it will fund a Project Preparation Facility, a body to aid in finding projects for the bank to finance, though the PPF will not, itself, fund projects. (Globes, 23.11.95)

* KIBBUTZ YOTVATA DAIRY CONDUCTING TALKS WITH EGYPTIAN DAIRY.
Kibbutz Yotvata Dairy is holding talks with an Egyptian dairy on the possibility of establishing a joint venture and selling dairy technology to the Egyptian firm. The Egyptian firm is looking to increase its milk production, and contacts between the two firms began a few months ago. The next stage, according to Yotvata's manager, Yehuda Wolfson, is an exchange of visits to examine the actual conditions in both dairies. (Globes, 27.11.95)

* PRIME MINISTER PERES SUPPORTS INDUSTRY AND TRADE MINISTRY'S PLAN FOR ISRAEL-PALESTINIAN AUTHORITY INDUSTRIAL PARKS.
The Industry and Trade Ministry reported that Prime Minister Peres supports the ministry's plans for creating Israel-Palestinian Authority industrial parks, to the plans submitted by the Foreign and Finance Ministries. The Industry and Trade plan calls for the parks to be built straddling both sides of the separation line between the PA and Israel, while, the plan supported by the Foreign and Finance Ministries calls for the parks to be built wholly within the PA's territory. The Industry and Trade Ministry plan would place the factories under the administrative regulation of Israel rather than of the PA.
Industry and Trade Ministry - Ayal Fabian, 972-2-220389

BUSINESS SECTOR:

* FOOD INDUSTRY'S SALES TO REACH NIS 8 BILLION IN 1995.
Israel's food industry's sales will reach NIS 8 billion in 1995, according to Industry and Trade Minister Micha Harish. He said that the sector's exports will be close to $600 million, an increase of approximately 5% from the year before. According to Harish, the sector's potential for export growth is increasing due to the peace process and the consequent increased access to the Arab world.
Industry and Trade Ministry - Ayal Fabian, 972-2-220389

FOREIGN TRADE:

* NORWEGIAN TRADE MINISTER LEADS DELEGATION VISIT.
Norway's Minister of Foreign Trade and Shippping Grete Knudsen is visiting Israel this week, heading a delegation of government and private sector representatives. Israel's trade deficit with Norway rose by 223% exports of $23.1 million, and imports of $58.8 million during the first nine months of 1995. Israel also purchases approximately $100 million worth of petroleum annually from Norway. Industry and Trade Minister Micha Harish noted the visit's importance because it is the first time in many years that a Norwegian business delegation has visited due to concerns about the Arab Embargo against Israel.
Industry and Trade Ministry - Ayal Fabian, 972-2-220389

*INDUSTRY AND TRADE MINISTER MICHA HARISH TO VISIT BRITAIN NEXT WEEK. Industry and Trade Minister Micha Harish will visit Britain from
4-8.12.95, to meet British Government officials, including the Prime Minister, and to officially open the Israel-England Business Council. During his visit, Harish will visit a number of British high-tech companies and urge them to buy from and invest in Israel.
Industry and Trade Ministry - Ayal Fabian, 972-2-220389

TOURISM:

* REQUESTS FOR APPROVED ENTERPRISE STATUS FOR TOURISM INVESTMENTS NOW 40% OF TOTAL INVESTMENT REQUESTS: TOURISM MINISTER BARAM SAYS.
Requests for receiving approved enterprise status for investments in the tourism industry have grown from 10% of all investment requests to 40% of the total requests, according to Tourism Minister Uzi Baram. In 1995, these requests to invest in the tourism industry, for multi-year projects, were NIS 8.5 billion, he said. These requests include the building of 1,500 hotel rooms in Nazereth, 1,300 in Jerusalem, and 2,900 rooms in the Tiberias region. The Tourism Ministry's budget for these requests falls short by NIS 500 million in 1995, and a projected NIS 600 million in 1996, Baram said.
Tourism Ministry - Orly Doron, 972-2-754845

ENERGY: