Tel Aviv Diary August 19, 2022
Joseph's Tomb, Turkish Israeli Relations Resume,Start-Ups Raise $727 million and more!
MILITARY
An army convoy was attacked on Wednesday night, while transporting Haredim to pray at Joseph’s Tomb in Nablus (Shechem). Nablus is part of “Area A,” controlled by the Palestinian Authority. However, regular access for prayer in Joseph's Tomb has been guaranteed according to the terms of the agreement under which we returned Nablus to the PA.
Joseph's tomb is a problematic site. Located in a residential area of Nablus, Joseph's tomb has always posed a special challenge. In 1975, as a new recruit in the IDF, I was sent to Nablus to patrol for a few days. I still remember standing in front of Joseph’s tomb, while small children threw stones at us. On Thursday, Former Deputy Chief of Staff of the IDF, MK Yair Golan, currently running to lead Meretz, warned that at some point, visits by Jews to Joseph’s Tomb would end in catastrophe. (A tragedy already resulted in Nablus on Wednesday night, when a Palestinian was killed.) Golan stated that it made no sense for the IDF to risk soldiers’ lives to escort Haredim — who themselves do not serve in the IDF — to pray at the tomb.
Another tragic incident transpired Monday night, when IDF soldier Nathan Fitoussi was killed by a fellow soldier, who misidentified Fitoussi walking back to his guard post. Distressingly, this was not the only fatal friendly fire calamity this year.
PALESTINIAN AUTHORITY PRESIDENT
Palestinian President Mahmoud Abbas created a well-deserved media firestorm. During a visit to Germany, Abbas was asked if he wanted to apologize for the attack carried out by the PLO at the Munich Olympics 50 years ago. Instead of apologizing, Abbas asserted “Israel had committed 50 Holocausts against Palestinians”.
Dealing with Abbas has always been a dilemma. On one hand, his dissertation (albeit eons ago) was a work of unadulterated Holocaust denial. However, on the other hand, Abbas has gained a certain level of legitimacy with Israel over the years, due to his continued fight against terror. Nevertheless, statements like this latest declaration eliminate whatever small measure of legitimacy Abbas might still have with the Israeli public.
FOREIGN AFFAIRS
Israel and Turkey have agreed to upgrade their relationship to full diplomatic relations. The two countries have not hosted an Ambassador of the other since 2011. Over the past few months, there has been a steady warming of ties between Israel and Turkey, resulting in official state visits to Turkey conducted by President Herzog and Prime Minister Lapid (in his capacity as Foreign Minister), and a return visit to Israel by the Turkish Foreign Minister.
Turkish President Erdoğan has often been a vocal critic of Israel. However, trade between the two countries continues to grow, and security cooperation between the Turkish Security services with the Mossad has deepened in recent months. Erdogan decided Turkish strategic and economic interests outweigh any ideological problems he might have with Israel.
One remaining dispute revolves around security for Israeli flag aircraft. The Turks have so far been unwilling to agree to the same level of security Israeli aircraft receive in other airports worldwide. As a result, Israeli flag carriers cannot fly to Turkey, one of Israel's largest markets. Reports indicate this dispute is on its way to being resolved.
POLITICS
Itamar Ben Gvir announced he will run independently from the Religious Zionist Party led by MK Smotritch. This potential split is not triggered by ideology, but rather, ego. Ben Gvir, a former follower of JDL founder Meir Kahane, known to have espoused some of Kahane's most extreme views, has been interviewed in Israeli TV studios this past year more than any other MK. Polls that show his joint list with Smotritch is poised to gain as many as 11 seats have convinced Ben Gvir that he is the vote-getter. The two may still get back together again, but ego can be a potent force.
ECONOMY
The inflation rate in Israel reached 5.1% last month; with housing prices rising 17.8% during the past year. In Tel Aviv, where 50% of residents live in rental apartments rented from individual landlords, talk on the street echoes how much landlords have raised rents and added additional conditions to be met by renters.
BUSINESS
ZIM Recorded a net income of $1.34 billion in the second quarter of 2022. The company expects to generate a record adjusted EBITDA of $7.8-$8.2 billion and adjusted EBIT of $6.3-$6.7 billion for the year. Zim announced it had increased its quarterly dividend payout to 30% of net income and declared a Q2 2022 dividend of approximately $571 million, or $4.75 per share.
Despite what was thought to be a slowdown in new investment in Israel, Israeli firms raised $727 million in the past week.
Guesty raised $170m in Series E funding
Growthspace raised $25m in a Series B funding
Pops raised $100m in Series D funding
DriveNets raised $262m in Series C funding
HiBob raised $150m in Series D funding. The company has developed software for HR management. Its rise was at a valuation of $2.45 billion.
Agora raised $20 million in Series A funding
Israeli banks enjoyed another excellent quarter. The four largest banks earned a combined profit of NIS 11.1 billion during the first half of the year, up 15% from the previous year. In addition, Israeli banks had, on average, a return on capital of 16.2%. Leading the pack was Bank Mizrahi Tefahot, with a return on capital of 20%.
Elbit announced it was awarded two contracts, in an aggregate amount valued at $240 million, to upgrade Main Battle Tanks (MBT) for an international customer. A $60 million contract will be delivered over two years; and a $180 million contract will be delivered over four years. Under the contracts, Elbit Systems will perform an upgrade of the MBTs and provide advanced electronics suites.
MOVIE REVIEW
T’MUNAT NITZACHON (IMAGE OF VICTORY)
Avi Nesher’s latest masterpiece, “Image of Victory” is now available on Netflix. The film, which takes place during the War of Independence, tells the story of Kibbutz Nitzanim, located close to the Gaza Strip, and what happened there right before, and during the beginning of the campaign. The film gives us an intimate look at those who fought there. The Kibbutz was the only one who eventually surrendered along the border (In Yad Mordechai, the defenders were able to withdraw.)
Nesher's movie is told from an interesting perspective. It gives an intimate look at the defenders of the Kibbutz, given that the entire movie is from the perspective of an Egyptian film crew recording the battle in which the Egyptians capture the Kibbutz.
Avi Nesher's first breakthrough film was “Halakah” (The Troupe)— a movie I have seen several times. While “Image of Victory” much less addictive, it is an essential window into the period it chronicles, and is one work that should not be missed.
A PIECE OF HISTORY
TEL AVIV’S GREAT SYNAGOGUE
The Great Synagogue was initially planned to be built on Yehuda Halevi Street, and a cornerstone was placed there in 1913. However, a decision was ultimately made to build the synagogue on Allenby Street instead. The committee working to build the synagogue held an open competition to find an architect. Richard Michael won the competition, but with the outbreak of World War, he was drafted into the Ottoman Army, and left the country. Alexander Baerwald replaced him as the architect. Baerwald was the architect of Technion Building in Haifa.
In 1924, the cornerstone for the new synagogue was laid. However, construction only began in earnest after a donation was received from Baron Rothschild in 1925. The Great Synagogue underwent a significant renovation in 1969, when external arches were added
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A TASTE OF TEL AVIV — By Tali Schulman
TIRZA
On the outskirts of Shuk Levinsky, on an unassuming street, you will find the Tirza (תרצה) recently opened wine bar, by the same people who own OCD (voted #3 restaurant in the Middle East this year). Tirza takes a very different approach to dining, significantly more laid back, with an emphasis on fantastic, well-priced wine and small plates that will keep you coming back. During my most recent visit I most enjoyed their sashimi dish, as well as, their beef fat toast — However their menu changes daily, so you will have to go and be surprised for yourself!
Unlike it’s big sister, OCD, where obtaining a reservation is nearly impossible, Tirza is “first come, first served,” so I highly recommend stopping by in the early evening to avoid a long wait. That being said, you can always start your first bottle of wine while you wait outside for your seats!
To follow my food adventures you can find me on Instagram @talischulman, and find all past restaurant visits saved in my highlights!
