Arab Today, arab today israel seeks to turn gas to gold
Last Updated : GMT 11:46:13
Arab Today, arab today
Arab Today, arab today

Israel seeks to turn gas to gold

Arab Today, arab today

Arab Today, arab today Israel seeks to turn gas to gold

Jerusalem - AP

Israel is putting together a plan for a national investment fund that would tap an anticipated natural gas bonanza to fuel both an export-geared economy and provide a nest egg of $10 billion in under a decade for future generations. The proposed Israeli sovereign wealth fund is still in the planning phase, but officials have said some of the revenues would be invested in strategically critical targets such as education and health. Also being discussed are using some of the proceeds to endow a new set of export-oriented, technology-based industries that would build on what has traditionally been the country\'s greatest resource: human capital. The fund would mark the beginning of a strategic development for the Jewish state in an oil-rich region where it has few friends and has had to rely on its own industry and outside aid for economic growth. It would also make it the latest member of a club whose members have typically been energy-exporting titans such as Saudi Arabia, the United Arab Emirates and Norway. Israel would become “a role model of a developing economy that moved into developed economy status,” said Glenn Yago, senior director at the Milken Institute economic think tank. The Israeli government enlisted the institute to map out alternative structure for such a fund, drawing on the experiences of other nations with similar investment vehicles. The driving force behind the fund was the discovery in 2009 and 2010 of two large offshore natural gas fields with estimated reserves of 25 trillion cubic meters of gas. The fields were a boon for resource-poor Israel. The late Prime Minister Golda Meir famously lamented that Moses had picked as the Jewish homeland “the one spot in the Middle East that has no oil.” A consortium headed by U.S.-based Noble Energy Inc. has said it would begin extracting gas from the deep-water fields in about a year, with production expected to far exceed Israel\'s domestic gas needs. Even before the first gas has been extracted, Israeli officials are working on what to do with the proceeds from its sale. Officials estimated gas receipts will bring in between $2 billion to $3 billion per year. Based on Bank of Israel and Finance Ministry assessments, the fund could be managing $10 billion by 2021, with revenues starting to accumulate by 2015, said Yago. Recommendations for the fund’s possible structure were recently submitted to the office of Prime Minister Benjamin Netanyahu, but no decision has yet been taken on who will manage the fund and where the investments will go, officials said. Once a proposal had been finalized, it would need parliamentary approval. A government official noted it would likely take until the end of the decade for the fund to start building a critical mass. The official spoke on condition of anonymity because no formal decisions had yet been taken. “We are looking at sharing this wealth with future generations and at the same time creating a safety cushion,” Eugene Kandel, the head of Israel’s national economic council, told reporters last year. In comparison to its regional neighbors, Israel’s sovereign wealth fund would be minuscule. Saudi Arabia, the world’s largest oil exporter, has reserves of over $500 billion while even civil war-scarred Libya has an investment fund and reserves estimated at anywhere from $70 billion to $110 billion in total. Given those kinds of limitations, officials appear to be setting modest goals for the fund. To avoid typical pitfalls such as inflation that countries grapple with when large amounts of cash are injected into the economy, the Israeli fund would likely invest most of its revenues abroad. The returns from those investments -- not the principal -- would then be channeled into the local economy for purposes like education. It would also further stimulate an economy that weathered the worst of the global financial crisis in 2009, but must grow much more rapidly if it is to narrow income gaps that helped to stoke mass protests across the country last summer. Some senior Israeli officials have proposed using some of the money to develop new industries rich in intellectual property, like life sciences, water and alternative energy. That emphasis would build on the entrepreneurship and creativity that has helped Israel emerge as a world-renowned center of information and communications technology. That sector alone has helped to boost the broader economy, which has seen per capita GDP nearly triple over the past 20 years to roughly $30,000 -- near the European Union’s average. Milken’s Yago estimates economic growth would have to double its projected 2012 rate of 2.8 percent to bridge income divides that have strained Israel\'s social fabric. “You can only do that if you increase the level of growth by increasing the level of exports,” not only in existing industries but new, knowledge-based ones, he said.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today israel seeks to turn gas to gold Arab Today, arab today israel seeks to turn gas to gold

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today As Olympics loom, China plunges into snow biz

GMT 10:08 2017 Tuesday ,28 February

As Olympics loom, China plunges into snow biz
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Kalam Nawaem made a difference in social issues

GMT 06:43 2017 Tuesday ,28 February

Kalam Nawaem made a difference in social issues

GMT 21:32 2017 Friday ,24 February

Dubai announces crude oil price for May

GMT 13:37 2017 Thursday ,23 February

Oman oil price rises 30 cents

GMT 05:33 2017 Thursday ,23 February

Oil slips but close to multi-week high

GMT 17:44 2017 Wednesday ,22 February

Gasoline 98 octane price surges LL100
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Parliament considers solutions to overpopulation

GMT 20:27 2017 Monday ,27 February

Parliament considers solutions to overpopulation
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Aspires present the story of Egypt’s first president

GMT 06:18 2017 Sunday ,26 February

Aspires present the story of Egypt’s first president
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 06:28 2017 Tuesday ,28 February

Dumbphones survive rise of the smartphone

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday