Jerusalem, July 9, 2008 – The growth of Israel's 25 top multinational companies "far outpaces" that of the world's 25 leading multinationals, as well as those of the top 25 multinationals from developing countries, according to a survey conducted by Dr. Niron Hashai of the Jerusalem School of Business at the Hebrew University of Jerusalem.

According to the first-ever survey of Israeli multinational enterprises (MNEs), while Israeli multinationals have yet to reach the size of their foreign counterparts, their growth rate outpaces that of their overseas counterpaces, with a 40 percent  increase since 2004 in both foreign sales (including exports) to $21 billion and a 40 percent increase in foreign employment to 63,000 people.

Three hundred and five affiliates of the top 15 firms are located mainly in Europe (51%) and North America (25%), with firms gradually expanding into Asia.

According to Hashai, "Israeli firms invest abroad to have access to skilled labor and be close to foreign markets, as these are increasingly important as a source of their international competitiveness."

However, despite growth of foreign sales and employment, the survey, which was also headed by Dr. Seev Hirsch of Tel Aviv University, asserts that international expansion of Israeli firms does not impede domestic growth or employment.

According to the survey, the top 15's domestic employment rose by around 16 percent, while domestic sales grew by around 33 percent from 2004 to 2006.

At $7.5 billion, foreign assets of the top 15 represent over 18 percent of Israel's total outward FDI stock. The top four firms – Amdocs, Teva, Ormat and Israel Chemicals – together account for 77 percent of total foreign assets of the top 15 firms, with those of Amdocs reaching $2.1 billion.

Other firms included in the top fifteen are Strauss Elite, Ness Technologies, Elbit, and Delta Galil.

The project, which was also conducted jointly with the Vale Columbia Center on Sustainable International Investment in New York and the manufacturers Association of Israel, is part of a global effort to rank emerging market MNEs. 

For further information, contact:

Rebecca Zeffert, Dept. of Media Relations, the Hebrew University, tel: 02-588-1641, cell: 054-882-0661

or Orit Sulitzeanu, Hebrew University spokesperson, tel: 02-5882910, cell: 054-882-0016. 

Internet site: http://media.huji.ac.il