InFocus Israel by Diplomacy&Commerce magazine

Israel 2019

ISRAEL & SERBIA

ON THE WAY TO THE SAME GOALS NENAD POPOVIĆ

Minister of Innovation and Technological Development

H.E. ALONA FISHERKAMM Ambassador of Israel to Serbia

VLADIMIR MARINKOVIĆ Deputy Speaker of the Serbian National Parliament

MUSEUMS

Israel has more museums per capita than any other country, including the world’s only one underwater. In Caesarea, you’re able to dive through the underwater ruins of the ancient city.

T HE LOWEST PLACE ON EARTH

Israel’s Dead Sea is the lowest place on earth and is 8.6 times saltier than the ocean.

USB MEMORY STICK

Israeli entrepreneur Dov Moran has invented the USB memory stick.

T HE LONGEST LIFE

Israel has the longest life expectancy in the world: 82 years, which is more than the United Kingdom, the United States, and Germany.

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MAKHTESH RAMON

Israel is home to the only makhtesh in the world. Makhtesh Ramon is often mistaken for a crater, but it is in fact the result of ancient formations of soft sandstone being covered by harder limestone and dolomite and then the whole area being uplifted by tectonic forces.

AIRLINE

El Al, Israel's national airline has set the world record for most passengers on a commercial flight with 1,088 people.

MIGRATING BIRDS

Per square kilometer, Israel has one of the highest levels of bird traffic in the world with over 500 million migrating birds crossing its airspace.

C HERRY TOMATOES

Cherry tomatoes were originally engineered in Israel in 1973.

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I N TE RV I E W

WE STRIVE TOWARDS THE SAME GOALS NENAD POPOVIÄ&#x2020;

Minister of Innovation and Technological Development

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Digitization of agriculture, smart cities, artificial intelligence, robotics, these are segments to cooperate on

n this interview, Minister of Innovation and Technological Development, Nenad Popović talks about what can Serbia learn from Israel, their innovative technology, the similarities between the two peoples and the areas for further cooperation.

You have travelled to Israel on several occasions and met with Israeli officials. What key messages did you take with yourself from these meetings?  Israel is one of the world's leaders in the development of innovation. The Israeli economy is largely based on digital economy and innovative entrepreneurship, and that is what Serbia is striving for. Every meeting I had with Israeli officials was an opportunity to exchange experiences and discuss a common vision of sustainable economic growth based on innovation. Digitization of agriculture, smart cities, artificial intelligence, robotics these are the fields in which daily changes occur that make life easier and better for people. Israel has a tradition of developing innovations. Some of the world's greatest inventions are attributed to Israel and Jewish scientists. Likewise, Serbia can be proud of its innovators such as Nikola Tesla, Mihajlo Pupin and others. This shows that our nations, although quite small in numbers, have the strength and ideas that can change the course of civilization. Unfortunately, Serbia has had a very turbulent period of wars and sanctions that have left a mark on our industry and caused us to lag behind in other countries, but technological development, innovation and digitization are our chance to bridge this gap and catch up to the most developed countries in Europe. We have excellent young engineers who are recognized all over the world. There are 17 STEM faculties at the universities in Belgrade, Novi Sad, Niš, and Kragujevac, of which 11 are engineering faculties. A total of 42,000 students studied at these faculties in 2018. Last year, the value of Serbia’s IT exports exceeded EUR 1.2 billion. This is the first time in history that IT exports were higher than agricultural exports. The structure of the Serbian economy is changing and slowly shifting from the economy of raw material

exports to the economy of software development and export. What lessons can Serbia learn from Israel?  Our two nations are very similar. Both the Serbs and the Jews have a tragic past and both have suffered huge losses caused by the Nazis in the Second World War. Serbia still has unresolved political issues with certain countries, as does Israel, because it does not want to renounce its territorial integrity and sovereignty. A difficult past has taught us Serbs to be persistent, devoted and resourceful and the same can be said for Jews. There is a saying in Israel that goes - half of the citizens have their startup companies,

THERE IS A SAYING IN ISRAEL THAT GOES HALF OF THE CITIZENS HAVE THEIR STARTUP COMPANIES, WHILE THE OTHER HALF IS PLANNING TO OPEN THEM. WE NEED SUCH A MINDSET IN SERBIA AS WELL while the other half is planning to open them. We need such a mindset in Serbia as well. And that's exactly what I see as one of my main tasks, namely to encourage young people to become entrepreneurs, to shape them in a way that they are not afraid of failure, and to be aware that every successful entrepreneurial story first had to suffer several failures. For now, we're doing good. Serbia has an increasing number of startup companies run by students and young engineers. We also have very successful student companies here. Our startup community is still young and can learn a lot and expedite its development by observing the successful examples in Israel, which is also called „a startup nation“. We are always encouraging the members of the innovation com-

munity to apply for and participate in numerous exchange programmes. MASHAV and the Embassy of Israel in Serbia have contributed immensely to the development of cooperation between the innovation ecosystems of our two countries and there are almost no young people in the Serbian startup community who did not attend at least one from their programmes. Israel's Ministry of Science and Technology assists with the development of innovations and has been opening research centres all over Israel. The Government of Serbia used this model to start opening innovative startup centres here too. What are the results so far?  From the very beginning, the Cabinet of the Minister of Innovation and Technological Development has had excellent cooperation with the colleagues from the Israeli Ministry of Science and Technology, and we have seen firsthand the results and progress achieved through investments in regional development. They funded the construction of research and development centres which activities are based on addressing the challenges of local communities in which they operate, which directly affects the quality of life in these regions. The centres promote innovation as a way of thinking, provide employment, attract scientists and prevent the brain drain especially among young people and give their contribution to the whole community. Of course, these centres are not only the places where laboratory research is carried out but also the places where children and youth training is organized in the segments that are crucial for the jobs of the future: programming, codes, robotics... Last year, we launched a programme for the opening of regional innovative startup centres and we had a great response and a strong interest from local governments from all parts of Serbia. Soon we are going to open innovation startup centres in Subotica, Zrenjanin, Valjevo, Stara Pazova, Gornji Milanovac, Čačak, Kruševac and Pirot, where, in addition to space and equipment, we are also going to give young people with all the necessary mentoring support they need to realize their innovative ideas.

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great deal to help the development of an innovative and start-up ecosystem in Serbia, including providing equipment for one of the first IoT (Internet of Things) laboratories in Serbia early last year. Serbia and Israel have great cooperation that has been growing year-on-year in all traditional economic sectors, but the Internet of Things, as well as all other new technologies that develop day by day, represent new areas and an opportunity for cooperation between Serbian and Israeli experts.

In addition to university centres, where we are developing the state-of-theart scientific and technological parks and an innovative infrastructure on which have spent over EUR 70 million, our motive was to give a chance to regions to develop innovations and innovative entrepreneurship, because undoubtedly we have very talented and creative young people in every corner of Serbia. Israel has provided Serbia with a modern satellite imagery technology used in space, which will be used in our country for agriculture and water management. How did this system perform? How can the two countries cooperate even more on this matter?  During one of my official visits to Israel, I talked with my colleague and the Israeli Minister of Science and Technology, Ofir Akunis about that Serbia getting access to data generated by the VENμS satellite, which is under the authority of the Israel Space Agency and is used to observe atmospheric conditions and vegetation. Bearing in mind that such data can be of

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TENENGROUP IS THE LATEST ISRAELI COMPANY TO CONTACT US WITH THE INTENT TO ENTER THE SERBIAN MARKET great use in the field of agriculture and contribute to planning and improving yields, we have linked our Israeli partners with Serbian experts working in the BioSense Institute in Novi Sad, which had already established cooperation with the Israeli agricultural institute Volcani. The achievements of the BioSense Institute are internationally recognized and I believe that through this cooperation, both sides will learn a lot from each other and that new data will help in the optimization of BioSense’s services. As for the new technologies, I have already mentioned that, in cooperation with the Embassy of Israel, the ISRA has done a

Israeli company Mobilicom has shown great interest in coming to the Serbian market. What does that mean for our country? Are you in talks with another Israeli company?  We first contacted the representatives of Mobilicom in January last year to discuss various possibilities and advantages that their company would gain by entering the Serbian market. Our market is very attractive for foreign investors, first because of the subsidies we give to foreign companies, and certainly due to the fact that companies operating in Serbia can export their products without customs duties to the EU, Russia and Turkey. The Mobilicom Company is engaged in providing wireless communication for critical infrastructure that functions in the most difficult conditions, and they came up with the idea to open an R & D centre that would function as a subsidiary of Mobilicom. The decision was made very quickly. In less than a month after visiting Serbia, we received a letter from Mobilicom in which they said that they had decided to launch their activities in Serbia, after which they would start employing the first engineers. The presence of Mobilicom, as well as other Israeli and foreign companies in our market, is very important because these are the companies that are building bridges between our countries, creating new jobs and boosting the competitiveness and attractiveness of our market in the world. TenenGroup is the latest Israeli company to contact us with the intent to enter the Serbian market and we certainly hope that we will soon see them in our market. How important is for us that Israel did not recognize Kosovo's independence?

ď&#x20AC;ś The Serbs have a long history of fighting for what they believe in. Kosovo is the place where Serbia was born. Kosovo is our heart and soul. We cannot compromise with our heart, soul, history and values simply because some countries in the international community want to do it. Kosovo is the territory of Serbia and it will remain such as long as we have the Serbian Constitution and the UN Security Council Resolution 1244. I am convinced that Kosovo will never become a member of the UN. At the moment, five EU countries, in addition to Israel, have not recognized Kosovo's independence. Plus, we have the support of some of the most influential and economically most powerful countries in the world, such as Russia, China and others. Serbia is deeply grateful to them. Belgrade is ready to talk with PriĹĄtina how to improve the lives of people in Kosovo, but if we are talking about resolving the issue of the Kosovo status, this must be done in view of the Serbian Constitution and the Resolution 1244. We will not compromise. Israel is a proper example of this. Serbia and Israel have a long and proud history and do not compromise when it comes to historical values. Our ancestors went through terrible times, but they never made compromises in regard to key national interests. And we have both survived those times. The Nazis occupied our country and wanted to wipe our people from the face of the earth, but we survived, just like the Jewish people. The biggest test for this generation of Serbs is the preservation of Serbian statehood in Kosovo, which our ancestors left us a legacy. Only those countries that have firmly and perpetually defended their territory, and by doing so, defended their state and national dignity, were honoured, recognized, and at the same time, became economically strong. Certain groups want us to feel that Serbia cannot progress economically because of the unresolved issue with Kosovo, and I claim that this is simply not true. Weak countries, and handing over territory is considered a weakness, are seen as unstable and insecure for investments and development because in such circumstances it is impossible to see the end when it comes to changing their borders and further po-

litical upheavals that are destroying the economy of a state. Let's look at the example of Russia when it defended its right to Chechnya, or Israel with Jerusalem, or the United Kingdom and the Falkland Islands, or China and its rights to Taiwan and Hong Kong... All of them are different countries, with different organization and history, but with identical positions when it comes to strongly defending their respective states. Strong economy and development are the results of such determined state policy. Here, I would like to draw another parallel with Israel.

THE ISRAELI ECONOMY IS LARGELY BASED ON THE DIGITAL ECONOMY AND INNOVATIVE ENTREPRENEURSHIP, AND THAT IS WHAT SERBIA IS STRIVING FOR

Israel's population stands at just over 8 million and the country's GDP exceeds $350 billion. Israel has a constantly open issue of the vulnerability of a part of its territory that other peoples in its surroundings claim as their own. At the same time, this country is an obvious example that a permanent conflict situation is not an obstacle to economic growth and attracting investments, as some politicians in our country try to portray it. On the contrary, thanks to its decisive policy of protecting territorial integrity, Israel has demonstrated its willingness to uncompromisingly defend its Constitution, statehood, laws and territory. This policy might not be to everybody's liking, but it has been stable and unchangeable for decades. This is precisely what gives investors security and trust in Israel. This is the country which central part, the city of Jerusalem, is the subject of two ethnic conflicts that had the international community involved, just like Kosovo, but that did not prevent the American company Intel from recently buying Mobileye, the Israeli innovation company based in Jerusalem, for US $15.3 billion.

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INTERV IEW

TURN YOUR WEAKNESSES INTO ADVANTAGES INNOVATION

H.E. ALONA FISHER-KAMM

Ambassador of Israel to Serbia

Priorities and compatabilities of the two economies lie in the sectors of agriculture – smart agriculture, IT and innovation...

mbassador of Israel to Serbia Alona Fisher-Kamm says in addition to big projects in the real estate sector, there’s a growing interest of Israeli investors to invest in other areas such as agriculture, water, renewable energy and waste treatment sector.

Last year, for the first time, an Israeli president visited Serbia. How much is the arrival of Ruvel Rivlin in Belgrade significant for our bilateral relations?  It was a historic visit, the first ever visit of the Israeli President to Serbia. The visit confirmed a traditional friendship between our people with ties that bond us to the source of Zionism. During the visit, the two Presidents revealed the street named after Theodor Herzl , one of the founding fathers of the State of Israel and a leader of Zionist movement, whose family was from Zemun. In order to strengthen and broaden the economic activity which has a huge potential to be utilised, both sides agreed to set

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up a Mixed Committee for Economic Cooperation. Israel is one of Serbia’s most important trade partners. According to your data, what did the trade between Israel and Serbia amount to last year? In which fields can companies from the two countries establish cooperation?  The level of trade is on the steady rising trend which we hope will keep and enlarge in volume. Our bilateral trade went up by 10% last year, it stood at the level of 72 million USD which is a way below its potential. One of the obsta-

THE LEVEL OF TRADE IS ON THE STEADY RISING TREND WHICH WE HOPE WILL KEEP AND ENLARGE IN VOLUME

cles that affects the level of trade is definately non existing free trade agreement between our countries. This makes goods from both countries less competitive. If we talk about areas for economic cooperation, our priorities and compatabilities of the two economies lie in the sectors of agriculture – smart agriculture, IT and innovation, cleantech and renewable energy along with the growing needs in cyber security. Representatives of Serbia often say that, to them, Israel`s economy is a good example of development and growth based on the latest technologies and innovations. In what way has your state helped this development?  In the mid ’80s, after the big economic crisis the country faced, the goverment made a strategic decision to make knowledge and innovation as the base of the future economic growth. Israel is a country poor in natural resources including shortage of water, 60% of the country is desert with a position in a non

friendly geopolitical environment. In order to survive we needed to overcome these weaknesses and turned them into our advantages. As part of its’ strategic vision and decision, the government took a set of measures to create supportive legal framework and innovation ecosystem. Among them is the fact that Israel is 2nd in global R&D spending as percentage of GDP. This investment is the national priority, not being affected by everyday politics. At the begining of creation of an ecosystem the role of government was important. The government offered incentives for multinationals eager to open R&D facilties in Israel. Through its Yozma program, the government assisted in creating first 10 VC funds in the country. The Israeli Innovation Authority – at the time Office of the Chief Scientist, has been formed in order to provide grants for startups. The project of Cyber Spark – cyber security tech park in Beersheva is a very good example of cooperation between the government, academia, municipality and industry. Today in Israel, with all the elements of the ecosystem been highly developed, we can say that the government role has been limited, still important in backing and inaugurating new ideas with high risk. Israel and its citizens have faced numerous challenges throughout their history, just like Serbia. It seems that, when it comes to your country, this has additionally stimulated the development of innovations, especially the IT industry in recent times. What could, then, Serbia learn and implement from the Israeli experience? 

IT sector

Israel is a small country with 22000 sq.km. We live in a non-friendly neighborhood which together with the lack of natural resources adds to the challenging environment. This created a need for self sufficiency in terms of energy and water supply along with the orientation towards the global market instead of regional one which is not accessible. Due to the well balanced trade portfolio, the effects of the global economic crisis from 2008 were hardly felt in Israel. The economy also proved to be resistant to the ongoing conflict. In order to tackle

LAST YEAR ROUND 32000 ISRAELIS VISITED SERBIA the challenges and turn your weaknesses into advantages innovation was the answer! It was logical, taking into considerations all the mentioned constraints, to direct the economy towards the export of IT services. Today, Tel-Aviv is ranked the 2nd best innovation ecosystem globally by The Startup Ecosystem Annual Report. It is the 1st for density of startup ventures per capita. There are around 5000 start ups in Tel Aviv currently and 350 multinational companies with R&D offices across Israel. Our embassy follows closely and supports achievements of Serbia in this sector. It is worth noting that IT services became the top exoprted item of the country with the highest growth rates! This gives Israel opportunities to expand already existing

cooperation. We beleive we can share our experience and know how with Serbia which develops its IT sector under similar circumstances. Serbia and Israel sign Agreement on Prevention of Double Taxation. How important this is for investors?  In November last year we signed the very Agreement which has already been ratified by the Serbian Parliament. The Agreement, once entered into force, will ease investments and doing business of residents and business entities originating from both countries and its subsidiaries. It will assist residents to pay personal income tax in one country and companies with subsidiaries to pay corporate profit tax in one country. How often do Israeli businessmen turn to you for advice as to how to reach the Serbian market and how do you present Serbia as an investment destination to potential investors?  We are witnissing an increased interest of Israeli companies in the Balkans and Serbia in particular. Companies address us constantly on the conditions for investments and doing business. They look for new markets. Interest is mainly connected to placement of the Israeli technology in the areas of smart agriculture, IT services, cyber security solutions. Taking into consideration growing needs of Serbia in the water treatment sector, the Embassy will, for the first time, organize a special Water treatment and Water Management conference in June with aim to introduce the Israeli technology to Serbian public utilities and municipalities.

WE BELIEVE WE CAN SHARE OUR EXPERIENCE AND KNOW HOW WITH SERBIA WHICH DEVELOPS ITS IT SECTOR UNDER SIMILAR CIRCUMSTANCES ISRAEL 2019

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organize a film week in all main cities in the country wherein the newest Israeli film achievements are being presented. We actively cooperate with publishing houses in translating Hebrew literature. Days of Israel which comprise of cultural, public diplomacy and economic activities are being organized in different cities. This year, Eurovision song contest will take place in Israel on May 18th. Public screening events are planned in differenct cities across Europe including Belgrade. May and June this year are particularly busy with such activities so you’re invited to follow us on our FB page 'Israel in Serbia' and other social media to get more acquainted on the Embassy's activities.

Israel investors have been dominant in Serbia for a number of years now regarding investments in residential and commercial complexes. Why is real estate in Serbia so popular among Israeli investors and to what extent are Israeli companies interested in investing in other fields as well?  Israeli real estate investors came with the democratic changes in 2000 and stayed. In this period they have invested more than 1.5 billion EUR and with their projects became a flagship of Israeli investments in the country. Real estate investors introduced the concept of office and retail parks in Serbia while been active in shopping malls developments as well. In the last few years it is evident their shift towards the residential projects with the introduction of condominium concept of living. Their business decisions are obviusly based on the market needs and favorable conditions for real estate investors, especially with the ongoing digitization of public administration services in obtaining electronic permits, reform of cadastre etc. In addition to already existing manufacturing activities of our companies, recent investments are connected to renewable energy, wind farms in sepe-

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OUR TWO COUNTRIES HAVE SIGNED THE AGREEMENT ON CULTURAL, EDUCATIONAL AND SCIENTIFIC COOPERATION IN 1998 cific, along with the furniture production and IT oustourcing. Serbia and Israel are also bonded by strong cultural and historical ties. What is cooperation between Israel and Serbia like in other fields and how does your embassy promote Israel in Serbia?  I would mark this cooperation as on a very high level, having in mind the amount of activites we have during the year and performers we support. Our two countries have signed the Agreement on Cultural, Educational and Scientific Cooperation in 1998. The embassy takes part in all the major music and dance festivals by bringing Israeli performers. We

Belgrade is among the most popular destinations for tourists from Israel. What is the potential for cooperation in this sector?  Belgrade definately became a popular city break destination for Israeli tourists with the introduction of charter flights of 2 Israeli low cost companies Israir and Arkia in October 2016. Since then, we see dramatic increase of tourists. Last year round 32000 Israelis visited Serbia. At the moment, they are mainly concentrated in visiting Belgrade and Novi Sad. Tourism organization of Serbia, this year, took part at the Tourism fair in Tel Aviv wherein Belgrade won the award as the top destination for Israeli tourists. Such activities for sure contribute to keep this rising trend and open up new places in Serbia to the attention of Israeli guests. To what extent is the Israeli perception of the Balkans been affected by Belgrade Prishtina relations?  We think that any solution should be agreed upon by the two sides. Our sincere wish is to see the Balkan region enjoying lasting peace and prosperity in the near future, so that focus would be on economy and wellbeing. This would influence the way in which the Israeli business community perceive the Balkans and Serbia in particular. The EU accession process and integration of the region presents an another important element to turn the Balkans into attractive destination for investments and doing business.

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erbia has the Israel friendship group, with the Deputy Speaker of the Serbian National Parliament, Vladimir Marinković as its president. We are talking with Mr Marinković about the group' activities, further plans and potential for bigger cooperation with Israel.

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ISRAEL’S SUPPORT MEANS A LOT TO US VLADIMIR MARINKOVIĆ

Deputy Speaker of the Serbian National Parliament

We have a common history, while the Jewish community occupies a special place in our country 12

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You are the President of the Israel friendship group in the Serbian Parliament. Could you tell us more about it and its activities?  The Israel friendship group in the Serbian Parliament has 31 members which demonstrate a strong interest that MPs have in fully contributing to the advancement of the relations between our two countries. The friendship group actively participates in all activities that aim at promoting cooperation in economy, security, culture, tourism and education. It is a great honour for us to have had a conference marking 25 years since the establishment of diplomatic relations with Israel that was held in the premises of the Serbian National Parliament. In the last few years, our parliament and Israel's Knesset have had frequent contacts. Our Parliament Speaker, Maja Gojković had an official visit to Israel where she met with the Speaker of the Israeli Knesset, Yuli-Yoel Edelstein and representatives of all relevant political parties that have MPs in the Knesset. As MPs, we think that cooperation with Israel is very important for Serbia because we value Israeli support in international affairs. Our two countries and our two peoples, Jewish and Serbian, share identical values and throughout our respective histories, these values were freedom-loving, progressive and important for humankind, regardless of the small population of our two countries.

You were a member of that state delegation that travelled with Maja Gojković. What was your first official visit to Israel like?  We had the opportunity to meet key political stakeholders in the Knesset, and the representatives of organizations that promote social policies and economy where we heard about Israel's potential and were able to promote Serbia as the most favourable business destination in our region. We also visited the Holocaust remembrance centre Yad Vashem, a perennial testament to the lost lives of Jews, Serbs, and the Roma people. It reminded us of our common history, the fight against evil and injustice, and the fact that we need to stand together in order to prevent anything like the Holocaust happening ever again. The current Serbian President Aleksandar Vučić created quite a few opportunities for cooperating with Israel when he visited the country in 2015 and paved the way for stronger economic cooperation between the two countries. For me, supporting Israel and Jewish people is a matter of good upbringing and the sense of justice. Serbia has always had them both and has always fought, together with its allies, for justice and prosperity. Our two countries have a common history. What should we learn from each other?

 Yes, Serbia and Israel have a common history, while the Jewish community occupies a special place in our country. There are many common and positive denominators between Serbia and Israel. The parents of Theodor Herzl, who is also the patron of Zionism and the Jewish state, lived in Zemun, where one of the streets was named after him. The Kingdom of Serbia was the first country to sign and support Balfour's Declaration, which marked the inception of the Jewish state. The Serbian soldier, the Sephardic Jew, David Albala was one of the key people in regard to the signing of this declaration. The Serbs shared the same destiny as their Jewish neighbours, fought together for justice, and never succumbed to the Nazi and anti-Semitic propaganda. Today, Israel is one of the most developed hard-working countries in the world, with a flourishing democracy, developing science and education,

WE, IN SERBIA, OFTEN SAY THAT KOSOVO IS OUR 'JERUSALEM' SINCE JERUSALEM IS NOT ONLY THE CAPITAL CITY OF ISRAEL BUT ALSO ITS SOUL

and is an example of a progressive society that accomplishes excellent results for its people. Unfortunately, Israel’s democracy and values came at enormous cost. The challenges that Israel has been facing for decades are perhaps the biggest ones in the world today. Israel is exposed to threats, terrorist attacks, even the denial of the very existence of their nation and their state, which is probably the oldest in the world, on a daily basis. All this did not stop them from becoming the best and providing a better life for their citizens, while not deviating from their values and stances. It seems that in Israel you can negotiate just about everything apart from national interests and the protection of the people and the state. That is why the Israelis have succeeded in protecting their country and all their historical territories. It is also evident that Israel, as well as Serbia, are striving and trying to establish normal and balanced relations with the countries in the Middle East region with which Israel had several decades-long conflicts, bearing in mind the enormous threat from terrorism and the expansionist intentions of some regional powers. More and more Israeli companies are coming to Serbia. Are they happy with the economic cooperation here? Is there room for progress?  Yes, there is an increasing number of Israeli companies that are investing in

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Serbia. There is a huge opportunity for cooperation in agriculture, IT, construction of infrastructure, construction projects and joint work in security and anti-terrorism where Israel has managed to achieve the best results possible. Serbia must definitely be more active in its relations with Israel and promoting its potentials and opportunities much more vigorously in order to position itself as the main political and economic partner of Israel in Southeastern Europe. Parliamentary, economic and public diplomacy are tools that Serbia needs to make more use of. The fact is that dozens of Israeli companies operate in Serbia and that thousands of Israeli tourists come to our country every year is a clear signal to everyone else that Serbia is the right destination for investments. The great successes that Serbia has achieved in economic reforms, political stability, commitment to cooperation and good international position of the country send a good message to everyone wanting to invest safely and operate long-term in our country. Clear European determination of our country and the excellent cooperation with international financial institutions provide additional security for anyone wanting to come to our country, either to work or live. A large number of companies are very interested in investing and we will, as political stakeholders, do everything in our power to better present our country, offer potential subsidies, and highly qualified and trained workforce, which is the biggest guarantee of success and results of these investments. I must also point out the great role of diplomatic representatives, the Israeli representatives living here, in Belgrade, and the Serbian ones,

living in Israel, who have dedicated themselves and have been actively working on bringing the two countries and two peoples together and who have achieved concrete results in doing so. I would especially like to thank the Ambassador of the State of Israel, H.E. Alona Fisher-Kamm, who is tirelessly working on boosting the partnership between the two countries, which is strategic and based on concrete goals and results.

WE WANT MUTUAL COOPERATION THAT IMPLIES THAT OUR COMPANIES INVEST IN ISRAEL AND EXPORT THEIR GOODS AND SERVICES THERE Several years ago, you and Israeli diplomats agreed that Serbian ajvar could be an extremely product in Israel and that we should seize that opportunity? What happened since? ď&#x20AC;ś This proposal is just one of the opportunities that our companies can use to start exporting to Israel. We have created an excellent political environment and significant opportunities for greater trade. We want mutual cooperation that implies that our companies invest in Israel and export their goods and services there. It is therefore important that we encourage cooperation between business associations and chambers of commerce in order for our companies to obtain the

necessary information about Israel and its market and to prepare well so that this cooperation can result in concrete deals and export of our goods. Today, everyone in the world wants to cooperate with Israel and it is up to us to be as active and economically- and market-oriented as possible in order to position ourselves on this very demanding market. I think that politics has done a good deal of work and it is up to business now to valorize a good political climate and relations between the two countries. I am confident that many products from Serbia will find their way to the shelves of shops in Eilat, in the south, to Hermon and Golan, in the north, from Jerusalem to Tel Aviv and Ashkelon in the next few years. Israel did not recognize Kosovo's independence. How important is this for Serbia? ď&#x20AC;ś We, in Serbia, often say that Kosovo is our 'Jerusalem' since Jerusalem is not only the capital city of Israel but also its soul and source of energy, creativity, history and the reason why the Jewish people exist. I am sure that Israel will never recognize Kosovo and we are very grateful to them for having such principled position. Israel's support for our territorial integrity and sovereignty is very important to us. In regard to Kosovo and Metohija, Israel is not only adhering to its own principles but also it knows and respects rights and justice and it honours its allies which is yet another reason why Serbia stands with Israel and the Jewish people. I am confident that the time for even better cooperation, common prosperity, fight and success is yet to come.

The sense of justice

SUPPORTING ISRAEL AND JEWISH PEOPLE IS A MATTER OF GOOD UPBRINGING AND THE SENSE OF JUSTICE. SERBIA HAS ALWAYS HAD THEM BOTH AND HAS ALWAYS FOUGHT, TOGETHER WITH ITS ALLIES, FOR JUSTICE AND PROSPERITY 14

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C O O P E RATI O N

GOOD ROLE MODEL AND PARTNER

he story about the economic relations between Serbia and Israel is not just a story about shopping centres and real estate. This is also a story about agriculture and IT and many other things. Our politicians often say that Israel is a good example because they "transformed themselves into a very strong economy after all the hardship they had.â&#x20AC;&#x153; It is exactly innovations, software and IT that our state officials see as an opportunity for greater cooperation. The fact that last year, Serbia had a historically important visit from the Israeli

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ISRAELI TOURISTS HAVE HAD 93,000 OVERNIGHT STAYS IN TOURIST DESTINATIONS IN SERBIA AND THEY ARE ATTRACTED TO OUR COUNTRY BECAUSE OF THE GOOD PRICE/ QUALITY RATIO

The fact that last year, Serbia had a historically important visit from the Israeli president, Reuven Rivlin, speaks volume about the relations between the two countries moving in a good direction

president, Reuven Rivlin, speaks volume about the relations between the two countries moving in a good direction. This was the first official visit of an Israeli president to our country and validation of the growing political and economic relations between the two countries. Serbia and Israel signed the agreement on avoidance of double taxation in November last year which is about to enter into force upon ratification by both parliaments. During the visit, the two sides agreed to establish a mixed committee for cooperation.

In recent years, fifty Israeli companies from the production and service sector started operating in Serbia and they employ more than 1,000 people together. The potential for better economic cooperation between the two countries is not nearly exhausted, as evidenced by the figures from last and this year. According to the Statistical Office of the Republic of Serbia (SORS), in the period January-Decembre 2018, the value of the total external trade in goods with Israel amounted to USD 73 million, which reperesent growth of 10% on the basis. In the same period, Serbia mostly exported to Israel cigarettes containing tobacco (12%), external pneumatic tires and new tires for passenger cars (7%), nickel products (7%), food for dogs and cats (7%) and other goods. According to the latest data of the Republics' Statistics Office, in the period January - February 2019, Serbian export to Israel went up by 64% compared to the same period last year. Following the same trend, in the mentioned reference period, Israeli export to Serbia grew by 47%. These are very encouraging news!. The Chamber of Commerce and Industry of Serbia and the Federation of Israeli Chambers of Commerce have been working on further enhancing the economic relations between the countries. The two organizations have signed a cooperation agreement.

TOURISM AS AN OPPORTUNITY The fact remains that Israel has made significant investments in Serbia, while the good business climate and hospitality have opened doors for tourists too. For several years, Israeli tourists have been among the most numerous guests in Serbia, and besides individual travels,

SERBIA AND ISRAEL ESTABLISHED A MIXED COOPERATION COMMITTEE Israeli tourists are coming to Belgrade via five charter flights a week. Israeli tourists have had 93,000 overnight stays in tourist destinations in Serbia and they are attracted to our country because of the good price/quality ratio. They spend, on average, at least four nights and five days in Serbia, while tourists from other countries average two nights. This means that they also spend more than other tourists, as evident in the foreign currency revenue that Serbia generates from Israeli tourists. In many ways, Israeli tourists are very

Movement of goods exchange (2013-2019 / 3) (in millions of Euros)

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desirable as guests. The average Israeli tourist is in their 40s, and they like expensive hotels and restaurants. They usually go on sightseeing tours and like shopping. Belgrade hotels and restaurants have adapted their offer to Jewish needs and taste. Many restaurants now offer Kosher food while hotels are doing everything in their power to make the Israeli tourists feel like at home. Although Israeli guests love festivals, urban activities and experiencing the life of the local population, it's time to offer them something different. During the year, Israeli tourists travel for both longer vacations and short breaks. They like nature and we want to bring them to Zlatibor and Kopaonik, for skiing and active holidays. Israeli guests in Serbia usually go on Jewish heritage tours, which last for half a day. About 30 Israeli travel agents are selling travel arrangements for Serbia.

Export Import Coverage (2013-2019 / 3) (%)

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CORPORATE

Continuous growth and progress,

NO STOPPING ALEKSANDAR MIŠKOVIĆ Director LPO

LPO has generated the biggest sales revenue in the company's history

ivnica Preciznih Odlivaka (LPO), with headquarters in Ada, is a branch of Bet Shemesh Engines Ltd. (BSEL), located in Israel. LPO is an expert in a vacuum and air casting. The company also casts products that are made from super-alloys and steel, as well as the products for the aviation industry (mostly engine parts). In this interview, director of LPO, Aleksandar Mišković talks about the company's further plans, new investments and doing business in Serbia. Ten years ago, the Israeli company Bet Shemesh Engines rounded off its ownership of LPO. What changed since then and which principles of the Israeli way of doing business did you adopt? — Since then, LPO has grown into a company with 185 employs, our revenues have grown exponentially, and our customer base and new product range has become wider too. LPO has been growing year-onyear, becoming a bigger and more mature company that is expanding its capabilities and product and customer portfolio. In the meantime, in mid-2016, Bet Shemesh Engines also changed owners. The private equity fund, FIMI took over the majority of shares in the company, and thus the management of the entire group. This completely changed our business philosophy, and, as a result, LPO is now experiencing really strong growth and is making substantial investments in the amount of US $15 million. So, to answer your question – we have been continuously growing and progressing since, and there is no surrender or stopping.

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ISRAEL 2019

Are you satisfied with last year's results? — The previous year was successful, LPO generated the highest sales revenue in its history, we invested about US $ 4 million had the largest number of new products in our history, and made a profit. At the same time, we have encountered problems that affect Serbia, and in particular its northern part, in general, which is a large fluctuation of the workforce. This has become a very serious challenge for all companies, but first and foremost, for the leadership of our country. What percentage of your products do you export and to which countries? — Our entire production is for export. The very nature of the product, parts of turbojet engines, is such that all of our customers are from abroad. LPO is selling its castings to the world's largest engine and engine component manufacturers, such as MTU Aero Engines from Germany, Pratt Whitney

LPO PLANTS

The parts manufactured in the LPO plants are built into almost all engines that are now used in commercial aviation

Canada, Pratt Whitney America, ITP from Spain (Rolls Royce Group), and Siemens US. In fact, the parts manufactured in the LPO plants are built into almost all engines that are now used in commercial aviation. Five years ago, the company opened a new plant that would produce parts for jet engines. Are you planning new investments or hiring more workers? — In the meantime, we have started to expand this plant to span over 2,000 square metres. At the same time, we are launching projects for more new plants, so the growth will continue. Also, LPO plans to employ another 200 people in the next 3-4 years. It is very important to note that the development will continue in two directions: one is in the machining part, primarily parts made of nickel or cobalt alloys; and the other is in casting. Also, I would like to mention that the Group will soon make a decision whether to invest in a brand new foundry for castings that would use with the single crystal (SX) technology which shows how much we are and our country is trusted. There aren't many countries in Europe that can boast of mastering this technology. This also means that we are going to have some of the major companies in the aviation industry as our main customers, and perhaps as partners.

CORPORATE

Tradition of

QUALITY A Serbian company TIM Co. was established in 1993, as a company engaged in the service of medical equipment. Since year 2000, company begins to represent foreign manufacturers of medical equipment and just to mention some of them with whom we have outstanding cooperation over the past years: HOLOGIC (USA), KAVO (Germany), CODONICS (USA), PLANILUX (Germany), and BARCO (Belgium). From the second half of 2013, Tim Co. established a new department which is responsible for the placement of digital X-ray systems for use in various industrial and security applications. TIM Co. made exclusive contracts for representing the following companies in the field of industrial and security applications: GSSI (USA) Geophysical Survey Systems, Inc., YXLON Inter-

TIM Co. was always big enough to handle them successfully, and small enough to perform them better than anyone else

national (Germany) and FAXITRON (USA). Especially, we would like to emphasize very successfully cooperation with the next two Israeli companies which represent the world's top in the field of security and safety equipment: • NOVO DR (Israel), leading designer, developer and manufacturer of cutting edge portable digital X-ray systems. NOVO DR produce flat panel-based radiography inspection systems for the Security, NDT

PARTNER

Reliable partner of the leading world-renowned producers of industrial and security applications

and Science and Art sectors. • Laser Detection Systems LDS (Israel), a world-leading developer of stand-off laser-based trace detection technology, Laser Detect Systems (LDS) commercializes ultra-sophisticated, reliable and advanced laser spectrometry-based trace detection technology for homeland security, law enforcement, military and environmental safety application. Various tasks were set for TIM Co., and TIM Co. was always big enough to handle them successfully, and small enough to perform them better than anyone else. TIM Co. will continue to serve as a reliable partner of the leading world-renowned producers of industrial and security applications, as well as security and safety equipment, as well as to successfully continue to perform all tasks and goals.

TIM CO d.o.o. Jovana Rajića 5c, 11000 Belgrade • +381 11 28 36 786 • 28 36 787 Cell: +381 63 356 037 • www.timco.rs • office@timco.rs

ISRAEL 2019

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ECON OMY

WHEN CLEAN WATER IS LIQUID GOLD Israel is the only country where the desert is shrinking thanks to the abundance of water for agriculture

t’s tipped to be the key environmental challenge of the century – and there’s plenty of competition for that accolade. Water. The planet has plenty of it, but most of it is unusable, locked up in salty oceans. Almost a billion people lack access to clean water, and the forecast is for this number to grow sharply in coming decades. In the hot and arid Middle East, clean water is liquid gold. Faced with limited rainfall and a grueling climate, Israel has increasingly relied on seawater since it built its first desalination plant in Eilat in the 1960s. Israel has proven itself as a world leader in desalination after decades of research and entrepreneur-

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ship. For example, reverse osmosis – the technique by which seawater is forced through ultra-fine membranes that filter out larger salt molecules – was pioneered by Israeli scientist Sidney Loeb in the 1960s at Ben-Gurion University (BGU), which is located in the Negev, Israel’s largest desert.

ISRAEL HAS INCREASINGLY RELIED ON SEAWATER SINCE IT BUILT ITS FIRST DESALINATION PLANT IN EILAT IN THE 1960S

Israel holds the crown for long-term investment in the technology as a strategic public service. The country is home to the world’s biggest reverse-osmosis desalination plant, and can now produce more water than it needs from desalination and water recycling. This could potentially allow for freshwater exports to the surrounding region, and more importantly for the export of “virtual water” – that is, agricultural goods from vegetables and grains to clothing fibres, and manufactured products – to boost its economy. In fact, Israel is the only country where the desert is shrinking thanks to the abundance of water for agriculture.Today, no one in Israel experiences water scarcity. This is proving so energy-intensive

that the biggest plants operate mainly at night, to avoid overloading the power grid. Crucially, however, the country has also invested heavily over decades in the treatment of waste water, recycling nearly 90% of its waste water through sewage treatment plants which then redirect the treated water to irrigation. The sludge byproduct is also used as fertiliser and to generate biogas. Since 2005, wastewater reclamation and seawater desalination have become key in assuring an adequate supply — 2.1 billion cubic meters annually — to Israeli households, industry and agriculture. Some 31% of irrigation water originates from wastewater treated at more than 150 plants. Treated brackish water (not as salty as seawater) is supplied from 45 plants for both agricultural and non-agricultural needs. Sixty to 80% of Israel’s municipal water, adjusted according to season and real-time demand, flows from large coastal desal plants in Sorek, Ashkelon, Ashdod, Palmachim and Hadera. Two more desalination plants are to be completed in the next few years. Altogether, in 2025 we will be getting 1.1 billion cubic meters of desalinated water.

WORLD’S LARGEST DESAL PLANT Operational since 2013, Sorek is the largest seawater reverse osmosis desalination plant in the world. It is operated for the government by water-treatment pioneer IDE Technologies, established in 1965 by Technion-trained scientists. The highly automated Sorek plant covers 100,000 square meters and can produce 624,000 cubic meters of water daily — 20% of domestic water consumption. Mekorot distributes the desalinated, quality-tested

water (after essential minerals have been re-added) to 57 municipal water utilities throughout Israel. From Sorek, it costs about 55 cents per cubic meter; somewhat more from the other four plants. By comparison, it costs 10 cents to get a cubic meter of freshwater from Israel’s natural sources – whose supply is fast declining. In some other countries, desali-

ISRAEL CAN SERVE AS A ROLE MODEL FOR ITS RELIABLE, SUSTAINABLE, CENTRALIZED WATER SYSTEM IN AN ARID LAND WHERE THERE IS NO PRIVATE OWNERSHIP OF WATER AND EVERYONE GETS A MONTHLY WATER BILL

cubic meters to Israeli farms annually just from this one facility. Like desalination, wastewater reclamation is energy-intensive. Mekorot’s WaTech runs several R&D centers that collaborate with industry and academia – and funders including the European Union’s Horizon 2020 program – to fill unmet needs in water resources management, wastewater treatment and quality, and digital solutions. One of these centers is at Shafdan, where there is an urgent need for more compact treatment methods in order to free up some of the valuable real estate on which the plant sits. A variety of pilot projects will determine the best path forward. In most countries, an average of 30% of expensive treated water is lost through leakage before reaching customers. Israel’s leakage rate is lowest in the world, on average 7-8%.This is partly because Israel’s distribution infrastructure is relatively young and isn’t subject to extreme temperature fluctuations that can burst pipes.

ASSURING A WET FUTURE nated water costs as much as $3 per cubic meter. Desalinating about 500 liters requires 1.5 kilowatts of electricity, similar to the power consumption of a refrigerator. Sorek therefore produces most of its water at night to avoid straining the national grid.

SHAFDAN Covering 250 acres, Shafdan is the biggest wastewater treatment plant in a country that recycles more water (85-90%) than anywhere else. Shafdan, established in 1955, receives 470,000 cubic meters of raw sewage daily. Reclaiming the water from this sewage supplies 140 million

While Israeli knowhow and technology have a well-deserved place in the world spotlight, conservation and awareness are critically important in assuring adequate and affordable water. The coming generation will only have enough access to safe water if countries stop wasteful practices like flood irrigation, get leakage under control, and incentivize conservation by charging consumers the actual cost of water. Israel can serve as a role model for its reliable, sustainable, centralized water system in an arid land where there is no private ownership of water and everyone gets a monthly water bill.

Low rate of leakage

MORE HELPFUL IN BOOSTING AVAILABLE WATER SUPPLY IS ISRAEL’S EXCEPTIONALLY LOW RATE OF LEAKAG. ISRAEL’S LEAKAGE RATE IS LOWEST IN THE WORLD, ON AVERAGE 7-8% ISRAEL 2019

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DID YOU KNOW

A LIFE IN GRAFFITI

el Aviv’s street art tells a story, a multitude of stories, written on the city’s walls and it often takes an expert to decipher these urban tales. Graffiti in Israel was boosted in the early 2000s largely due to the British artist Banksy, one of the world’s most famous street art artists, who visited Israel & the Palestinian Authorities causing a stir in the local scene. Some pieces of Tel Aviv street art are just well executed art works representing the artistic flair of the city while others have a political or social criticism and can be served as a crash course to Israeli society.

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ISRAEL 2019

TE H N O LO G Y

FUTURE IS NOW

One of the greatest strengths of Israeli smart city policies is their ability to channel the potential of the country’s innovative startup scene into creating solutions to pressing needs

mart cities, digital cities, virtual cities, connected cities. Are these just trendy buzzwords? Perhaps. But these types of cities are supported by infrastructure that is more than bricks and mortar. A smart city is a fairly recent phenomenon, but its popularity is growing rapidly as it is seen as the winning strategy in resolving several detrimental urban problems such as traffic, pollution, waste treatment and more. An increasing number of smart city initiatives have been implemented across Israel in places like Tel Aviv (with an initiative like AutoTel), Modi’in and Jerusalem. With strong support by the Israeli government in the form of tenders and other government initiatives, startups and companies can now compete alongside traditional big players. Also, Israeli companies, as well as numerous startups, are entering the field, hoping to become key players in a market set to be worth more than $1.5 trillion by 2020. From the tech side, Israeli R&D companies of large multinationals including Intel, Cisco, Motorola, and Microsoft are producing sensors and apps that allow for consistent and automatic data transfer on interconnected systems. A variety of smaller Israeli firms are innovating other smart city technology, parallel to the major players. The private sector is a major influence in the emergence of smart city technology in Israel.

THE MUNICIPALITIES’ ROLE

While many forward-thinking municipalities have invested in the Internet of Things (IoT) and embraced technological innovation, how exactly smart cities should be run in Israel is more complicated. Problem with smart cities is the relationship between municipalities and technology suppliers like Cisco, Intel, Motorola, and Microsoft. Often it is the supplier who dictates the solution, while

ISRAELI COMPANIES, AS WELL AS NUMEROUS STARTUPS, ARE ENTERING THE FIELD, HOPING TO BECOME KEY PLAYERS IN A MARKET SET TO BE WORTH MORE THAN $1.5 TRILLION BY 2020 the municipality is often reliant on a single supplier. An example of a municipality trying to meet this challenge is the above mentioned Tel-Aviv. In 2014, it was awarded the title of Best Smart City in the World for its key smart city initiative, the DigiTel Residents Club. With this, municipal leaders realized that they

needed to change the way they engaged with citizens. As Israel’s leading business centre, Tel Aviv’s main priorities are supporting high-tech companies and startups so the city launched DigiTel. DigiTel cardholders have access to a personalized web and mobile platform that provides residents with individually tailored, locationspecific services delivered via email, text messages and personal resident accounts. A crucial element of Smart City advancement is the IoT revolution, and Israeli start-ups are at the forefront. The adoption of Internet of Things (IoT) has bolstered the Israeli economy across the board from high tech to defense industries. The range of possible usages for IoT devices is theoretically unlimited. There are lucrative opportunities in the Israeli market for Flemish companies with cutting-edge technologies. Yet the success of any company, especially in the IoT sector, is only possible in a secure cyberspace as every newly connected device increases the attack surface of hacks and breaches. Competition The most significant competition for foreign exporters to Israel is the rapidly maturing domestic market. The relationship between the municipality, local industries, and the private sector motivates business activity and foster sustainable solutions. Bureaucratic support and open data are valuable foundations for this.

ISRAEL 2019

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T R ADI T I ON

COMBINING FLAVORS AND FRAGRANCES

Israel does not have a universally recognized national dish; however, many consider it to be falafel, deep fried balls of seasoned, ground chickpeas sraeli Jewish traditional food come from a blend of different cultures such as the ones from Middle East, Mediterranean, Spain, Germany and Eastern Europe. Inside these different cultures it is found a difference between Ashkenazy and Sephardi culture. Ashkenazy food convey the North-East European influence due to the cold weather conditions that induced people to choose as basic in-

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JEWISH HOLIDAYS INFLUENCE THE CUISINE, WITH THE PREPARATION OF TRADITIONAL FOODS AT HOLIDAY

gredients potatoes, bread, meat and pickled food usually with sugar or honey. Sephardi Jews coming mainly from Spain, Portugal, Morocco, Turkey and Italy, due to the sunny climate, made use of fresh vegetables, fish, olive oil and spices. In addition, Jewish holidays influence the cuisine, with the preparation of traditional foods at holiday times, such as various types of challah (braided bread) for Shabbats and Festivals, jelly dough-

nuts (sufganiyot) for Hanukah, the hamantaschen pastry (oznei haman) for Purim, charoset, a type of fruit paste, for Passover, and dairy foods for Shavuot. The Shabbat dinner, eaten on Friday, and to a lesser extent the Shabbat lunch, is a significant meal in Israeli homes, together with holiday meals. During Passover, bread and other leavened foods are prohibited to observant Jews and matza and leaven-free foods are substituted. Although not all Jews in Israel keep kosher, the tradition of kashrut strongly influences the availability of certain foods and their preparation in homes, public institutions and many restaurants, including the separation of milk and meat and avoiding the use of non-kosher foods, especially pork and shellfish. All the big national food chains (except for one, ‘Tiv Taam’) stock only kosher food, and every food product is marked as kosher in some way, either in bold writing near the ingredients or by a symbol somewhere on the packaging. If you don’t read Hebrew, you can ask someone to assist you. Smaller shops can choose to do what they want: most sell kosher products, some (especially in Tel Aviv and Arab towns), sell a mixture of kosher and non-kosher items.

STREET FOOD Israel does not have a universally recognized national dish; however, many consider it to be falafel, deep fried balls of seasoned, ground chickpeas. Street vendors throughout Israel sell falafel and it is a favorite "street food". Falafel is most often served in a pita, with pickles, tahina, hummus, cut vegetable salad and often, harif, a hot sauce, the type used depending on the origin of the falafel maker. Variations

include green falafel, which include parsley and coriander, red falafel made with filfel chuma, yellow falafel made with turmeric, and falafel coated with sesame seeds. In Israel, as in many other Middle Eastern countries, "street food" is a kind of fast food that is sometimes literally eaten while standing in the street, while in some cases there are places to sit down.

THE FOOD OF THE ANCIENT ISRAELITES WAS BASED ON SEVERAL PRODUCTS OLIVES, FIGS, DATES, POMEGRANATES, WHEAT, BARLEY AND GRAPES HISTORY Israel’s culinary traditions comprise foods and cooking methods that span three thousand years of history. Over that time, these traditions have been shaped by influences from Asia, Africa and Europe, and religious and ethnic influences have resulted in a culinary melting pot. Biblical and archaeological records provide insight into the culinary life of the region as far back as 968 BCE, in the days of the kings of ancient Israel. The food of the ancient Israelites was based on several products that still play important roles in modern Israeli cuisine. These were known as the seven species: olives, figs, dates, pomegranates, wheat, barley and grapes. The State of Israel faced enormous military and economic challenges in its early years, and the period from 1948 to 1958

was a time of food rationing and austerity, known as tzena. In this decade, over one million Jewish immigrants, mainly from Arab countries, but also including European Holocaust survivors, inundated the new state. They arrived when only basic foods were available and ethnic dishes had to be modified with a range of mock or simulated foods, such as chopped “liver” from eggplant, and turkey as a substitute for veal schnitzel for Ashkenazim, kubbeh made from frozen fish instead of ground meat for Iraqi Jews, and turkey in place of the lamb kebabs of the Mizrahi Jews. These adaptations remain as a legacy of that time. As Israeli agriculture developed and new kinds of fruits and vegetables appeared on the market, cooks and chefs began to experiment and devise new dishes with them. They also began using "biblical" ingredients such as honey, figs, and pomegranates, and indigenous foods such as prickly pears (tzabar) and chickpeas. Since the late 1970s, there has been an increased interest in international cuisine, cooking with wine and herbs, and vegetarianism. A more sophisticated food culture in Israel began to develop when cookbooks, such as “From the Kitchen with Love” by Ruth Sirkis, published in 1974, introduced international cooking trends, and together with the opening of restaurants serving cuisines such as Chinese, Italian and French, encouraged more dining out. New attention was paid to the making of handmade breads and the production of high quality olive oil. The successful development of aquaculture ensured a steady supply of fresh fish, and the agricultural revolution in Israel led to an overwhelming choice and quality of fresh fruit, vegetables and herbs.

Culinary traditions

ISRAEL’S CULINARY TRADITIONS COMPRISE FOODS AND COOKING METHODS THAT SPAN THREE THOUSAND YEARS OF HISTORY ISRAEL 2019

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C ULTURE

THE FATHER OF A HEBREW LITERATURE

Israel, born out of a dream, a yearning, and then forced to face, for better or worse, what reality brings, said writer Amos Oz

child of European Jewry, the Israeli writer Amos Oz, became the father of a Hebrew literature where the personal and the public overlapped. When he first became famous, nearly fifty years ago, reviewers and readers routinely commented on his rugged, emblematic looks: the light hair and light eyes, the deep tan, the spidery wrinkles near his eyes and the corners of his mouth.

CHILDHOOD Oz was born into a Jerusalem household bursting with failed literary and intellectual ambitions, chiefly those of his father. Oz’s upbringing was coloured by this hothouse of debate and the rebellions. He was also imbued with the heroic ideal of “the new Jew”. The Yiddish mysticism and romantic melancholia of his mother, Fania, collided with the European rationalism of his father, Yehuda Klausner. When his mother took her own life, Amos was 12, and it is the death of a rebellious woman locked into a sterile marriage that

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ISRAEL 2019

haunts his memoir. After mother’s death, Amos Klausner changed his surname to Oz, the Hebrew word for strength. Klausner became Oz, the rugged, outdoor, tough guy. He left Jerusalem for Kibbutz Hulda at the age of 15, by which time he had already decided to be

AFTER MOTHER’S DEATH, AMOS KLAUSNER CHANGED HIS SURNAME TO OZ, THE HEBREW WORD FOR STRENGTH

After leaving the kibbutz in 1986, he moved to Arad. Until then, he had never owned anything more than some books and the clothes in his drawer. From the time he began earning serious royalties, with his 1968 novel “My Michael”— the story, told in a woman’s voice, of a disintegrating marriage, set against the Suez War of 1956—he plowed all his earnings back into the general account of the kibbutz. “It wasn’t until I was forty-six and moved to Arad that I had any private property, or even a checkbook,” he said. For eighteen years, he has lived in the desert outpost of Arad, a town of twenty-eight thousand, between Be’er Sheva and the Dead Sea.

ISRAEL’S ALTERNATIVE a writer. His early works in Hebrew publications included the story A Gift to Mother (1953) and a variety of poetry (1959). It was when his fiction was translated into English in 1969 that his international reputation was established.

Oz and his contemporaries – the novelist AB Yehoshua and playwright Joshua Sobol – became Israel’s alternative spokesmen. They were the artist-politicians, much as Bertolt Brecht, Jean-Paul Sartre and George Orwell had been in the first part of the century. Oz had a huge lit-

erary and personal following. Of all his artistic peers, he was the most photogenic and won admirers of all generations. Wounded in the 1967 and 1971 wars, he was Israel’s most beloved peacenik. At Kibbutz Hulda, he learned his socialist politics. Israel needed champions and it was in these direct narratives that Oz explored the complexity of a country so often depicted in the western press as a rogue state. Oz was a man of nearly obsessive order: orderly sentences, orderly bookshelves, soldierly rituals.

erary text that has also great appeal to the general public. Other novels by Oz include Ha-Maẓav ha-Shelishi (1991; Fima, 1993); Al Tagidi Laylah (1994; Don’t Call It Night, 1996); Oto ha-Yam (1998; The Same Sea, 2001). Oz’s first books were extolled by critics and scholars. Even though certain critics have argued that his later novels lack the creativity and originality of his earlier fiction, Oz’s popularity in Israel has not diminished. His autobiographical novel Sippur al Ahava ve-Ḥoshekh (2002; A Tale of Love and Darkness, 2004) was enthusiastically received by critics and readers alike.

STYLE From his earliest fiction, his writing has been marked by a unique, recognizable style. The stories are constructed as concentric circles, focusing on a psychological conflict, a psychic drama. That drama, the struggle between the ego and its shadow, is typically the kernel of the story. Although the religious element in Oz’s work is usually camouflaged, it is one of its most important themes. Among Oz’s novels are Menuḥah Nekhonah (1982; A Perfect Peace, 1986), Kufsah Sheḥorah (1987; Black Box, 1989), Lada’at Ishah (1989; To Know a Woman, 1991). Typically, Oz’s novels and novellas open with a clash between two sworn enemies (be they psychological, societal, or political), then progress toward a reconciliation of those opposites, so that previously antagonistic forces are seen as complementary, needing each other for their very existence. Oz’s texts can be read on many levels, which explains why they are popular despite their complex themes. Thus Oz’s work is a unique example of a complex modern lit-

Families

HE WAS ISRAEL’S MOST SIGNIFICANT CULTURAL AMBASSADOR FOR NEARLY 50 YEARS, PERENNIALLY MENTIONED AS A CANDIDATE FOR THE NOBEL PRIZE IN LITERATURE Oz rooted his writing in the tempestuous history of his homeland. Through his writing, both fiction and nonfiction, runs a common thread: examining human nature, recognizing its frailty but glorying in its variety, Oz consistently makes the plea for an end to ambivalence, for dialogue, for a channelling of passions towards faith in the future. With an economy of words, Oz presents the people of Israel, its political tribulations and biblical landscape.

His 40 books have been translated into more than 30 languages. He has won several literary prizes in Israel (among them the Brenner Prize in 1976, the Bialik Prize in 1986, and the Israel Prize in 1998) as well as worldwide. He has been named Officer of Arts and Letters in France and, in 1997, was awarded the Knight’s Cross of the Legion d’Honneur. In 1992, he received the Frankfurt Peace Prize, in 2004 the Literature Prize of the German daily Die Welt and, in summer 2005, the prestigious German Goethe Prize. In 2005, Oz was voted the 41st-greatest Israeli of all time in a poll conducted by Yediot Ahronoth. A month before his death, his book Dear Zealots: Letters from a Divided Land, containing essays on the rise of zealotry in Israel and around the world was published. He was Israel’s most significant cultural ambassador for nearly 50 years, perennially mentioned as a candidate for the Nobel Prize in Literature. But what he most proudly championed was modern Hebrew itself, the form of the language that Zionism revived. Oz never stopped professing an enduring love for its mongrel qualities. He thrilled at the chance to work in a tongue that had deep biblical references embedded in the root of nearly every word, but that also borrowed heavily from Yiddish, Russian, English and Arabic. Asked about his writing, Oz said, “If I were to sum up my books in one word, I would say they are about ‘families.’ If you gave me two words, I would say ‘unhappy families.’” Oz died of cancer at his home in Tel Aviv on December 28, 2018. He was 79. He left three surviving children.

ASKED ABOUT HIS WRITING, OZ SAID, “IF I WERE TO SUM UP MY BOOKS IN ONE WORD, I WOULD SAY THEY ARE ABOUT ‘FAMILIES.’ IF YOU GAVE ME TWO WORDS, I WOULD SAY ‘UNHAPPY FAMILIES” ISRAEL 2019

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TO URI S M

JOURNEYS OF THE SPIRIT

This historical record, of more than 4 million tourists in a year, is the realization of a decadesold dream of all those involved in the Israel tourism industry... 28

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ISRAEL 2019

ravel to Israel is a trip to a country where the past and the present are intertwined into one. This country is invaluable to members of the three great world religions, because the paths of Jewish, Christian and Muslim pilgrims are crossed in Israel. For the reason it is called the "Holy Land", because the spiritual tradition is its essence. Israel is one of the most fascinating, the most intriguing and the most complex countries in the world. It is geographically small, but socially, historically and geographically represents a unique association of contrasting attributes among peoples and cultures in the world. Tropical seaside

TRAVEL GUIDE

WHAT TO SEE IN ISRAEL ith its beautiful beaches, fascinating history and stunning natural landscapes, Israel offers its visitors a great variety of experiences. Here’s our guide to 10 must-see places to visit in Israel that will give a glimpse into the country’s beauty.

EILAT

After traveling around Israel, taking in history, nature and culture, Eilat is the perfect destination in which to relax. Equipped with a great variety of beautiful hotels and resorts, this paradise at the very south of Israel offers many different activities. Visitors can take diving lessons along coral reefs and enjoy the stunning under-water world of the Red Sea. Other activities include swimming with dolphins, enjoying good food, or having a calmer day at the pool or the beach. During summertime, temperatures can reach highs of over 40 degrees Celsius (104 degrees Fahrenheit), and average lows of 19 degrees Celsius (66.2 degrees Fahrenheit) during winter.

resorts, Byzantine churches, socialist style of settlement, traditions, desert lands, field cuisine, camels, all this can be found in Israel. The Mediterranean country with a distinctive suburban taste has always been an attraction for travelers who want to get to know the cradle of humanity. There is no word in the vocabulary that would at least summarize all the faces of modern Israel. A multitude of countries of a persistent nation, of tranquil and irreconcilable differences, modesty and luxury, the hyper-modern and ancient, the land of healing and open wounds,

the land of pilgrimage, the sanctuary of the shades, the sufferings, the long memory … Israel is much more than just holy sites and lots of history. The people make Israel what it is.

NAZARETH

FOUR MILLION TOURISTS Approximately four million people visited Israel last year. Last year saw an increase in tourist arrivals of 13 percent compared to 2017, and 38% compared to 2016, while tourism revenue exceeded NIS 24 billion ($6.3 billion),This historical record, of more than 4 million tourists in a year, is the real-

Located in the lower Galilee, Nazareth is an important holy destination for Christians around the world. In addition to its great religious value, Nazareth is also a city rich in culture and history, not to mention interesting archaeology, all of which will show visitors a different side to Middle Eastern charm.

ISRAEL 2019

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TRAVEL GUIDE

TEL AVIV

Tel Aviv combines relaxing beaches, a vibrant nightlife, authentic markets, culinary delights and much more. The diverse society is very open-minded, so everyone will be able to find their place here. As Israel’s center of entertainment, Tel Aviv also offers a full calendar of events throughout the year. These include the Gay Pride Parade, Purim Street Party and Tel Aviv Fashion Week.

THE KINNERET

The Sea of Galilee, or as Israelis call it, the Kinneret, is a major water source, as well as the largest freshwater lake, in Israel. The history of the lake goes way back. According to the New Testament, many of Jesus’ miracles occurred here, including his walk on the water. Today, tourists visit The Sea of Galilee to enjoy the relaxing lake, have fun building rafts, or practice various water activities.

JERUSALEM

Jerusalem is considered one of the world’s holiest cities, as it is home to important spiritual sites for three major religions. At the center you’ll find the Old City surrounded by a grand wall; here, visitors can learn a lot about Jerusalem’s religious history by visiting places such as the Al Aqsa Mosque, the Church of Holy Sepulcher, and the Western Wall. When visiting Jerusalem, visitors should make a trip to one of the museums outside the Old City, such as Yad VaShem, a Holocaust remembrance center.

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ISRAEL 2019

ization of a decades-old dream of all those involved in the Israel tourism industry... Today tourism makes a huge contribution to Israel’s economy and employment and the many tourists who come here serve as ambassadors of good will.

YOU CAN EXPERIENCE THE JEWISH AMBIENCE OF PUBLIC SPACES: CITY CENTERS, OUTDOOR MARKETS, EVEN SHOPPING MALLS Some are Christians who come to walk in Jesus’ footsteps. An increasing number come to do business. Others come to have a good time in a country that offers scuba diving at the Red Sea, dipping in the healing waters of the Dead Sea, or wind surfing on the Mediterranean. The largest segment of visitors, though, are Jews coming to Israel because they are Jews and Israel is the Jewish homeland.

They come to see not only the site of the Holy Temple and the ruins of ancient synagogues but also trendy shops and cafés, to meet not only Jews engaged in Torah study but also Jews who are diamond cutters, dairy farmers, and software tycoons. For travelers, a visit to Israel can and should be more than a typical tourist encounter with a foreign people, culture, and place. If the experience of modern Israel is what you want to learn about, then you will want to visit sites like Independence Hall in Tel Aviv, where the Zionist leadership declared Israel’s independence in 1948, or Mount Herzl in Jerusalem, where most of the state’s early political leaders are buried. You can visit the home and the burial site of David Ben Gurion in the stark emptiness of the Negev or see memorials to battles and to fallen soldiers, then meet today’s soldiers on military bases. You can visit the Knesset and the Supreme Court. You can learn about Israel’s minorities by visiting Druze villages and Bedouin encampments. Tour operators can facilitate this. You can experience the Jewish ambience of public spaces: city centers, outdoor markets, even shopping malls.

ISRAEL 2019

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