Israel - Industry
Israel's industry was originally designed to cater to a domestic market. It was to supply such basic commodities as soap, vegetable oil and margarine, bread, ice, printing, and electricity. It used raw materials available locally to produce goods as canned vegetables and fruit, cement, glass, and bricks. In order to save foreign exchange, imports of processed goods were curtailed, giving the local industry the opportunity of adding local value to the manufacturing process of products imported from abroad. Although most of Israel's industrial production is still for domestic consumption, the country's economy is far more export-oriented. Higher valued processed goods (excluding diamonds), especially electronics and high-tech related, currently constitute 90 percent of total exports. There has been a heavy expansion in export-oriented industries as a result of government tax and investment incentive schemes.