According to the Bank of Israel, foreign investment in Israel
reached an all-time high of USD 21.1 billion in 2006, up from USD 9.9b in 2005 and USD 7.2 billion in 2004.
Foreign investment in Tel Aviv Stock Exchange (TASE) securities fell by a net USD 143 million in 2006, after a record net USD 2.1 billion was invested in 2005. Net foreign investment in TASE-listed securities totaled USD 219 million in December 2006 alone.
Foreign direct investment in Israel totaled USD 13.2 billion in 2006, including the acquisition of 80 percent of Iscar
by Berkshire Hathaway, compared with USD 5.6 billion in 2005.
Overseas investment by Israelis also reached an all-time high of USD 21 billion in 2006, of which USD 12.3 billion was direct investment, five times more than in 2005.
Some USD 5.7 billion was invested in foreign securities and USD 3.4 billion was deposited in foreign banks. The bank deposits are used to finance current overseas activity and future transactions.
Reprinted with permission of The Israel Export and International Cooperation Institute