Atid-EDI - Successful International Ventures Begin with the Right Connections Fortnightly - June 27, 2007 TOP STORIES - Answers Corp's WikiAnswers Ranked Second Largest Q&A Site - Turkey's Foreign Trade Share of GNP Doubled In the Last 14 Years - Jordanian & Chinese Firms To Set Up Car Manufacturing Plant - Qatar Takes Lead in Global LNG Exports - Israel Marks 17th of Tammuz & Begins the “Three Weeks” Mourning Period TABLE OF CONTENTS 1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS 1.1 Knesset Approves Bank Fee Law 1.2 Fischer: Globalization Requires a Responsible Budget Back to Top 2: ISRAEL MARKET & BUSINESS NEWS 2.1 Answers Corp's WikiAnswers Ranked Second Largest Q&A Site 2.2 N-Viro International Corporation Announces a Signed Agreement to Dispose Sludge in Israel 2.3 Zion Oil Announces Results of First Tested Formation in the Ma'anit #1 Well Workover 2.4 CruiseCam International Signs LOI to Support Israeli Licensing and Distribution 2.5 ICL Fertilizers Signs Agreements to Sell Additional Potash Quantities to Indian Customers
Generated: 28 June, 2007, 15:46 Atid-EDI - Successful International Ventures Begin with the Right Connections 2.6 RGIS Gains Additional Strength in Middle East With ISICS Acquisition 2.7 Israeli Air Force Awards Pratt & Whitney Materials Management Agreement 2.8 Exanet Raises $18 Million in Round of Financing Led by Coral Capital Management 2.9 LivePerson to Acquire Kasamba 2.10 ICL to Acquire Supresta, the World's Largest Producer of Phosphorus Flame Retardants Back to Top 3: REGIONAL PRIVATE SECTOR NEWS 3.1 Jordanian & Chinese Firms To Set Up Car Manufacturing Plant 3.2 GlobalOptions Group Expands Business in Middle East and Northern Africa 3.3 ILS to Launch 5th-Generation Satellite for Arabsat 3.4 Kuwait Oil Company Seeks Alberta Oil Sands Expertise 3.5 Bracewell & Giuliani LLP Opens Office in Dubai 3.6 Merrill Lynch Opens Offices in Dubai International Financial Center 3.7 Merrill Lynch Receives License To Operate in KSA 3.8 Alloptic Partners with Saudi Leader in Airport & Industrial Safety & Security Systems 3.9 Gap Expands International Presence with Franchise Agreements in Saudi Arabia & Turkey 3.10 WWE Signs Deals in Greece & Turkey 3.11 Cedar Point's SAFARI C(Cubed) to be Deployed by Cablenet in Cyprus Back to Top 4: ISRAEL MACRO-DEVELOPMENTS 4.1 Intel & Teva Take On 85 Bedouin Engineers 4.2 Eleven Firms Qualify For Dead-Red Canal Generated: 28 June, 2007, 15:46 Atid-EDI - Successful International Ventures Begin with the Right Connections Back to Top 5: ARAB STATE & PAKISTANI DEVELOPMENTS 5.1 Explosion in Popularity Of Credit Cards in The Middle East 5.2 Kuwait First in List of Investors In Jordan 5.3 GCC Healthcare Costs Soaring 5.4 Qatar Takes Lead in Global LNG Exports 5.5 UAE Preparing To Allow Limited Foreign Ownership of Local Companies 5.6 Minister Lubna Said UAE Inflation Reached 9.3% Last Year 5.7 Dubai-Korea Non-Oil Trade Reaches $1.859 Billion in 2006 5.8 Saudi Arabia's Annual Inflation Declines To 2.2% In First Quarter 5.9 Expatriates Remit $26.67 Billion from Saudi Arabia Annually 5.10 Saudi to Spend $51 Billion on Power Generation 5.11 Phoenicia Group & CapRock Communications Enter Strategic Alliance to Tap Libya VSAT Market 5.12 US House Panel Approves Package For Pakistan Back to Top 6: TURKISH & CYPRIOT DEVELOPMENTS: 6.1 Turkey's Foreign Trade Share of GNP Doubled In the Last 14 Years 6.2 Turkey To Host Meeting Of World's Poor Countries 6.3 Turkey's Chance to Take Part in The $1.3 Trillion Drug Market 6.4 Turkey's Ministry of Finance Launches Five-Year Plan To Tackle Informal Economy Back to Top 7: GENERAL NEWS AND INTEREST
Generated: 28 June, 2007, 15:46 Atid-EDI - Successful International Ventures Begin with the Right Connections *ISRAEL: 7.1 Israel Marks 17th of Tammuz & Begins the "Three Weeks" Mourning Period 7.2 Shimon Peres Elected Ninth President of The State Of Israel *REGIONAL: 7.3 Saudis Send $1.3 Billion Up In Smoke Back to Top 8: ISRAEL LIFE SCIENCE NEWS 8.1 Frost & Sullivan Observes Israel Biomed Industry Growing Fast 8.2 Pluristem's PLX Cells Demonstrate Potential to Treat Parkinson's Disease 8.3 Can-Fite Proceeds with Development of Third Drug 8.4 Oramed Signs With Encorium Group To Commence Investigational New Drug Application 8.5 OrSense Receives European CE Mark Approval for Continuous Non-Invasive Glucose Monitoring System 8.6 Boston Scientific Announces Agreement to Acquire Remon Medical Technologies Back to Top 9: ISRAEL PRODUCT & TECHNOLOGY NEWS 9.1 Answers.com Wins CNET Webware 100 Award for Reference 9.2 ECI Telecom Doubles the Capacity and Extends the Reach of its Multi-Degree ROADM Platform 9.3 Denmark's First National Wireless Broadband Network Built Using Alvarion's BreezeACCESS
Generated: 28 June, 2007, 15:46 Atid-EDI - Successful International Ventures Begin with the Right Connections 9.4 Huawei Name Optibase Bid Winner for IPTV Encoder Systems 9.5 Emery Selects ECI Telecom to Build an Advanced ROADM Network for Utah Fiber Network 9.6 QUALCOMM and Siano Sign FLO Chip Agreement 9.7 GigaSpaces & Microsoft Deliver High-Volume, Low-Latency Analytics Solutions for Capital Markets 9.8 Minerva Networks & Integra5 to Provide Converged IPTV & Communications Services Solution 9.9 Elbit Systems Skylark-II UAV Wins Frost & Sullivan 'Best Innovative Product Award' 9.10 Interphase & Surf Complete I-TDM Interoperability Enabling Multi-Media Solution Delivery 9.11 Schema & LATTIS Offer a Complete and Cost Effective Solution to Leased Line Optimization 9.12 WorldMate Turns BlackBerry 8830 World Edition & Curve 8300 Devices into Personal Travel Assistants 9.13 RED-C and JDSU to Expand Collaboration, Signing a Strategic Supply Agreement 9.14 BeInSync's New Online Backup Service Provides Enterprise-Grade Protection to Consumers & Businesses 9.15 Gilat Partners with CJSC Global-Teleport, Russia's Leading Satellite Service Provider 9.16 ECI Telecom Doubles the Capacity & Extends the Reach of its Multi-Degree ROADM Platform 9.17 fring Brings VoIP Choice to Windows Mobile 9.18 New JVC LCD TVs With MaxxAudio Deliver Home Theater-Quality Sound 9.19 Elettronica and Elbit Systems Electro-Optics Elop Generating a Joint Laser-Based DIRCM Product 9.20 TTI Telecom Launches FaM Analyzer Back to Top 10: ISRAEL ECONOMIC STATISTICS 10.1 Israel's CPI Unchanged in May 10.2 State Of Economy Index Dispels Slowdown Fears 10.3 Israel's GDP Per Capita Reaches $18,620 10.4 Israel's Exports Remain Strong Despite Dollar's Depreciation 10.5 Foreign Investment Amounts to $1 Billion in May Back to Top Generated: 28 June, 2007, 15:46 Atid-EDI - Successful International Ventures Begin with the Right Connections In Depth 11.1 ISRAEL: Maintaining a Thriving Economy in the Shadow of Terror 11.2 ISRAEL: The Peril of Underestimating Risks 11.3 Persian Gulf: Currency Union - Disunited They Stand 11.4 Kuwait: Setting Sail 11.5 Oman: Fuelling The Future 11.6 Oman: Reconstruction Costs 11.7 Fitch Revises Egypt's Outlook to Positive 11.8 Egypt: Parliamentary Elections 11.9 IMF Executive Board Concludes 2007 Article IV Consultation with Turkey 11.10 Turkey: The Istan-Bull Paradox 11.11 Cyprus Politics: Euro Leverage Back to Top 1: ISRAEL GOVERNMENT ACTIONS & STATEMENTS 1.1 Knesset Approves Bank Fee Law On 26 June, the Knesset plenum approved the bank fee regulation law. The law will come into effect within a year, but the Banking Supervisor's authority to supervise fees comes into effect immediately. The law, which will apply to both private and business customers of the banks, gives the Bank of Israel Banking Supervision Department sweeping authority over bank fees. The new law mandates that the number of bank fees to be reduced, but does not mention a figure. The law also stipulates that banks may not collect two fees for the same service. The bank fee regulation law resembles the original proposal by the Bank of Israel, which gives the Banking Supervision Department full authority to supervise and establish the list of bank fees. The law will come into effect within a year, although the Banking Supervision Department's authority to supervise fees will be immediate. The Economics Committee decided that the Banking Supervision Department will be authorized to set the list of bank fees within three months, but can ask for a postponement of up to another three months. After the Banking Supervision Department sets the list of bank fees, the banks will have six months to consolidate fees and set new tariffs. The list is expected to number roughly 90 fees, instead of the current 350. The Economics Committee also set a fine of $357,000 for banks that violate the new law. (Various26.06) Back to Top
Generated: 28 June, 2007, 15:46 Atid-EDI - Successful International Ventures Begin with the Right Connections 1.2 Fischer: Globalization Requires a Responsible Budget "Globalization places a market discipline on macroeconomic policy... It demands to let the markets function, and intervene only in extreme circumstances of crisis or market failure, and here in Israel we are far from such cases," Governor of the Bank of Israel Prof. Fischer told the Annual Capital Markets Conference held by Deloitte Brightman Almagor and TheMarker in Tel Aviv on 13 June. Fischer added that globalization also demanded "a responsible budget framework. This discipline should be maintained too when drawing up the government budget for 2008 and for the years after, and maintaining price stability and supporting financial stability. In this field, the responsibility is that of the Bank of Israel." As for supervision of the financial system, Fischer said, "The new reality in the capital market places new challenges for the regulators. In the first stage, it is important that the various regulatory authorities work closely together, particularly in the fields of banking and insurance, in light of the developments in these fields. There is currently a good level of coordination between the Supervisor of Banks, the Supervisor of Insurance and Capital Markets, and the Israel Securities Authority and a document of understanding between the three is being drawn up. It is also advisable to cooperate with regulatory authorities abroad." Fischer called for a further reduction in government intervention in the capital market. As for taxes, he noted, "As part of the income tax reforms, many distortions in the field of tax were removed, concerning investors and various assets. There still remains a difference in taxation between indexed interest rate and unindexed interest rates, and capital gains from indexed and unindexed assets, a distinction that should be removed in the near future." Fischer concluded his speech by saying, "The Israeli capital market has developed impressively in the past 20 years and this has been a central contributor to the strength and soundness of the economy even during times of recent shocks. The Israeli capital market as an integral part of the global capital market, is also one of the engines that have brought the economy to a path of sustainable growth, which is a pivotal objective of macroeconomic policy. Achieving this goal will provide the economy with the necessary sources for dealing with both the economy and society in Israel." (Globes 13.06) Back to Top 2: ISRAEL MARKET & BUSINESS NEWS 2.1 Answers Corp's WikiAnswers Ranked Second Largest Q&A Site Answers Corporation, creators of Answers.com, announced that its WikiAnswers site has surpassed the 500,000 question count, and grown its community to over 200,000 members. WikiAnswers is a UGC (User Generated Content) site, a dynamic and growing platform for a community of users asking questions and providing answers. As opposed to many Q&A sites, WikiAnswers uses a "wiki" format to provide each question with a single answer that can be edited, tweaked and improved over time. According to Hitwise, a leading competitive intelligence service, WikiAnswers has become the second largest Q&A site on the web, after Yahoo! Answers, according to data from a custom category of leading Q&A-only websites. Answers Corporation (http://www.answers.com) of New York and Jerusalem, Israel operates the award-winning Answers.com information portal, delivering comprehensive content on over forum topics
Generated: 28 June, 2007, 15:46 Atid-EDI - Successful International Ventures Begin with the Right Connections spanning health, finance, entertainment, business and more. (Answers.com26.06) Back to Top 2.2 N-Viro International Corporation Announces a Signed Agreement to Dispose Sludge in Israel Toledo, Ohio's N-Viro International Corp. has entered into a contract with an Israeli firm, Dan-Viro, to operate a state-ofthe-art N-Viro designed and patented biosolids stabilization plant (BSP) at Israel's main wastewater treatment plant in Tel Aviv, Israel. Israeli-based Dan-Viro will initially treat a portion of Tel Aviv's biosolids under a recently signed contract. Dan-Viro is a consortium made up of Israeli companies with extensive experience in wastewater treatment and agricultural use of soil amendments. Due to their efforts, coupled with N-Viro's proven biosolids treatment process, NViro anticipates the BSP will be a permanent component of Tel Aviv's biosolids management program. N-Viro International Corporation develops and licenses its technology to municipalities and private companies. (N-Viro15.06) Back to Top 2.3 Zion Oil Announces Results of First Tested Formation in the Ma'anit #1 Well Workover Zion Oil & Gas of Dallas, Texas and Caesarea, Israel today that its geological and engineering team have completed its analysis of the test results of the first of four zones in the upper Triassic which had been identified as potentially productive. They were selected for testing during the remedial workover and completion operations on the Company's Ma'anit #1 well. The results of the tests indicated that the tested zone is non-productive. Based on this result, it was determined to re-evaluate the well's future, considering the well's mechanical condition and the presence of positive indications of hydrocarbons deeper in the Triassic and closer to the determined hydrocarbon source rock. The Company's technical team is currently evaluating the findings, in order to optimize operations on the next well, the Ma'anit-Rehoboth #2, so that the difficulties encountered in the Ma'anit #1 wildcat well will be avoided and the next well's full potential exploited. The team is preparing recommendations for the company's consideration. When the Company reaches a decision on these matters, an announcement will be made. Zion Oil & Gas explores for oil and gas in Israel, onshore between Tel Aviv and Haifa. In 2005, Zion drilled an exploratory well on its 98,100 acre Ma'anit-Joseph License to a total depth of 15,842 feet. In the event of a commercial discovery, following recovery of certain exploratory costs, Zion intends to donate 6% of its gross revenues from its Israeli petroleum rights to two charitable trusts to be established by Zion, one in Israel and one in the U.S. (Zion18.06) Back to Top 2.4 CruiseCam International Signs LOI to Support Israeli Licensing and Distribution Farmington Hills, Michigan's CruiseCam International, a leading developer of vehicle video integrated technology for law
Generated: 28 June, 2007, 15:46 Atid-EDI - Successful International Ventures Begin with the Right Connections enforcement and motor sports application, has signed a letter of intent with Israeli-based distributor Yitzhak Kohavi to pursue an exclusive product service and supply agreement between the parties to produce and supply Mobile Video Recording Systems and subcomponents for the following Israeli market segments: law enforcement and military, public transportation and consumer sectors. As part of the proposal, both parties will work to establish a plan for licensing, distribution and product placement in Israel for Cruisecam's mobile video recording systems and subcomponents, tailored to particular market segments, within the next ninety-days. CruiseCam International, through its two operating subsidiaries, develops and markets integrated, "in-car" camera mount and recording systems for law enforcement, consumer, commercial and transportation applications, as well as for competition racing cars. (Cruisecam18.06) Back to Top 2.5 ICL Fertilizers Signs Agreements to Sell Additional Potash Quantities to Indian Customers Tel Aviv's Israel Chemicals announced that ICL Fertilizers, one of its core business segments, has signed new potash supply agreements with two major customers in India. The contracts represent an expansion of the purchase commitments previously made by these customers. The agreements call for the purchase of approximately 1.1 million tons of potash (including options) from ICL Fertilizers during an eleven month period from July 2007 to May 2008. This compares with 900 thousand tons purchased by these customers from ICL under previous contracts. The contracts were signed with a price increase of $50 per ton compared to the previous contracts. The value of the contracts is approximately $300m compared to approximately $200m in the previous contracts. ICL is one of the world's leading fertilizer and specialty chemicals companies. ICL produces approximately a third of the world's bromine and approximately 10% of its potash. ICL is comprised of three core segments: ICL Fertilizers, ICL Industrial Products and ICL Performance Products. Its major production activities are located in Israel, Europe, the US, South America and China, and are supported by major global marketing and logistics networks. ICL benefits from exclusive concessions to extract minerals from Israel's Dead Sea, a vast source of high-quality and low-cost potash, bromine, magnesium chloride and sodium chloride. ICL also mines phosphate rock from Israel's Negev Desert and potash and salt from its mines in Spain and the UK. ICL's (Israel Chemicals Ltd.) shares are traded on the Tel Aviv Stock Exchange (ICL19.06). Back to Top 2.6 RGIS Gains Additional Strength in Middle East With ISICS Acquisition Auburn Hills, Michigan's RGIS acquired ISICS Software Systems, the largest inventory company in Israel. This acquisition is part of the RGIS global growth strategy. RGIS established a presence in Israel in 2001 and that this acquisition will accelerate the development in Middle Eastern markets. The goal is to expand RGIS' ability to serve existing customers as well as new customers. ISICS was founded in 1999 and is based in Tel Aviv. They perform inventory services to Israel's leading retail and pharmacy chains. RGIS is the world leader in inventory and retail services with annual revenue of more than $600m. (RGIS18.06) Back to Top Generated: 28 June, 2007, 15:46 Atid-EDI - Successful International Ventures Begin with the Right Connections 2.7 Israeli Air Force Awards Pratt & Whitney Materials Management Agreement Pratt & Whitney, a United Technologies Corp. company, and the Government of Israel - Ministry of Defense on behalf of the Israeli Air Force (IAF), signed an agreement for a Materials Management Program (MMP) to support the IAF's F100PW-229 powered F-15 and F-16 front line fighters as part of the just-in-time contract between the parties. This marks the first Pratt & Whitney MMP agreement with the Israeli Air Force. Pratt & Whitney's military aftermarket services business offers customized maintenance, material, and fleet management programs that ensure readiness. Pratt & Whitney is the world's only OEMRO business that blends the capabilities of their Original Equipment Manufacturer (OEM) with the flexibility of our Maintenance, Repair & Overhaul (MRO), providing valuable innovative solutions for our products and competitors' products. Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines. United Technologies, based in Hartford, Conn., is a diversified company providing high technology products and services to the global aerospace and commercial building industries. (Pratt & Whitney 21.06) Back to Top 2.8 Exanet Raises $18 Million in Round of Financing Led by Coral Capital Management Ra'anana, Israel's Exanet (http://www.exanet.com) announced that it has secured $18m in its recent oversubscribed round of financing. Exanet's current investors include Evergreen Venture Partners, Intel Capital, Microdent, Kodak Polychrome Graphics, CSK Fund (Hitachi) and others. The latest round was led by US fund Coral Capital Management and included QVT Fund, a multi-strategy hedge fund, as well as existing investors. Exanet's clustered NAS solution delivers a new data storage paradigm to address the trends that are driving the future of data centers: virtualization, standardized hardware, and applications demanding the most extreme standards of performance, capacity and high availability. Exanet's software-based open architecture delivers the best price/performance in the industry, dramatically increased utilization and, for the first time, offers a no end-of-life storage solution. Exanet has been adopted by customers ranging from traditional enterprises such as manufacturing and graphic arts to next generation ventures, including telecom, active archiving, digital broadcasting, video surveillance and storage service providers. (Exanet25.06) Back to Top 2.9 LivePerson to Acquire Kasamba Headquartered in New York City, LivePerson, a provider of online conversion solutions, announced an agreement to acquire Israel-based Kasamba (http://www.kasamba.com), a leader in live expert advice delivered online via real-time chat to consumers. Under the terms of the agreement, LivePerson will acquire the outstanding common stock of Kasamba and assume all of its outstanding options for total consideration of approximately $40m, comprised of $9m in cash and approximately $31m in stock. The acquisition of Kasamba, combined with the recently announced launch of LivePersonalShoppers.com, will accelerate LivePerson's expansion into the direct-to-consumer market. This purchase underscores LivePerson's commitment to expand its global presence by offering a personalized, human experience to the millions of consumers who are looking for live help online and want expert advice in real time. Kasamba's thousands of experts sell their knowledge via real-time chat to the more than 1 million monthly visitors to Kasamba.com. Kasamba has experts in dozens of categories, including personal counseling and coaching, computer services, education and tutoring, health, business and finance. Currently, Kasamba's business model is based on receiving a portion of the gross
Generated: 28 June, 2007, 15:46 Atid-EDI - Successful International Ventures Begin with the Right Connections expert fees. (LivePerson 25.06) Back to Top 2.10 ICL to Acquire Supresta, the World's Largest Producer of Phosphorus Flame Retardants Israel Chemicals, a multinational Israel based fertilizer and specialty chemicals company, announced that it has entered into a definitive agreement to acquire U.S.-based Supresta, the world's largest producer of phosphorus-based flame retardants and other products made from phosphorus. The purchase price is $352m, subject to certain adjustments, mainly working capital. After the acquisition, Supresta will become part of the ICL Industrial Products segment, giving the segment annual revenues of approximately $1.1b. ICL intends to integrate Supresta into ICL Industrial Products to realize operating synergies, including synergies in the purchase of raw materials. The acquisition will diversify ICL Industrial Products' portfolio of flame retardants, enabling it to initiate sales to the polyurethane foam and engineering plastics markets, while also enhancing its geographic marketing reach. In addition, the acquisition will enhance ICL Industrial Products' R&D capabilities through the addition of organo-phosphorus technology and intellectual property towards the development of next-generation products based on phosphorus. ICL Industrial Products produces about a third of the world's elemental bromine and is a leading provider of bromine-based downstream products such as flame retardants, clear brines for the oil and gas exploration industries and water treatment biocides. It also produces magnesia and chlorine-based salts. ICL is one of the world's leading fertilizer and specialty chemicals companies. (ICL25.06) Back to Top 3: REGIONAL PRIVATE SECTOR NEWS 3.1 Jordanian & Chinese Firms To Set Up Car Manufacturing Plant On 19 June, Jordan's Ayass Motors signed an agreement with China's Hebei Zhongxing Automobile to set up the first private car assembly and manufacturing plant in Jordan, with a starting capital of $30m. Under the deal, Hebei Zhongxing Automobile and Ayass Motors will begin operating in 2008 with initial production capacity of 4,000 - 6,250 vehicles. Ayass added that annual production of four- and two-wheel-drive vehicles as well as pickups will rise to 12,000 and then to 24,000, targeting Arab and east European markets. The joint venture hopes to manufacture sedans and saloons at a later stage. Around 25% of car parts will be manufactured in Jordan, which will positively reflect on local industries. The plant, to be set up in Um Rasas, south of Amman, will increase its capital to $50m by the end of the project's fifth year, and later raise it to $230m. The Investment Promotion Corporation expects the venture to create more than 17,000 jobs. The deal was sealed on the sidelines of a two-day conference to mull ways of bolstering trade between Chinese businessmen and their Jordanian counterparts. (JT20.06) Back to Top Generated: 28 June, 2007, 15:46 Atid-EDI - Successful International Ventures Begin with the Right Connections 3.2 GlobalOptions Group Expands Business in Middle East and Northern Africa New York, New York's GlobalOptions Group announced that its James Lee Witt Associates unit (JLWA) has formed a multi-year agreement with Kuwait-based International Investors Group Holdings (IGH), to jointly provide emergency planning, crisis management, business continuity planning, training and exercises, and continuity of government services to governments and corporations throughout the Middle East and North Africa (MENA). With IIG's assistance, JLWA will expand their client base in the MENA region with a particular focus on the Gulf Cooperation Council states, comprised of Kuwait, Saudi Arabia, Qatar, United Arab Emirates, Bahrain and Oman. Additionally, JLWA and IIG will extend their scope of services to governments and businesses in Turkey, Syria, Egypt, Lebanon, Jordan, Iraq, Yemen, Sudan, Libya, Algeria, Tunisia and Morocco. GlobalOptions Group is a provider of high-end risk assessment and mitigation services to Fortune 1000 corporations, governmental organizations and high-profile individuals throughout the world. GlobalOptions Group's services currently include risk management and security, investigations and litigation support, and crisis management. (GlobalOptions 19.06) Back to Top 3.3 ILS to Launch 5th-Generation Satellite for Arabsat McLean, Virginia's International Launch Services (ILS) has been selected to launch a fifth-generation satellite for Arabsat. ILS will launch the satellite, either Arabsat-5A or BADR-5, in the 2009-2010 timeframe on a Proton Breeze M vehicle from the Baikonur Cosmodrome in Kazakhstan. ILS partner Khrunichev State Research and Production Space Center builds the Proton in Russia. A consortium of EADS Astrium and Thales Alenia Space is building the satellites and is responsible for delivering the satellites in orbit. EADS Astrium will supply the Eurostar E3000 platforms and integrate the satellites. Thales Alenia Space will design and build the communications payloads. ILS has carried out 40 commercial launches on Proton since the joint venture with Khrunichev was formed in 1993. The Proton vehicle is Russia's premier heavy-lift launcher, and has carried out many historic missions in its 42 years of service. Arabsat-5A will have a launch mass of 4,800 kg. The multi-payload satellite will replace Arabsat-2B, which is reaching the end of its service life. Arabsat-5A will provide additional capacity for a comprehensive range of satellite communications services over sub-Saharan Africa, North Africa and the Middle East, and beyond. Backed by the 21-member countries of the Arab League, and with its 30-year heritage of continuous operations, Arabsat offers the Arab world an unrivalled range of satellite-based communications services such as direct-to-home television and radio, telephony, internet and direct broadband access, as well as the provision of VSATs and other interactive services. (ILS17.06) Back to Top 3.4 Kuwait Oil Company Seeks Alberta Oil Sands Expertise State-owned Kuwait Oil Co. is looking to enlist the knowledge and expertise of Calgary-based firms to help in the development of its heavy oil reserves with a goal of producing a total of 900,000 bpd by 2020. Output from the proposed development will be on par with Saudi Aramco's Manifa offshore project - billed as the single-largest heavy oil venture in the world. On offer for oil-service firms are term-contracts to assist KOC in the application of new drilling technologies, the provision of rigs, geosciences and sub-surface know-how, compressors and submersible pumps and trained and
Generated: 28 June, 2007, 15:46 Atid-EDI - Successful International Ventures Begin with the Right Connections experienced manpower. Of the total projected heavy oil capacity addition, 78% or nearly 700,000 bpd will be produced from the Lower Fares formation in the north of the country. The remaining volumes will be sourced from the Umm Gudair and Burgan fields in the west and southwest and from KOC's share of production from the Neutral Zone divided equally between Saudi Arabia and Kuwait. The heavy oil has an API (American Petroleum Institute) level of 12-to-17 and is at depths of 700 feet. It is early stages, but they may drill a total of 20,000 wells and also install multiple-sections of in-field pipelines. The KOC official added that a pilot project is due to be tendered soon, with a capacity to produce 50,000 bpd by 2011. Production will be ramped up in stages to 250,000 bpd by 2015 and 900,000 by 2020. (Calgary Herald 15.06) Back to Top 3.5 Bracewell & Giuliani LLP Opens Office in Dubai Bracewell & Giuliani LLP announced the opening of its office in Dubai, United Arab Emirates today. The Dubai office will be led by a former senior United States diplomat in residence there. The Dubai office will advise clients on doing business in Dubai and in the other member-states of the United Arab Emirates, including operations in the new Dubai International Financial Centre (DIFC), and on local labor law, commercial and corporate law, arbitration, licensing, litigation, energy and environmental matters in the Arabian Gulf region. Bracewell & Giuliani LLP is among the United States' most prominent law firms. With over lawyers in New York, Connecticut, Texas, Washington DC, Dubai, Kazakhstan and London, they are distinctively positioned to serve clients concentrated in the energy and financial services sectors worldwide. In 2005, former New York City mayor Rudolph W. Giuliani joined the firm as a senior partner. (Bracewell & Giuliani 25.06) Back to Top 3.6 Merrill Lynch Opens Offices in Dubai International Financial Center On 20 June, Merrill Lynch officially opened its new regional headquarters at the Dubai International Financial Center (DIFC). Merrill Lynch was awarded a full banking license by the Dubai Financial Services Authority (DFSA) in January 2007. Merrill Lynch's presence in Dubai spans some 35 years. Merrill Lynch has had a presence in the Middle East for over 45 years and has held a license from the DIFC with regards to its Global Private Client business since 2005. In September of last year, Merrill Lynch also announced that it had launched the Dubai Investible Index (DII), the first investible index designed to track stocks listed on the Dubai International Financial Exchange. In May 2007, Merrill Lynch announced it had launched its Direct Market Access platform on the Dubai International Financial Exchange (DIFX) and had received membership of the Dubai Mercantile Exchange this month. Additionally this year, the firm announced a partnership with the Arab International Women's Forum. Established in 2001 as the first not-for-profit organization of its kind, AIWF has brought together Arab and international business and professional women from over 40 countries, showcasing their development, promoting cultural diversity and creating greater public awareness of women's success and prospects in the Arab world. (Merrill Lynch 20.06) Back to Top Generated: 28 June, 2007, 15:46 Atid-EDI - Successful International Ventures Begin with the Right Connections 3.7 Merrill Lynch Receives License To Operate in KSA Merrill Lynch announced it has received a banking license from the Capital Markets Authority to operate in the Kingdom of Saudi Arabia. The license will allow Merrill Lynch to offer its domestic and global clients a full suite of global markets, investment banking products and wealth management solutions, including M&A advisory, structured finance, equity and debt capital market solutions. Merrill Lynch is one of the world's leading wealth management, capital markets and advisory companies, with offices in 37 countries and territories and total client assets of approximately $1.6 trillion. As an investment bank, it is a leading global trader and underwriter of securities and derivatives across a broad range of asset classes and serves as a strategic advisor to corporations, governments, institutions and individuals worldwide. (Al Bawaba 19.06) Back to Top 3.8 Alloptic Partners with Saudi Leader in Airport & Industrial Safety & Security Systems Livermore, California's Alloptic, a global leader in the development of Passive Optical Network (PON) technology, is partnering with Saudi Arabia's SOFAB Industries to provide optical communications access equipment for security and Smart City applications. SOFAB, a recognized global leader in security applications for air and sea ports, border crossing, and industrial and government complexes, will utilize Alloptic's GEPON access solution to expand their solutions portfolio in the GCC countries of the Middle East and throughout Asia. SOFAB Industries, established in 1948, is based in Jeddah, KSA and is a part of the Shamsan Alsohaibi Group, the premier supplier of industrial and electrical solutions in the region. SOFAB is the group's Division for Marketing, Distribution and Sales, encompassing a range of security, industrial, and telecommunications sectors throughout the Middle East and Asia. (Alloptic14.06) Back to Top 3.9 Gap Expands International Presence with Franchise Agreements in Saudi Arabia & Turkey San Francisco, California's Gap Inc. announced separate franchise agreements with retailers in Saudi Arabia and Turkey to introduce the Gap and Banana Republic brands to those markets. Over the next five years, Gap Inc.'s franchise partners - Fawaz Alhokair Group (Saudi Arabia) and Fiba Holding A.S. (Turkey) - plan to open a combined total of approximately 90 Gap stores and 20 Banana Republic stores throughout Saudi Arabia and Turkey. The first Gap stores will open in each country by the end of this year, and the first Banana Republic stores are expected to open in each country by spring 2008. All stores are expected to be open by 2012. Gap Inc. will leverage each franchise partner's local operational expertise, and will provide access to Gap and Banana Republic's clothing and accessories. In addition, each partner will hold exclusive rights to operate Gap and Banana Republic stores in their respective countries, will purchase merchandise from Gap Inc. or suppliers designated by Gap Inc., and must adhere to Gap Inc.'s quality standards to preserve the reputation of the Gap and Banana Republic brands. This announcement follows previouslyannounced franchise agreements to open Gap and Banana Republic stores in Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates. (Gap13.06) Back to Top
Generated: 28 June, 2007, 15:46 Atid-EDI - Successful International Ventures Begin with the Right Connections 3.10 WWE Signs Deals in Greece & Turkey Stamford, Connecticut based World Wrestling Entertainment announced new breakthrough TV deals in Greece and Turkey. The deals, across Free and Pay TV represent 196 hours of original WWE programming to key new markets. In Greece, Multichoice Hellas will broadcast "WWE RAW" on Supersport, the only premium 24-hour sports television service available in Greece. Supersport is available terrestrially and via satellite on Nova, a DTH satellite service owned and operated by Multichoice Hellas. In Turkey, Digiturk, the largest and only digital DTH satellite network operator, will broadcast "WWE RAW" on S'NEK. Digiturk offers 128 television, radio and interactive channels, including access to premium blockbuster movies and sports exhibitions. World Wrestling Entertainment is an integrated media and entertainment company. (WWE21.06) Back to Top 3.11 Cedar Point's SAFARI C(Cubed) to be Deployed by Cablenet in Cyprus Derry, New Hampshire's Cedar Point Communications, a leader in integrated VoIP switching technologies for the service provider and enterprise telecommunications industries, and Cablenet Communication Systems, the leading cable system operator in Cyprus, announced that Cablenet has selected Cedar Point's SAFARI C(Cubed) Media Switching System for its launch of VoIP services. Cablenet, Cedar Point's third announced customer in the EMEA market, plans to use SAFARI C(Cubed) to offer high-quality, highly-reliable voice services throughout its market area, with an initial focus on residential subscribers. Cablenet anticipates passing 80,000 homes with voice services by the end of 2007 and 150,000 homes by the end of 2008. The company is targeting 50,000 voice subscribers with the next three years. B.A.S.E. Technologies, a Cedar Point reseller and support partner for the EMEA market, assisted Cedar Point in the completion of the agreement. (Cedar Point 21.06) Back to Top 4: ISRAEL MACRO-DEVELOPMENTS 4.1 Intel & Teva Take On 85 Bedouin Engineers Globes reported that 85 Bedouin engineers will be hired by Teva Pharmaceutical Industries and Intel Corporation. Intel recently reported a shortfall of 800 air conditioning and chemical engineers for its new fab due to open next year in Kiryat Gat. Under a special program, costing an estimated $1.2m and jointly promoted by the Office of the Vice Premier and the Ministry of Industry, Trade & Labor, 85 Bedouin engineers, 19 of them women, have been receiving specialist training in air conditioning systems and chemistry, with the aim of finding them work in high-tech companies, such as Teva and Intel. The engineers have been training in their respective specialties at a vocational training college in Beer Sheva for
Generated: 28 June, 2007, 15:46 Atid-EDI - Successful International Ventures Begin with the Right Connections the past eighteen months. They have also been receiving extra tuition in math and English in order to improve their ability to work with global markets. The engineers have qualified for full scholarships for their entire period of training, with each participant receiving cost reimbursements and transportation to and from their respective villages in the Negev. (Globes 25.06) Back to Top 4.2 Eleven Firms Qualify For Dead-Red Canal Eleven firms have qualified to submit a feasibility study to build a canal which would save the slowly evaporating Dead Sea by replenishing it with water from the Red Sea. The 25-year project to build a canal linking the two seas would also solve a severe water shortage in Israel, Jordan and the Palestinian territories. Jordanian Minister of Water and Irrigation Alem announced that the 11 firms would be invited to carry out a technical and environmental feasibility study for the Red Sea-Dead Sea Canal. At the end of this month, the World Bank will ask these firms to submit their offers. The firms have until 15 September to present their projects. He did not identify the companies. Once the proposals are in hand, representatives from Israel, Jordan and the Palestinian Authority will meet in Paris with the World Bank to examine the offers and announce two winners. Israel, Jordan and the Palestinian Authority agreed in December to launch a feasibility study for the massive project, which has been on the drawing board for years but has stalled amid regional tensions. The Dead Sea is the world's lowest and most saline body of water. Its level has been dropping by a meter annually. France, the Netherlands, Japan and the United States have committed $9m to finance the two-year study estimated to cost around $15.5m. It will be managed by the World Bank. Once desalination plants are in place, it would eventually ease the region's acute water shortage by providing up to 850 million cubic meters of freshwater to Jordan, Israel and the Palestinian territories. As one of the 10 most water impoverished countries in the world, Jordan's water deficit exceeds 500 million cubic meters a year. (AFP26.06) Back to Top 5: ARAB STATE & PAKISTANI DEVELOPMENTS 5.1 Explosion in Popularity Of Credit Cards in The Middle East The total number of credit cards in the Middle East and North Africa (MENA) region jumped by 24% in 2006 to 6.23 million, according to new research from Lafferty Group, a UK-based retail banking and cards research house. Lafferty Group forecasts that the number of credit cards in circulation will rise by a further 51% by 2008, dwarfing growth in most other regions of the world. Of the 12 markets analyzed by Lafferty Group, Jordan saw the highest growth, with credit card numbers jumping by 61% to almost 275,000. Tunisia had the second highest growth, up 55% to 55,000. The credit cards industry is very profitable to banks in the MENA region. Lafferty Group calculates that the total pre-tax profit of the credit card industry in the region was $300m in 2006. It estimates that this figure will grow by 22% between 2006 and 2008. Countries within the Gulf Cooperation Council (GCC) are the most attractive to credit card issuers, because of the wealth of their inhabitants and their propensity to spend on credit cards. The five GCC markets alone generated $235m in pre-tax profits last year. Countries in North Africa and the Levant region are less profitable, but still highly attractive with strong long-term growth potential. According to Lafferty Group's analysis, Saudi Arabia is the most profitable market in the region, both in terms of overall profitability and profit per card, at $107m and $95, respectively. At the other end of the scale was Morocco in terms of overall profits, at $4m, and Egypt in terms of profit per card, at $20. (Mena Report
Generated: 28 June, 2007, 15:46 Atid-EDI - Successful International Ventures Begin with the Right Connections 18.06) Back to Top 5.2 Kuwait First in List of Investors In Jordan At $6b, Kuwait ranks first among other countries investing in the Jordan's various economic sectors. The Kuwait Jordan Holding Company, which was launched in 2004 during a visit by King Abdullah to Kuwait, with a capital totaling $122m, announced recently that it was conducting studies to establish a tourist resort and a commercial centre at the Dead Sea at a cost reaching up to $200m. The company, the largest Kuwaiti investor group in the country so far, will also build a $230m cement factory and a slaughter- house at an estimated cost of $30m. In January 2003, MTC, another Kuwaiti business group, closed a $420m deal and acquired most of Fastlink company in Jordan. Other Kuwaiti investments include those launched in the Aqaba Special Economic Zone through the National Real Estate Company at a capital of over $113m. Kuwait's Sultan Center also contributed to the rise of the Kuwaiti investments in the Kingdom through the purchase of Safeway supermarket. Alshaya is another Kuwait investor that contributed to the building of Starbuck's cafes in the Kingdom. Among recent Kuwaiti investors is Noor Financial Investment which is part of the consortium that has recently won a tender for expanding Queen Alia International Airport. So far, a total of $217.4m worth of Kuwaiti investments have benefited from the Jordan Investment Promotion Law. The law offers tax exemptions and other benefits to foreign investments. This is in addition to other Kuwaiti investments in the sectors of construction, tourism, services, banking and insurance. (Petra17.06) Back to Top 5.3 GCC Healthcare Costs Soaring The direct healthcare costs in the GCC region are expected to increase fivefold by 2025 to $60b from $12b now, with health risk factors, ageing, population growth and medical inflation contributing to the cost escalation. The GCC Healthcare 2025 report by McKinsey & Co Inc on Healthcare in the GCC – Challenges and Opportunities also cited the cost burden on cardiology will rise from $1.5b now to $15b by 2025. By 2025, cardiology will make for 24% of the healthcare costs followed by infectious diseases, maternal and perinatal conditions, digestive diseases, genitourinal disorders, cancer and other diseases. The number of outpatient and inpatient visits is expected to grow 350% in the UAE, Saudi Arabia and Kuwait; 260% in Bahrain; and 310% in Oman. However, the GCC region has a shortage of nursing staff with only 4.2 nurses per 1,000 population in the UAE; 3 per 1,000 in Saudi Arabia; 4.3 in Bahrain; and 3.5 in Oman. The GCC average of 4 nurses per 1,000 people is nearly half of that in OECD countries, which have an average of 9.4. Of the nursing staff, only 3% are nationals in the UAE while the figures are higher in Bahrain (60%) and Oman (56%). Governments in the region are making concerted efforts to address the challenges and implement a holistic healthcare system, according to McKinsey & Co. The Ministries of Health are increasingly focusing on policy making. The private sector will also have an increasing role in healthcare delivery. (TradeArabia 19.06) Back to Top Generated: 28 June, 2007, 15:46 Atid-EDI - Successful International Ventures Begin with the Right Connections 5.4 Qatar Takes Lead in Global LNG Exports Qatar has reportedly surpassed Malaysia and Indonesia to become the world's biggest exporter of liquefied natural gas last year, according to Italian oil and gas company Eni. The Middle Eastern country supplied 15% of global LNG exports in 2006 and its market share is to get bigger as new projects come onstream, according to Eni's seventh World Oil and Gas Review. Qatar exported 31.09b cubic meters of LNG last year, compared to 29.57 bcm by Indonesia and 28.04 bcm from Malaysia, Eni said. Algeria was in fourth place with 24.19 bcm out of a total global figure of 210.52 bcm. LNG is natural gas cooled into liquid form so that it can be shipped to anywhere in the world on specially designed tankers. (Eni20.06) Back to Top 5.5 UAE Preparing To Allow Limited Foreign Ownership of Local Companies The United Arab Emirates is preparing a law that would open the economy to greater foreign ownership, ending decades of restrictions that ensured local corporate dominance. Sheikha Lubna al-Qasimi, the economy and planning minister, said a long-awaited companies' law would open some areas within the services sector to full foreign ownership. The law would also allow greater foreign participation in other areas, crucially in the fast-growing financial services industry, where outside investors are limited to minority stakes. The UAE has been successful in attracting foreign investment. However, business surveys by groups such as the World Bank have identified the UAE's legal requirements for a local partner as an impediment to higher levels of investment. The draft law is expected to go to the cabinet for approval by the end of the summer, and could come into effect by the end of the year, Sheikha Lubna said. Foreign investors can own 49% of most businesses in the UAE. Some financial services, such as insurance, are capped lower at 25%. Foreign investors can only retain full control by operating in government-run free zones, most of which are located in Dubai. The UAE in 2005 attracted about $12n, or about a third of the $34b in foreign investment across the Middle East. But talks over a US-UAE free-trade agreement faltered earlier this year, with US trade officials citing "investment issues", such as ownership and access to each others' markets, as being behind the failure to reach agreement. (FT11.06) Back to Top 5.6 Minister Lubna Said UAE Inflation Reached 9.3%