MIRA INFORM REPORT

 

 

Report Date :

09.04.2014  

 

IDENTIFICATION DETAILS

 

Name :

OMAR AHMAD HARB

 

 

Registered Office :

Al-Tabtawi Street Gaza Gaza Strip Palestinian Authority

 

 

Country :

Israel

 

 

Date of Incorporation :

1990

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Traders, importers and marketers of foodstuff

 

 

No. of Employees

100

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

No complaints

Litigation :

Clear

 


 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Israel

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

ISRAEL ECONOMIC OVERVIEW

 

Israel has a technologically advanced market economy. Its major imports include crude oil, grains, raw materials, and military equipment. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals - following years of prudent fiscal policy and a resilient banking sector. The economy has recovered better than most advanced, comparably sized economies. In 2010, Israel formally acceded to the OECD. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Natural gasfields discovered off Israel's coast since 2011 have brightened Israel's energy security outlook. The Leviathan field was one of the world's largest offshore natural gas finds this past decade, and production from the Tamar field started meeting all of Israel's natural gas demand in 2013. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. The government formed committees to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. In May 2013 the Israeli government, in a politically difficult process, passed an austerity budget to reign in the deficit and restore confidence in the government’s fiscal position

 

Source : CIA

 

Company name and address

 

OMAR AHMAD HARB

 

Telephone         972 8 248 07 48

Fax                   972 8 248 02 42

 

Al-Tabtawi Street

Gaza Gaza Strip Palestinian Authority

 

 

HISTORY & LEGAL FORMATION

 

A foreign sole proprietorship, established in 1990 in the Palestinian Authority.

 

Operating under Dealer License No. 936388537.

 

 

OWNERSHIP

 

Omar Ahmad Harb.

 

 

GENERAL MANAGER

 

Omar Ahmad Harb.

 

 

BUSINESS

 

Traders, importers and marketers of foodstuff.

 

Among Israeli suppliers: HAIM HAMAMA

 

Customs agents: GOLDLINE ADVANCED LOGISTICS (Note: the address you provided – 27 Haorgim Street, Ashdod, belongs to this customs agency).

 

Operating from owned premises, on an area of 1,000 sq. meters, in Al-Tabtawi Street, Gaza, Gaza Strip, Palestinian Authority.

 

Having 100 employees – as we are informed by subject's owner.

We find that employees figure to be somewhat exaggerated. We believe it is well less.


 

MEANS

 

Financial data not forthcoming.

 

 

REVENUES

 

2012 sales claimed to be NIS 14,000,000.

2013 sales claimed to be NIS 14,000,000.

 

 

BANKERS

 

Bank of Palestine Plc, Main Gaza Branch (Omar EI-Mukhtar St., P.O. Box 50), Gaza, Gaza Strip, Palestinian Authority.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

We spoke with subject's responsible customs agent at GOLDLINE LOGISTICS, Mr. Nafez, but he refused categorically to disclose any data.

 

During 2012, into 2013, the Palestinian Authority entered a serious credit crisis, with a dire shortage in cash, in fact on the verge of bankruptcy, where in periods the Authorities are unable to pay salaries, delay in payment of US$ 500,000 to the private and public sectors, and fear it will be unable to redeem loans to local banks in volume of US$ 1.2 billion. In the first half of 2013 the Authority accumulated a debt of US$ 4.3 billion. With a trade deficit of US$ 4 billion (50% of GDP), the Palestinian economy, which grew by an average of 9% in the years 2008-2010 (was nearly zero in 2007), show clear signs of slow-down in the macro aspect, with 5.8% growth in 2011 in the West Bank (figures for 2012 are ambiguous).  Much of the growth was attributed to the foreign aid received, though over the last period there have been delays in the transfer of the promised donation - in 2011 & 2012 it received outside support of US$ 1.5 billion & US$ 1.78 billion, respectively, though much less than expected.

 

It should be noted that according to reports, on the private business level, the crisis is less felt at this stage in the Palestinian city's streets, though if the governmental/public sector collapses – as such warnings exists – that may drag the banking and financial sector down and eventually reach the private sector.

 

Other current indicators are still alarming, mainly in the Gaza Strip, such as high unemployment rates (19% in the West Bank in 2012, over 30% in Gaza), and poverty (70% in Gaza).

 

According to World Bank and Palestinian Investment Promotion Agency, total GDP of the Palestinian Economy in 2008 was US$ 4.6 billion, and GDP per capita is US$ 1,290. These figures include the West Bank and Gaza Strip, whose economy has been in different condition. GDP per capita in the West bank was US$ 1,900 in 2012 (was higher in 2010/11), while remains low in Gaza – around US$ 1,100 per capita in 2012.

 

In terms of foreign trade, Total Import in 2007 summed up to US$ 3,141 million (grew to US$ 4,800 million in 2013), while Total Export reached US$ 513 million. 80% of imported goods to the Palestinian Territories are carried out via Israel.

 

The Palestinian economy suffered a set-back in recent years, following the rising of the Hamas government in Gaza Strip in 2007, which led to internal conflict and clashes between the Hamas supporters and those of the Phatah movement.

While the political situation has been stable in the West Bank (controlled by Phatah) leading to economic growth in recent years, the condition in the Gaza Strip deteriorated drastically, also due to the blockage on goods movement in and out the Strip for long period. The situation in Gaza Strip improved drastically since 2010, with overseas donation and the partial lifting of goods blockage – Gaza Strip economy grew by 26% in the first 3Q of 2011 (16.5% in 2010, 1% in 2009) according to the International Monitory Fund (IMF), though situation is still critical. Yet, deterioration occurred due to the military fight with Israel in late 2012.

 

 

SUMMARY

 

We figure subject to be good for trade engagements, yet there are some general things that bother us (such as number of employees) and we could not confirm them at this stage.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.95

UK Pound

1

Rs.99.36

Euro

1

Rs.82.15

 

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

NIS

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.