The government has also approved plans to set up an optics factory and is expected to approve within the next few months the construction of a cosmetics factory, a health food plant, and a production facility for Koor foods, which already has a pilot centre in Eilat where research is conducted on algae. Another factory awaiting approval - a joint venture between an Israeli firm and a group of German investors - will manufacture special types of computer cable.

The decision to set up an industrial park in Eilat was meant to take advantage of the free-trade zone status conferred on the city in 1985. By providing special tax breaks and other incentives to entrepreneurs the special status was seen as a way of drawing much needed investment to the area. To date, however, the only industrial enterprises based in Eilat are a branch of Zion Cables, controlled by the Clal group and a salt factory owned by the Denkner family.