He in turn argues that he seeking some sign of Israeli movement on the West Bank. Despite the lack of progress, Israel's policy is clearly to work towards peace with its neighbours and there are now signs of possible negotiations with Syria. The Israeli economy has always been influenced by the large defence budget, and this exerts pressure to achieve peace. The nation has a strong industrial base encompassing the range from heavy manufacturing, for example of steel, to high-tech light industry. Agriculture, based on the Kibbutz system, is also important, and citrus fruits provide valuable export revenue.
Energy sources are of strategic importance to Israel, although some oil is extracted in the Negev.
In 1993 it was announced that natural gas would be used for electricity generation and, more recently, Israel concluded a deal with Egypt for the supply of gas.