ISRAEL 2013

SPECIAL EDITION

"World's Markets and Opportunities"

ISRAEL 65th anniversary

2013

Despite limited natural resources, intensive development of the agricultural and industrial sectors over the past decades has made Israel largely self-sufficient in food production

Israel is considered one of the most advanced countries in Southwest Asia in economic and industrial development

Israel's Independence Day in 2013 was on Monday, the 15th of April.

However, according to the Jewish calendar, a holiday begins on the sunset of the previous day on Sunday, the 14th of April.

At sundown Monday, the country abruptly shifts its mood to mark its Independence Day with fireworks, military processions and picnics. The transformation from grief to joy is an annual ritual meant to show the link between the sacrifices and the accomplishments.

In 65 years, Israel has surpassed the dreams of its founders, emerging as the global high-tech powerhouse and a prosperous homeland for the Jewish people.

Days of working time in Israel are Sunday through Thursday (for a five-day workweek), or Friday (for a six-day workweek)

The Israeli economy was ranked as the world's most durable economy in the face of crises, and was also ranked first in the rate of research and development center investments

Over 90% of Israeli homes use solar energy for hot water, the highest per capita in the world

Israel is one of the world's technological leaders in water technology

Israel is also ranked 1st in the world in expenditure on Research and Development (R&D) as a percentage of GDP

interview

H.E. Mr. Yossef Levy, Israeli Ambassador to the Republic of Serbia

Believing in Miracles

In Israel we believe in miracles. We turned the arid desert into a blooming field from which we are exporting sweet cherry tomatoes, mangoes, and flowers to every corner on the globe. If it was achieved in Israel, trust me – through implementing Israeli knowledge and experience, Serbia can be a leader in the European agricultural market

A

ccording to H.E. Mr. Yossef Levy, Israeli Ambassador to the Republic of Serbia, Israel and Serbia are two countries hat face a lot of similar issues and have a similarly large amount of potential to develop together. Speaking to CorD in an exclusive interview, Ambassador Levy cites initiative and entrepreneurship as the two keys to Israel’s economic success. In this way, the ambassador sees those same qualities as being very present in Serbia, in some cases they already being developed, and in still more cases they only await realization. The importance of three segments in particular, real estate, agriculture, and IT, are underlined by the ambassador and his resilient optimism for the future growth of the Serbian economy is uncommonly refreshing.

“economic wonder” has attracted a lot of attention both from the public and the media. Could you please elaborate on your opinion?

- The story of the Serbian economy is, in my eyes, a story of a huge unfulfilled potential. As a true admirer of Serbia, I said it before and I will repeat it over and over again. The potential is in all possible fields. Let’s start with high-

I believe with all my heart that Serbia can become a big European hub for sophisticated industries. Whether this dream will be fulfilled or not depends not only on external reasons (an idea that many people are in love with) but primarily on you

• Your statement that Serbia has enough potential to become an World's Markets and Opportunities | iSRAEL

tech. You have amazing engineers and skilled people. Your faculties are producing the best experts in many fields - academic, technological, medical, and others. I believe

with all my heart that Serbia can become a big European hub for sophisticated industries. Whether this dream will be fulfilled or not depends not only on external reasons (an idea that many people are in love with) but primarily on you.

Every nation navigates its way on the high waves of time by its own will and force.

Regarding agriculture, Serbia can easily turn into the “food basket of Europe”. God blessed you with fertile soil, rivers, a great geopolitical location and a fair climate.

All the preconditions are there. But still, in dry years, with little rain, you have bad crops. I am not criticizing anyone but describing a gloomy situation which you all know from your own backyards. There is no reason that crops should be dependent on rain. The old system of agriculture has bankrupted everywhere. “Smart Agriculture” is the name of the game today. Intensive

irrigation, treatment of wastewater, water recycling and modern greenhouses are the alphabet in the new language of agriculture. Israel, as friend of Serbia, can offer you its assistance: knowledge, experience and of course good will.

• Israeli investors have already recognized some of these segments like real estate. Which other segments, of those mentioned, could be appealing to the Israeli investors?

- Considering the IT sector, Serbia can be, I think, a superpower.

Every visitor to Serbia is immediately impressed by the amazing young generation you have - highly skilled and motivated people who should be the locomotive of the Serbian economy. Unemployment among young educated boys and girls is a tragedy for your future.

The sad fact that the salaries in Serbia are relatively low could also be, and I apologize for saying that, another attractive element for foreign investors.

You mentioned real estate. Although we are a small country, we are one of the biggest investors in Serbia. The overall Israeli investment in real estate is estimated more than €1.3 billion. That figure speaks loudly for itself: Israeli firms foresee a future rise in the value of real estate in your country.

Several successful projects have been already realized in Belgrade, and some are still in the pipeline.

You all know for sure ‘Airport City,’ which is one of the most modern office compounds in the capital.

Soon new big projects will be implemented in Belgrade: a residential area with approximately 700 flats not far from Tašmajdan, another luxurious project near Kalemegdan Park and a commercial centre in Zemun.

Investors from my country are not only present in the capital. In Novi Sad, Israeli investors have recently opened the beautiful Big CEE centre which is the largest retail

park in Vojvodina. Another pearl is the Kragujevac Plaza Center which was opened more than a year ago and attracts thousands of visitors daily. The retail park in Pančevo is another example of a smart and successful business initiative.

political changes. Since first day, the fathers of the nation realised that the key for our economic independence is not natural, but human assets. Initiative and entrepreneurship are values that my country encourages.

Alongside the long-term planning, Israelis have their famous ‘chutzpa’ which is in a way similar to the Serbian ‘inat’.

‘Chutzpa’ can be described as the notion of never accepting no for an answer

Therefore the government supports start-ups, forms technological incubators, and provides incentives for foreign hi-tech investors in opening of research and development (R&D) facilities. Israel has the highest percentage of GDP invested in R&D among all OECD member states.

Alongside the long-term planning, Israelis have their famous ‘chutzpa’ which is in a way similar to the Serbian ‘inat’. ‘Chutzpa’ can be described as the notion of never accepting no for an answer. Used in a positive way, it calls for creative action which brings about changes, questions the status-quo and praises diversity.

The on-going decision, supported by all of Israel’s governments in the last 65 years, is to invest in R&D, technological sectors, science and to focus on our added values, by considering a challenge as an opportunity. ⇢

• Only 65 years ago, Israel was all desert and wetland, but, today, it is the first and foremost country in terms of technological innovation, medical accomplishments and other advancements. Could you tell us something about the timeline of such development?

- Israel was born out of a dream.

The land itself is not rich with minerals and natural assets. It is small, arid and imbued with spiritual and historical memories which are not always a guarantee for economic success. However, since its birth, Israel defines its national priorities and sets the course of its economic development which has been independent regardless of

iSRAEL | World's Markets and Opportunities

• Israel is on its way to become an energy independent country for the first time ever thanks to gas exploitation in the Mediterranean Sea. How significant is this for your country's economy?

- Energy is a top issue for any country, and even more so for Israel due to its specific geopolitical environment. Unfortunately Israel can’t import energy from its neighbours, so we have to be self-sufficient. In this regard, natural gas explorations add to stability of our energy supply and create possibilities for long-term planning in the field of energy. For many years, Israel and Israeli entrepreneurs are leading the world with solar, wind, and other renewable energy technologies, and the combination of these achievements with the new discovery of natural gas is really good news for Israel and its friends in the Mediterranean.

• You cooperated with the previous Serbian government on agricultural development. Is the agreement you reached with that government still in place, and what are the plans in this respect?

- Israel and the Israeli Embassy in Belgrade cooperate constantly, with every government of Serbia, in order to realise the immense potential that lies in all the mentioned fields.

Agriculture in Serbia was identified by us as one of the leading sectors worth exploring, and the embassy has invested a lot of resources throughout the years in order to create favourable conditions for reaching the desired positive outcome. In Israel we believe in miracles. We turned the arid desert into a blooming field from which we are exporting sweet cherry tomatoes, mangoes, and flowers to every corner on the globe. If it was achieved in Israel, trust me – through implementing Israeli knowledge and experience, Serbia can be a leader in the European agricultural market.

The agreement is still in place.

agreements. Recently, we launched an initiative to start bilateral negotiations between the two governments on a free trade agreement, which elsewhere proved to be an effective tool for enlarging the trade exchange, commerce and a great catalyst for attracting Israeli investors.

Agriculture in Serbia was identified by us as one of the leading sectors worth exploring, and the embassy has invested a lot of resources throughout the years in order to create favourable conditions for reaching the desired positive outcome We are in constant contacts with Serbian institutional partners, such as the Ministry of Agriculture, looking for ways to upgrade the existing

Israel turned the arid desert into a blooming field

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• Can you share with us an example of an Israeli business success story in Serbia?

- Luckily, most of the Israeli investments in Serbia turned out to be success stories. One recent, great example is of the company “Veriest” from the hi-tech field which deals with a very specific, chip verification technology. Namely, the owner of the company, which has offices in Tel Aviv, came and fell in love with Serbia. Impressed with the highly educated engineers, he registered a company in New Belgrade and currently employs 30 Serbian programmers. His idea and wish, if the business climate will allow, is to hire few hundred more of them.

That is a classic example of a win-win situation. The technology is Israeli; implementers are Serbian, while the products are being sold around the globe. I know that this is only the tip of the iceberg. Once Israelis will get to know the Serbian hi-tech potentials, we will all be on the fast track to success. ■

interview

Lidija Marusic Rako, Director Teva Serbia

Applying Global Knowledge As a multinational company present in 60 countries, Teva also brings together different cultures and philosophies. In our daily interactions with colleagues from all over the world, we expand our knowledge and skills and do our best to implement them in the Serbian market

P

harmaceuticals mean big business all over the world. At Teva Serbia, part of Teva Pharmaceutical Industries, it also means great responsibility. Leaders in this industry must be very aware of the needs of the market, but also on how their products affect their end-users. Teva has a long tradition of producing a wide variety of therapies and OTC medications and they are very aware of the impact of each and every product which gets their stamp. With a portfolio as large as Teva’s the potential for growth and development in this market is significant. Teva, working primarily in respiratory, oncology, and the women’s health segment, brings all their experience to bear when dealing with this market.

Speaking with CorD, Teva Serbia Director Lidija Marusic Rako speaks candidly about the development of the company, the good which it is doing around the world, and how this vast international knowledge is applied here on the Serbian market.

• What does it mean for Teva Serbia to be a member of Teva Pharmaceutical Industries, the leading global pharmaceutical company?

- Being a part of one of the largest global pharmaceutical companies means to have a strong foundation and a unique

Although we are new here, we have already positioned ourselves as a highquality and reliable business partner bringing new energy to the Serbian market

opportunity to distribute safe and efficient medicines from Teva’s extensive portfolio, which comprises of more than 1,000 molecules.

With over 111 years of successful operations, 70 billion tablets and capsules manufactured annually at 73 sites and over 46,000 employees, Teva holds a strong position in more than 120 markets worldwide.

As a multinational company present in 60 countries, Teva also brings together different cultures and philosophies. In our daily interactions with colleagues from all over the world, we expand our knowledge and skills and do our best to implement them in the Serbian market. The wellbeing of patients and their needs are always our primary concern, and we continuously invest maximum efforts to provide them with the best available therapies and respond to the requirements of the healthcare systems on individual markets.

• Which medicinal products and diseases are currently in the focus of Teva’s R&D activities?

- Along with a large number of generics covering almost all therapeutic areas, Teva has a rich innovative portfolio, including Copaxone, a multiple-sclerosis therapy available since last year to neurologists and patients in Serbia.

In addition to the CNS segment, Teva is also active in respiratory, oncology and women’s health segments, focusing its R&D activities on combination of drugs, developing new routes of administration, and improving the dosing schedules of drugs that can bring many and varied benefits to patients in terms of efficacy, side-effect profile and easier dosing. Our product portfolio also includes OTC products, which are also marketed in Serbia.

• How do you see your cooperation with other healthcare companies?

- Each market is specific and therefore Teva’s management and its medical representatives have to familiarize themselves in detail with the healthcare system of the country where they work and with its regulatory and market supply requirements. Before 2011, when Teva opened its subsidiary Teva Serbia, it was present in the Serbian market thanks to its cooperation with a local wholesaler. Although we are new here, we have already positioned ourselves as a high-quality and reliable business partner bringing new energy to the Serbian market.

• Teva is deeply committed to corporate social responsibility (“CSR”). Which goals does it pursue?

- Teva Serbia follows Teva’s global CRS guidelines, but the responsibility for their implementation lies with the local management who is best acquainted with the communities where Teva operates and may therefore initiate various projects.

We cooperate with a number of local non-profit organisations on different projects in order to improve the quality of life, and our charitable donations directly contribute to the quality of healthcare in Serbia.

In January 2012 Teva Serbia donated a high frequency oscillatory ventilation device (“artificial lungs”), the first of this type in Serbia, to the Belgrade’s Mother and Child Institute “Dr. V. Čupić”.

To further promote its CSR philosophy, improve early diagnosis and help young doctors expand their knowledge and skills, it also donated a state-of-the-art bronchoscope to the Clinical Centre of Serbia in Belgrade only a few days ago. ■

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interview

Yehuda Sarid, Director of Ludan Group

Global Experience Local Approach Trying to plan for the near future, we analyzed the status of the industry at that time in Serbia. We were sure we could align with the market needs in a way that will suit our expectations and for the benefit of our shareholders petences into defined organs forming together the group. By that we allowed independent development still under one umbrella. The main division is the EPCM provider fulfilling TK projects as well as providing services.

On this platform, the niche divisions of energy, process control and environmental are complementary, though they offer a variety of solutions of their own.

The process control group is dealing with new and upgraded control systems, calling it "modernization". LRE, for example, is active in the renewable energy field. Here we initiate the concern, form

L

udan offers integrated solutions for industrial development, plant optimization and environmental protection. The group of companies is proud of its ability to provide clients with total and comprehensive solutions to their arrays of development and revamping projects. “Being part of the ‘Process Industry’ we are confronted with a variety of challenges,” says Yehuda Sarid, Director of Ludan Group.

“In order to serve our faithful and traditional clients we have to assure them we maintain the competences required to cover all topics which create an integrated service like a one stop shop.”

The divergence of the group and its scattered locations enables us to deal with market off sets

• Your business is actually a mix of several different disciplines such as software, engineering, energy, environmental protection. How difficult is to consolidate all of them?

- Our sector involves technological and engineering skills right from the outset of any initiation in the industry. First we have to advise our clients as to which technological solution is the appropriate for their need or desire. After that, we have to engage the engineering disciplines. Each one out of the group portfolio is contributing its experience and know-how.

Along with Ludan's growth during the years we categorized specific com-

World's Markets and Opportunities | iSRAEL

partnership with farmers and consumers, design supply and erect local units.

This method is known as Build Own and Operate (BOO).

The group structure ensures close control of the division managers of their divisions and at the same time reporting to the group management

which, in its turn, reports to the board of directors. The engineering activities are carried out in a traditional matrix structure whereas a project manager is nominated and he creates teams from the various engineering disciplines. This formation secures direct contact with the client, based on the resources of the group. The slogan "global experience local approach" is realized on a routine basis. The divergence of the group and its scattered locations enables us to deal with market off sets.

• How has the global economic downturn, that also gripped industry, reflected on your business activities and how are you managing to deal with it?

- As we deal with the process industry providing the public and nations with products essential for human lives, such as food, pharmaceuticals, oil and gas, energy environmental, we have to cope with slowdowns but never with a total shutdown.

• What is your view of the Serbian market in respect to your business?

- Upon a board decision, Ludan entered the Serbian market in November 2009.

Trying to plan for the near future, we analyzed the status of the industry at that time in Serbia. We were sure we could align with the market needs in a way that will suit our expectations and for the benefit of our shareholders. This motto is still valid. We were well accepted by the oil and gas industry, and we are on a growing path strengthening our local office and widening our competences. Our establishment will continue serving the local market faithfully for more years to come. ■

interview

Aleksandar Mišković, Director of Ada Precision Casting Foundry

Successful Privatization is Possible

T

The technology that we use is one-of-a-kind in Southeast Europe. It is this technology that prompted the foundry’s current owner to make a decision to invest in our production facility

he Precision Casting Foundry Ada (LPO) is the first Serbian company in the aerospace segment to be privatized and to position itself on the Western markets. “We have proven that successful privatization is possible and conceivable with a lot of hard work and effort from all of our employees,” says Aleksandar Mišković, Director of LPO. The foundry produces castings for the aircraft industry.

• What sets LPO apart from other companies in Serbia?

- The technology that we use is one-of-a-kind in Southeast Europe. It is this technology that prompted the foundry’s current owner to make a decision to invest in our production facility. Of course, none of this would be possible without the Israeli company Bet Shemesh Engines Ltd. (BSEL) which started out with a 70% share in LPO, only to subsequently become the sole proprietor of the company while continuing to invest.

• What are LPO’s production capacities and what technology does the foundry use?

Our equipment enables bigger production volume and, with the new workers, we can increase our production by 40% - This year, LPO will produce over 140,000 castings. Our 55 employees work full capacity six days a week. Our equipment enables bigger production volume and, with the new workers, we can increase our production by 40%. We pay special attention to our employees and because of that we are awarded with high efficiency, dedication to work and high employee morale.

• What are your plans in terms of increasing production and business operations?

- BSEL has made the decision to invest close to US $4 million in new machining and special heat treatment (HIP) facilities in the following two years which will make LPO one of the very few companies in Europe that have a foundry, machining and HIP facility. This new investment will create 50 new jobs and LPO has already begun cooperating with the local Technical High School in training students to one day work in our company. ■

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Economic Cooperation Between Serbia and Israel

Better than the Statistics

Israel is a leading country in the development of solar energy

Israel has been mostly investing in the Serbian real estate sector. In the past few years, the country's investments were mostly concentrated in Belgrade, but, now they are dispersed all over Serbia

F

or years, Serbia has been recording a deficit in trading with Israel. According to the Serbian Chamber of Commerce, this deficit reached its highest value in 2009 $42 million. In 2012, Israel took 38th and 47th place on the list of the biggest export and import partners of Serbia respectively.

The highest trade exchange between Serbia and Israel, amounting to $74.1 million, was in 2008. Out of that amount, Serbian exports to Israel were worth $20.4 million, while the country’s import from Israel stood at $53.7 million. In 2009, the value of the trade ex-

change between the two countries was $63.7 million, while, in 2010, Serbia exported to Israel $15.3 million worth of goods and imported from Israel $28.5 million worth of goods. In 2011, Serbian exports to Israel were valued at $17.8 million while the country’s imports from Israel stood at $30.2 million.

In 2012, the trade exchange amounted to $44.1 million with Serbian exports standing at $15.6 million and imports at $28.5 million.

The construction of the Airport City Business Centre in New Belgrade has been declared the most successful greenfield investment in the region

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The lowest export to import ratio was recorded in 2009, while this indicator grew the following two years.

Last year, the ratio dropped again.

In 2011, Serbia mostly exported to Israel cattle, digital cameras, treated

beech wood, and parts of turbojets or turbo-propeller engines.

In 2012, Serbian exports to Israel stood at $15.6 million with the country mostly exporting parts of turbojets or turbo-propeller engines, digital cameras, treated beech, gunpowder, cat and dog food and concrete and mortar mixers. The Serbian companies that exported the most to Israel that year were: LPO-Ada, Josipović DOO-New Belgrade, Milan Blagojević – Namenska Lučani, Jugohemija Belgrade, Nivim Belgrade, Farmina Pet Foods, Goša FSO Simićevo, Jugodrvo ST Belgrade, Merkantex Belgrade, Sojaprotein Bečej, Rakić Kom DOO Duvanište.

Serbia mostly imports herbicides, base stations for wireless networks, medicines and fungicides. In 2011, Serbia imported the following goods from Israel the most: unpowered aircrafts, herbicides, switching devices for telephony and telegraphy, fungicides and aluminium foil.

Leading SITC segments in exporting to Israel

Leading SITC segments in importing from Israel Inorganic chemical products

Cork and wood

8%

Chemical substances and products, not mentioned elsewhere Various finished products, not mentioned elsewhere

42%

9% 10% 13%

9%

39%

10%

Chemical substances and products, not mentioned elsewhere

11%

Animal feed (grains other than wheat)

18%

Medical and pharmaceutical products

11%

General purpose industrial machinery

20%

Specialized industrial machinery

Crude fertilizers and minerals Other

Other

In 2012, Serbian imports from Israel stood at $28.5 million with the country mostly importing herbicides, switching devices for telephony and telegraphy, bromides, fungicides, pharmaceuticals, stabilizers for rubber or plastics, denatured salt for de-icing roads, insecticides and other goods. The Serbian companies that imported the most from Israel that year were: Magan Agrochemicals Subotica, Targo Telekom Belgrade, NIS Novi Sad, Kristal So Belgrade, Zdravlje Leskovac, Austroterm Valjevo and Zeleni Hit Zemun.

The Agreement between the governments of Serbia and Israel on Trade and Economic Cooperation, by which the two countries were given the status of the most favoured nations (in trading) was signed in 2006, while, in 2009, the two countries signed a cooperation agreement in the field of agriculture with the aim of boosting the exchange of agricultural and food products. The agreement also stipulates cooperation

in agricultural education.

According to the National Bank of Serbia, Israel holds the 45th place on the list of the largest foreign investors in Serbia. But, this is what the official statistics says, while estimates have shown that, in reality, the investments were much higher. Many companies from Israel are registered in the Neth-

The Agreement on Trade and Economic Cooperation between Serbia and Israel, by which the two countries were given the status of the most favoured nations (in trading) was signed in 2006 erlands and that is why they are considered as investments from that country in the statistics. In reality, there were several successful acquisitions such as Doncafe by Strauss Elite, “Autoprevoz Cacak” and three more transport companies by Kavim and Livnica preciznih

odlivaka by Bet Shemesh Engines.

Israel has been mostly investing in the Serbian real estate sector. In the past few years, the country's investments were mostly concentrated in Belgrade, but, now they are dispersed all over Serbia. One of the first bigger investments made was that of Africa Israel and Tidhar which jointly constructed the Airport City Business Centre in New Belgrade. This project was declared the most successful greenfield investment in the region. There are many other projects in the pipeline or at various stages of implementation (Aviv Arlon Group – retail park in Pančevo and residential complex in Belgrade quarter of Zvezdara, Big CEE – shopping malls in Novi Sad and other Serbian towns, Plaza Centres Serbia – a hotel in Belgrade, a shopping mall in Kragujevac – the construction was completed in March 2012 - and a project in Višnjička Banja – Belgrade). ■

Export to import ratio, in %

Trade exchange between Serbia and Israel, in USD millions 100

60

82.29

40

80

20

57.35

60

0 -20

58.87

38.03

53.98

40

54.95

53.78

-40 20

-60 2005

2006 2007 2008

Export in USD

2009

Import in USD

2010 2011

2012

Balance in USD

19.49 0 2005

2006

2007

2008 2009 2010 2011

2012

iSRAEL | World's Markets and Opportunities

Culture

Searching for Identity Four thousand years of Jewish heritage and over a half a century of modern statehood have contributed to the culture that has already created an identity of its own

I

srael is an old/new country; small in size, but with a culturally active heterogeneous population. Four thousand years of Jewish heritage and over a half a century of modern statehood have contributed to the culture that has already created an identity of its own, while preserving the idiosyncrasy of 70 different communities. The creative expression of a mostly immigrant society like Israel’s has absorbed different cultural and social influences while combining tradition with innovation. The constant search for cultural identity is expressed through creativity in a wide range of art forms, appreciated and enjoyed by a many people every day.

Education and creativity in the fine arts in Israel began with one of the pioneers – Professor Boris Schatz (1867-1932) - establishing the Bezalel Academy of Arts in Jerusalem. His national-oriental style was subsequently challenged by young artists who had been searching for a new definition of cultural identity with roots in the daily reality of life in the Middle East. Many of the period’s artists like Nachum Gutman, Reuven Rubin, Mordechai Ardon and Yosef Zaritsky received international recognition.

The Israel Museum in Jerusalem

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The Islamic Art Museum

Following the formation of the State of Israel in 1948, new artistic movements emerged with probably the most significant one being ’New Horizons’ which used a narrative very close to the contemporary European art while trying to eliminate local character from Israeli painting. Avigdor Stematsky, Yehezkel Streichman and Marcel Janko, one of the founders of Dadaism, were the movement’s key figures.

The second generation of New Horizons artists, like Raffi Lavi, Uri Lifschitz and Aviva Uri, brought an amazing sense of individuality to the Israeli contemporary art which blazed the trail for the innovative, conceptual and minimalist

work of Joshua Neustein, Pinhas CohenGan and other artists in the 1970s, a decade that is often viewed as the most interesting period in artistic development in Israel. This decade was also important for Israeli sculptors Dov Feigin, Yigal Tumarkin and Dani Karavan.

Current trends, seen in the work of Deganit Beresht, Tsibi Geva and Tzvi Goldstein, have been striving towards broadening the definition of Israeli’s art beyond its traditional concepts and materials as a one-of-a-kind expression of the indigenous culture and a dynamic component of contemporary Western art.

The Israel Museum in Jerusalem is the biggest and the most important museum in the country, dedicated to archaeology, Jewish artistic tradition, history, 20th century art, impressionism and new artistic tendencies. The Museum’s special wing, called the

Shrine of the Book, houses the legendary Dead Sea Scrolls. The Eretz Israel Museum has a comprehensive collection of visual, cultural and historical findings. The Museum also has sections dedicated to glassware, ceramics, coins, philately, Jewish art, ethnography and folklore. The Janco Dada Museum was established in honour of Dadaist Marcel Janco, and is located near the town of Haifa, in the village of Ein Hod, the birthplace of Janco.

The Islamic Art Museum is considered one of the most significant museums of Islamic art which houses artefacts from Israel, Egypt, Syria, Iraq, Turkey, India, Afghanistan, Spain and Iran with the earliest pieces originating from 7th century. Another renowned museum is the Museum of the Jewish People or the Diaspora Museum (Beit Hatefutsoth) which displays the history of Jewish diaspora.

Contemporary Hebrew prose in Israel was first written by immigrant authors. Yosef Haim Brenner (1881-1921) and Shmuel Yosef Agnon (1888-1970) are considered the fathers of modern Hebrew literature. In 1966, Agnon received the Nobel Prize for Literature.

The Israeli born writers began publishing in the 1940s and 1950s. They brought a different kind of mentality and cultural background primarily because Hebrew was their mother tongue and their life experience was completely rooted in Israel. Authors like S. Yizhar, Moshe Shamir and Benjamin Tammuz drastically swung between individualism and commitment to society and country, while presenting a model of

The Israeli Philharmonic Orchestra was established in 1936

Shmuel Yosef Agnon (1888-1970) is considered the fathers of modern Hebrew literature.

In 1966, he received the Nobel Prize for Literature

social realism based on local and international influences.

In the 1960s, a new approach to writing Hebrew prose was explored by a group of younger and very influential writers - A.B. Yehoshua, Amos Oz, Yoram Kaniuk and Yaakov Shabtai. They symbolized a departure from ideological patterns while focusing on the world of the individual. After them, a new generation of poets emerged, with Hebrew as their mother tongue, spearheaded by Yehuda Amichai, Natan Zach, and David Avidan. What followed was an explosion of literary activity. Israel became one of the countries with the highest number of published books per capita, while Israeli writers achieved international recognition, particularly Oz, Yehoshua, Kaniuk, David Shahar, David Grossman and Meir Shalev.

Israel’s music is a combination of Jewish and non-Jewish musical tradition that have fused over the period of one century to create a distinctive musical tradition. Israeli musicians have made a significant contribution to various musical genres like classical, jazz, pop, rock and other.

From the 1920s to present day, four generations of Israeli composers have created a unique tradition and style that could be called ’Israeli classical music’. The music composed by Yosef Tal, Mordechai Seter and Paul Ben-Haim is performed all over the world. Israeli concert-goers are expressive and enthusiastic, and these attributes are very much appreciated by guest musicians and world-famous Israeli soloists like Pinchas Zuckerman, Shlomo Mintz, Daniel

Barenboim and Itzhak Perlman, who are part of Israel’s music scene every year.

The Israeli Philharmonic Orchestra has been a national orchestra since its establishment in 1936. Its musical director – Indian born Zubin Mehta – is considered one of the most distinguished conductors and musicians in the world. The orchestra is often home to renowned conductors and musicians and has been performing both in Israel and abroad. Israel has hundreds of music bands who play all sorts of contemporary music including new-age folk music called ’Shirei Eretz Israel’ (The Songs of Israel), as well as modern Israeli rock and ethno music ’Musica Mizrahit’. Israeli singers who achieved global popularity are Ofra Haza, Etti Ankri, David D'Or and Dana International who won the Eurovision song contest in 1998 with the song ’Diva’.

Filmmaking in Israel has undergone major changes since its beginnings in the 1950s. The first Israeli films like Hill 24 Does Not Answer and They Were Ten depicted acts of heroism. In the 1960s and 1970s, Israeli films gained on popularity with commercial production companies emerging. Filmmakers such as Menahem, Ephraim Kishon and Uri Zohar made names for themselves in international film. Some of more recent films are deeply rooted in Israeli experience, covering such subjects as Holocaust survivors or their children (The Summer of Aviya) and the suffering of new immigrants (Sh'hur and Turn Left At The End of The World).

In the last few years, Israeli films have won quite a few awards at international festivals. Yoseph Cedar won the best director and 11 other awards at the Berlin Film Festival for his film about the first Lebanon war, Beaufort. The Spielberg Film Archive at the Hebrew University of Jerusalem is the world's biggest film archive on Jewish subjects, as well as on Jewish and Israeli life. The Archive is managed by the university and the Central Zionist Archives which main activity is collecting, preserving and cataloguing Jewish films, and making the material available to researchers, film and television writers and producers all over the world. ■

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religion

Christianity in the Holy Land Christianity is linked to Israel in the same way that Israel is linked to Christianity. This connection dates back to the time when Jesus Christ was born in what is today the Church of the Nativity in Bethlehem, thought to be the oldest church in the world and the ultimate destination for Christian pilgrims

A

ccording to the Bible, Jesus came to Jerusalem immediately after his birth, and this is where he grew up. Accordingly, some of the most sacred places in the Christian world are located in Jerusalem. There is Golgotha, the historic place where Jesus was crucified. Golgotha is also the site of the Church of the Holy Sepulchre, which is also said to contain the place where Jesus was buried. This is one of the holiest pilgrimage destinations for Christians.

Biblical sources say that the town of Nazareth, in northern Israel, is the childhood home of Jesus. It is also thought that Joseph and Mary lived in Nazareth and that Joseph had his carpentry workshop there. Today, this is where St. Joseph’s Church sits. Nazareth is also the site of the Basilica of the Annunciation, where, according to the Roman Catholic tradition, Archangel Gabriel announced to the young Mary that she would be giving birth to the Son of God, Jesus Christ. The Basilica of Annunciation is the biggest church in the Middle East.

However, according to the Eastern Orthodox tradition, Archangel Gabriel told Mary that she would give birth to Jesus in another place, also in Nazareth, where today the Church of St. Gabriel stands. Other important religious places in Nazareth are the Mensa Christi Church, where, according to the Bible,

Church of the Holy Sepulchre

Nazareth

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Jesus dined with the disciples after his resurrection, the Synagogue Church and the Basilica of the Jesus the Adolescent.

There are many momentous places of worship scattered all over Israel including St. Michael’s Church, the Endowment of King Milutin Nemanjic in the Holy Land, Monastery of the Ascension, St. Mary Magdalene’s Church, the Church of the Sepulchre of the Virgin Mary, the Church of Saint Stephen the Archdeacon and Protomartyr, the Palm Sunday Church (or the Church of Bethphage), the Tomb of St. Lazarus Resurrected, the Church of the Holy Cross, and the Church of the Holy Trinity, located in Jerusalem. The monastery of the Holy Prophet Elijah is situated on Mount Tabor. The Church of the Twelve Apostles is located on the Mount of Transfigurantion near the Sea of Galilee. Caesarea by the Sea was one of the first centres of Christian learning. Today, this is a national park on the Israeli coastline.

Elijah’s Cave is located in the town of Haifa, while the town of Lot is home to the Church of St. George.

Mar Elias, which dates back to the 6th century, is situated south of Jeru-

salem, on the outskirts of the Judean desert. The place is named after Prophet Elijah who, according to tradition, stopped here on his way to the south while fleeing the wrath of Queen Jezebel (1 Kings 19:3). Mar Elias has a great view of Bethlehem, Herodion and the wilderness of the desert. The monasteries Saint Sabbas the Sanctified, Saint John Chrysostom and Karantal (on Mt. Temptation, overlooking Jericho) are all located east of Bethlehem. The latter monastery can be reached only by a four-wheel-drive vehicle and is one of the oldest active monasteries. The Saint Sabbas Monastery started as a place of seclusion of few monks in the caves, led

by Sabbas. Visitors can reach this monastery, built on the cliffs, by foot. Women can view the monastery only from Women’s Tower, since they are forbidden from entering the complex, while men are allowed to enter it and see the wellpreserved relics of St. Sabbas.

Just like in many other countries, the monasteries in Israel have opened their doors to Christian pilgrims who are welcome to stay, spend the night and experience the ambience of spirituality. The monks, who are known for their ascetic life and humility, spend most of their time in studying, praying and spiritual activities, but are also earning a living and engaging in other activities, such as art, agriculture and hosting guests.

They are also known for their pleasant manner and hospitality and for creating a warm homely atmosphere for their guests. Monastery accommodation is modest, simple, clean and tidy. These places are a mixture of pastoral panorama, well cultivated gardens, beautiful architecture and spiritual experience. ■

TOURISM

Israel - Amazing Beauty and Diversity

A visit to Israel is a totally unique experience. No other country has so much diversity in such a small area – Israel really does have it all

Whilst it only takes six hours to drive from north to south, and, in places, 20 minutes from east to west, Israel is a fantastic travel destination with great diversity developing an international reputation as a cool tourist destination.

From visiting the holy city of Jerusalem, holy to Jews, Christians and Muslims, to visiting the cool, progressive, modern, and lively Mediterranean city of Tel Aviv, less than an hour away, Israel is a land of

contrast like no other. There are more museums in Israel per person, than anywhere else in the world, and archaeological sites which date back millenia.

From swimming in the Mediterranean and diving in the Red Sea in Eilat, to skiing in the Golan Heights and floating in the magical waters of the Dead Sea, the lowest point on earth, Israel is saturated by active persuits to suit all tastes.

Jerusalem Jerusalem is a city of overwhelming emotions, a city that offers religious and spiritual experience, excitement and pleasure, interesting tours and fun adventures.

Alongside Jerusalem’s fascinating historic and archaeological sites, there are wonderful tourist attractions for people who appreciate culture, the arts, theatre, music, architecture and gastronomic delights.

The Old City is situated at the very heart of Jerusalem, surrounded by walls and divided into four quarters – Jewish, Armenian, Christian, and Muslim. Inside the walls, the three major religions have their important sites – the Western Wall, which the Jews consider holy, the Church of the Holy Sepulchre and the Dome of the Rock on the Mount Temple.

The square in front of the Western Wall is visited by millions of worshipers. At the base of this huge wall, a remnant of the Holy Temple, worshipers pray and leave notes with their innermost wishes in the Wall’s crevices.

There are other important Jewish sites surrounding the Western Wall: the Western Wall tunnels, the unique Davidson Centre, the Jewish quarter with majestic Cardo and David’s Citadel which proudly towers in its beauty.

There are close to 40 religious sites (churches, monasteries and pilgrim hostels) in the Christian quarter of Jerusalim alone

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Jerusalem is also important for Christians. This is the place where Jesus Christ was born and where he died.

There are close to 40 religious sites (churches, monasteries and pilgrim hostels) in the Christian quarter alone. One of the most prominent and important sites in this quarter is Via Dolorosa, also known as the “Street of Sorrows”. This is the final path that Jesus took which, according to tradition, leading from

the court to Golgotha Hill where Jesus was crucified and buried. Many pilgrims come to Jerusalem to retrace Jesus’ last footsteps on the road that starts in the Muslim Quarter, near the Lion’s Gate, and passes through the 14 Stations of the Cross, ending at the Church of the Holy Sepulchre. The Church itself contains several of very important Christian relics, including the anointing stone (on which Jesus’ body was laid before he

Haifa The third biggest and one of the most beautiful cities in Israel – Haifa - has a lot to offer to visitors.

was buried) and Jesus’ grave. The Church of the Holy Sepulchre is also a meaningful site for millions of Christians all over the world. The St. Michael (Archangel) Church, which is an endowment of King Milutin Nemanjić in the Holy Land, is yet another important place for Orthodox believers in Jerusalem.

Apart from holy places, Jerusalem also has a green market which is a tourist attraction in itself. Here you can buy ceramics decorated in the Armenian style, beautiful strings of beads, authentic folk clothing, embroidered cushions, colourful carpets, candles, marvellous glassware and many other souvenirs.

From the top of the Old City walls, you can see both the Old and the New City.

www.gojerusalem.com

Old City of Jerusalim

Haifa’s residents belong to the three major and several minority religions, which makes the city a symbol of co-existence and tolerance

The city has the largest port in Israel, a beautiful beach and is the home to the World Centre of the Bahai Religion.

Surrounded by many natural sites, the city is an interesting mix of modern and old quarters, as well as churches and mosques, mountains and sea.

Haifa is a multi-faceted town with several unique features like the proximity to the sea and a dynamic port which just enhance its attractiveness.

On weekends, beaches are bustling with visitors. Because of the excellent conditions for surfing and sailing, the beaches here are also known for their sailing competitions.

Haifa’s residents belong to the three major and several minority religions, which makes the city a symbol of coexistence and tolerance. Arabs (Muslims and Christians) make up 9% of the city’s population, and they mostly reside in three quarters: Khalisa, Abas and the famous Wadi Nisnas whose alleys have made it a tourist attraction. The annual Holiday of Holidays celebrates Haifa’s special lifestyle.

The Christian presence in Haifa and many Christian churches also enhance

the town’s unique image. A Maronite Church is situated close to Kikar Paris (The Paris Square) which is adjacent to the Carmelite Church dedicated to Prophet Elijah. The Greek Orthodox Parish Church St. Mary’s is nearby. A Catholic school, ‘The Sacre Coeur,” on Allenby Street has a garden with a statue of Virgin Mary. The Stella Maris Carmelite Monastery sits on top of Mount Carmel.

The monastery’s Baroque-style church has a cave which, according to Christian tradition, contains the burial site of the Prophet Elijah. Also, there is a small museum dedicated to the Prophet’s life in the monastery.

Haifa’s reputation for tolerance also extends to the Bahai Religion. This re-

Haifa's beaches are known for their sailing competitions

ligion originated in the Bab cult which branched out from the Iranian Shi’ite Islam in 1844. The Bahai World Centre, located on the slopes of the Mount Carmel, is famous for its beautiful gardens.

There are picturesque ‘Hanging Gardens’, which span a kilometre across in length, and have a gold-domed Bab Shrine – the burial site of the cult’s founder, Bab. Special evening lighting provides for a lovely romantic atmosphere.

Haifa has many cultural, art and science institutions, as well as numerous festivals and other events. The town also has several museums like the Dagon Grain Silo, the National Maritime Museum, the National Museum of Science and Technology, the Museum of Art, the Clandestine Immigration and Naval Museum, the Railway Museum, the Tikotin Museum of Japanese Art, the Reuben and Edit Hecht Museum and the Israeli Oil Industry Museum. ⇢

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tiful beaches and a romantic waterfront promenade. Tel Aviv has been recently declared one of the ten most beautiful beach cities in the world. The city also has eleven churches, monasteries and mosques, like the St. Peter’s Church and the Franciscan Monastery located in Yafo.

www.visit-tlv.com

Eilat

Tel Aviv-Yafo Tel Aviv is often called “the city that never sleeps”. This is the first modern city built in Israel. The city is also the country’s economic and cultural centre. This is a vibrant town, with entertainment, culture, arts, festivals and lively nightlife.

Beautiful beaches of Tel Aviv

Tel Aviv is located on a 14-km-long Mediterranean strip. It extends beyond the Yarkon River in the north and the Ayalon River in the east. Hundreds of thousands of visitors and tourists come to the city on a daily basis, searching for nightclubs, restaurants and entertainment venues until early morning hours.

The history of Tel Aviv starts in Yafo – an ancient 3,000-year-old adjacent town in the southwest. Today’s Old City of Yafo was built during the Ottoman Empire and its old houses and narrow alleys are now an artist corner and tourist centre.

Sixty six Jewish families, who lived in Yafo in 1909, formed the first quarter of what would later become Tel Aviv.

The Akhuzat Bayit quarter was origi-

nally built inside city of Yafo. In 1910, it changed its name to Tel Aviv and began to expand. Other new quarters were added until the town became the centre of the Yishuv – a Jewish settlement in the then Palestine. On May 14, 1948, David Ben Gurion declared independence of the State of Israel.

There are many different architectural styles, influenced by various architecture schools, in Tel Aviv including the International Bauhaus style. The central part of Tel Aviv – also known as the White City – has the largest group of International Bauhaus buildings in the world. For this reason, the White City was inscribed upon the UNESCO World Heritage List. The Bauhaus style originated in Germany and is known for its clean geometric shapes and asymmetry.

There are over 20 museums in Tel Aviv, the most important being the HaAretz Museum and the Tel Aviv Art Museum. The city is also home to the Israeli Philharmonic Orchestra and the Israeli Opera, as well as to most of the national dance and theatre companies.

This Mediterranean city has beau-

Port of Eilat

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Over the years, Eilat has become the ultimate holiday resort. The hotels and beaches here are often frequented by the Israelis who, along with foreign tourists, have chosen to spend their holidays in this southernmost town in Israel, situated on the Red Sea coastline.

Eilat is one of the few locations where you can enjoy the sunrise over the Moab Mountains or the sunset on the Eilat Mountains.

The Red Sea here is known for the most beautiful coral reefs in the world. Its labyrinths, deep canyons and many species of tropical fish have made this place the top favourite among divers.

Eilat’s location has made it strategically important throughout many historical periods. The town served as a port in the days of King Solomon, the Nabataeans, the Romans, the Arabs and the Crusaders who, all in their time, ruled over the Land of Israel.

Thanks to its beautiful beaches, the Eilat bay has become one of the most attractive diving locations. The bay has the Coral Reserve, with an underwater observatory and a maritime museum.

Close by, there is the Dolphin Reef with

the resident flock of dolphins.

The town’s many restaurants suit all tastes, and there are also clubs, picturesque shops and a promenade that holds a summer bazaar. Eilat also has attractions for families and youngsters, like a hi-tech amusement park based on the Bible and Bible stories.

The Coral Reserve in Eilat

Sea of Galilee The Sea of Galilee, also known as the Genisareth Lake, the Kineret and the Tiberian Sea, is located at the foot of the Golan Heights. This is the biggest lake in Israel, lying at 209 metres below the sea level and, as such, is the lowest fresh water lake or body of water in the world, after the Dead Sea. The Galilee area served as a link between Egypt and various northern empires – the Greek, the Roman and the Hashmonean – which influenced the formation of various types of settlements on the lake shore.

Jesus Christ preached in the area

The Sea of Galilee

The Negev Desert

around the lake, where many settlements were formed. The Sermon on the Mount, a well-known event in his life took place on a hill overlooking the Sea of Galilee. It is believed that Jesus did most of his work and miracles in the vicinity of the lake which is why the Galilee is a popular destination for pilgrims.

The Jerusalem Talmud originates from the Galilee and it was written during the Jewish rebellion against the Romans. During the course of the Byzantine Empire, the lake was a major destination for Christian pilgrims, having played such a significant role in the life of Jesus. The travel industry flourished in and around the Galilee area even after the fall of the Byzantine Empire but to a lesser extent. In 1909, Jewish settlers rebuilt the villages in the Galilee and the Sea of Galilee re-established its significance.

Thanks to many historic and spiritual locations, the tourism in the Kineret

region is the most important branch of economy here.

The place where the Kineret meets the Jordan River is considered holy and is the location where many pilgrims all of the world come to be baptized. The famous Eastern Orthodox Church of the Twelve Apostles is nearby.

ekinneret.co.il/site/eng/eng.asp

The Negev Desert The Negev spans across Israel’s southern region and covers over a half of the country’s territory. Due to its desert nature, this region is sparsely populated.

Even so, the Negev has had its share of history. Abraham built his home in Be’er Sheva, and the Nbateans passed through this area with their camel caravans loaded with precious goods. For these and other reasons, the Negev has become one of the most popular tourist destinations in Israel. ■

MARINA DORĆOL D.O.O. Beograd, Goce Delčeva 29 Tel. +381 11 2696 486 e-mail: office@marina-dorcol.com www.marina-dorcol.com iSRAEL | World's Markets and Opportunities