The United Nations published a very misleading
report recently. No, not that one – I’m
referring to the UN report that showed Foreign Direct Investment (FDI) in
Israel was 46% lower last year compared to 2013. However, if you read the
report, it shows that FDI in France, the USA and Austria fell by twice
as much; Germany and Ireland were practically wiped out and the Belgians ought
to be going around with begging bowls.
So much for UN reports. In
contrast, here are some recent news articles that reflect the real economic success
of the Jewish State.
The International Monetary Fund (IMF) is extremely
upbeat
about the Israeli economy. Its recent preliminary
report noted that Israel’s economy is “performing well” and that the economic
outlook is positive. Over at the
World Bank, Israel signed an agreement to share best practices on
water. And Israel and China are working
on a Free
Trade Agreement (FTA). China’s Ministry of Commerce spokesman said that
Israel is one of China's major economic and trade partners in the Middle East
and an FTA will lift bilateral cooperation to a new height.
Cyber security products contributed $6
billion per year to Israel’s 2014 exports and the fifth annual International
Cybersecurity Conference in Tel Aviv attracted those seeking Israel’s
latest innovations. The Israeli
cyber-security start-up Checkmarx, for example, has just raised $84 million of Direct
Foreign Investment. Checkmarx
customers include the US Army, Samsung, Deutsche Telekom, Deloitte and PwC.
Commercial success is vital in the
life-science industry, even though enhancing life is the true priority. Recent news of Israeli successes include the ApiFix system,
which has now been used to correct scoliosis (deformed spines) in 50
adolescents since it was launched in Europe in 2013. Other Israeli developments with excellent
financial prospects include BondVax’s universal flu vaccine,
which has just received FDA approval to proceed with clinical trials. Another is IBM Israel’s Doctome
telemedicine platform, which has turned IBM’s Watson
supercomputer into a digital doctor. Finally, Israel’s Crowdsourcing
platform for insomniacs Sleep
ASAP is already described as “Waze for the sleep-deprived”.
Some Israeli
companies have no need of FDI. Frutarom,
for example, has bought up seven foreign companies in the last 12 months. The latest is Australia’s Taura, a world
leading player in concentrated and texturized fruit ingredients, with factories
in New Zealand and Belgium, and offices in the US and UK. The FDI report would probably ignore the
growth of Israeli renewable energy company SolarEdge,
whose value since its March NASDAQ launch has doubled
to $1.5 billion. And several more billion-dollar
Israeli companies are in the pipeline.
The UN report definitely hasn’t recognized
the commercial success of Israel’s TV and Film industry which has been selling virtually
every new Israeli series to International studios and channels. The new spy thriller “Kfulim”
(False Flag) looks to be the next Israeli “top of the box”. And the Jerusalem Film Fund announced that
several long-term animation projects, including a new Walt Disney
Studios TV series, will be based in Jerusalem.
Innovation is key to Israel’s commercial
success. Israeli startup Sound Better is
revolutionizing
the music business by providing musicians the facility to record
themselves at home instead of in a studio and then collaborate online
with artists all over the world. And the
world of on-line shopping just became virtual
3D shopping thanks to Israel’s Tridshops. The advanced platform allows retailers to
quickly set up an on-line store where shoppers “move” on a virtual walkway past
3D images of products which they can pick up, examine and manipulate through 360
degrees.
There has been no shortage of commercial
visitors to Israel. 100
German industry leaders including from SAP, BMW, Bosch, Deutsche Bank,
Deutsche Telekom, Merck, Inc., Mercedes-Benz and Lufthansa have been attending
an investors’ conference in Israel. 60
general managers and senior executives of the world’s largest hotel company, InterContinental
Hotels, booked Israel for their annual conference and enjoyed pitches
from six Israeli hotel-related start-ups. They may have had a few sleepless nights
following American tourism magazine Jetsetter’s naming of the Norman
Hotel Tel Aviv as the world’s best boutique hotel. The Israeli hotel industry has also
experienced an increase in tourism from Arab
and Moslem countries, especially Jordan, Egypt, Morocco, Turkey and
Indonesia.
So how can you best get to share in
Israel’s wealth? Well if you live in the
USA, you could follow the advice of Izzy Tapoohi, President & CEO of
Development Corporation for Israel Bonds. He advocates buying Israel Bonds
to counter calls from the BDS thugs to Boycott, Divest from or Sanction the
Jewish State. “The best defense is a good offense”, Izzy says. And investing
in Israel’s economy is the greatest form of offense.
Finally, it was sweet justice at the United
Nations when Israel’s
Yotam Goren was appointed as deputy chairman of the Administrative and
Budgetary Committee to the United Nations General Assembly. The committee functions as the U.N.’s
“Finance Ministry,” responsible for a budget of more than $11 billion.
Let’s hope he
puts an end to worthless UN reports!
Michael Ordman writes a free weekly
newsletter containing positive news stories about Israel.
For a free subscription, email a request to
michael.goodnewsisrael@gmail.com
