Israel
To Invest In Arab Sector Economy
By
Herb Brandon
Israel News Agency
Jerusalem----December 5, 2006...... The following was communicated by the
Israel Prime Minister’s Media Adviser to the Israel News Agency.
The
Israel Prime Minister’s Office (PMO) Director-General Ra’anan Dinur announced
that the PMO had decided to advance the establishment of a private equity fund,
in cooperation with the private sector and under its management, that would invest
an overall sum of NIS 160 over seven-to-ten years in industrial enterprises, companies
and other businesses in the minorities sector.
At
a Jewish-Arab Center for Economic Development conference in Herzliya today, Dinur
said that he intended to act towards, “one economy in one country,” in order to,
“realize the great economic and human potential that exists in the Arab sector
but which has yet to be utilized.”
PMO
Dir.-Gen. Dinur said that the problem of self-capitalization necessary for investment
was one of the main obstacles to the growth of private businesses in the Arab
sector; therefore, it had been decided to assist in this endeavor. He said that,
“In our view, the establishment of the fund is not only a financing mechanism
but also a way of encouraging funds to invest in businesses in the Arab sector
in order to upgrade them in terms of marketing, management, etc.”
The
private body that will operate the fund, following a tender in Israel, will be
asked to commit to raising an additional sum of at least NIS 80 million from private
investors. A source of investment financing worth approximately NIS 160 million
will thus be at the disposal of the Arab sector. Any factory, company or business
will be able to apply for NIS 2-4 million in financing thus enabling 40-80 companies
to receive financing assistance in exchange for stock.
Israel
PMO Dir.-Gen. Dinur said: “We want to prevent a situation in which Israel has
two separate economies - with different patterns of participation in the workforce,
different levels of participation and unequal opportunities. Government policy
must provide the tools to ensure the sector’s ability to integrate into the Israel
economy.”
Dinur
discussed the PMO’s intention to establish a “Minorities Sector Economic Development
Authority” to utilize and advance the Arab sector’s latent economic potential
and the integration of sector businesses in wider economic activity, to encourage
productive economic activity and to create the tools to increase the businesses’
sources of income.
The
Authority will also act to raise the issue of the Arab sector on the Israel Government’s
agenda.
PMO
Director General Dinur said that, “Children in the Arab sector will have no future
if we are unable to provide them with an economy that will advance their integration
and the utilization of their economic potential. Past checks have shown me that
the Arab sector’s use of the tools provided by the Government is very low. Therefore,
we must - inter alia - deal with the accessibility of these tools to the Arab
business community.”