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42Privileged and approved enterprisesThe Law for Encouragement of Capital Investments (the "Law")main goal is to increase the attractiveness of the Israeli economyin the face of international competition for investment anddevelopment. The Law promotes a more geographically balanceddistribution of the population across the country and aims tostrengthen the peripheral areas. The law includes two mainschemes of government incentives: the grant scheme whichallows up to 30% government grant on qualified investments forestablishing or expanding an industrial enterprise in preferredareas; and the tax incentive scheme.The Law applies to industrial enterprises which qualify as an"International Competitive Enterprise", which is defined asincluding industrial enterprises that own Productive activitiesincluding: textiles, food, electronics, chemicals, pharmaceuticals,computer software, biotechnology, nanotechnologies, etc.In order to meet the International Competitive Enterprise rule,25% of the enterprise's revenues should be driven by exporting tolarge international markets.LocationThe government grants scheme is affected by the location of the company'sactivities.