Israeli companies sneaking products into Arab world

Tel Aviv--A large number of Muslim nations do not recognize Israel and do not have formal diplomatic ties.

Still, these nations are buying tech products coming out of the country.

To get around the cultural and political difficulties, Israeli companies set up false fronts under European names. The shell corporation will be located in Italy or England, have its own web site, and even sell the same products. The names, however, have been changed and all references to Israel are eliminated. Throw a picture of Cambridge in the marketing material, and who's going to know the difference.

"We sanitize them," said one consultant who helps Israeli companies export to political hot spots.

Tech Culture
About the author

    Michael Kanellos is editor at large at CNET, where he covers hardware, research and development, start-ups and the tech industry overseas.


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