In 2005 18 business families of controlled 32 percent of the earnings from the top 500 companies in the market, a BDI study on economic centralization in Israel revealed.
The families’ earnings reached NIS 198 billion (USD 43 billion) last year, or 77 percent of the 2006 State Budget. Comparably, foreign companies controlled just eight percent of top 500 company earnings in 2005.
In all, centralization in the Israeli market has risen by four percent, despite the privatization process, the research showed.
“The privatization processes of recent years, including privatization of banks, Bezeq Phone Company, El-Al and Zim not only failed to decrease market centralization, they contributed to its rise,” a BDI source said.
“The ruling families purchased important companies and trust funds; the privatization of Bank Leumi is different as it was acquired by foreign investors.”
Among the families mentioned in the study: Arison, Saban, Federman, Strauss and Dankner.
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