$6b foreign investment in Israel expected in 2005

"Direct foreign investment in Israel totaled $2.1 billion in January-April 2005, and is expected to reach $6 billion by the end of the year, Investment Promotion Center director Rachel Roei reported today. Foreign investment totaled $6.1 billion in 2004, including $1.8 billion in direct investment. Investors are interested mainly in high-tech, communications, and information technology; life sciences; and homeland security. Following the rise in direct investment by foreign companies, the Ministry of Industry, Trade, and Labor is formulating a plan for aid in expanding development centers and other tools for marketing Israel as a preferred investment target. The plan offers foreign investors aid for R&D centers, based on the new Law for the Encouragement of Capital Investment, and the reform in the Encouragement of Industrial Research and Development Law (5744-1984). The amendment allows know-how developed with aid from the Office of the Chief Scientist to be exported in exchange for enlarge royalties. Roei said that the plan was designed to cause multinational companies to prefer locating their development centers in Israel to other countries, mainly India, China, and Eastern Europe. In addition, the Investment Center is developing tools for marketing Israel as an investment target, including a promotional film, an Internet site, and a booklet, focusing on success stories of international companies in Israel. With the help of the Ministry of Industry, Trade, and Labor's professional units, the Investment Center has recently advised interested foreign companies in communications, life sciences, and information security from the US, Italy, France, and Asia. Interested companies included Chinese telecommunications giant Huawei Technologies, Samsung and SK Corporation from South Korea, and Russian information technology company Kaspersky Lab. The Investment Center is also preparing for a visit to Israel by representatives from Sony Corp. (NYSE: SNE), following meetings by Minister of Industry, Trade, and Industry Ehud Olmert with Sony chairman and CEO Nobuyuki Idei in Japan last month. Sony representatives were invited to consider investing in Israel technology companies."

Source: Hadas Manor. $6b foreign investment in Israel expected in 2005. Globes Online (27 June 2005) [FullText]