Israel's growing concentration of high-tech businesses in Hong Kong underlines the SAR's role as regional IT hub and a base for Asia-Pacific expansion, according to Ornit Avidar, commercial attache at the Israeli Consulate.

"Hong Kong is pivotal to tap the burgeoning high-tech market in Asia. It has first rate infrastructure, excellent communications and, happily, direct flights to Tel Aviv," Ms Avidar said.

Around 25 Israeli high-tech companies have their regional headquarters in Hong Kong, covering areas of telecommunications, software and IT, aerospace, Internet technology, biotechnology, medical devices and venture capital funds.

Recently, Hong Kong Satellite Technology Group (HKSTG) concluded a deal with Israel Aircraft Industries (IAI) for two commercial communication satellites to support coverage of the 2008 Olympic Games in Beijing.

"This transaction, which included China Aerospace Science & Technology Group Corporation and Sino Satellite Communications Company, typifies Hong Kong's strategic role in the high-tech field. HKSTG comprises private Hong Kong investors while IAI leads in the development of aerospace technology," Ms Avidar said.

For Israeli firm ECI Telecom, a world leader in integrated network solutions and innovative digital
telecommunications and data
transmission systems, Hong Kong provides a stable operating base for top management and their families, making it easier to gain entry into new markets, company president Aviel Tenenbaum said.

“From Hong Kong we can fly to all of our major markets, complete our business, and return the same day. Business here is conducted efficiently and people make decisions very quickly,” he added.

Mr Tenenbaum also praised Hong Kong as a social centre, and noted that it hosts the only school in Asia with a Jewish curriculum.

Another firm Nice APAC Ltd, which provides digital recording equipment for call centres, financial institutions and insurance companies, recently set up its regional offices in Hong Kong and is already looking for more space, president Doron Ben-Sira said.

General manager Yoram Lotan added: “We service more than 400 clients throughout the region, and it is important for us to be able to visit clients as far a field as India, Japan, and Korea.”

Both agreed Hong Kong is perfect for Israeli high-tech firms. “Geographically, financially and culturally this is where Israeli firms should be,” Mr Lotan said.

Upcoming collaboration opportunities in Hong Kong include the Information Infrastructure Expo & Conference (7-10 March) and ITU TELECOM Asia 2002 (2-7 December). About 17 Israeli high-tech players will come to Hong Kong for TechWorld in March, accompanied by the Israeli deputy chief scientist Azi Hammer.