Communicated by the Ministry of the Economy Spokesperson)

The Investment Center at the Ministry of Economy announces its 2014 annual report, a year characterized by high demand for capital investments. During the course of the year, approximately 150 requests were submitted to the Investment Center, of which 75 requests for very small, small, and medium-sized industrial operations were authorized. In addition, 10 large companies had authorization letters for grants approved.

•  Investment programs valued at NIS 534 million were authorized for the 10 large companies, as well as NIS 106 million in grants for these investments.

•  The investments are expected to yield a NIS 988 million increase in sales, including NIS 963 million for export.

•  1,416 jobs are expected to be created as a result of these investments – all in periphery development regions.

•  75 very small, small, and medium-sized companies received authorization for investment programs worth NIS 2 billion, for which NIS 204 million was awarded in grants.

•  An additional NIS 1.908 billion is expected in sales, including NIS 1.090 billion for export.

•  An additional 1,421 jobs are expected to be made available – all in periphery development regions.

In addition, the Investment Center at the Ministry of Economy together with the Ministry of Finance, has authorized a total NIS 22 billion investment by Intel, including a government grant of $300 million to be spread over 5 years. The investment will lead to thousands of additional new positions, mostly in the periphery. This is the largest investment that has ever been made in Israel by a foreign company.

The Investment Center operates special employment tracks that provide incentives for employers to increase the number of participants in the workforce and support the integration of priority groups in employment. The aid is provided by participating for a limited period in the salary costs for new employees. Within this framework, the emphasis is placed on absorbing employees in National Priority Areas in general and the periphery in particular.

During the 2014 fiscal year, the Investment Center authorized 94 requests within the employment track for absorbing members of priority groups, at a cost of NIS 107 million, which will add approximately 1,700 new positions in the geographic and social periphery. Additionally, a special employment track has been authorized for highly paid employees, which is intended to support the absorption of workers in initiatives within National Priority Areas and their employment in hi-tech industries, including software, cyberspace and computers, at a budgetary cost of NIS 33 million. This will enable approximately 200 highly paid employees to be given work in the periphery.

During the 2014 fiscal year, the Ministry of Economy operated a special green track, within which 44 grant requests were approved at a total of NIS 15 million, to aid in the funding of connection to the natural gas distribution system in cooperation with the Ministry of Energy and Infrastructure and the Natural Gas Authority.

Director of the Investment Center at the Ministry of Economy Nahum Itzkovitz:

These investments were all carried out in the State of Israel’s peripheral areas to enable the expansion of their economic activity. The investments also affect job openings at plant suppliers and service providers, in addition to the direct positions created. In 2014, a particular emphasis was placed on investments that show innovation for increasing productivity and positions paying relatively high salaries.”

“Many organizational and managerial activities were carried out during 2014, with the goal of improving service and transparency, and providing solutions in the shortest possible time, so as to enable growth and increased financial activity in the geographic and social periphery region. I am hopeful that the budgetary framework will be significantly expanded within the 2015 budget, allowing a broader solution to be offered to more companies and activities, and creating high-quality and sustainable places of employment, that will also integrate populations currently excluded from the labor market.”