Israel (country)

H

Energy

Imported oil and coal supply almost all of Israel’s energy, supplemented by very small amounts of locally extracted oil, natural gas, and oil shale. Egypt and Mexico supply the largest quantities of oil, while coal comes from South Africa, Australia, and the United Kingdom. Israel is a world leader in the development of solar energy production, particularly in the use of solar panels for home water heating. Research continues on alternative sources of energy such as wind power.

I

Transportation

Israel’s chief means of transportation is its road network, which totaled 17,446 km (10,840 mi) in 2004. Motor vehicle ownership has increased rapidly, reaching 234 passenger vehicles per 1,000 persons in 2004. Traffic congestion and accidents can be serious problems. A national company runs popular, affordable, and frequent bus services in many areas. State-owned railroads operate 899 km (559 mi) of track. Ben Gurion International Airport near Tel Aviv-Yafo serves as the major airport. Israel’s national airline, El Al, provides international service, while Arkia provides domestic service. Major ports include Haifa in the north, Ashdod on the central Mediterranean coast, and Elat on the Gulf of Aqaba. Because of boycotts by neighboring Arab nations, Israeli shipping remains vital to Israel’s trade with more distant partners by way of the Atlantic and Indian oceans.

J

Communications

Israel has well-developed networks for domestic and international communications. On average, houses contain at least two telephones, and there are 1,120 cellular telephones in use for every 1,000 persons. Internet and electronic mail use has grown rapidly. The Communications Ministry controls telecommunications, while the Postal Authority operates mail services. All media enjoy freedom of communication in Israel, and many emphasize news and politics. The Israeli Broadcasting Authority (IBA) is responsible for public radio and television stations. State-run Kol Israel (Voice of Israel) operates several radio stations, broadcasting in 17 languages. The IBA completely ran television broadcasting until 1993, when a law was passed that opened the field to commercial stations. Many Arab households tune into television broadcasts from neighboring states. Israel has 34 daily newspapers; about half are in Hebrew and half in other languages, including Arabic and English. Prominent dailies include Ha’aretz, Davar, Ma’ariv, Yedioth Ahronoth, and the Jerusalem Post. There are also more than 1,000 periodicals.

K

Foreign Trade

The cost of Israel’s imports has exceeded the value of its exports every year since 1948. This trade deficit, while growing in dollar amount to $12.8 billion in 1996, is decreasing in relative terms. In 1950 exports financed only 14 percent of imports; in 1996 they financed 71 percent. Grants and loans from the United States and other governments, donations from Jewish fund-raising organizations, bank loans, and funds brought in by immigrants have covered annual deficits. Israel owes the bulk of its external debt to the United States. Expanding exports has been a primary goal of the government throughout Israel’s history.

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Chief imports include rough diamonds, machinery, chemicals, vehicles, crude petroleum, and consumer goods. Primary sources of imports include the United States, Belgium and Luxembourg (which constitute a single trading entity), Germany, the United Kingdom, Italy, and Japan. Main exports include finished diamonds, machinery and parts, chemicals and chemical products, electronic equipment, and agricultural produce (especially citrus fruits). Trading partners for exports include the United States, the United Kingdom, Japan, Belgium and Luxembourg, and Hong Kong.

Israel is a member of the World Trade Organization and has enjoyed free trade agreements for industrial goods with the European Union (formerly the European Community) since 1975 and the United States since 1985. Israel also participates in the United Nations Conference on Trade and Development (UNCTAD), the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC), and the International Monetary Fund (IMF).

L

Currency and Banking

Israel’s currency is the new Israeli sheqel (NIS), consisting of 100 agorot (4.50 NIS equal U.S.$1; 2006 average). The Bank of Israel (1954) issues currency and handles government banking transactions. There is a flourishing banking sector with many specialized merchant banks, foreign banks, mortgage banks, and banks set up to aid industry and agriculture. A stock exchange is in Tel Aviv-Yafo.

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