BMI's Executive Summary

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After years of slow and negative growth, Israel's construction industry has started picking up lately. Investments in the construction industry have been increasing due to private participation in infrastructural projects. BMI forecasts an average growth rate of the construction sector of 7% during 2008-2012.

Israel is witnessing increased investment in infrastructure projects through the build-operate-transfer (BOT) route due to renewed investor confidence. In H107, Israeli GDP increased at an annual rate of 6.6%. Private consumption led by increasing wages and employment opportunities has been the main driver of economic growth, along with rising consumer confidence and tax cuts. Major infrastructure projects under way or on the anvil include a US$590mn Jubilee port in Ashdod, US$160mn extension of the Trans Israel Highway, and a US$1bn solar power station in the Negev desert.

However, Israel's war with Lebanon and the ongoing Palestine issue have had an adverse impact on its economy. Increased war expenditure has led to major reductions in budgetary allocations to other sectors of the economy. The government has reduced expenditure on Israel Railway's plans. Labour shortages and frequent delays lead to crucial infrastructure projects being delayed by years.

Despite this, strong trading ties with the US and Europe and a highly educated and skilful workforce indicate growth of the Israeli economy in the future as well. The precarious security situation has been dealt with strongly by Israel and no solution appears imminent. Growth in other sectors of the economy has led to increasing investments in the construction sector. The hotel industry is garnering investments after almost a decade of no activity, as new land lots are being sold to fulfil the demand from the Israeli population for hotels as well as the increasing business and tourist influx.

Contents

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Chapter 1 – Industry Trends And Developments

Market Overview

Israel's Economy In 2006

Israel's Construction Industry In 2006

Major Companies

Some Recent Investment Initiatives

Chapter 2 – Key Projects

Transport

Utilities

Cement Production

Residential And Commercial Construction

Table: Israel — Major Infrastructure Projects

Chapter 3 – Business Environment

Introduction

Table: Middle East And Africa Business Environment Rankings

Business Attractiveness Rankings — Methodology

Middle East And Africa Regional Overview

Israel: Business Environment Ranking

Economics — Long–Term Risk

Politics — Long–Term Risk

Construction Growth

Competitive Environment

Anticipated Potential

Chapter 4 – SWOT Analysis

Israel Infrastructure Industry SWOT

Israel Economic SWOT

Israel Political SWOT

Israel Business Environment SWOT

Chapter 5 – Industry Forecast Scenario

Table: Israel Construction — Historic Data & Forecasts

Risks

Chapter 6 – Macroeconomic Outlook

Table: Israel — Economic Activity

Chapter 7 – Country Snapshot: Israel Demographic Data

Section 1: Population:

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

Table: Healthcare: Vital Statistics

Table: Healthcare: Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption and Stratification

Table: Wages Per Year

Chapter 8 – Competitive Landscape

Table: Key Players

Chapter 9 – Company Monitor

Housing and Construction Group

Ashtrom Group

Africa–Israel Investments

Gazit–Globe

SGS Building Company

Property and Building Company

Malibu Israel

Chapter 10 – BMI Forecast Modelling

How We Generate Our Industry Forecasts

Construction Industry

Sources

Chapter 11 – Appendix: Regional Demographic Data

Table: The Long View: Data Over The Economic Cycle (2000–2007)

Table: Population

Table: Household Spending Per Capita, US$

Table: Private Consumption Per Capita, US$ PPP

Table: Market Size, GDP, US$bn

Competitive Landscape for Middle East & Africa Infrastructure Reports: Sample of Companies Ranked

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Comparative company analyses and rankings by sales, % market share, employees, registration date and ownership structure. Company profiles include fully researched senior executives and contact details, business activity and leading products and services. SWOT (strengths, weaknesses, opportunities, threats) of the state’s business environment, infrastructure sector, politics and economics, which carefully evaluates the short- and medium-term issues facing the industry.

Network of Middle Eastern & African Infrastructure Sources

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BMI's Middle Eastern & African Infrastructure Reports are based on an extensive network of multilateral organisations, government departments, Infrastructure industry associations, chambers of commerce and company reports. Information sources include: