Facebook Feed

5 days ago

Yoram Ettinger
2023 Jewish demographic momentum in Israel: bit.ly/40qV0aV ... See MoreSee Less
View on Facebook

4 weeks ago

Yoram Ettinger
Purim Guide for the Perplexed 2023: bit.ly/3ZdlxHY ... See MoreSee Less
View on Facebook

4 weeks ago

Yoram Ettinger
אתגר מרכזי לביטחון לאומי: bit.ly/3xkSwh1 ... See MoreSee Less
View on Facebook

Israel’s economy defies BDS

1. In December, 2016, Israel is unprecedentedly integrated into the global economy, highlighting the successful battle against BDS (boycott, divestment and sanctions), while rejecting pessimism and fatalism.

2. According to a Bloomberg study: “An examination of foreign capital flow into Israel shows a near tripling from 2005 when the so-called BDS was started…. Israel’s economy is expected to grow 2.8% in 2016, compared with 1.8% for the US and the EU.  In 2015, Israel’s industrial high-tech exports rose 13%, from 2014, to $23.7BN….”

3.
2016 is already a record year for total (mostly foreign) investments in Israel’s young high tech companies, exceeding the $4.4BN invested in 2015. For instance, Israel’s NeuroDerm, which develops drugs for central nervous system diseases, is expected to raise $75MN, on NASDAQ, by December 12, 2016.  Some of the recent investments were made by the US-based Johnson & Johnson’s Development Corporation, the Australian Stock Exchange, the German medical equipment giant B. Braun Melsungen AG, China’s Internet giant Alibaba and Japan’s Sun Corporation.

4. A
trilateral cooperation agreement has been concluded between Israel’s Mobileye – a collision avoidance sensor developer – Delphi Automotive, the UK-based global automotive parts manufacturer and the Silicon Valley-based Intel, aiming to manufacture a self-driving car by 2019.  A similar partnership was struck between Mobileye, Intel and the German car giant, BMW.

5. A wave of acquisitions of Israeli companies by global giants persists, as evidenced by the November, 2016 acquisition of Israel’s valve repair device company, Valtech Cardio Ltd., by the
Irvine, California-based Edwards Lifesciences Corp., for $340MN in stock and cash, in addition to $350MN in milestone payments over ten years and $300MN for Valtech’s research and development program.  Just like 200-250 other (mostly US) major global hightech companies, Edwards has leveraged Israel’s brain-power by operating a research and development center in Israel, since the 2004 acquisition of Israel’s PVT for $90MN and milestone payments.  

6. The London-based mega-billion-dollar
Chinese/European XIO Group has acquired Israel’s Meitav-Dash Investment House for $400MN.  In 2015, XIO acquired Israel’s medical device company, Lumenis, for $510MN. China’s telecommunications giant, Xinwei, is negotiating the acquisition of Israel’s Spacecom Satellite Communications for $190MN, reflecting the surging Chinese interest in the Israeli market and the significantly expanding Israel-China trade balance from $50MN in 1990 to $11BN in 2015, in addition to $15BN in acquisition of Israeli companies.  The Hong Kong-based Rightleder Holding Group aims to acquire Israel’s sewage recycling (water purification) company, Advanced Membrane Separation.  Also two Chinese capital funds, CDH and ZZ explore the acquisition of ironSource, Israel’s largest Internet company, for $1BN.

7. The
Israel-India trade balance surged from $200MN in 1992 – when diplomatic relations were normalized – to $3BN in 2009 and $5BN in 2015, accompanied by a rise in two-way-tourism, paving the road to a negotiated free-trade-agreement, and highlighting India as one of Israel’s fastest growing trade partners in the commercial and defense areas. New Delhi has become the top customer for Israel’s defense industries, in addition to a series of co-development and co-production initiatives with Israel – in the face of joint economic and national security challenges – while Israel has become the number two/three exporter of military systems to India, following Russia and the USA.

8. On November 16, 2016,
India signed $1.4BN contracts with the Israel Aerospace Industries (IAI),purchasing two additional Phalcon/IL-76 Airborne Early Warning and Control Systems and ten Heron unmanned aerial vehicles. IAI has submitted a proposal for the co-development, in India, of an advanced version of the Heron. The growing Israel-India defense ties are demonstrated by the recent Indian procurement of Rafael’s Gil anti-tank missiles, upgrades of Indian tanks by Elbit Systems and a joint development of the Barak-8 surface-to-air missile.

9.
Russian SberBank has extended a $100MN venture-loan to Israel’s taxi hailing and delivery service Gett (GetTaxi), which operates in over 100 cities word-wide, including New York, London and Moscow. In May, 2016, Volkswagen invested $300MN in Gett.

10. On December 1, 2016, Bloomberg assessed the state of Israel’s economy as follows: “We expect real GDP to rise by an annual average of 3.5% in 2017-21…. We expect the shekel to strengthen considerably against both the euro and the British pound…. The trade deficit will narrow steadily, reaching near-balance in 2021….The opening of new production facilities by Intel will further boost technology goods exports….  We expect the current accounts to remain in surplus in 2017-21, by an annual average of 4% of GDP.”

11. Against the backdrop of the aforementioned, documented track record of Israel’s economy, one may define the claim that Israel is isolated as either dramatically mistaken, or outrageously misleading.



Videos

The post-1967 turning point of US-Israel cooperation

Israeli benefits to the US taxpayer exceed US foreign aid to Israel

Iran - A Clear And Present Danger To The USA

Exposing the myth of the Arab demographic time bomb

Israel’s Covid-19 Economic Trends

Straight from the Jerusalem Boardroom #248
https://bit.ly/3u29k9g

Foreign investment in Israel’s high-tech companies surged to new heights in the 1st quarter of 2021 – $5.7bn in 172 deals – which is up 89% over the impressive 4th quarter of 2020 and double the volume of the 1st quarter of 2020.

2020 was the first year of surpassing $10bn in capital raised by the Israeli high-tech sector from investors in the US, Asia and Europe, who trust the maturity of Israel’s brain power. Investments in Israeli companies more than tripled in six years, reflecting the effective response by Israeli startups to the technological, medical, pharmaceutical, educational, social and digital challenges posed by Covid-19.

Israel’s economic performance in defiance of Covid-19 is presented by Dr. Adam Reuter, the Chairman and Founder of “Financial Immunities,” Israel’s largest financial-risk management firm, and the co-author of Israel – Island of Success:

  1. Israel has led the globe in the rapid administration of Covid-19 vaccinations due to effective negotiations with Pfizer and an efficient, country-wide medical infrastructure.
  2. Israel is the second lowest among OECD countries in the number of Covid-19 deaths per number of Covid-19 cases: 0.7% compared to the 2.3% OECD average. Israel features a young population (median age of 30 compared to the OECD’s 42) and an effective country-wide medical infrastructure, including top level HMOs and hospitals.
  3. Israel is ranked 12th from the bottom among the 37 OECD countries in the number of deaths per million inhabitants: 645 compared to 1,145 OECD average.
  4. The International Monetary Fund’s 2025 GDP growth forecast for OECD countries: Israel – 4%, OECD average – 2.2%, US – 1.8%, Australia – 2.5%, Ireland – 2.6%, France and Canada – 1.7%, the UK – 1.6%, Germany – 1.2%, etc.
  5. Israel’s 2020 GDP was reduced by 2.5%, compared to the OECD average reduction of 4.1%, South Korea – 1%, Norway – 0.8%, Australia – 2.6%, US – 3.5%, Japan – 4.8%, Germany – 5%, France – 8%, the UK – 10% reduction, etc. GDP growth was recorded in New Zealand – 2.4% and Ireland – 3.5%.
  6. In 2020, Israel was ranked 20th among the 37 members of the OECD in terms of GDP per capita, featuring $43,000 (GDP – $408bn), ahead of Japan, Italy and Spain, and very close behind the UK ($44,000) and France ($45,000).
  7. Israel’s debt-to-GDP ratio increased from 60% in 2019 to 72% in 2020, compared to the OECD’s average increase from 66% to 82%. The 2020’s debt-to-GDP ratio was 266% in Japan, Italy – 161%, the US – 131%, Germany – 73%, etc.
  8. Israel’s foreign exchange reserves-to-GDP ratio of 41% (3rd among the OECD countries) attests to its financial stability, and Israel’s capability to raise foreign credit promptly in a cost-effective manner. Israel’s foreign exchange reserves in March 2021 – $186bn.
  9. During the past decade, Standard and Poor (S&P) accorded Israel a positive credit rating trend, unlike the negative trend for the G-7 countries. In 2020, notwithstanding Covid-19, Israel’s credit rating (S&P) remained at AA.
  10. Some 380 global high-tech giants operate in Israel, including Microsoft, Amazon, IBM, Intel, Cisco, Apple, Verizon, Applied Materials, Dell, HP, Kodak, Oracle, Philips, SAP, Medtronics, GM, eBay, GE, etc. Israel leads the world in the ratio of research and development investment to GDP: 4.9%. 85% of this investment comes from the business sector.

 




Videos

The post-1967 turning point of US-Israel cooperation

Israeli benefits to the US taxpayer exceed US foreign aid to Israel

Iran - A Clear And Present Danger To The USA

Exposing the myth of the Arab demographic time bomb