Foreign companies' reciprocal procurement totaled $1.5 billion in 2006.
Reciprocal procurement in Israel totaled $1.5 billion in 2006, a 500% increase compared with 2005.
Half of this sum, $810 million, represented commitments by Intel Corporation (Nasdaq: INTC) to reciprocal procurement over the next decade. Intel made the undertaking in return for the state grant it received to finance the construction of its new fab at Kiryat Gat, although it met the aforementioned undertaking in full in 2006, and has even exceeded that amount.
Under the Mandatory Tenders Law, foreign companies that win government and public tenders are required to purchase goods and services from Israeli industries worth 28-35% of the value of the tender that they won.
Published by Globes [online], Israel business news - www.globes.co.il - on April 17, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007