Boston, MA -- (SBWIRE) -- 01/21/2015 -- We currently forecast 2.6% real growth in Israel's construction industry in 2015, following an estimated contraction of 0.4% in 2014. Our forecast is supported by low base effects and a recovery in gross fixed capital formation (GFCF). We maintain our medium-to-long term favourable view of Israel's construction market and we forecast an average growth rate of 2.3% between 2016 and 2024.

Key developments in Israel's infrastructure sector:

- Our Country Risk team expects growth in gross fixed capital formation (GFCF) to accelerate by 3.1% in 2015 as result of low base effects following a sharp decline in 2014, estimated at -1.5%. In terms of GDP real growth, our Country Risk team forecasts a more solid 3.1% in 2015, from 1.6% in 2014.
- Israel's infrastructure project pipeline is relatively well diversified. We identify strong potential in the transport infrastructure sector, particularly airports and railways.

We are also seeing significant developments in the renewables segment of the energy sector. This became evident as Megalim Solar Power Limited achieved financial closure for the USD1.1bn construction contract of a solar thermal power plant in June 2014. The plant forms part of the 270MW Ashalim project, which consists of two CSP parks and one photovoltaic facility in Ashalim, in the Negev Desert.

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- In addition, the discoveries of significant reserves of natural gas in offshore Israel will enable the country to achieve a high degree of energy independence. We expect a large amount of construction of natural gas-fired power plants in the coming years as production of natural gas is ramped up. Israel's Tamar field has 254 billion cubic metres (bcm) in reserves slated for domestic consumption.
- We are less optimistic about the residential building sector as it faces numerous obstacles, namely limited and state-controlled land supply, and excessive red tape and bureaucracy. Government efforts to address Israel's housing shortages have been...

The Israel Infrastructure Report features Business Monitor International (BMI)'s market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

BMI's Israel Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Israeli infrastructure and construction industry.

Key Benefits

- Benchmark BMI's independent infrastructure industry forecasts for Israel to test other views - a key input for successful budgetary and planning in the Israeli infrastructure market.
- Target business opportunities and risks in the Israeli infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Israel.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverag

BMI Industry View

Summary of BMI?s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into Construction (social, commercial and residential), Transport (roads, railways, ports, airports etc), and Energy & Utilities (powerplants, pipelines and so on).

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the infrastructure and construction sectors and within the broader political, economic and business environment.

BMI Industry Forecasts

Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:

Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).

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