Israel
ICL’s Impact on the Balance of Payments
ICL is the second largest exporter in Israel. The export value of its products is very positive for Israel’s balance of payments and the reduction of the State’s trade deficit. ICL’s contribution is higher than the total exports of both the agricultural and textile sectors.
ICL’s Impact on the Public Saving
The public is the largest shareholder of ICL. In fact, most Israeli citizens have a direct and indirect stake in ICL through their pension and provident fund savings plans, as well as other saving and investment channels. As one of the strongest pillars of the Tel Aviv Stock Exchange, ICL shares are an anchor in many stock portfolios and the trading volume of its shares is one of the highest in Israel. Over the past decade, most Israeli citizens have had a share of ICL profits.
ICL’s Impact on the Negev Region
ICLs’ impact on the economy and quality of life in the Negev region is far-reaching. As the provider of some 30,000 families, most of them from the Negev, ICL is responsible for one-fifth of the Negev’s economic activity (worth approx. $2.8 billion), and the Company is vital for the economic soundness of this region and for its continued growth. In addition, the impact of its work and investment in the Negev influences all the communities of the eastern Negev in multiple areas, including small industrial enterprises, privately-owned businesses, commerce, welfare, education and culture.
The contribution of ICL plants in southern Israel amounts to 19% of the GDP of the Beer Sheba district (approx. 20% of the economic activity in the Negev region) and to 1.5% of the GDP of Israel (2012 figures). ICL’s contribution to the GDP is about $3.0 billion a year, of which approx. $2.8 billion in the Negev.
In addition to impacting the Negev’s economy, ICL helps the development of tourism to the Dead Sea, enabling the creation of thousands of additional jobs. Without ICL’s work, the southern basin of the Dead Sea would have dried out completely, inflicting a deadly blow on the region.
ICL invests in Israel on top of its extensive ongoing operations. Together, these investments help expand economic activity in Israel and boost its growth.
ICL invests large amounts in developing the industry. In so doing, it helps the State of Israel’s balance of payments, ensures the livelihood of some 30,000 families across Israel and serves as the economic backbone of the Negev.
Most figures above are based on a study performed by Dr. Mosi Rosenbaum, Dr. Daniel Freeman and Dr. Miki Malul of Ben Gurion University: ‘The scope of ICL’s economic influence on the Israeli economy as a whole, as well as on the Beer Sheva area, in particular’.
ICL Impact on the State Revenues
In Israel, ICL is paying a significant portion of its profits to the government for the production and sale of potash. ICL has multiple payments to the state of Israel as a result of the Company’s operations, including taxes, royalties related to extraction of potash and other minerals, and additional amounts.
ICL payments to the Israeli government are expected to increase even further due to various measures taken by Israel’s government, such as: exclusion from the Law for the Encouragement of Capital Investment; funding of the national project for ensuring the existence of the Dead Sea Hotels; increase of royalties from mining and royalties on industrial products; natural resources taxation; and the recommendations for additional taxation by the Sheshinski Committee II.
