Kosor, who is on an official visit to Israel, on Wednesday afternoon held talks with her Israeli counterpart Benjamin Netanyahu, focusing on economic relations between the two countries.

"The talks focused on our economic relations, considering the potential and major investment projects in Croatia," Kosor told Croatian reporters covering her visit.

The two prime ministers also talked about a Croatian-Israeli business forum to be held in Tel Aviv on Thursday, which is expected to bring together around 100 business people, mostly from Israel.

Kosor said she hoped that concrete deals would be agreed at the event.

Another important topic of the talks between Kosor and Netanyahu was the potential of Croatia's tourism industry.

In 2010, the number of Israeli tourists visiting Croatia was 14 percent up from the year before. Kosor said she hoped that their number would be even higher this year.

She invited Netanyahu to visit Croatia and Netanyahu said he would consider the invitation.

The two prime ministers also discussed Croatian-Israeli political relations, the situation in Southeast Europe, and Croatia's strategic goal of completing its EU entry talks this year and joining the EU.

Also discussed was the current situation in the Arab world, with Kosor condemning every act of terrorism and underlining the need to resume dialogue with the Palestinian Authority.

"We also talked about the need to work together so that the evil of the Holocaust is not forgotten and to strengthen peace and stability in the entire world," Kosor said.

On Thursday, Kosor will visit the Palestinian Authority and attend the business forum in Tel Aviv.