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The value of Israel’s contribution in Haiti

20 January 2010
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Categories: Israel

There is a well-known comment in Judaism. Saving a life is comparable to saving a world.

Israel has a track record of sending teams to the world’s crises spots; earthquakes in Turkey, helping tsunami victims in Sri Lanka and Thailand, responding to the trauma of terror in Mumbai to name but a few case studies.

It is 8 days, since the tragic earthquake in Haiti. Of the 121 people rescued to date by overseas teams, several were dug out by Israeli crews.

The Israeli field hospital was the first to be established, 48 hours before the Yanks. By early Wednesday, it had treated 367 patients.  7 babies had been delivered and 104 surgeries performed.

The hospital is staffed by around 120 military and civilian personnel, several of them from Sha’arei Zedek hospital in Jerusalem. Like many in Israel, the hospital has a long history of helping external communities, including several programmes with Palestinians.

Add in at least US$2 million of other aid, and it does not take much to realise how essential the Israeli role has been in Haiti, even at this early stage. The BBC, CNN, and SKY are among several of the leading networks to comment on this extraordinary effort. And Bill Clinton dropped in on the Israeli command centre shortly after arriving on the island.

One way to put this task force in some comparison is to look at the equivalent input from Israel’s frequent detractors. So far, there is no other team from the Middle East in Haiti. China has around 60 people on the island. Norway is operating through the Red Cross. (Last month, Norway’s Foreign Minister, Store, endorsed a book by doctors Mads Gilbert and Erik Fosse. who accused Israeli troops of deliberately hunting down children to kill in Gaza.)

Meanwhile, in the UK, campaigners are continuing to call for a ban on the sale of Israeli products. In Haitian terms, that segregationist policy has the equivalent value of several hundred lives.

How to start a new business – some basic clues

19 January 2010
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Categories: Business, Israel

Yesterday, I was invited to talk to a group of prospective entrepreneurs in Jerusalem. Young or middle aged, currently employed or otherwise, they were looking to take their first steps to becoming independent business people.

My presentations covered several themes, and I will refer to three of them. First up, I pointed out that change and new beginnings are rarely easy. Citing some recent comments by Dr. Robert Brooks, I drew several knowing looks from the audience.

And the fact is that working out strategy, talking to accountants,legal complexities and more – is gibberish to some and can be daunting. So, as I stressed, one criteria towards a successful launch is maintaining a positive attitude. Believe in what you are trying to sell and become an inspiration to yourself.

Next, I considered vision. In fact I spent a couple of minutes examining the point. I have seen so many people become bogged down, because they had not thought through clearly and deliberately in advance what they wanted to achieve.

There is a world of difference between conceptualising: “I want to sell chocolates” and “I want to make quality chocolates for the hotel industry in the north of the country, which lacks…….” Sure, the process is dynamic. The north may become the south, but you are starting out with direction.

And that leads me  the final point; realism. New CEOs should start a series of milestones, based on achievable targets. Few businesses conquer the world overnight. Most need to build up in stages, which also goes on to serve as a strong platform for continuous, long-term growth.

And when you have reached those targets, don’t forget to congratulate yourself for each achievement. You will deserve it, because you be will on the way to creating a new and successful corporate identity.

Israel’s stock exchange – the next boom?

18 January 2010
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Categories: Business, Israel

Last week, I discussed reasons why the Tel Aviv Stock Exchange in 2010 may not see a repeat of the profits of 2009. 

After less than 3 weeks trading in the new year, there is no sign of a slow down in the prices of stocks. Yesterday, the 25-index rose nearly another 1% and in a day of relatively high trading – roughly US$0.43 billion.

Now here’s the point. Over the next few days, the OECD will make the final decision, whether to accept Israel as a full member of its organisation. Five years in process, Israel is expected to be allowed into this prestigious economic forum in May 2010.

Using data from stock markets of other former new members and extrapolating what is being said on the financial wires, analysts believe that official membership will see international funds pouring in to Tel Aviv’s financial markets.

Doron Shorer, the former comptroller of the Israel’s financial market, is quoted in today’s newspaper. He estimates that the net immediate in flow will be around US$6.0 billion. That is a heck of a lot of bucks for any country, especially the size of Israel’s.

I guess that I will be writing more on this topic as the ramifications filter down to the rest of the economy, starting with the exchange rate.

Europe’s illegal move in Jerusalem

16 January 2010
2 Comments
Categories: Israel, Jerusalem

Silwan was once a small innocuous village, located just south of the Old City of Jerusalem. At the beginning of the previous century, it was home to poor Muslim traders and ultra-orthodox Sephardi Jews. Today, it is a microcosm of all the hypocrisies of Middle East conflicts.

Silwan is no longer a place for the poor, but a mainly middle class Arab area in Jerusalem. In the past 2 decades, Jews have started to return to the area. This has not met with the approval of much of the international diplomatic community. Who is right?

If any other people or religion wouls ask to move to the neighbourhood, nobody would blink an eyelid. Yet, these Israelis are simply living where the ancient City of David was concentrated. They are next to the also holy Mount of Olives. How can it be a crime to want to live next to the heart of your own religion?

On the other hand, the American State Department, supported by Brussels, argues that the new residents are creating facts on the ground, which could prejudice the peace that everyone craves for. Bottom line: The diplomats want the religious Jews kicked out for living there illegally, especially the new residents of “Jonathan’s House”.

And now comes the “oops”. You see, it turns out that right in the middle of Silwan is a large building, housing offices of the European Union. Much of the building has been constructed illegally, and is facing a very real threat of being torn down. Oh la la!

(To be precise, the Jerusalem Municipality has identified this site along with several other homes in the Arab part of Silwan as illegal). Of course, there is a solution. The Jerusalem Municipality is thinking of approving all the construction retroactively in a one-time, one-off move.

Fine for the Europeans of course……..so long as they realise that the law would also approve the Jewish homes as well.

 Now, if only all problems could be solved so simply, n’est ce pas?

Israeli watertech investment opportunities

14 January 2010
1 Comment
Categories: Business, Israel

Years ago, Israeli led the world in drip irrigation techniques. With a new decade, Israel is at the forefront of the new “watertech”.

Examples are plentiful. Start with desalination. Google the phrase and you will find that the world’s largest plant is in Israel with local tech. Israel has several companies involved with extracting water from the atmosphere in commercial quantities.

And as for leaky pipes, which are responsible for large quantities of lost water in the large cities, Israel’s Arad company has developed a unique drone-based solution.

It’s a water meter detector with a leak-detecting alarm inside the meter. Transmitting every 11 seconds, when the drone flies over the area, it can pick up leak alarms.

Arguably the greatest progress has been made in converting sea energy into electricity. General Electric and Hutchinson have both expressed interest in patents owned by Seanergy Inc in Haifa. In a related field, I have been in discussion with Solaris Synergy in Jerusalem, which has successful beta sites to extract heat from sea water.

And a new client is utilising a phenomenal tech, originally designed to convert the energy created by traveling wheels on roads into energy. In simple language, they have used the concept to create electricity from waves, but it eliminates the complicated and expensive need for large numbers of buoys. Investment for a beta site is the next stage.

Change; the word managers fear

13 January 2010
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Categories: Business, Israel

Why can’t the CEO make a decision, when it falls outside his parameters? Why is it so painful?

Last week, I was invited to a local manufacturer. The CEO described the product line, the unique selling points, and what they were looking for in which countries. All clear so far. I said that I had a match for them. Getting better all the time.

And then came “the issue”. They want to pay by success fee alone – ie, commission. I explained that my proven successful business model includes a payment factor. Ouch!

You can imagine the conversation, and I paraphrase:

  • CEO: We only remunerate via commissions
  • Me: I am delivering what you want. This deserves more than commissions.
  • CEO: Commissions only
  • Me: If you tried this by yourself, you are not guaranteed success; it will take you longer; It will cost you more.
  • CEO: But you are not meeting with decision makers overseas.
  • Me: Yes, I am, and I have a follow up service.

Silence. Very long, awkward silence. Followed by a week to think about it.

Now, I want you to understand. I am not mocking the CEO. There is an element of trust to be established. They are not used to doing things outside the box of commissions. They have to change. Very difficult, and most of us do not like change.

Why? Well, I am no shrink. A recent article by Dr Robert Brookes challenges us to face up to those difficult moments.

Change is a process. We have to recognize what needs to be changed, what we have to take responsibility for, what steps we have to assume to make the changes, and how we plan to handle setbacks along the way. Yes, change can be a very challenging task.

Brookes then added as an afterthought.

 If we think what I have just described is hard work, consider the alternatives: living with frustration and unhappiness…….

Maybe that was my mistake. I did not encourage the CEO to consider that they did have an option and they can carry on with unutilised spare capacity.

Change ain’t easy. Funny that many of us cannot do so, although we are always encouraged to think out of the box. Now go and look up the phrase “thinking out of the box” and you will start to appreciate fully why it is difficult to start something new.

Israel and Europe – cooperation in r&d

12 January 2010
1 Comment
Categories: Business, Israel

Politically, diplomatically, Israel and Europe have travelled together along a bumpy road for over 3 decades. When it comes to research and economic cooperation, the picture is one of blue skies.

Here’s an anecdote told to me by an Israeli university lecturer, who some 15 years ago participated in a meeting in Ramallah with a senior trade representative of the European Union. The Palestinian team approached their European colleague and demanded economic sanctions on Israel.

The response was simple and to the point. He told them that he was a good friend of the Palestinian cause, but sanctions are out of the question. Israel and the EU are tied together far too firmly. The cost to Europe of reversing that trend would be very heavy.

And so today. Never mind boring trade stats. That is the obvious part of the story. The EU recognises that Israel sets aside around 5% of its GDP for r&d. Europeans want to grab part of that knowledge, which is why Israel is an important member of the Seventh Framework Programme.

Examples: The Ben Gurion University in the Negev is partnering with the Medical University of Vienna to work on wound healing for the elderly. Dr Rotem Karni from the Hebrew University of Jerusalem is coordinating a European project to reverse the malignancy of cancer cells.

The EU is full aware of Israel’s scientific capabilities. 6 Israeli institutions of higher education are in the world top 500. With maybe 1/1000 of the world population, Israel contributes about 1% of the articles to scientific publications – around 4th in the world per capita. 44% of these are co-authored internationally, and now almost half of that number are in partnership with European institutions.

In 2010, Israel expects to become a full member of the Bologna Process in higher education; 27 member states partnered by a similar number of external countries. The aim – to increase student mobility and to break down language barriers. 54 higher education delegations have visited Israel in the past year or so.

There are those who want to stop or boycott this process of harmony. And there is a silent group of people around Europe working hard to promote progress and engagement, which will benefit all.

Tel Aviv stock market – where next?

11 January 2010
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Categories: Business, Israel

The Tel Aviv Stock Market (TASE) continues to defy the pundits. In 2009, it performed strongly, rising 75%. Less than half way through January 2010, and it is just off its peak of November 2007. Is the future so certain and so bright? 

Start with some fundamentals. Merrill Lynch has just raised its growth forecast for Israel to 3.5% in 2010. Deloitte’s latest survey indicates that Israel’s hightech sector, responsible for the boom of the last few years, is “back on track”. Interest rates are beginning to rise, prompting a return to savings. Unemployment is moving in the right direction. All fairy encouraging.

In her summary of 2009, Esther Levanon, the CEO of TASE, cautioned that stocks in 2010 are not expected to see the same heavy gains. Sver Plotsker, a leading financial commentator, observed in his weekend column that the strong performance of the past few days was not fully justified. Shlomo Maoz, the chief economist of the financial group “Excellence”, has also gone on record to lower expectations for 2010.

And all this comes just when unit trusts / mutual funds have significantly increased their portfolio exposure to stocks and shares. Should we be worried?

News makers thrive on dire warnings, such as a financial crash. That is unlikely at this stage. However, the Israeli economy is continuously exposed to externalities; the effect of expected interest rises in the USA during 2010 or new financial in China. The shekel acontinues to perform well against other currencies, damaging export profitability.

And this summer TASE will complete the switch to a first level stock exchange, moving away from the emerging market sector. One possible effect is that international portfolio mangers may initially down size their Israeli holdings. TASE was often considered a “good bet” in the lower category.

What next? Be careful. Even if the upward pattern continues, 2010 is unlikely to be one solid path to new riches.

Airport security – new Israeli tech

6 January 2010
3 Comments
Categories: Business, Israel

The past month have seen 2 significant breeches of American defence security. A Nigerian was close to blowing  a plane bound for America. And in north Pakistan, a Jordanian triple agent killed several senior CIA personnel. 

Is there any new tech out there that could have prevented these disasters?

Many of my friends have been publicising the wonders of existing Israeli applications. After all, Israel has been fighting terrorism in all its forms for over 60 years, an experience which gives the country a “natural understanding” of what it takes to deal with these feats of inhumanity.

Paula Stern noted the call to bring Israel’s successful profiling techniques to other countries. Lisa Damst directed her readers to changes in procedures at Ben Gurion airport in Tel Aviv.

I am currently involved with an Israeli company that has developed a capability to detect “intent” without touching or speaking to an individual. While sitting in a cafeteria, the founders posed a simple question: “Could 9/11 have been prevented by finding the terrorists before they had boarded the planes?” 

The company has since fused together the sciences of hardware, software and behavioural theory, and have produced a proven technology. It significantly reduces theemphasis on human profiling with its inherrent problems. And t has received an initial scientific evaluation from Western military sources, which declared the company way ahead of competitors.

There is little doubt that the Nigerian and Jordanians would not have reached their targets with such a platform in operation. And there are other uses outside the sphere of homeland security.

While still under a level of secrecy, the firm is now looking to a second round of investment. In parallel, it is detailed talks to secure beta sites on 2 continents. This will definitely be a major breakthrough towards protecting air travellers in years to come.

Israel’s economy in 2010 – trends to watch for

3 January 2010
6 Comments
Categories: Business, Israel, Jerusalem

I have commented that the Israeli economy ended 2009 in a solid position; absolutely and compared to competitors. So what’s in store for 2010?

I am not a great fan of predictions. But, whether you are an analyst or investor, there are several positive commercial tends to watch out for.

No, I will not concentrate on the stock market or specific companies, here I will look at sectors. Let’s start with tourism. The responsible government ministry bypasses most budgetary cutbacks. It has its own new investment centre. Last week, it launched a plan for 15 new golf courses. And the ministry is seeking to boost hotel space by 5% very rapidly. Ambitious but relalistic.

Jerusalem, through the efforts of its ambitious mayor, Nir Barkat, intends to be part of that pull of inward tourism. And outside this field, Barkat is looking to expand Jerusalem’s commercial base. He has scrapped a plan to tax high tech profits.

Cleantech will continue to flourish in Israel. Next month sees the 3rd International Renewable Energy Conference at Eilat.This remote city drew hundreds of participants last year, and this year is set to be even better. The event is a symbol of the advances that Israeli industry has made in exploiting solar and wind energy, as well as other new technologies.

Diplomatic considerations are never far from the mouths of most Israelis. What is generally accepted as one leading reason for Israel’s innovative strength is the number of high tech graduates, who had previously work on military projects. In 2010, the IDF has no intention of letting its competitive advantage slip, a good sign for the long term future of the country in general and for the economy specifically.

Finally, I do not want to ignore the retail sector. Quietly in the past decade, Israeli chains have been moving towards overseas markets. Ahava, a manufacturer of Dead Sea cosmetics, has a flag-ship store in London. Castro, adult clothes, has shops in Europe and in the Far East. I am starting to cooperate with a successful franchise line, looking to tackle Europe and America.

Quite a lot for a country of 7.5 million people.

How refugees cope in Israel

2 January 2010
2 Comments
Categories: Israel, Palestinians

Mention the words “Israel & refugees” in the same sentence, and most people tend to think about the Palestinian issue.

Well here’s a little known fact about Israel. In the past decade, the country has absorbed 17,500 refugees from Sudan, Darfur and Eritrea. According to UN stats and quoted in the hebrew newspaper “Yediot”:-

  • 1,500 are minors
  • 7,500 are from Eritrea and 6,500 from Sudan
  • Around 16,000 are Muslims

Many quite simply walked to Egypt, entered Sinai, and then reached Israel across the porous desert border with Egypt. And the numbers continue to grow every month.

The article in the newspaper highlights that the communities are plagued by problems associated with poor immigrant communities; alcoholism, violence, drugs, etc. The crime figures do not make for pleasant reading.

So, on the one hand, these people arrive in Israel due to the awful conditions from they have come. And with no small irony, they deliberately seek out the Jewish state, despite the devout hostility of their own governments towards Israel.

In contrast, Israel finds itself with a moral duty to look after people, who have no where else to go. As just one example, the Tel Aviv municipality has set up special welfare departments to cope with the growing crisis.

And here’s the second irony. Repatriation is not an option. I guess that one reason is that Israel’s Ministry of Foreign Affairs could be worried that such an act would be considered racist and result in a motion of condemnation at the UN. I also assume that the vote would have the support of Eritrea and Sudan. (sic!)

2009: Free society learns to cope with terror

1 January 2010
1 Comment
Categories: Israel

Just as airports were beginning to relax security measures, the Christmas period brought a nasty shock to the Western world. The Nigerian affair has sent the USA, UK, Dutch and many other authorities rushing to tighten procedures.

Not pleasant. The traveler is delayed. The security checks are often unfriendly, if not costly. Much of the initial individual profiling is necessarily prejudiced and unfair. How does a society cope – maintaining its values, while protecting its freedoms?

On the one hand, technology is improving all the time. I am currently working with an Israeli company that is able to detect malicious intent. By using a combination of sciences – software, hardware and behavioural techniques – the firm has perfected the capability to pick out potentially dangerous people in real time; all this, without talking or touching the target. 

In fact, Israel offers an interesting model to see how democratic countries cope with terror, while preserving democratic and pluralistic standards.

True, the days of suicide bombers have passed (for the moment, at least). Yet, consider the stats for 2009.

  • 15 people were killed in terror incidents in Israel (36 in 2008)
  • 567 rockets / missiles were fired from Gaza (primarily) and elsewhere into Israel (2,046).
  • In the West Bank alone, there were 636 acts of violence (893).

Last night, hours to go before the onset of the new year, a grad missile landed in the quiet dormitory town of Netivot. There is no other country that suffers from such intolerable and inhuman premedidated violence.

And yet, in 2009, Israel conducted a general election, where the vote was open to all citizens. Its entry in the Eurovision Song Contest was led by 2 female singers of different religions. The country has continued to send hundreds of tons of provisions to Gaza almost daily. 

Free press; improved maternity leave for all; sporting successes achieved with players of different backgrounds; all these have been features of 2009 in Israel, and past years.

As Obama, Brown et al seek to clamp down on security lapses (and thus impose restrictions on citizens), it is to Israel that they should turn when wanting to learn how to proceed. 

Wishing all my readers a safe and free 2010.

Israel’s economy- taking stock at 31.12.2009

31 December 2009
2 Comments
Categories: Business, Israel

Israel’s economy has come through 2009 very well – beyond expectations. It is time to say congrats to politicians, to senior bankers and to civil servants.

The IMF, finance houses, local analysts – they have all been repeating the same message for months now. Both in relation to other countries and to where it could have been, the Israeli economy is set to record healthy growth levels in 2010.

Some of the more recent stats continue to be encouraging. Unemployment has dropped to 7.7% and the pattern remains downwards. Inflation is showing signs of steadying, especially as the Bank of Israel looks set to keep raising interest rates in 2010.

No – not everything is rosy. Almost at the last moment, the Treasury has announced a 0.5% reduction in the rate of VAT, throwing businesses into confusion. Public transport will cost more from 1.1.2010. Local taxes are set to increase. And water rates will shoot up by 25% – if only they would guarantee that the extra income would improve the infrastructure!

The Middle East is notoriously unstable. Who knows if the new year will see Israel entangled in another military engagement? And yet, whether it be activities in Lebanon or in Gaza, that did not stop the local economy in the past decade.

In 2010, Israel’s stock market is set to join the Financial Times list of developed countries. The OECD is expected to accept Israel as a full member. There is a mood of quiet confidence in the financial community, and deservedly so.

Jerusalem & the end of a decade

30 December 2009
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Categories: Business, Israel, Jerusalem

It can be dreadfully boring to quote stats. Of Israel’s 7.5million people, around 11% live in Jerusalem. And of that number, around a third are Arabs.

Now let me tell you some really wow things about the cityJerusalem, a city which I love and am proud to be associated with. And to help me, I will quote from a lecture given by Mr Gideon Ben-Zvi, which I heard this evening.

Now when it comes to Jerusalem, Gideon knows what he’s talking about. He was born and educated in the Holy City. He has set up at least 5 high tech firms in Jerusalem. He is a friend of the current mayor, Nir Barkat.

Gideon observed that many local entrepreneurs have started out with an idea, originating from the heart of the Hebrew University in Jerusalem. Surprise? Well this educational establishment has possibly the highest number of patents in the world for a university – around 70% are in the life sciences.

And Gideon mentioned that teams from Hitachi, Siemens and other multinationals are regularly vetting the books of Yissum, the university’s biz dev commercial arm.

Now consider that Jerusalem hosts around 22% of the high tech companies in the country. This includes about a third of the biotech firms. And of the 760,000 Jerusalemites, large sections belong to the growing ultra orthodox Jewish communities and the Arab sector, many of whom exist outside the main workforce.

Jerusalem’s immediate commercial future looks bright, as the mayor looks set to continue with his plans. Jerusalem, at the turn of the decade, has a hopeful future to consider.

Intel, Israel, & your new microprocessor

29 December 2009
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Categories: Business, Israel

Intel has been operating in Israel since 1974.

Located on 4 sites. Over 6,500 workers. Export sales are expected to top US$3 billion in 2009. A successful r&d team, backed by Intel’s first production line outside the States. All-in-all, a very hefty operation for the multinational.

For example, the team in Haifa had a leading role in Centrino, found in many laptops around the globe.

The same set up has developed Sandy Bridge, a leading edge microprocessor. It will be larger and more energy-efficient than its competitors. And it should be on sale in early 2011.

Intel laid the path for many other conglomerates. Today, Siemens, Microsoft, Motorola, HP are just some of the many international conglomerates with larger facilities in Israel. Whether it be in the fields of medical devices, computer services, communications or otherwise, these companies provide a benefit to people around the world.

And here’s the catch, if not the hypocrisy. In Europe, and especially in the UK, there exist pressure groups, which seek to convince people not to buy Israeli products. These same people disseminate their information via their computers and their mobile phones……..which function with loads of tech from the Holy Land.

To quote my young teenager son: “Duh!”

Gaza’s economy – one year on

28 December 2009
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Categories: Business, Israel, Palestinians

It is a year since Israel invaded Gaza. Many NGOs report that the local Palestinian economy has been devasted. A closer inspection reveals a more complciated picture.

 Israel’s action was a response to the thousands of rockets that had been fired at southern towns since the withdrawl from Gaza in 2005. On the anniversary of the start of hostilities this week, Hamas organised a  “mass” demonstration of support. Estimates of the turnout vary, but as the Assocated Press commented:

…the Hamas call to rally was met with indifference. Ignoring a siren meant to call for a minute’s silence, cars whizzed by and pedestrians kept walking……”I wish they had commemorated the war by opening a factory. That would have been better than this,” said Gaza resident Rami Mohammed, 30.

And that is the problem for the Hamas leadership. Not all the people are stupid all the time. They will not continuously accept that Israel is to blame for their economic problems.

Take a look at the “tunnel economy”. First, it has created a new elite, where many of the members are linked to the Hamas leadership. And in true Orwellian irony, Hamas had ousted the previous Fatah leadership, which was seen as ridden with corruption.

Second, the underground economy has become an employer of child labour, a total contradiction of humanitarian ground rules, and thus a cause for more discontent.

There is another secret side to the economy. On the one hand, Hamas cries “poverty” to whoever will listen. And yet, when the time comes, it showers money on to the streets. Pictures from the Eid religious festival revealed shops full of produce.

Similarly, Hamas is thought to have invested around US$2 m in celebrating its battles against the Israeli army. But also this week,

…… sources in Gaza have reported of a new corruption affair in Hamas’ transportation ministry. According to one testimony, a senior ministry official named Ziad Harara took tens of thousands of dollars and disappeared……

This affair is related to the driving studies industry in the Strip. According to reports, senior transportation ministry officials take about $658-790 for issuing a driving license, even for people who do fail to meet the driving test’s demands. Hamas government workers receive a $100 bribe for letting people pass a theory driving test without taking it.

Who are the Christian communities in the Holyland?

24 December 2009
2 Comments
Categories: Israel, Jerusalem

An announcement from the Israeli army caught my eye.

The Coordinator for Government Activities in the Territories, Maj. Gen. Eitan Dangot, and the Head of the Civil Administration in Judea, Brig. Gen. Yoav (Poly) Mordechai, met today (22.12.09) with Christian leaders, including ……the head of the Franciscan monastery, the Custodian of the Holy Lands, the Ambassador of the Vatican, the Greek Orthodox Patriarch, the Armenian Patriarch, and the Latin Patriarch to ……….

And that does include Prostestants and others. Can you imagine the logistical and security nightmare, ensuring that every group gets to its fair share of the Church of Nativity in Bethlehem? And all in 12 days.

Israel is considered the one country in the Middle East, where the numbers of Christians is rising. About 5% of the total population, the largest single group belongs to the Eastern Orthodox churches. But not all have had an easy year.

Start with those Protestants who live in the southern Negev desert. The largest group are the Black Hebrews, originating from America. Over the past few years, they have endured thousands of rocket bombings from Hamas. “Only” 200 were launched in 2009, a decrease of over 90%. My teenage son was talking to the community last week, and they felt that things were returning to normal.

Life in Gaza for the 3,000 Christians has rarely been easy since Israel departed 4 years ago, and especially more so with the onset of Hamas rule. As opposed to the past, it is hoped that this year, over 300 pilgrims will be permitted by the Islamic authorities to journey to Bethlehem.

In the West Bank, the Palestinian Authority has been more accommodating, although life is not without periods of harassment.

In an effort to promote further harmony, President Peres has sent a message to Christian communities throughout the area. It is now 25 years, when Peres became the first acting Prime Minister to take part in the ceremonies in Bethlehem.

Next year? Who knows. But Israel must be doing something right if Christians find security there coupled with the basic freedom of worship. Here is a seasonal message for others in the Middle East to read and learn from.

3 cheers for good managers

21 December 2009
2 Comments
Categories: Business, Israel

Earlier this year, I wrote about Emblaze, a typically successful Israeli hightech company, but which had found itself plunging towards disaster. I cited the reasons of poor management and hinted at an arrogant corporate culture.

Many have argued that similar approaches were prevalent amongst corporate and mortgage bankers in America. And in Britain, the government has been found wanting, trying to buy its way to growth while revenue was drying up. In all these sitations, sooner or later, somebody realises that “the king is naked”, and thus begins a very painfull fall out.

Correspondence with a gentleman, named Colin, has brought to my attention that Emblaze has turned itself around. He claims that much has to do with the role of Guy Bernstein, the CEO, establishing new commercial relationships.

As I wrote to Colin yesterday, it is always interesting to see how companies overcome the seemingly insurmountable. Lo and behold, in today’s Hebrew newspaper, Yediot, there is a listing of several Israeli companies, who have pulled themselves away from bankruptcy.

The companies are located in the clothing, food and retail sectors. And for all the unique stories and internal processes, they have common themes.

  • Most were bought out, but the basic concepts have been retained
  • Most have benefitted from a merging with other logistical systems, resulting in significant efficiencies.
  • Most have benefited from a small injection of money.
  • They all reaped the benefits of a strategic management team.

Bottom line: In a year of economic recession, they have survived, expanded, taken on new staff. It’s smiling time again.

And the lesson for senior management? The phrases of arrogance, resting on your laurels, complacency come searing to the surface.

The recovery programmes implemented were clearly not that difficult nor complex (although probably painful). Generally, the previous set of owners had misread the dynamics. It would appear that for a business to maintain its success especially in a downturn, it needs to have in place a mechanism to further management creativity and innovation.

Christmas 2009 in the Holy Land

18 December 2009
4 Comments
Categories: Israel, Jerusalem, Palestinians

This coming week, the Jerusalem Municipality will distribute free Christmas trees to the Christian residents of Jerusalem. A lovely gesture and not a solitary one from Israeli officialdom.

Yesterday, the Tourism Minister, Stas Misezhnikov hosted a special reception for Christian leaders of several denominations. This came two days after the Hebrew University in Jerusalem announced that its team had analysed the DNA of a man from the time of Jesus. The skelton was found in a tomb near Jerusalem’s Old City and presented clear evidence that leprosy existed at that period.

As Christmas approaches, the international media almost inevitably sends teams to the Holy Land. They usually ignore such stories. They will bypass the continuing harassment of Christians in the West Bank and in Gaza. 

Instead, Christmas is exploited as a further opportunity to demonize Israel. It is sad and ironic. Israel, the one democracy in the Middle East and the one country in the region where the Christian community is actually growing, suffers from this distortion of truth, and at such a spiritual moment in the calendar.

Foreign investment in Israel: Hightech & traditional industries benefit

16 December 2009
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Categories: Business, Israel

It’s been a bumper week for foreign direct investment in Israel. American pharma multinational, Abbott Laboratories, paid US$123m for control of Starlims, an Israeli data management software enterprise.

That news was preceded 24 hours earlier by the purchase of Optonol, a small company just outside Jerusalem, which has developed  a brilliant application to treat glaucoma. Medical device giant, Alcon, has offered a deal potentially valued at hundreds of millions of dollars.

This is all part of a growing trend. A UK based investor report noted that for the period August – October 2009, foreign direct investment in to Israel, hit over US$250 million every month.

Significantly, not all of this financial flow is directed at high tech. For example, in a statement released by the Israeli Tourism Ministry, there has been an “unprecedented demand from entrepreneurs to invest in hotels.”

37 entrepreneurs recently replied to the Tourism Ministry’s invitation for grant allocations to establish new hotels and to return buildings once used as hotels to their former use. The Tourism Ministry allocated 300 million NIS to providing grants for entrepreneurs within the framework of the 2009-2010 work plan for this dual purpose. An extra 100 million NIS will be allocated to this program next year in line with demand.

In accordance with the Law for the Encouragement of Capital Investment in Israel, the Tourism Ministry offers a higher level of participation: 20% of the total investment excluding land costs.

It has already been announced that the Ritz Carlton chain intends to open its first hotel in Israel in 2012.

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