Analysis / We're better off with foreign investors
The concentration index shows that despite the various privatizations, the Israeli economy is becoming increasingly concentrated in the hands of a few. This is because the same few families monopolize the privatization process - and most other large deals.
True, compared with the previous decade, we have a larger number of families controlling the economy, but it is still a rather small number, and we would be better off with more foreign investors.
This is also the reason the state and the Bank of Israel prefer not to see the names of these 19 families among those involved in future sales or large mergers such as the planned Bank Leumi tender or the sale of the defense companies.
As of now, the state's attempts to recruit foreign investors in the privatization process have failed.
Nevertheless, the easy and fast money that has flowed into Israel, in particular into the rising stock market, has increased interest among private investment funds. Apax was one of the first, but other funds with hundreds of billions of dollars are also on the lookout for good investments.
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