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Foreign Direct Investment in Israel Doubles

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Monday, July 23rd, 2012

According to the UN World Investment Report, investment in Israel totaled $11.37 billion in 2011, 106% more than in 2010.

 The UN Conference on Trade and Development (UNCTAD) World Investment Report 2012states that global foreign direct investment (FDI) rose 16% from $1.3 trillion in 2010 to $1.5 trillion in 2011. Global FDI was higher in 2011 than the annual average in 2005-07, before the economic crisis.

FDI flows to developed countries were 21% higher in 2011 than in 2010. Despite this increase, developing and transition economies together continued to account for more than half of global FDI (45% and 6%, respectively) in 2011.

UNCTAD predicts foreign direct investment growth will slow in 2012, with flows leveling off at $1.6 trillion, because of a resurgence in economic uncertainty and the possibility of lower growth rates in major emerging markets.

According to UNCTAD, FDI inflow to Israel totaled $11.37 billion in 2011, 106% more than the $5.51 billion in 2010. FDI inflow to Israel accounted for 25% of gross capital formation in 2011, up from 16.9% in 2010.

FDI inflow to Israel in 2011 was higher than the three-year average of $9.63 billion in 2005-07, before the global crisis. However, FDI inflow to Israel as a of gross capital formation fell to 25% in 2011, less than the 36.8% average in 2005-07.

FDI outflow from Israel totaled $3 billion in 2011, less than the three-year average of $5.74 billion in 2005-07, before the global crisis. FDI outflow from Israel accounted for 6.6% of gross capital formation in 2011, less than the 22% average in 2005-07.