UPDATE 2003/2004

 

 

A.       Bilateral Trade figures:

 

  In mil. USD                      2000         2001                  2002          2003

 

 Export from Slovenia         19.1          24.3             22.0            27.1

 Export from Israel              70.5          32.8             30.4            31.0

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Source: Central Bureau of Statistics, Israel, http://www.cbs.gov.il

 

 

Commodity structure of bilateral trade

 

Last year, the most exported commodities from Israel were: mineral oils products, electrical machinery (transmission appliances), chemicals, mechanical appliances (automatic data processing machines), computer accessories, tools, citrus fruits, aircraft parts, optical apparatus, plastics, arms and ammunition.

 

Main exported commodities from Slovenia to Israel were: optical components, electric meters, rubber (new pneumatic tires), pulp and paper, electrical machinery, furniture and lamps

 

The trade figures do not reflect the real potential of both countries and we have a lot of opportunities for further improvement. Israeli imports represent over 33 bill. USD yearly. 0.3% of the Slovenia imports are from Israel, 0.1% of the Slovenia exports are going to Israel.

 

 

B. Selected Economic Indicators

 

GDP (in bill. EUR): 23.4 (2002)

 

GDP per capita (in bill. EUR): 11,710 (2002), 12,307 (2003), 13,247 (est. 2004)

 

GDP real, growth on yearly basis (in %): 4.6 (2000), 2.9 (2001), 3.2 (2002), 2.4 (2003), 3.5 (est. 2004)

 

Gross Domestic Products by economic sectors (in %):

Services 60.2, industry 30.7, construction 55.8, agriculture and forestry 3.3

 

Export (in mil. EUR): 9,574 (2000), 1,448 (2001), 11,083 (2002), 11,500 (2003), 12,300 (est. 2004). Export represent 57.8% of GDP.

Import (in mil. EUR): 10,801 (2000), 11,137 (2001), 11,334 (2002), 12,000 (2003),12,900 (est. 2004)

 

Unemployment (in %): 7.0 (2000), 6.5 (2001), 6.3 (2002), 6.4 (2003), 6.3 (est. 2004)

 

Budget balance (in % of GDP): -1.3 (2000), –1.3 (2001), –3.0 (2002), –1.5 (2003), –1.7 (est. 2004)

 

Current account (in % of GDP): -2.9 (2000), 0.2 (2001), 1.7 (2002), –0.3 (2003), –0.3 (est. 2004)

 

Gross foreign debt (in % of GDP): 32.8 (2000), 34.5 (2001), 40.4 (2002), 38.7 (2003), 37.2 (est. 2004)

 

FDI inflow, net (in mill. EUR): 770 (2000), 415 (2001), 1,828 (2002), 270 (2003), 450 (est. 2004)

Ongoing  privatization of several companies in the most promising industries (telecommunications, energy, banking).

Privatization of the banking sector began in early 2002 and the energy sector was scheduled for privatization in the fall 2003.  Plans for the telecommunications sector have been delayed until at least 2004.

It is expected that FDI inflows will continue to increase as more foreign investors will look to Slovenia to establish a regional presence or to strengthen their position in EU. Slovenia has already signed Bilateral Investment Agreement with Israel.

Co-operation and investment proposals: www.sloveniapartner.com

 

C. Actual Economic Background

In May 2004, Slovenia will become the one of ten new EU members, Export from Slovenia to the EU will be the trade in the frame of the internal market of 25 countries. EU of 15 countries represented the share of about 60% of the Slovenian export in 2003.

NATO membership of Slovenia is directly linked to the defense system reform of the Slovenian Armed Forces.

Among Slovenian development priorities for 2003 and 2004 are:

• development of the information society (modernization of software and hardware, IT systems solutions for public sectors)
• health system reform  / interest in co-operation of the Israeli company “Roshtov   Software Industries Ltd.” with Health Insurance Institute of Slovenia in the field of National Health Information System Implementation)
• further development of economic infrastructure (EU supported tenders for roads construction, water-supply and pipelines building).
• privatisation (telecommunications, postal services, electrical energy, banking and insurance sectors).

To achieve these objectives Slovenia set priority to invest in modern development factors. Israel can share some experience and develop business relations.

D. Areas / Fields for economic co-operation

Infrastructure

Highway construction remains a top priority (tenders opportunities).

Upgrading Slovenia’s rail link will require an additional US $2.5 billion by 2005, with priority given to European Corridors Five (east-west) and Ten (northeast-southeast).

Airports modernization (in Ljubljana, Portoroz):

up-grading and expansion of terminals, new runways, building road and train connections and

up-grading the energy-supply and utility infrastructure as well as security systems.

 

 

 

 

Information and Communication Technologies

Slovenia has been at the forefront of the Internet revolution, with one of Europe’s highest rates of Internet connections per capita or per server.

 

A: Telecommunications Equipment /Telecommunications Services

 

Slovenia is well served by its Telecommunications infrastructure.  Slovenia enjoys three GSM providers: Mobitel (since 1999, owned by the state and Erricson)

                           Si.MOBIL (Vodafone)

                Western Wireless International (since 2000, U.S.)

considering expanding other telecommunications services, including advanced satellite services.

 

Telekom Slovenije continues to make significant investments in expansion and modernization as it prepares for full privatization in 2004. Telekom Slovenije that holds a monopoly over fixed voice telephony.  All other telecommunications fields are opened to competition.

More information at : http://www.uvi.si/eng/slovenia/publications/facts/information/

 

B: IT solutions

 

Participation of Israeli subcontractors in large state projects with support from the World Bank:

-          health sector project (by June 2004), health purchasing priorities for hospitals; information standards (possibilities of supplying software solutions for IT development, partner: Health Insurance Institute of Slovenia)

-          real estate registration modernization project (by 30 June 2005), computerization and IT solution for land and building register.

 

 

Defense Industry Equipment

The Slovene armed forces are undergoing a transformation into a professional force and modernization (procurement opportunities for Israeli business). 

Slovene military began an ambitious program of defense procurement. A total of about 3.7 bill. USD is available for procurement and modernization over the next seven years.

Defense spending projected up to 2% of GDP in the next few years to meet Slovenia’s NATO commitments.

 

Financial Services

Privatization of the banking system started in 2002 (34 percent share of Nova Ljubljanska Banka to Belgian KBC) and continues.

- there is 28 banks holding licenses, 7 out of them held the license covering all business and investment banking services (Banka Koper, Banka Vipa, Gorenjska Banka, Nova Ljubljanska Banka, Probanka, SKB Banka, and Slovenska Zadruzna Kmetijska Banka).

 

Bank mergers have occurred recently; foreign partners are accepted. 

 

Insurance market has opened only recently, also to foreign partners.

 

 

 

E.  Knowledge-based-economy, focus on R&D and on innovation policy

 

Slovenia is interested in technological restructuring of the business sector.

 

Possibilities of co-operation:

- to continue in joint action under the 6FP (EU Sixth Framework Programme for R&D, 2002-2006) where both Slovenia and Israel have experience (from 5FP)

- to create further partnerships B2B, also with universities, research centers and think tanks

- to create contacts to main coordinators : Ministry of Science and Technology, Ministry of Economy and R&D agencies under it.

 

Slovene business sector is investing increasingly into applied R&D, mostly in the branches:

-          pharmaceutical industry

-          electrical machinery

-          medical and precision instruments

-          TV and communication equipment

-          transport equipment

-          rubber industry.

 

In last two years, about 8 projects were developed under bilateral agreements between Slovenia and the State of Israel.

 

Last event: on 12 January 2004, visit of the Slovene Minister of Information to Israel

 

R&D official web site: www.rtd.si

http://www.slomap.com - link to Information System »Slovenia: Your R&D and Business Partner«

 

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Other business opportunities:

Actual information at http://www.worldbank.si/

 

 

PUBLIC TENDERS

 

http://www.uradni-list.si/english/index.htm - Official Gazette (public tenders, ...) mostly in local language

 

http://europa.eu.int/comm/europeaid/tender/index_en.htm - EC tender opportunities (the Phare Programme)

 

http://www.razpisi.net/ - in local language; usage fee; tenders in SI, EU, privatization tenders in the states of ex Yugoslavia

other business opportunities: http://www.sloveniapartner.com/ 

Slovenian E-Government : http://e-gov.gov.si/e-uprava/english/index.jsp