Establishment Of Advisory Committee On Foreign Investment

Author:Mr Simon Weintraub, Daniel Green and Micki Shapira
Profession:Yigal Arnon & Co

Israel's security cabinet recently approved the establishment of an advisory committee on foreign investments in Israel. The committee will be comprised of senior representatives from the Ministry of Finance, Defense Ministry and the National Security Council, as well as observers from the Foreign Ministry, the Ministry of Economy, the National Economic Council and an additional representative from the Ministry of Finance. The purpose of the committee is to provide a mechanism for regulators to take national security considerations into account when reviewing transactions in the communications, infrastructure, finance, energy and transportation sectors. Where a transaction raises potential national security concerns, regulators may consult with the committee on a voluntary basis in order to engage in a multi-disciplinary consultation from various perspectives.

At least for the time being, the committee does not have specific enforcement mechanisms at its disposal or the authority to nullify transactions, nor does the cabinet decision require any notification, disclosure or reporting obligations beyond those that currently exist under applicable law...

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