Investing In Shaar-Hanegev Israel's Southern Gate to the 21st Century

							Investing In Sha’ar Hanegev
 Israel’s Southern Gate to the 21st Century



                          Exploring the
                        Opportunities and
                            Benefits



                     Alon Schuster
                     Mayor
                     Sha’ar Hanegev Regional Council
                             Investing In Sha'ar-Hanegev


Content

   Good reasons for investing in Israel
   Investing in Sha’ar Hanegev
    –   General overview of the region
    –   Advantages for investors
    –   Current business portfolio
    –   Exploring future opportunities
                                         Investing In Sha'ar-Hanegev


Good reasons for investing in Israel

   Outstanding human resources with high level of
    technology know-how
   Israel is the “Second Silicon Valley”
   Innovative and multi-lingual culture
   Close to Europe
   An anchor for future business in the Middle East
   Financial benefits (for Development Zone A)
     –   Trade agreements with Europe and US
     –   24% government allowance
         (may reach 30%)
     –   0% corporate tax for the first
         two years,10% from the 3rd to the 10th year
     –   Only 15% dividend tax (if withdrawal)
                             Investing In Sha'ar-Hanegev


Sha’ar-Hanegev – Location

   In the heart of Israel

   Near Israel’s largest port (Ashdod)

   Less than 1 hour from Tel Aviv
    International Airport

   40Km north to Beer-Sheva and
    Ben-Gurion                             Beer-Sheva
                                             40 Km


    university
                                                        Investing In Sha'ar-Hanegev


     Sha’ar-Hanegev – Overview

       The Sha’ar-Hanegev region can be characterized by 3 main areas:


  The Peace Line Zone                                                    The Shikma Area
Along the border with Gaza Strip                                           Open spaces and
Planned to be developed for joint                                           nature reserves
 projects between Israel and the                                         For tourism and nature
           Palestinians                                                       conservation
                                                  • Sapirim Park
                                                • Sapir College




                                    The Municipal Center
                              Sapir College, Sapirim industrial Park ,
                                         Ibim and Sderot
                                  The heart of the business and
                                        community activity
                                  Investing In Sha'ar-Hanegev


Sha'ar-Hanegev – Overview

   The Sha'ar-Hanegev Regional Council
    encompasses…
    –   10 kibbutzim, 1 moshav & 1 private ranch (>6000
        residents)
    –   Ibim San-Diego Student village
    –   Sapir College (Israel’s biggest technology college)
    –   Sapirim Industrial park
    –   High level of infrastructures (roads, communication
        and plans for railway station)
    –   Large community center
    –   Advanced Hydrotherapy care center
                                       Investing In Sha'ar-Hanegev


Sha’ar-Hanegev Advantages for Investors

   Human Resource
    –   Large percentage of young people with academic
        background
            Residents of the new neighborhoods
            Academic staff and students (Sapir College)

   Advanced infrastructures
    –   Sapir College
    –   Sapirim industrial park

   Financial benefits
    –   National priority area (Development Zone A)
    –   Land Acquisition Benefits – cheap acquisition of developed
        land with zero $ leasing
                                  Investing In Sha'ar-Hanegev


The Human Resource Advantage

   Rapidly growing young academic
    population in Sha’ar-Hanegev

    –   7000 students in Sapir College - a forecast for
        10,000 students in 2008

    –   Additional 120 young families (aged 30-50) in the
        new neighborhoods by 2005, and forecasts for
        influx of 500 more families by 2008 (i.e. 40%
        growth in the overall population)
                                             Investing In Sha'ar-Hanegev


Sapir College

   The largest public college in Israel (about 7,000 students)
     –   Sapir-Tech the largest technology school in the south
   A wide range of subjects including technology and engineering,
    economics and management, as well as humanities and social sciences.
   Studies at the College are divided into two tracks:
     –   The academic track leading to a B.A. or B.Sc. degree in the
         abovementioned fields.
     –   Non-academic studies in technical fields such as applied engineering
         and vocational education. These studies specialize in hi-tech, electricity
         and electronics, computer programming
         and communication. Students in this
         track can supplement their
         studies in order to receive a BA in
         software systems.
   Sapir College operates under the
    academic auspices of Ben-Gurion
    University of the Negev according               Distribution of Engineering Scholl Graduates
                                                       Investing In Sha'ar-Hanegev


 Sapirim Industrial Park

     The Park is located in Development Zone A.
      Businesses operating in the Park enjoy diverse
      benefits, including
       –   Land Acquisition Benefits – cheap acquisition of developed land
           (Zero $ for leasing and ~$28K per dunam for development)
       –   Capital Development Benefits, assistance in promoting marketing
           and export and quality management development
       –   Walking distance from Sapir College




                                     Amdocs
                                     (Dow: DOX)

One of Israel largest software companies has already situated its
regional development operation in Sapirim Tech Park
                                    Investing In Sha'ar-Hanegev


Current Business Portfolio

   As well as Sapirim park and Sha’ar Hanegev’s old
    industrial area, several other businesses operate
    throughout the region:
    –   A total of 17 operating business
    –   >600 employees
    –   ~$130M revenues

                                                         Others, 4
                                           Food, 3                          High
                                                                           Tech, 1
                                            Plastic, 4               Metal, 5
                                        Investing In Sha'ar-Hanegev


Exploring future opportunities

   Explore the possibilities for:
    –   Establishing your new business in Sha’ar Hanegev
    –   Investing in a currently operating business
    –   Conducting a joint project with Sha’ar Hanegev’s business and
        academic community
    –   Joining our ongoing business and community activities
    –   Training existing businesses and companies
    –   Marketing assistance
    –   Establishing infrastructures (e.g websites)
    –   For immediate investments, we are looking for an option to
        construct a small "offices for rent" building in Sapirim industrial
        park next to Amdocs (DOW: DOX)
                                Investing In Sha'ar-Hanegev


For More Information

   Sha’ar-Hanegev Regional Council :
    http://www.sng.org.il

   Sapirim Park:
     http://www.sapirim-ip.co.il/frameset.htm

   Israel’s Ministry of Industry and Trade
    www.moit.gov.il/tamas_en.htm


Contact:     Yair Daniel
             yair.daniel@amdocs.com
             Mobile: 972-65-272376