No losses expected
צילום: ויז'ואל/פוטוס
Export Institute: War won't damage exports to Arab world
In first half of year, 28 percent increase in exports to Arab world was listed, amounting to USD 138 million, about 92 percent of which accounts for exports to Jordan, Egypt
Despite the war in the north, no change is expected in exports to the Arab countries in 2006, according to Director General of the Israeli Export and International Cooperation Institute, Yehiel Asia.
According to him, the reason for this is connected to the fact that the main components of Israel's exports to Arab countries are exports to Egypt and Jordan, which rest mainly on the QIZ agreements. The considerations of buyers in these countries stem, according to Asia, from economic profitability that allows them to exploit access to the American market.
In the first half of 2006, a 28 percent increase in Israeli exports to Arab countries in comparison to corresponding time period last year. Such an increase amounts to USD 138 million.
The Export Institute reports that these statistics don't include indirect exports to Arab countries through third parties, which amounted to about USD six million in the first quarter of 2006 in the framework of joint projects between Israeli and Arab companies.
Asia reports that 27 Israeli exporters are exporting today to Iraq, mainly to the American army (telecommunications equipment, machines and other equipment).
About 260 Israeli exporters are operating in Egypt. In the first half of the year, there was an increase of 72 percent in industrial exports to Egypt, amounting to USD 62 million, compared to the same period last year. Most of the exports are textiles, clothing and leather, chemicals, and oil products.
The growth in Israeli exports to Egypt is mainly a result of the QIZ agreements, which allow tariff-free exports from Egypt to the US in the traditional sectors on the condition that 11.7 percent of the raw materials are from Israel.
