OECD: Israel attracts foreign investors

1. The Gaza War has demonstrated the impressive performance of the Iron Dome short-range missile defense system, the Trophy active defense system for tanks and armed personnel carriers, and additional Israeli-developed military systems. This is enhancing respect for Israel’s defense and commercial high tech sector, and increasing interest in buying Israeli technology products and acquiring – and investing in – Israeli high tech companies.

2. Israel is India’s 4^th largest supplier of military systems, following the US, Russia and France. India is the world’s largest importer of military systems (Globes, August 14).

3. According to the OECD annual report, Israel is the 4^th most attractive country for foreign direct investment (FDI) per Growth Domestic Product (GDP) – 4% of GDP, compared to 1.4% of foreign direct investment per GDP in developed countries and 1.6% in the top 16 economies. Luxembourg, Ireland and Chile are ahead of Israel. The scope of foreign direct investment demonstrates the level of confidence in the long term viability of economic growth (Globes Business Daily, August 20, 2014).

4. Israel’s MobilEye raised $1.02bn on Wall Street (reflecting a $5.3bn market value), the highest ever Israeli public offering there: Cellcom – $400mn in 2007, Delek Logistics – $193mn in 2012, Alon USA – $188mn in 2005, Delek USA – $184mn in 2006, Alon USA Partners – $184mn in 2012, Ness Technologies – $161mn in 2004, BigBand – $160mn in 2007, Kite Pharma – $147mn in 2014 and Saifan – $135mn in 2005 (Globes, August 4).

Israel’s BioBlast, MacroCure and VBL raised $35mn, $53mn and $65mn respectively on NASDAQ (Globes, August 1).

5. The Swiss pharmaceutical giant, Novartis, has agreed to take a 15% stake in Israel’s Gamida Cell (stem cell therapies) in a deal that could reach over $600mn. Novartis will invest $35mn immediately, with a buyout option, pending a series of milestones in 2015 (Reuters, August 19).

America’s 3D Systems acquired Israel’s Simbionix for $120mn (Globes, August 1).

Sweden’s Vostok Nafta, London’s Access Industries (Len Balvatnik) and other investors participated in a $150mn round by Israel’s Get Taxi (Globes, August 14).

Yahoo made its 2^nd Israeli acquisition in two months, purchasing ClarityRay for $15mn-$20mn. Both acquisitions serve as Yahoo’s research and development centers in Israel (Globes, August 18).

6. Morgan Stanley and JP Morgan managed an $85mn round by Israel’s IronSource (Globes, August 12). China’s Catalyst CEL fund invests $42mn in Israel’s Lamina Technologies. The Boston/Silicon Valley-based Bessemer Venture Partners and the Silicon Valley-based Accel Partners led a $30mn 3^rd round by Israel’s Fiverr (August 13). Russia’s Trellas invested $30mn in Israel’s VidMind (Globes, August 7). The San Francisco-based SR One, GSK Pharmaceuticals, the NYC-based Orbid Med fund and the Denmark-based Lundberk Pharmaceuticals invested $23mn in Israel’s Atox Bio (Globes, July 25). Boston/Silicon Valley-based Battery Ventures and Silicon Valley-based Greylock Partners participated in an $11mn 2^nd round of private placement by Israel’s Guardicore (Globes, August 20). General Electric led a $10mn round in Israel’s ThetaRay (Globes, July 30). Hong Kong’s Horizon Ventures (Li Ka Shing) led, along with Blumberg Capital, a $6.5mn round of private placement in Israel’s FeeX (Globes, August 22).

7. Britain’s BG signed a $30bn letter of intent for the acquisition of Israeli natural gas beginning in 2018 (Globes, June 30).

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

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

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.
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.
Israel is ranked 12^th from the bottom among the 37 OECD countries in the number of deaths per million inhabitants: 645 compared to 1,145 OECD average.
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.
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%.
In 2020, Israel was ranked 20^th 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).
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.
Israel’s foreign exchange reserves-to-GDP ratio of 41% (3^rd 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.
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.
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.

Recent Articles

Search

OECD: Israel attracts foreign investors

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

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