Enterprises that highlight business cooperation between Israel and her neighbors (who have signed peace treaties) are flourishing. According to the Israeli daily Ma'ariv, in the last two years Israeli companies have set up 30 plants in Jordan and 4 in Egypt, which employ 9000 local workers altogether. Some of these plants were set up jointly with local businessmen.
The main Israeli investment in Jordan and Egypt is in the textile industry. Israeli industrialists take advantage of the cheap labor available in these countries. The largest Israeli employer in Jordan and Egypt is the Delta Galil Company which employs 2000 workers in two plants in Egypt and 1600 workers in its plant in Jordan.
The average estimated cost for an Israeli company to set up a plant in Jordan or Egypt is approximately $1 million. In all, Israeli companies have invested some $35 million in establishing plants.
Among the four Israeli plants in Egypt, two belong to Delta and one to Tefron; another plant is currently being set up by the Bagir Company in partnership with a local company, and it is supposed to commence operations in April 2000. There are a total of 3000 Egyptians working in Israeli plants.
Among the Israeli companies that have established plants in Jordan are the textile companies Delta, Polgat, Argaman, Kitan, Lodzia Rotex, Gibor Sabrina, Macpel, Standard Textile, Ekstein Knitwear, Tango, Castro and Greenholdz; the jewelry company Paz-Chen; and Kaniel (producer of tin cans). In Jordan, a total of 6000 workers are employed in Israeli plants.
Negotiations are currently being held to establish additional plants in both countries.