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| City Guide - Tel Aviv - Business | ||
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Business Tel Aviv has a booming high-tech venture capital industry and is particularly strong in the areas of telecommunications equipment, software, internet and semi-conductors. The government maintains and encourages its highly educated workforce in the tech industry through tax incentives, education and financial backing. Important strides have been made in Israel in recent years in laying out a foundation of macroeconomic stability. Subsequently, inflation has fallen sharply from the runaway levels seen in the 1980s. A wide range of reforms have been put in place, which are aimed at reducing the scale of the public sector and supporting the modernisation of the economy. GDP growth during 1994-96 exceeded 6%, the budget deficit target for 1996 (2.5% of GDP) was exceeded by more than 2% and the current account deficit reached 7% of GDP, a level similar to the previous years. Defence spending in the capital is at 10-15% of GDP, although, given its situation, this is seen as a necessary evil. For the last few years, unemployment in Tel Aviv has fluctuated between 7 and 9%. There is a split between tech (high earners) and non-tech (low earners). There is a strong American influence in Israel with all major US companies represented. Tel Aviv is also the financial capital of Israel, with Bank Hapaolim and Bank Leumi representing the lions' share of the business. Outside Tel Aviv, the agricultural sector is no longer a major employer, with most agricultural land being owned by Kibbutizm and Moshavim (ie communes). Tourism is an important contributor at 10% of GDP, approximately US$55 million per year, comprising a significant source of foreign exchange earnings. Record tourist arrivals in 1995 reached 2.2 million and, despite political problems, the general trend is upwards. After the USA, Israel is the most-represented country on NASDAQ, with most of the companies listed being situated in Tel Aviv. Major companies in the city include ECI Telecom, Teva Pharmaceuticals, Koor Industries, MA Industries, Israel Chemicals Ltd, Gilat Satellite Networks, Alladin Knowledge Systems and Supersol. Business Etiquette Business practices in Tel Aviv accommodate an international outlook. Business hours are generally 0800-1800 Sunday to Thursday and 0800-1400 on Friday. Increasingly, however, Shabbat is being extended so that the whole of Friday is added to Saturday as a day of rest. Punctuality is very important, especially for business meetings. Dress is usually fairly informal; men can wear smart trousers and shirt with no tie; women can wear smart trousers or skirt with blouse or shirt. English is generally spoken among international businesspeople. Social interaction among colleagues is important, so relaxed lunch meetings help develop trust before decisions are made. On introduction, colleagues can be addressed by their first name, unless in a very formal setting. Israelis have a healthy competitive spirit; sport activities outside of work are often encouraged in order to build team spirit and help in developing business relationships. |
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