Israelמדינת ישראל

Geula Silvermanסילברמן גאולה

Overview

• Israel is a stable country in an explosive region• Be’er Sheva and Ashdod

bear watching as some of the fastest growing cities• Donya Cebus may be a key

customer- not just in Israel, but worldwide• IDF expansion in the south

spurs growth

Why Israel?• Construction a primary and growing industry• Construction has grown 8.62 % compounded annually between 2009

and 2014• Cities such as Be’er Sheva, Ashdod, and Modiin are experiencing

booms

(http://www.construction-ic.com/Dashboard/8689/Country)

Israel’s demand for HS code 7324.90

Year 2012 2013 2014 Change (%) (2013-14

Imports 4,994,000 5,413,000 6,729,000 +24.31

Exports 132,000 393,000 393,000 None

Numbers are US dollar values.

http://www.gtis.com.ezproxy.wctc.edu/gta/secure/gateway.cfm

Assuta Ashdod Hospital

• US$176 Million Project• 300 bed hospital; cafeteria; parking facilities• Construction began in 2013• Scheduled completion - second half 2017• Funded by the Ministry of Health• Assuta- planning and finance handled

privately

http://www.construction-ic.com/News/156310

Timna Airport

• Located near Eilat• US$471 million • Terminals, runways, control towers,

retail stores, waiting areas, parking lots• Project completion - end of 2017• Israel Airport Authority and Ministry

of Tourism funding project

http://www.construction-ic.com/Projects/Overview/141951#Location

Key project contact:Moshe Tzur Architects & Town Planners Ltd..Address: 323 Hayarkon St., Tel Aviv 63504

Eran PollakProject ArchitectTelephone:(+972) 3 5450500Email: office@mza.com

Company:Amir Mann Ami Shinar Architects and Planners Ltd..Address: Toyota Bldg. 67 Yigal Alon st. Tel Aviv 67443

Amir MannProject Architect

Telephone:(+972) 3 5621117Email: amir@mann-shinar.com

 Ispro Planet Mall• Be’er Sheva• US$118 million • Slated for completion 4th quarter of

2016• 71,000 square meter facility• Retail outlets, grocery stores, parking

facilities for 2,500 cars, entertainment facilities (i.e. movie theater)• Aims to attract people from greater

Negev

http://www.construction-ic.com/Projects/Overview/152982http://www.skyscrapercity.com/showthread.php?t=1673046

Contractor-Property and Building Corporation Ltd. 

Ben Gurion University New Campus

• Be’er Sheva• US$50 million • Project completion - 2nd quarter 2017• Dormitories with 1,000 beds, walk area,

rest area, health unit, classrooms, laboratories, Installation of safety and security systems• 23 hectares• Public funding

http://www.construction-ic.com/Projects/Overview/154873

ל" IDF Intelligence Corps Campus צה• Be’er Sheva• Funded by Ministry of Defense• US$5,920 million

• Project completion scheduled for 4th quarter 2016

• Classrooms, dormitory-style residential units, recreation center, dining room, cafeteria, offices, parking space, leisure and other infrastructural related facilities.

IDF Base on the Syrian Border, base includes medical and intelligence facilities.

http://www.construction-ic.com/Projects/Overview/132742#Scope

Other projects

• Kiryat Gad - Metal Fabrication Facility- expansion/upgrade - USD 800 million • Perrigo - city of Yerucham Pharmaceutical Plant expansion - USD41

million • Imot - Hadorom Port Construction- Ashdod- USD1 billion

http://www.kimmel.co.il/

http://www.construction-ic.com/Projects/Overview/132742#Scope

Marketing Analysis• Israel Builder’s Association- הארץ בוני

(literally “builders of the land”)• Founded in 1949• Represents many firms engaged in

construction in Israel• Publishes “Contractor and Builder

Magazine” • Recommends Israeli lawyers to foreign

firms • Contract building division headed by Asher

Green

http://www.bdicode.co.il/CompanyTextProfile_ENG/281_1217_0/Israel%20Builders%20Association

http://www.acb.org.il/content.aspx?id=213

Hotex

• 32nd annual fair for companies in the hospitality, institutional, and retail industries in Israel• Not focused on construction per se, but potential customers may be there• Location: Tel Aviv Fair Grounds• Exhibition manger:

Rinat BukaiOffice: 972-3-5626090 ext. 3Cell: 972-54-4330057rinatb@stier-group.com

http://www.stier.co.il/HOTEX/index_en.asp

Competitors

• Sheinson Ltd., distributor for Bobrick

• American Standard• Distributors:• Entry Systems Ltd.• Y. Stern Engineering Ltd..• Agent:• Keith Laduzinsky

Customers

Danya Cebus- Construction Contractor• Publicly traded, listed on Tel Aviv Stock Exchange• Subsidiaries worldwide• Projects range from hotels to

highway/rail/airport, healthcare, residential, office buildings, and industrial construction

Architectural Coordination Dept: Tel: 972-3-5383838

Business Development: Tel: 972-3-5383935

http://www.danya-cebus.co.il/en/contact-us/

Customers, Cont.;

• Kimmel-Eshkolot Architects- headquartered in Tel Aviv• Designing new IDF base in Be’er Sheva• Based in Tel Aviv

• Key architect for base- Limor Amrani• Job title: Project Architect• Telephone:(+972) 3- 5176059• Firm noted for use of “greener” materials

http://www.kimmel.co.il/project-categories/culture/

Western Wall Tunnel Convention Space- Completed in early 2015

Contractor-Property and Building Corporation Ltd. 

• Based in Tel Aviv• Publicly traded on Tel Aviv Stock Exchange• One of Israel’s oldest construction companies• Active globally - projects in cities such as New York and Los

Vegas• Key contact - Gilli Bandprsky• Project manager• (972) 3-567-2777

Supply Chain

Recommended:• Green, Hard Copy Certificate of Origin (as per the Free Trade

Agreement)Required:• Commercial Invoice, Bill of Lading, Packing List, etc. • Country of Origin labeling on all goods, or at least on package. Labels

must be in Hebrew. • Anything shipped via Third Country needs a Certificate of Non-

Manipulation

Trade Barriers

Tariff VAT10% (CIF Basis) (without Free Trade Agreement.)

18%

Free Trade Agreement (hard copy, green sheet)

Calculated based on CIF value + duty

Israel ranked a “40” for ease of doing business.

Israel ranked “121” for “Ease of Gaining Construction Permits”

The U.S. embassy in Tel Aviv is working to make trade easier, and most trade barriers have been removed

Logistics Challenges

Israeli Blockade

Hezbollah

Special Permits needed

ISIS/Hamas

ISIS/Assad/Hezbollah

Logistics Performance Index=3.41/5

Shipping Costs

• One 20 foot container- 3,350 USD CIF (Exporter pays for freight and insurance)

• Duty calculated on CIF basis:10% duty (0.10* 3,350)=335• VAT calculated on CIF+duty

3,350+335=368518% VAT (0.18*3685)= 663.3• Landed costs= 4348.3

(3685+663.3)=4348.3 (all values listed are in USD)

Banking and Finance Major Banks include:• Bank Leumi- (this bank is partially government

owned); Bank Hapoalim; Israeli Discount BankPopular Payment Methods:• Documentary Collection• Letter of Credit• Exchange rate as of (4/21/2015)

1 USD = 3.92451 NIS "ח ש

http://www.oanda.com/currency/historical-rates/

EXIM Bank coverage available

Risks

•Regional instability• “Green Line” –pre 1967 borders• Israel has a Political Risk Score of “8”

out of “10”•Corruption Perceptions Score of

“60” out of “100”

Pullin

Summary

• Israel is a growing market, ripe with opportunity• Attention to detail is key• Be’er Sheva has many projects, it is worth

watching for further prospects• Danya is a promising prospect- they oversee

projects start to finish• When doing business in the Middle East,

pay attention to the news• Israel would make a very good market for

Bradley

Questions?

Thank you for Your Time!

Picture credits

• http://www.fxp.co.il/showthread.php?t=14387521

• http://i.ebayimg.com/00/s/MTE5NVgxNjAw/z/JegAAOSw-dBTtE57/$_35.JPG

• http://www.haaretz.com/business/manufacturing-growth-slows-amid-cooling-economy.premium-1.504629

• http://www.haaretz.com/business/ashdod-hospital-makes-political-hay.premium-1.473656

• http://timnaairport.com/

• http://israelseen.com/2013/05/13/to-members-of-the-board-of-governors-of-ben-gurion-university-may-2013/

• http://www.bgustudyabroad.org/media-center/bgu-making-a-difference/negev-bonanza.html

• http://unitedwithisrael.org/idf-builds-field-hospital-on-border-to-treat-syrians/

• http://www.displayfakefoods.com/store/pc/Milk-Glass-p361.htm

• http://www.danya-cebus.co.il/en/commercial-and-industrial/Azrieli-Shopping-Mall-Ramla/#top