Israel's Economy is Strong and Hard to Beat, Says Bezeq Chairman
Translated & summarized from Globes by baba
The Chairman of Bezeq Group, Chairman of Bezeq Group, described Israel's economy as strong and difficult to beat, attracting sophisticated foreign investors. He noted that Israel's resilience in global crises and its advanced digital infrastructure, particularly Bezeq's fiber optic network, are key attractions. The Chairman of Bezeq Group also discussed the challenging Israeli cellular market, advocating for consolidation, and mentioned Bezeq's increasing foreign investment share and efforts to mitigate boycott risks.
The story in 5 lines · by baba
- Israel's economy is strong and difficult to beat, attracting sophisticated foreign investors, according to Bezeq Chairman.
- Foreign investment in Bezeq has surged from under 10% a decade ago to nearly 40% today.
- The Chairman of Bezeq Group highlighted Israel's resilience in global crises and its advanced digital infrastructure as key economic strengths.
- The Israeli cellular market is described as 'battered' and highly competitive, necessitating consolidation.
- Bezeq is working to mitigate boycott risks and attract more foreign investment, aiming for 70% foreign ownership.
The Chairman of Bezeq Group, Chairman of Bezeq Group, believes Israel possesses a highly competitive economy that is difficult to surpass, citing strong infrastructure and a growing population as key advantages. Speaking at a Globes conference, the Chairman of Bezeq Group highlighted that sophisticated foreign investors, such as BlackRock and Fidelity, are increasingly recognizing Israel's economic potential beyond short-term trends. He noted that while Israel is a developed market, it exhibits characteristics of an emerging market, including rapid GDP growth within the OECD.
The Chairman of Bezeq Group explained that Israel's perceived risk premium has softened, despite political and geopolitical uncertainties. He argued that Israel has consistently emerged from global crises stronger than expected, a resilience that sophisticated investors are beginning to factor into their models. The primary concerns for foreign investors, he stated, revolve around instability, both economic and political, and regional relationships, which are crucial for sustained economic growth and a positive future.
Regarding Bezeq, the Chairman of Bezeq Group reported a significant increase in foreign investment, from less than 10% a decade ago to nearly 40% currently. He attributed this growth to Bezeq's robust digital infrastructure, including fiber optic networks connecting every household, and its strategic position to facilitate data flow between Asia and Europe. He also mentioned the company's successful transition from legacy businesses and its focus on future-proofing for AI and data growth.
Discussing the Israeli cellular market, the Chairman of Bezeq Group described it as "battered" and highly competitive, with prices for unlimited monthly plans at unprecedented lows globally. He stressed the need for market consolidation to enable necessary investments, citing examples like Golan Telecom and Hot Mobile, and Bezeq's own process with Wi-Com. The Chairman of Bezeq Group also touched upon the challenges of structural separation reforms and the importance of regulatory clarity for companies like Yes.
The Chairman of Bezeq Group also addressed the issue of boycotts, stating that companies engaging with Bezeq have already overcome initial hesitations. He acknowledged a past incident involving the Norwegian fund but deemed it a marginal event that did not significantly impact the market, emphasizing the responsibility of business leaders to collaborate with the government to prevent further such occurrences.