Jerusalem (Israel), February 10: Foreign investments in Israel, as a result of offset agreements, reached a record of 4.28 billion US dollars in 2020, according to an annual report issued by the state's Ministry of Economy and Industry on Tuesday.
It marked an increase of 530 million dollars, or about 14 percent, compared with 2019, the report said.
Offset agreements between an importing country and a foreign company oblige the exporting company to undertake activities, distinct from the acquisition of the goods or services that form the core transaction.
Thus, a non-Israeli company, from which Israeli government entities purchase, is obligated to purchase from Israeli companies at 20 to 50 percent of the total deal amount, depending on the type of the deal.
According to the report, some 961 Israeli companies benefited from these agreements in 2020, of which 356 companies benefited from such collaborations for the first time.
The total realizations of foreign companies in Israel in offset deals over the years stand at 33.2 billion dollars.
Also, 203 new obligations were recorded from 119 non-Israeli companies in 2020, totaling 1.21 billion dollars.
The main industries in Israel that benefit from reciprocal procurement are chip development, aviation, and services, the report noted.
Source: Xinhua
