U.S. Investors Established 18 New Firms in Israel in 1982

During 1982 American investors established 18 new companies in Israel, a number of them with mutual American -Israeli ownership. In addition, during the past year, 10 companies, which were established previously by Americans in Israel, were expanded.

Speaking at a press conference here, Israel Pickol, Israel’s Economic Minister to the United States, said, however, that the war in Lebanon and the economic depression in America had a negative effect on American investments in Israel and on exports of Israeli goods to the U.S.

Pickol noted that until 1981 Israeli exports to the United States were growing continuously. This growth was particularly evident in 1980-1981 when Israeli exports to the U.S. grew by 25-30 percent compared to the previous year. “It seems that in 1982 there was no increase in Israeli exports to the U.S. It is estimated that it will be the same as in 1981 in the range of $1.25 billion,” Pickol said.

According to Pickol, the Israeli industries that were hit hardest because of the decline in exports were the diamond and jewelry industries, the production of the West wind executive jet, and building construction materials. But, at the same time, Pickol said, there was an increase in the export of sophisticated electronic products made in Israel, chiefly computers.

Although the war in Lebanon caused many potential American investors to shun Israel, it seems that Israel’s success in the war — the destruction of sophisticated Soviet missiles and the good performance of Israeli-made arms — established Israel’s technological reputation, Pickol said. “Israel became a center of developing and sophisticated technology of advanced science and producer of high quality technology,” Pickol contended.