Saudi Arabia has confiscated cellular telephones that contain Israeli-manufactured components.
"Al-Jazeera" television and London-based Arabic newspaper "Asharq Al-Awsat" report that an investigation has been opened into a deal by a Saudi and foreign company to import cellular telephones that contain Israeli-manufactured components. The companies want to meet the growing Saudi demand for cellular telephones. "Asharq Al-Awsat" claims the components are manufactured at "the branch of an Israeli company that operates in Britain and assembles in China."
The report is one a string appearing the Arabic press about Israeli attempts to bypass the Arab embargo. Israeli exports to Arab countries through third countries has been going on for years. The trade is estimated to be tens of millions of dollars.
The trade is an open secret, encouraged by the Israeli government. It includes agricultural products, irrigation equipment, chemicals and high-tech goods.
Interest in the trade has increased since the outbreak of the intifada. There have also been calls in Saudi Arabia to boycott US companies such as Coca-Cola (NYSE:COKE) and Starbucks (Nasdaq:SBUX). The official policy of the Gulf states is to close their eyes to the trade, as long as the goods arrive through a third country. However, the intermediaries sometimes slip up and forget to remove the "Made in Israel" labels, which apparently happened in the case of the cellular telephones in Saudi Arabia.
The Ministries of Foreign Affairs and Industry and Trade declined to comment on the report.
Published by Globes [online] - www.globes.co.il - on July 14, 2002