News

Maplecroft report highlights security and regional political tensions as key risks for companies operating in Israel

25/08/2010

Companies with operations and suppliers in Israel face significant risks from terrorism, internal violence, regional instability and complicity in human rights violations by state security forces, according to a new in-depth country report by Maplecroft.

Security risks for companies with operations and investments in Israel remain of overriding concern. Organisations operating in the country face a high risk of losing personnel and assets due to violence between Israeli security forces and Palestinian militants over the status of the Palestinian territories.

Hamas continues to pose a serious security risks to Israel, primarily from Gaza, but it is not the only group to do so. Palestinian Islamic Jihad, the Popular Front for the Liberation of Palestine and the al-Aqsa Martyrs' Brigades have also been involved in suicide attacks against Israel.

Localised terrorism risk

The risk of violence in Israel is reflected in Maplecroft's Conflict Intensity Risk Index, where Israel is rated as an extreme risk country and ranks 25th out of 196. A similar picture is illustrated in Maplecroft's Terrorism Risk Index, where Israel ranks 17/196 and high risk.

The Lebanon-based Hezbollah has reportedly stockpiled weapons provided by Iran and Syria to use against Israel. The security risk posed by Hezbollah was highlighted during the 34-day war of 2006, when it launched approximately 4,000 rockets - some deep into Israel. "Even though Hezbollah and Israel are understandably loath to engage in serious conflict at present, the prospect of another conflagration cannot be discounted given their mutual enmity," said Anthony Skinner, Principal Analyst at Maplecroft.

The Israeli government generally protects the human rights of its citizens but discrimination against Israeli Arab citizens, Palestinians and other religious groups persists. Discrimination is also a problem in the labour market and reports of poor working conditions and forced labour among migrant workers represent a risk of potential complicity in the actions of local business partners throughout the local supply chain. Companies that operate in Israel also face the potential risk of complicity in the actions of members of the security forces that guard business assets. International human rights NGOs continue to accuse members of Israel's security forces of serious human rights violations. However, the Israeli military argues that its rules of engagement are within law, strictly regulated and rigorously enforced.

There is little to suggest that the security and human rights situation will improve in Israel. Previous negotiations between the Israeli government and Palestinian authorities for a peace settlement have failed and the upcoming talks between President Abbas and Prime Minister Benjamin Netanyahu are already fraught with tensions.

The Political Risk Report - Israel provides detailed analysis, maps, stakeholder viewpoints and key recent events. Comprehensive risk analysis is broken down into individual chapters focusing on: governance framework, political violence, the regulatory and business environment, human rights and society, and an economic overview.

To buy the report contact Maplecroft at info@maplecroft.com or register for trial access to see examples of Maplecroft's indices, maps, scorecards, briefings and in-depth reports.