Israel’s water industry is fast becoming a major growth factor in the country’s national economy, worth $810 million this year, according to a statement by the Ministry of Industry & Trade. There are now 210 industrial water companies in Israel, employing 7,600 people.

The ministry is formulating a national plan to develop the water-affiliated industries, realising the rising economic status of this sector. A survey conducted by the government department found that of the 210 companies, 60 are start-ups which focus on research and development.

The export value of the country’s water industries rose from $485m in 2003 to $620m in 2004, a 28 per cent increase.

According to the ministry’s survey, the global water market is valued at $370 billion a year and in 2010 it is expected to reach over $500 bn.

Israel is a major player on the global water market in areas such as remote control, drip irrigation, desalination, the development of filter systems, recycling marginal water and sewage treatment technologies.

Israel is also among the leading countries in the utilisation and management of water resources. It is involved on the global water marketplace in a wide range of projects, especially in agriculture and greenhouse technology.

Israeli venture capital funds are not involved in the country’s water industry, which the report found is curtailing entrepreneurship in the sector.

Some 80 per cent of the start-up companies are engaged in water filtration and purification, sewage treatment, biological and chemical treatment and in desalination.

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