Israel Active

Israel’s capital combines business with culture and has the potential to become a hi-tech international hub. CNN interviewed Jerusalem Venture Partner's Erel Margalit, who sees Jerusalem as a gateway to Israel's business future.

Just in case anyone still thought that the terrorist state was a humanitarian disaster.

That’s how fund manager David Frankenstein describes his financial success matching up foreign investors with Israeli start-ups. He fills a vital gap where Israeli companies can raise $100,000 or several million dollars, but little in between. Janvest has four investments and plans six more.

India’s Piramal Enterprises Ltd has bought 27 per cent of Israel’s Bluebird Aero Systems Ltd. Set up by former officers and engineers of Israel Defense Forces (IDF), Bluebird builds tactical unmanned aerial systems (UAS) and vehicles (UAVs).

Israel’s AfiMilk is to build 13 advanced milking parlours in China that will serve about 50,000 cows. Mengniu Dairy, the largest dairy company in the Chinese market, will run the hi-tech parlours.

I’ve just heard about the amazing Jerusalem Business Network Forum. With a 1000 membership, every month business people in Israel’s capital meet up and make contacts with key individuals in business, government and overseas. Mega-networking events (one is happening on 4th Sept) have initiated business ventures worth $25 million. A separate specialist group has also been formed for the Bio-Med sector.

You may have heard that due to a mistake El Al were forced to sell 5000 return tickets from New York to Israel for under $400 each. Cleverly, El Al then offered the lucky customers the chance to upgrade their tickets to non-stop for $75 each way, thus ensuring only El Al planes would be used and cutting out code-sharing partners. It also means that El Al’s low-season flights will be full.

New regulations agreed earlier this year allow foreign firms to practise the law of their home jurisdiction in Israel rather than merely establish representative offices for business purposes. Linklaters, DLA Piper and Zeichner Ellman & Krause are among many firms to expand in Israel in response.

Just next to Tel Aviv’s Carmel Market is a store that provides a top quality facility that we all need at some stage – a public toilet. 400 customers per day each pay three shekels for a choice of décor and music with the equivalent standard of service, hygiene and atmosphere of a five star hotel.

The collapse of Italian budget airline Wind-jet ruined the holiday plans of 300,000 customers. However, the Israeli government organised planes to fly 200 stranded Israeli tourists home from Rome. Foreign Minister Avigdor Liberman said, “The fact that all of Israel is responsible for one other is something which makes us unique and of which we should be proud”.