Israel could rake in billions in revenue if it can just ramp up production.

By Lauren Marcus, World Israel News

Israel is poised to earn some $50 billion in tax revenues and become a key player in the world energy market, as Europe seeks to obtain natural gas from other sources after cutting off purchases from Russia, says a senior executive in an Israeli energy company.

Yossi Abu, CEO of the NewMed Energy corporation, told Israel Hayom that the Russian invasion of Ukraine and ongoing global financial downturn have put Israel in an advantageous position.

“The world economic crisis dramatically increased the importance of Israeli natural gas, not only for Israel but also on the regional level – for Jordan and Egypt,” Abu told Israel Hayom.

“If we hadn’t made these discoveries, Israeli citizens would be paying at least 60% more for their electricity bill.”

According to Abu, “in Europe, the price of electricity increased…by 300%, because the price of natural gas increased dramatically. In Israel, on the other hand, the price of natural gas is roughly $4.5-$5 per heat unit, while in Europe and Asia it’s $30. Today Israel has some of the lowest natural gas prices in the world, and this is reflected in the citizens’ electricity [bills.]”

Abu’s company partners with the Israeli government on the extraction and production of natural gas from offshore oil fields, under a model which sees Jerusalem collect some 50 percent of the revenue from energy exports.

He urged the Israeli government to ramp up natural gas production, as such a move could prove extremely lucrative for Israel’s financial future.

“If we’re talking about supplying 10-20 BCM per year of gas to Europe for 20 years – we’re talking about a deal of $100 billion,” Abu explained.

“The State of Israel [gets] 50% of that, without investing anything. So we’re talking here about dramatic income for the State of Israel. Natural gas is an extremely significant economic anchor.”

Israel, Egypt and Europe signed a memorandum of understanding in May on gas sales. Israel will transfer the gas to Egypt by pipeline. Once liquefied and pressurized, the natural gas will be shipped to Europe from Egyptian port cities.

Turkey is also courting Israeli cooperation to supply Europe with gas.

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Ireland has one of the least friendly policies toward Israel and many of its politicians have promoted a boycott on Israeli goods.

By Aryeh Savir/TPS

Israeli exports increased to about $140 billion in 2021 and hit a record high, an increase of close to 20% compared to about $114.3 billion in 2020, according to estimates by the Foreign Trade Administration at the Ministry of Economy and Industry.

For the first time in Israel’s economic history, exports of services exceed exports of goods with a 51% to 49% ratio, while the exports of goods are also on the rise.

The leading sectors in the export of goods are automation and electronic equipment, products of the chemical and pharmaceutical industries, and optical and medical equipment.

One of the most surprising countries of destination that experienced an impressive growth was Ireland, with a whopping 517% increase, as the total sum in exports went from $140,801,000 in the first nine months of 2020 to $869,257,000 in the first nine months of 2021.

Ireland has one of the least friendly policies toward Israel and many of its politicians have promoted a boycott on Israeli goods.

Data obtained by TPS from the Foreign Trade Administration shows that the main increase occurred in the mechanization and electronics sector, with $59,248,000 in trade in the first nine months of 2020, to $732,719,000 in the first nine months of 2021, 12 times the sales in the previous year.

Another sector that showed an impressive growth is “transportation products,” with $58,170,000 in the first nine months of 2020, to $111,201,000 in the first nine months of 2021.

Other export categories of Israeli goods to Ireland that showed a more modest increase were agriculture and food products, base metals, chemicals, pharmaceuticals and the chemical industry, medical and optical equipment, and rubber and plastic products.

Irish-Israeli relations have been strained in recent years following the suggestion that Dublin would ban the import of products from Israeli communities in Judea and Samaria, labeling them as “settlement products.” The Irish parliament passed such a bill in January 2019, celebrated as a win for the Boycott, Divestment and Sanctions movement (BDS), but was subsequently blocked by the government.

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Israel’s top exporting destinations are the U.S., China, Netherlands, Turkey, and Germany.

By Aryeh Savir/TPS

Israeli exports increased to about $140 billion in 2021 and hit a record high, an increase of close to 20% compared to about $114.3 billion in 2020, according to estimates by the Foreign Trade Administration at the Ministry of Economy and Industry.

For the first time in Israel’s economic history, exports of services exceed exports of goods with a 51% to 49% ratio, while the exports of goods are also on the rise.

The leading sectors in the export of goods are automation and electronic equipment, products of the chemical and pharmaceutical industries, and optical and medical equipment.

Israel’s top exporting destinations are the U.S., China, Netherlands, Turkey, and Germany.

The growth trend that exports have been experiencing since the beginning of the year strengthened as the year progressed. According to conservative based on various calculations of data for the first three quarters of the year, the Foreign Trade Administration expects that at this growth rate, exports are expected to approach the $140 billion mark.

The two most significant trends that contributed to the change in the balance of power between goods and services are a significant increase in the high-tech industries in Israeli exports – exports of programming services and research and development services that are not start-ups, which grew by 25% and 15% respectively, and the significant increase in transportation services exports that jumped this year by 138% percent.

However, the Ministry of Economy clarified that with regard to transportation services, the increase is due in part to the jump in transportation costs worldwide and the fact that the year to which the data is compared is the year in which the Coronavirus hit supply chains worldwide.

At the same time, exports resulting from the sale of start-up companies also jumped by 257% and these trends led to the overall growth of about 30% in the export of services.

In the commodities sector, a recovery trend can be seen after several years of stagnation with a growth of about 15%, an increase that has not been seen in recent years. A particularly significant recovery in the commodities sector was recorded in diamond exports, which grew at a rate of about 65%, after years of contraction and crisis in the industry in Israel.

Excluding diamonds, exports of goods in 2021 grew by about 13% compared to 2020, and exports of goods grew in almost all sectors.

From a geographical point of view, looking at the exports of goods not including diamonds, it can be seen that the majority of exports, 39%, are directed to European markets, 33% to American markets, and about 25% to Asian markets.

Ohad Cohen, Director of Foreign Trade Administration at the Ministry of Economy and Industry, stated Monday that “the year 2021 will break records in Israeli exports and its components. Whether we reach the $140 billion threshold or not, this is an all-time high in exports, which was slightly halted in 2020 due to the Corona pandemic.”

He noted that the exporting sector showed “an impressive recovery” in late 2020 and even more so in 2021, both in the export of goods and services.

“It is important to remember that the last peak in exports was in 2019 when exports totaled about $117.5 billion, so this is not only a correction after the year of Corona but a significant growth in Israeli exports. This growth comes despite the fact that the tourism sector has not returned to full activity in the past year, and although Corona’s challenges in the target markets have continued and even increased recently,” he added.

In 2021 exports of goods, excluding the diamond sector, experienced impressive growth in many markets: exports to Europe increased by about 7%, with an emphasis on Belgium with a 37% increase, Cyprus with 49%, Greece with 25%, Ireland with a whopping 517% increase, Italy with 74%, Spain with 38%, and Turkey with 28%.

Exports to Asia grew by about 15% and especially exports to India with a 54% growth, Hong Kong with 22%, South Korea with 47%, and Taiwan with 36%.

Exports to America grew by about 13%, especially exports to the U.S. with 14%, Peru with 31%, Colombia with an 18% increase, and Ecuador with 49%.

Exports to Africa grew significantly by about 37% with an emphasis on Egypt with 46%, Morocco with a massive 192% growth following the signing of the Abraham Accords a year ago, South Africa with 27%, and Nigeria with 101% growth.

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Unique collaboration seeks to expand sales and customers for Israeli products.

By TPS

Israel’s Ministry of Economy and Industry, in cooperation with the Ministry’s attachés in New York, has unveiled a unique collaboration with the American Communities Helping Israel (ACHI) organization to expand the circle of customers and sales of Israeli manufacturers with a “Made in Israel” label in the US and Canadian markets.

The ACHI has launched a dedicated sales platform for the products, and the collaboration encourages members of Jewish and pro-Israel communities in the U.S. and Canada to purchase products manufactured in Israel and thus support employment in Israel and strengthen the Israeli economy.

The platform is being promoted and marketed by the ACHI under the slogan “Think Israel – Buy Israeli” which encourages target audiences, Jewish communities and pro-Israel communities in North America to prioritize Israeli businesses and products.

The head of Israel’s New York Economic Attaché Anat Katz stated that “the project with ACHI is an important activity for the promotion of Israeli products in the United States, especially vis-à-vis Jewish and pro-Israel communities, and is of great synergistic value to the activities attached to this sector.

Joining the activity as a blue-and-white manufacturer is free of charge. But it is conditional on the Israeli business having a permit to mark products with a “Made in Israel” label, with the contract being made directly between the manufacturer and ACHI. Businesses must have an English-language ecommerce site and be able to ship their products to the the U.S. and Canada.

ACHI was founded in 2004, during the Second Intifada. Based in Monsey, NY, ACHI’s web site makes it possible for Americans to order made-in-Israel jewelry, cosmetics, pottery, Judaica, candies, hats, wines, kippot, books and toys from more than 100 merchants.

World Israel News staff contributed to this report.

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Ohad Cohen, head of Israel’s Foreign Trade Administration, discusses with i24 News the plans for Israel’s pavilion in Expo 2020, rescheduled for October 2021-March 2022 due to COVID-19.

The post WATCH: Israeli exports to surpass $120 billion in 2021 as ‘Innovation Nation’ features in UAE Expo appeared first on World Israel News.

Israel’s first exports to the UAE arrived in Dubai’s Jebel Ali Port this week.

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Generations of Israeli kids grew up eating peanut butter-flavored snack Bamba. Now, manufacturer Osem is negotiating a distribution agreement that could make the snack as wildly popular with American kids

By Navit Zomer, Ynet News via The Calcalist

Bamba, a peanut butter-flavored puffed corn snack, is synonymous with Israeli childhood. Generations of Israeli kids grew up eating Bamba—which is considered highly nutritious and is often credited with lowering peanut allergy rates in the country—since it was introduced in the 1960s.

A 2017 blog post by the U.S. National Institute of Health Director Dr. Francis Collins discussing the rise in peanut allergy in the U.S. suggests exposing babies to peanut-containing foods as early as four to six months of age as a means of inoculation. The post lists Bamba as one of the foods shown to reduce the occurrence of peanut allergy.

Now, Bamba manufacturer Osem Group is negotiating with Swiss multinational Nestlé S.A. for a U.S. distribution agreement that will see Bamba become a staple in the diet of U.S. kids. Osem itself is a wholly-owned subsidiary of Nestlé. If the agreement is finalized, Bamba will be added to Nestle’s baby food division, which distributes such popular brands as Gerber and NAN.

Osem is one of Israel’s largest food manufacturers. Founded in 1942, the company built its reputation manufacturing snacks and dry pantry staples, eventually venturing into pickles, ice creams, frozen foods, and prepared middle eastern salads through subsidiaries such as Sabra Salads. Osem already exports a variety of foods to Europe and the U.S. through subsidiaries Osem U.K. Ltd. and Osem USA Inc., focusing primarily on the kosher food market. In addition to specialty kosher food stores, Bamba is sold in the U.S. in stores such as Costco and Trader Joe’s.

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Israel has become a major producer of wines and Barkan winery is one of its largest producers.

By World Israel News Staff

Israel has become a major producer of wines. Take a tour of one of the Israel’s largest. Last year, Barkan Winery produced 15 million bottles of wine. Over 8,000 tons of grapes reach the winery during harvest season. The winery contains over 6,000 French and U.S. oak barrels.

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Israel has a strong, technologically advanced economy, and the shekel is solid. What are the drawbacks?

The post WATCH: How does the strong shekel affect Israel’s technology industry? appeared first on World Israel News.

An Israeli government panel has recommended approving exports of medical marijuana, allowing Israel to enter a billion dollar market.

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