Israeli commercial attache Ornit Avidar says the US economic downturn has seen more Israeli firms set up in Hong Kong as a springboard to new markets

Over 50 Israeli companies have established a presence in Hong Kong, and almost half of them are in the high-tech sector. Nine companies opened offices here in 2002, with at least two more in the first quarter of this year. Among the firms doing business are NASDAQ-listed security software firm Check Point and networking equipment maker Atrica.

Israeli commercial attache Ornit Avidar said: "Hong Kong's expertise in finance and management is very important to Israeli firms. Many companies are looking for projects that can combine Israeli technology with finance and management from Hong Kong."

Ms Avidar said the economic downturn in North America was forcing Israeli firms to look for new markets. And she added that unlike in the West, Asia is continuing to invest heavily in new technology.

"Asia today to most Israeli companies represents a major potential market. Their traditional market in the US is in a non-growth state," said Aviel Tenenbaum, president of Israeli owned E.C.I. Telecom (HK)

According to Ms Avidar Hong Kong is a convenient place to be based, as it allows easy access to the large Chinese mainland market as well as the rest of Asia.

Located on China's southern coast, Hong Kong is only a few hours' flying time from most major Asian cities. Together with the SAR's excellent transport links, that makes Hong Kong the ideal base for executives who need to travel across the region.

Away from business, Ms Avidar said Israelis are very comfortable in Hong Kong. She said they feel secure here, and the way of life is not too different from home. E.C.I's Mr Tenenbaum agrees. He said Hong Kong is one of the few destinations in Asia with direct flights from Israel. He also pointed to the fact that there is a large Israeli and Jewish community here, complete with a Jewish school, where Hebrew is taught.

Bilateral trade between Hong Kong and Israel reached a record high last year. During the first nine months Israel's exports to the SAR grew 16.7 percent from the same period the previous year to HK$6.18 billion (US$795 million). At the same time, Hong Kong goods imported by Israel totalled HK$6 billion (US$769 million), a 12.8 per cent increase.