MIRA INFORM REPORT

 

 

Report Date :

21.10.2014

 

IDENTIFICATION DETAILS

 

Name :

DAWOUD MUNIB AMAD

 

 

Registered Office :

P.O. Box 579, Al Anbiya Street, Nablus West Bank Palestinian Authority

 

 

Country :

Israel

 

 

Date of Incorporation :

1940

 

 

Legal Form :

Sole Proprietorship

 

 

Line of Business :

Importers and marketers of coffee, spices, beans, nuts and dried fruits.

 

 

No of Employees :

20

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Satisfactory

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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

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. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. Between 2004 and 2011, growth averaged nearly 5% per year, led by exports. 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. 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. The economy has recovered better than most advanced, comparably sized economies, but slowing demand domestically and internationally, and a strong shekel, have reduced forecasts for the next decade to the 3% level. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds this past decade. The massive Leviathan field is not due to come online until 2018, but production from Tamar provided a one percentage point boost to Israel's GDP in 2013 and is expected to contribute 0.5% growth in 2014. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. Israel's income inequality and poverty rates are among the highest of OECD countries and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. 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. Over the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only 9% of the workforce, with the rest employed in manufacturing and services - sectors which face downward wage pressures from global competition.

 

Source : CIA

 


Company Name & address

 

MUNIB D AMAD

 

Correct Name:       DAWOUD MUNIB AMAD

                            Telephone         972 9 237 30 03 /5

                            Fax                  972 2 654 43 35

                            Email: munib.amad@gmail.com

                             P.O. Box 579

                            Al Anbiya Street

                            Nablus West Bank Palestinian Authority

 

 

 

HISTORY & LEGAL FORMATION

 

A foreign sole proprietorship, established in 1940 in the Palestinian Authority.

 

Operating under Dealer License No. 972261713.

 

 

OWNERSHIP

 

Dawoud Munib Amad.

 

 

GENERAL MANAGER

 

Munib Amad, son of Dawoud Munib Amad.

 

 

BUSINESS

 

Importers and marketers of coffee, spices, beans, nuts and dried fruits.

 

Sales are to all sort of customers spectrum.

 

Purchasing is 90% from import and the rest is mainly from Israeli suppliers.

Among Israeli suppliers: HAMAMA BROS., SONS OF GEORGE SHUKHA.

 

Operating from rented offices premises, on an area of 400 sq. meters, in Al Anbiya Street, and from owned warehouses, on an area of 4,000 sq. meters, in Balata, Nablus (at the outskirts of Nablus), both in the West Bank, Palestinian Authority. Premises also serve sister company AL-AMAD CO.

Having 20 employees serving the Group.

 

 

MEANS

 

Current stock is valued at NIS 6,000,000 – NIS 7,000,000.

 

Other financial data not forthcoming.

 

 

REVENUES

 

Consolidated sales for subject and sister AL-AMAD CO.:

2012 sales claimed to be NIS 50,000,000 – NIS 60,000,000.

2013 sales claimed to be NIS 40,000,000.

Projected 2014 sales, based on current pace of sales, is NIS 30,000,000.

The decrease in sales is due to the worsening macro-economic and the political situation concerning the Palestinian economy.

 

 

OTHER COMPANIES

 

AL-AMAD CO. FOR TRADE & INVESTMENTS, a registered Palestinian company, owned by Dawoud Munib Amad and his son, processors, packers, suppliers and marketers of foodstuffs.

 

 

BANKERS

 

The Housing Bank for Trade and Finance (Iskan Bank), Nablus Branch (Al Hussein Circle, P.O. Box 1660), Nablus, West Bank, Palestinian Authority.

Al-Quds Bank, Tulkarem Branch (Omar El-Mukhtar Street P.O. Box 1883), Nablus, West Bank, Palestinian Authority.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

This is a long-established business.

 

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).

During June-August 2014, Israel was engaged in a military conflict with the Palestinian Hamas Regime, which controls the Gaza Strip (currently a cease fire is held). The conflict caused a large degree of damage to the Gaza Strip (though certain areas were more affected than others).

 

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 several years ago years, following the rising of the Hamas government in Gaza Strip in 2007, which led to internal conflict between Hamas supporters and those of the Phatah movement, which controls the West Bank. While the political situation has been stable in the West Bank, leading to economic growth in recent years, the condition in the Gaza Strip deteriorated drastically, as result of military clashes with Israel, and also due to the blockage on goods movement in and out the Strip for long period. The situation in Gaza Strip improved drastically in 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), and deteriorated again in late 2012 a result of another military fight with Israel. Situation was quiet for a year and a half, but during July-August 2014 the fighting with Israel resumed, causing destruction to extensive parts in Gaza, practically paralyzing the Gaza economy during that period, and it would now take years to recover.

 

 

SUMMARY

 

Good for trade engagements.

Maximum unsecured credit recommended US$ 100,000.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.29

UK Pound

1

Rs.98.62

Euro

1

Rs.78.15

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 


 

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.