DUN'S 100 - 2016

Doron Cohen

Chairman & CEO Dun & Bradstreet Israel

We are proud to continue our tradition and pres-

ent you with the 35th edition of DUN'S 100 – the

2016 rankings of Israel’s business elite.

Since its introduction 35 years ago, the DUN’s

100 rankings have grown to be recognized as a

mark of quality and excellence in business man-

agement, operations and performance. What

began with the basic ranking of the 100 leading

companies in Israel's economy, grew, together

with the developing Israeli economy, to the over

1,500 companies ranked today. In addition, the

guide includes comprehensive information re-

garding the activities held under the DUN'S 100

brand this past year, alongside reviews, analy-

ses, ranking charts and the profiles of Israel's

leading executives and companies.

1,500 companies operating in over 80 sectors

are listed and ranked in this year’s guide, includ-

ing 3 new rankings: a ranking of the leading

business consulting accounting firms, a ranking

of the leading portfolio management compa-

nies, and a ranking of the leading appraisers.

Additionally, we extended our ranking of the

best hi-tech companies to work for, ensuring

the guide offers a comprehensive review of the

sector’s leading companies.

This year we celebrated Dun and Bradstreet

Israel's 55th anniversary. We marked the anni-

versary with a number of events that highlighted

Israel’s rich economic history, while at the same

time focusing on the excitement that the future

holds for the Israeli economy.

The Israeli economy has shown impressive

growth throughout all stages of its development.

In fact, since the 1960's, the Israeli economy

has been growing, every decade, at a rate that

is 50% higher than the OECD's average growth

rate.

This is particularly impressive considering the

wars and security challenges that State of Israel

has had to confront since its founding. Yet, with

every crisis faced, the Israeli economy has grown

stronger and more stable. Israel’s consistently

strong immigration, coupled with significant

investments in education and an openness to

cross-border trade, has created a vast growth

engine for the Israeli economy.

That said, in the last months of 2016 we have

been witnessing a shift in trends, as low interest

rates change the structure of the economy and

create a new financial order.

Israel is a model of stability in an increasingly

unstable global economy. Its macro data is solid

– full employment, with high tax revenues and

a comparatively low GDP debt level. However,

if one analyzes the growth factors, it cannot be

said that the trends are all positive for Israel’s

long term. The primary driver of growth in 2015

was private consumption, while exports de-

clined in the same period.

Since the 1990's, the hi-tech industry has joined

the economy as an additional growth engine.

Along with the growth in that sector, Israel has

experienced over 9,000% growth in annual

domestic production over the past 55 years,

compared to 5,400% growth globally.

The hi-tech sector continues to serve as a

strong, reliable engine for growth for the Is-

raeli economy. Over the last two years, a record

rate of ‘investor exits’ has been achieved in the

Israeli hi-tech industry, and still, the industry's

production is a long way from realizing its full

potential. The main obstacle to full realization

remains a lack of skilled human resources. As

of the end of 2015, 7,000 companies were ac-

tive in the Israeli hi-tech industry, 79% of which

are classified as startup companies, at various

stages of the capital turnover.

Approximately 78% of startup companies that

are currently active have raised capital from

external sources at least once, such as angels,

venture capital funds and government financ-

ing. 362 hi-tech companies employ over a 100

employees, rendering an increase of 21% over

the last five years.

Over the past 15 years, the number of startups

founded in Israeli each year has increased by

850%. An examination of the annual average

number of companies started shows that be-

tween 1995-1999 (the first ‘tech bubble’) an

average of 100 companies were founded each

year. In comparison, an average of 850 compa-

nies were founded between 2010-2014.

The hi-tech fields are expected to maintain their

rapid growth rate, due to high accessibility to

funding and due to the accumulated knowledge

and experience of the industry, amongst other

reasons. One of the most outstanding character-

istics of Israel's Hi-Tech industry in recent years

has been the emergence, and involvement, of

more experienced entrepreneurs taking pro-

active roles in starting and operating compa-

nies. In 2010, the number of entrepreneurs that

had founded and managed startups at least two

times, was 16%. In 2015, that segment had

grown to 25%of entrepreneurs. The contribution

of these specific entre-

preneurs to the devel-

opment of the Hi-Tech

sector is critical. Expe-

rienced entrepreneurs

build companies for

the long term, with an

understanding of the

uses of capital that al-

lows them a greater chance of survival, further

capital raising, and developing the companies

to more mature stages.

Dun and Bradstreet's longstanding commitment

to support and strengthen the Israeli economy

is key to its leaders meeting the challenges that

arise hand in hand with the growth in all of its

sectors. Dun and Bradstreet will continue to

partake in every business crossroad, guiding

executives and decision makers , by providing

smart tools for risk management and business

opportunities, as well as accurate and depend-

able business information pertaining to local

and global businesses.

I would like to take this opportunity to thank the

employees of Dun and Bradstreet Israel, who

worked tirelessly in order to publish this high

quality edition of the DUN’S 100, covering the

breadth of activity in the Israeli economy. With

its extensive data, much of which is exclusive, it

will prove a valuable resource for anyone looking

for insights into the Israeli economy.

Sincerely yours,

Doron Cohen

Chairman & CEO

Dun & Bradstreet Israel

2016

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2016

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2016

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