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ICL commissioned a study, by BDO, on its impact on several economic and social indicators in Israel. The study, published in 2020, found that in 2019, ICL’s contribution to Israel’s GDP (Gross Domestic Product) was ILS 14.9 billion ($4.1 billion). ICL is a leading exporter, deriving approximately 95% of its revenues from exports, thereby helping Israel’s balance of payments. ICL invests tens of millions of USD in Israel every year in addition to its extensive ongoing operations. These investments help to expand Israel’s economy and boost its growth.
ICL’s impact on the economy and quality of life in the Negev region is far-reaching, and the Company serves as the economic backbone of the Negev. ICL supports the livelihood of approximately 32,000 families in Israel (directly and indirectly), including around 19,000 families in the Negev region of south Israel. ICL is responsible for 15% of the Negev’s economic activity, worth approximately ILS 10.7 billion ($2.95 billion) in GDP. The Company is vital for the economic strength of this region and for its continued growth.
ICL is directly responsible for the livelihood of 4,200 families in the Negev. The Company is a high quality employer, paying competitive wages, or higher, in all of Israel (as well as in all other global regions of its operations). In addition, the impact of its operations and investment in the Negev influences the communities of the eastern Negev in multiple areas, including small industrial enterprises, privately-owned businesses, commerce, welfare, education and culture. For every employee directly employed by ICL, additional employment opportunities are created. These include the indirect impact of ICL’s suppliers (2.7 additional jobs created in Israel per each ICL employee) and the induced impact created due to increased consumption by ICL employees and suppliers (3.4 additional jobs created in Israel per each ICL employee).
All in all, ICL has a significant impact on multiple levels of employment in Israel. This includes the direct impact of 4,500 jobs; the indirect impact of an additional 12,200 jobs; and the induced impact of an additional 15,100 jobs for a total of 31,800 jobs.
Some areas in the southern part of Israel are characterized by lower employment opportunities and high economic inequality. This is especially true in some of the periphery cities of southern Israel and Bedouin communities.
In the periphery, cities of the eastern Negev (Dimona, Yeruham and Arad), ICL’s activity results in 12% of employment and 21% of wages.
ICL supports the livelihood of approximately 5,600 Bedouin-Israeli employees, mostly as contractor workers employed by ICL’s direct contractors in varying capacities. These employees account for around 16% of all Bedouin-Israeli employees that are employed in the Israeli private sector. ICL is also acting to increase the amount of Bedouin-Israeli employees and overall Arab-Israeli employees directly employed by the company, and has established quantitative targets to achieve this important goal, and to further reduce inequality in Israeli society (read more).
ICL’s contribution to Israel’s national economy stands at ILS 14.9 billion ($4.1 billion) for 2019.
The contribution of ICL plants in southern Israel amounted to 15% of the GDP of the Negev region and to 1.2% of the GDP of Israel (2019 figures). ICL’s contribution to the GDP of Israel was about ILS 14.9 billion ($4.1 billion) a year, of which approximately ILS 10.7 billion ($ 2.95) was in the Negev.
In addition to positively impacting the Negev’s economy, ICL helps to develop tourism to the Dead Sea, further enabling the creation of thousands of additional jobs. Without ICL’s production activity at the Dead Sea, the southern basin of the Dead Sea would have dried up completely and Dead Sea hotels would not be able to operate. Read more.
ICL invests in Israel, in addition to its extensive ongoing operations. Together, these investments help expand economic activity in Israel and boost its growth.
The great majority of the quantitative data above is based on a study performed by BDO and published in July 2020 entitled: ‘ICL’s Contribution to Israel’s Economy and its Southern Region’,(Hebrew).
ICL is consistently among the top 3 largest exporting companies in Israel. The export value of its products is significant for Israel’s balance of payments and the reduction of the country’s trade deficit.
The public is the largest shareholder of ICL. In fact, most Israeli citizens have a direct or indirect stake in ICL through their pension and provident fund savings plans, as well as other saving and investment instruments. As one of the pillars of the Tel Aviv Stock Exchange, ICL shares are an anchor for many stock portfolios and the trading volume of its shares is one of the highest in Israel. Over the past decade, most Israeli citizens have shared in ICL profits.
