UK Trade & Investment British Embassy - Tel Aviv

1. UK Trade & InvestmentBritish Embassy - Tel Aviv East Midlands International Trade Association Breakfast Seminar ‘Getting Better Acquainted with Israel’ September, 2007 BRITISH EMBASSY TEL AVIV

2. UKTI Team - Israel Richard Salt Director Trade & Investment Barry Grossman Deputy Director Yigal Levine Senior Advisor BRITISH EMBASSY TEL AVIV

3. Israel: Country/Region overview BRITISH EMBASSY TEL AVIV

4. Israel at a Glance - 2007 • Population: 7.1 million • Area 22,145 sq. km. • GDP: $124.5 billion • GDP per capita $21,500 • Growth 4.8% • Inflation 2.5% • Unemployment 7.6% BRITISH EMBASSY TEL AVIV

5. Growth - GDP FIGURES IN % BRITISH EMBASSY TEL AVIV

6. Rate of Inflation IN 1985 INFLATION REACHED 380% FIGURES IN % BRITISH EMBASSY TEL AVIV

7. Unemployment FIGURES IN % BRITISH EMBASSY TEL AVIV

8. The High Tech storyThe start up phenomena • The largest number of start-ups (3,000) outside the USA • R & D spending is 4th highest in the world • High Tech accounts for 51% of exports • 4.5% of GDP is invested in R & D • 300 Start-ups registered in 2006 BRITISH EMBASSY TEL AVIV

9. Centre for Hi Tech and R&D Entrepreneurial Spirit Highest concentration of Startups after Silicon Valley Second highest number of companies on NASDAQ Over 40 companies now registered in London Worldwide R&D Centre INTEL: First centre outside USA MICROSOFT: Only R&D centre outside USA MOTOROLA : Largest R&D centre outside USA BRITISH EMBASSY TEL AVIV

10. Some Achievements • The Pentium MMX chip technology developed by Intel Israel • Given Imaging have produced the Pill Cam • Cherry Tomatoes were developed by the Hebrew University • Disk-on Key developed by the Israeli companyM Systems • Cell phone technology was developed by Motorola Israel • Drip irrigation was developed in Israel in the 70’s BRITISH EMBASSY TEL AVIV

11. Two - Way Trade UK EXPORT £m UK IMPORT £m 1-6/07 639.4 1-6/07 540.9 20061,293.3 2006 985.6 2005 1,357.2 2005 1,122.6 2004 1,394.3 2004 944.4 2003 1,377.2 2003 881.6 ANNUAL TWO-WAY TRADE HAS EXCEEDED £2 BILLION FOR LAST FIVE YEARS AND COULD REACH £3 BILLION BY 2010 BRITISH EMBASSY TEL AVIV

12. Britain - Israel Trade A Success Story ISRAEL is the UK’s LARGEST individual trading partner in the Near East & North Africa ISRAEL ended 2006 as the UK’s 29th LARGEST export market WORLD-WIDE BRITISH EMBASSY TEL AVIV

13. UK Investments and Joint Ventures in Israel • JOINT VENTURES • ROLLS ROYCE • BRITISH GAS • GLAXOSMITHKLINE • UNILEVER • CORUS • INVESTMENTS • HSBC • GSK • APAX BRITISH EMBASSY TEL AVIV

14. Israeli Investments in the UK Over 200 Israeli companies have already set up in the UK • Bank Leumi and Bank Hapoalim • Delta Galil Industries • Elbit Systems • Emblaze • Fruitarom • Gamatronic • Ness Technologies • Osem • Plasson • Tescom BRITISH EMBASSY TEL AVIV

15. Israeli Business Culture • Friendly and helpful • Direct • Politically aware • The telephone • Meetings BRITISH EMBASSY TEL AVIV

16. So, why Do Business in Israel? • No reluctance to buying British- as long as quality and price are right • British based business practices - you should feel at home • There is a Free Trade Agreement with the EU • No language problem - English is readily spoken • The business culture is both friendly and helpful • There is no withholding tax on British goods or services sold to Israel • Israel is only 2 hours ahead of the UK and a 4.5 hours flight away • The sunshines 12 months of the year BRITISH EMBASSY TEL AVIV

17. UK Trade & Investment Team Contact Details Richard Salt Director, Trade & Investment E-Mail: richard.salt@fco.gov.uk Tel: +972 3 7251231 Barry Grossman Deputy Director, Trade & Investment E-Mail: barry.grossman@fco.gov.uk Tel: +972 3 7251236 Yigal Levine Senior Advisor, Trade & Investment E-Mail: yigal.levine@fco.gov.uk Tel: +972 3 7251238 UKTI Fax: +972 3 5243313 BRITISH EMBASSY TEL AVIV