Hi Shay,
Yes, that would be the issue. Given that there is no wifi coverage in
Israel, your Macbook will not be able to acquire a location, and hence
return nothing to XCode. As far as I'm aware, there's no way to force
the 3.2 simulator to fake a location like in previous versions - you
will have to run the location components of your app on the device
which has access to the GPS.
Another option is to run iSimulate on your actual device which can
then pass the GPS location to the simulator - at least according to
the FAQ:
http://www.vimov.com/isimulate/faq/
- George