The investors in small and
medium-sized Israeli high-tech
firms range from nimble traders
like George Soros to institutions
like Bankers Trust Co, and some-
times their returns are the stuff
of legends. According to Business
Week (which ran a cover story last
August that was a paean to Is-
raeli high-tech industries), Soros'
1993 investment of $40 million
in Indigo (a high-tech printing
company) is worth more than
$500 million today.
Yet coups of this kind are only
one form of investment in at-
tractive Israeli companies. Fully
62 of them, for example, are list-
ed on American stock exchanges,
57 being high-tech firms.
"Foreign investment seeks op-
portunities in the Israeli market
for two reasons," explains Dr.
Baudot-Trajtenberg. "One is to
ride the consumer boom -- wit-
ness the penetration of major
chains from McDonalds and Piz-
za Hut to Ace and Toys R Us. The
other is to tap production poten-
tial, and here there is a particu-
larly strong interest in high-tech
Israel also is becoming a tar-
get for financial investments: cap-
ital placed directly in the stock
and bond markets or invested
through mutual funds. "Seven
mutual funds have been created
specially for investment in Israel
by brokerage houses abroad," Dr.
Power windows, power
locks, AM/FM cassette,
tilt, cruise, air condition-
ing,dual air bags
Auto locking Hubs
AM/FM cassette, tilt
wheel, rear wash, wipe &
Dual air bag, air condi-
tioning, tilt, cruise,
AM/FM cassette, power
windows & locks.
Israel's economy has
seen a remarkable
rise of 70 percent in
investment over the
last year alone.
Baudot-Trajtenberg reports, "and
last March Israel was included
in Morgan Stanley's world index
of emerging markets, so that
many pension funds will now be
taking a closer look at its poten-
Another indicator of the chang-
ing financial climate is that in-
vestment banks and brokerage
firms such as Lehman Brothers,
Goldman Sachs, and Salomon
Brothers have opened branches
or offices in Israel.
Some Japanese conglomerates
recently also have bought into Is-
raeli companies, keeping this qui-
et so as not to publicly irritate
some of their Arab partners, Dr.
Baudot-Trajtenberg reveals. But
what finally has made Israel a
magnet for savvy foreign invest-
ment is a combination of factors,
the promise of stability offered by
peace only the latest in that
The Israeli economy's gradual
MIDDLE EAST page 68
30% COLOR FILM PROCESSING
WHEN YOU JOIN OUR
`Better- Picture Club."
PRINTS, FREE FILM
Or 20% Discount
Hite Overnight Special
6784 Orchard Lake Rd.
( 1St Stoplight South Of Maple )
Open Mon. - Sat. 9AM To 6PM
The Bright Idea:
Gain Access to
PaineWebber has the key to finding the right
money manager for individuals and institutions
with portfolios of $100,000 or more.
Find out about PAINEWEBBER ACCESS:
a coMprehensive approach to
total portfolio planning and management.
For a free consultation call
Gerald E. Naftaly
at (810) 851-1001 or (800) 533-1407.
We invest in relationships.
32300 Northwestern Hwy., Suite 150 Farmington Hills, MI 48334
Give a Gift Subscription
THE JEWISH NEWS