Alona Fisher-Kamm, Ambassador of Israel to Serbia – A country doesn’t have to be rich or big to be successful

(Alona Fisher-Kamm) Main Israeli investors came following the democratic changes in 2000 and the level of overall investments is more than EUR 1 billion over the years, Ambassador of Israel to Serbia Alona Fisher-Kamm says in her interview for eKapija. In addition to big projects in the real estate sector, she says, there’s a growing interest of Israeli investors to invest in other areas such as agriculture, water, renewable energy and waste treatment sector.

The reason for this, she explains, are Serbia`s skillful labor force, diversified trade partners and valuable free trade agreements, as well as the state policy to offer incentives to investors, while making the promotion of the growth of the IT sector one of its priorities. However, the potential is far from being exhausted, Fisher-Kamm emphasizes.

eKapija: Israel is one of Serbia’s most important trade partners. According to your data, what did the trade between Israel and Serbia amount to last year? In which fields can companies from the two countries establish cooperation?

– Our two countries share historic friendship and excellent political relations. Economically speaking, in the last few years we are witnessing an increase in trade exchange. In 2016 bilateral trade went up by 50% on annual basis. However, the potential is far from being exhausted.

Bilateral trade of goods amounted to USD 66 million last year, excluding diamonds and special purpose goods. However, about half of the Israeli export are services so I estimate that the export of goods and services is much higher. In addition, economic activity between the two countries consists mainly of Israeli investments in Serbia.

Among most imported items are medicaments, irrigation systems and equipment and fertilizers. Among most exported items are articles of nickel, animal feed, parts for turbo-jets. The trade portfolio between our two countries is diversified and expanding by the years.

As for the segments of joint interest and potential for enhancing economic cooperation I would stress the following: innovation and hi tech, agriculture, water and clean tech, tourism along with real estate developments which became a flagship of Israeli investments in Serbia.

eKapija: Israeli investors have been dominant in Serbia for a number of years now regarding investments in residential and commercial complexes. Why is real estate in Serbia so popular among Israeli investors and to what extent are Israeli companies interested in investing in other fields as well?

– Main Israeli investors came following the democratic changes in 2000. The level of overall investments is more than EUR 1 billion over the years and is mainly focused in real estate sector which made us a leading investor in the very area in Serbia.

Current efforts of the Serbian government to simplify and accelerate procedures in construction is well appreciated by the investors.

Israeli real estate investors are very active in the neighboring countries as well and identify the region as prosperous with high potential.

Yet, there’s growing interest of Israeli investors to invest in other areas such as agriculture, water, renewable energy and waste treatment sector. Recently, an Israeli company has made significant investment in renewable energy in the country. Beside, there’s several Israeli manufacture and service companies operating in the country in the last years. Together, these companies employ more than 1000 people, contributing to Serbian economy.

Per our knowledge, there are round 50 Israeli companies operating in Serbia. Of course, probably there’s more having in mind local sales representation and the fact companies are not obliged to inform the Embassy of their registration.

eKapija: How often do Israeli businessmen turn to you for advice as to how to reach the Serbian market and how do you present Serbia as an investment destination to potential investors?

– Our policy and mandate is to open doors of state institutions and agencies to our companies and to make sure they are treated in equal manner to any other investor in the country. Bilateral agreements are an important tool to accomplish this mission.

Usually, those companies that wish to enter the market contact us for getting better insight in the investment opportunities, climate for doing business, legal framework, potential partners etc.

eKapija: What are the biggest advantages of Serbia when it comes to attracting investments? What are its flaws and in which areas can it improve?

– Serbia has skillful labor force, diversified trade partners and valuable free trade agreements with neighboring countries and the EU as well as with Russia, Turkey, Belarus etc.

With incentives policy for investments it is an attractive destination for manufacturing and export to the above mentioned countries. There`s a growing sector of IT industry that can speed up the economy, make it more competitive using existing know-how in the most efficient way.

This sector is on the top agenda of the Serbian government with many activities and measures taken. Our Embassy strongly supports these efforts by sharing Israeli experience and know how.

Rule of law, transparency of tendering procedures, predictability and reliability of business environment do matter to our and and any other investor. As an Embassy, we strongly support further reforms in this regards which would ease doing business and creating new jobs.

eKapija: Representatives of Serbia often say that, to them, Israel`s economy is a good example of development and growth based on the latest technologies and innovations. In what way has your state helped this development?

– Israel based its economy on the export of know how. Due to the scarcity of natural resources, after the macroeconomic crisis we faced, our government made a strategic decision of investing in R&D and making hi-tech the driving force behind our economy. The government encouraged industrial research and innovative projects.

The adoption of the Law on Industrial R&D gave the necessary legal framework. In order to support local start ups, the government implemented a program which resulted in creating first VC funds in Israel and promoting VC industry with incentives and tax exemptions which are still relevant. Today, there are more than 70 active VC funds in Israel.

eKapija: Israel and its citizens have faced numerous challenges throughout their history, just like Serbia. It seems that, when it comes to your country, this has additionally stimulated the development of innovations, especially the IT industry in recent times. What could, then, Serbia learn and implement from the Israeli experience?

– For me, the first important thing to be learned from the Israeli experience is that the country doesn’t have to be rich or big in order to develop an efficient ecosystem for innovation.

Israel is a medium sized country with limited internal market and no natural resources. It lives under very special geopolitical conditions that restraints the possibility to develop economic relations with its neighbors. This is why Israel has created an export oriented economy based on services and put an emphasis on human resources as the driving force.

We are used to say that necessity is a mother of all inventions and thus success of our innovation sector is thanks to the possibility to convert shortages and disadvantages into advantages.

Israeli experience can serve Serbia and it should be adapted to the local needs and conditions. Every country has its own specifics and there’s no universal recipe for the creation of successful ecosystem.

eKapija: Serbia and Israel are also bonded by strong cultural and historical ties. What is cooperation between Israel and Serbia like in other fields and how does your embassy promote Israel in Serbia?

– The embassy takes part in various music and dance festivals by bringing Israeli performers. We organize a film week in all main cities in the country wherein the newest Israeli achievements are being presented. Beside, we actively cooperate with publishing houses in translating Israeli literature.

Our Embassy is keen on expanding activities beyond Belgrade. In this regard we organize Days of Israel in different cities where the local audience enjoys Israeli culture, arts and lifestyle. Our upcoming events are being regularly posted on our FB page `Israel in Serbia` as well as the other information on Embassy`s activities.

Tourism exchange between Israel and Serbia is on the rise with dramatic increase of Israeli tourists last year and as the figures show, we’ll break the record this one.

This is due to Israelis feeling warm welcomed and safe here with similarity in mentality. A combination of good restaurants, night life, shopping and natural attractions such as mountains and rivers adds to the success. Last but not the least, there’s Jewish heritage present and preserved that is part of the tourism offer as well.

Milos Vlahovic

Ambasada Izraela Beograd

Alona Fisher Kamm

Embassy of Israel in Serbia

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