‘Peace starts from economic ties’
Panel tackles 70 years of Israeli innovation
“We can talk about diplomacy and security,” Dr. Efraim Chalamish said on Sunday, but the “really remarkable” part of Israel’s story centers around its economy.
Chalamish, an international economic law scholar and practitioner, made his comments while moderating a panel at the Jerusalem Post Annual Conference in New York City with experts from Israel’s business community. Panelists included Gabriel Hamami, CEO of Bank Hapoalim’s BHI; Yoram Elgrabli, general manager of the North and Central American division of EL AL Israel Airlines; Uri Levin, president and CEO of Israel Discount Bank of New York; and Inon Elroy, economic minister to North America.
The panel examined the last 70 years of Israel’s economy and shared their thoughts on what it will look like next year, in the next decade and in 70 years.
Elroy said the key to Israel’s future is building on its existing competitive advantages in the areas of cyber, financial technology and life sciences, and getting those who are not currently involved in Israel’s labor force involved, “so they can drink from this fountain.”
Hamami said, “My hope, my dream and my belief for the State of Israel is that it will play an even more significant role in the world economy, on world health and humankind as a whole.”
To achieve such goals, Levin suggested Israeli companies will need to become more global, something he said is already starting.
“I think there is a trend of Israeli companies going global,” said Levin. “Israeli companies are coming to understand that success is not just having operations and [an] IP [address] in Israel but building global operations. Becoming global with an Israeli edge is key.”
He explained that the notion of a start-up being sold at an early stage is changing. In the coming decades, he said, he expects to see a lot of Israeli companies moving to the United States and trying to build global operations. This, he said is part of the trend toward what has become known as impact investing.
“What’s changing with Jews in the US, is a shift from philanthropy to impact investing,” he said. “Rather than just giving money, Jews want to invest in something meaningful and that means investing in Israel, which is both meaningful and financially beneficial.”
Levin also noted that he believes there will be a shift from Israeli companies doing research and development in which American companies invest, to an era of increased cooperation.
El Al Airlines is already at the forefront of such an innovative collaboration, according to Elgrabli. The airline, he said, has always been the bridge between Israel and Jews in the Diaspora. Today, it is partnering with Lufthansa, Jet Blue and Boeing to provide a place where startups and entrepreneurs can beta-test their new aviation products.
“We are proud to say that there are at least five start-ups that are working on this platform,” Elgrabli said. “After they test their products and succeed to show the validity of these products, we will push their products to other carriers in the tourism industry.”
El Al recently acquired 16 Dreamliner aircraft, investing more than $1.25 billion. Four of the new planes are already in operation.
“Who would have believed before that Air India would fly over Saudi Arabia to land in Israel?” Elgrabli asked. “My dream is to pay the first invoice for overflying fees over Saudi Arabia for El Al,” he said. “Peace starts from economic relations.”
To that, Elroy added: “If you want to innovate, contact us.”