ECONOMIC SURVEY - 06-Apr-98

April 6, 1998

(COMMUNICATED BY GPO ECONOMICS DESK)

MACRO-ECONOMIC SECTOR:

* 28% OF JEWISH LOCALITIES FOUNDED AFTER 1967
303 Jewish localities, or 28% of all localities, were founded after 1967 with 137 of these being in Judea, Samaria and Gaza, according to the Central Bureau of Statistics. Some 27% of all Jewish localities were founded prior to 1948 and 45% were founded between 1948 to 1967, the bureau reported. As of 1995, the most recent census, there were 1184 localities; 1066 Jewish, nine mixed Jewish-Arab, and 118 Arab. In 1995, 70% of Israelis lived in the three metropolitan areas as compared to 50% in 1948. Nazareth is the largest Arab city, with more than 50,000 residents, while five Arab cities have between 20,000 to 50,000 residents.
Central Bureau of Statistics - David Neumann, 972-2-6553400

* 5% INCREASE IN NUMBER OF MOTOR VEHICLES ON THE ROAD
The number of motor vehicles in Israel increased by 5% in 1997 to over 1.6 million, the Central Bureau of Statistics reported. During the past 12 years, the number of vehicles in the country has doubled. For every 1,000 people, there are 281 vehicles, up from 261 per 1,000 people recorded in 1996. Japan led the countries importing new vehicles into Israel with 37%, followed by Germany (12.4%), and France (12.1%). New cars from the U.S. represented 5.8% of the total.
Central Bureau of Statistics - David Neumann, 972-2-6553400

* TOURIST HOTELS' REVENUE WAS NIS 4.1 BILLION IN 1997
Tourist hotels showed revenues of NIS 4.11 billion in 1997, a drop of 2% in real terms from 1996, the Central Bureau of Statistics reported. Figures include not only overnights but other services provided by hotels such as catering and renting of spaces. Approximately 45% of the revenues were from tourist foreign currency (down from 48% in 1996 and 51% in 1995), whereas revenues from Israeli tourists rose to 55% of the total.
Central Bureau of Statistics - David Neumann, 972-2-6553400

GOVERNMENT SECTOR:

* GOVERNMENT SELLS 2% OF BANK LEUMI FOR $52.06 MILLION
2% of Bank Leumi's shares held by the government were sold on 1.4.98 for approximately NIS 190 million, reported Meir Yacobson, Chairman of MI Holdings, the government body responsible for selling its shares in government owned banks. In a block trade, the shares were sold to Lehman Brothers, which beat out three other international investment houses: Goldman Sachs, Merrill Lynch and UBS. This gives Bank Leumi a market value of $2.603 billion. The Finance Ministry's Accountant General announced that another 5% of Bank Leumi would be sold later this year. The government holds 61% of the bank's equity.
Ministry of Finance - Eli Yosef, 972-2-5317201

* VENTURE CAPITAL FUND HEADS TO TOUR TECHNOLOGICAL INCUBATORS
Local heads of venture capital firms will tour technological incubators in northern Israel tomorrow (Monday), 6.4.98, as guests of the Industry and Trade Ministry's Investment Promotion Center. The group will visit incubators in Migdal Ha'emek and Yokneam, looking at projects in medical technologies and telecommunications. The venture capital firms include Giza, Evergreen, Clal Venture, Walden, Gemini, Dovrat Shrem and Polaris.
Ministry of Industry and Trade - Max Livnat, 972-2-6220340

PRIVATE SECTOR:

* SWISS BELLEVUE GROUP INTERESTED IN IMMEDIATE INVESTMENT IN ISRAEL
Representatives of Switzerland's Bellevue Group, with interests in bio-technology, medical technologies and venture capital funds, met with Moshe Leon, director general of the Prime Minister's Office, last week and expressed interest in making an immediate investment in the bio-technology sector. During the meeting, Leon said that the government is contemplating creating, in partnership with the private sector, a new $100 million venture capital fund to promote bio-technology in Israel. This is the group's first visit to Israel.
Prime Minister's Office - Shai Bazak, 972-2-6705465

DEFENSE SECTOR: