Foreign direct investment in Israel increased sharply during the third quarter of 2008, despite the global economic crisis. Foreign direct invest via the banks totaled over $2 billion in the third quarter, the Bank of Israel reported today. Foreign direct investment via the banks amounted to $1.38 billion in the second quarter and $1.63 billion in the first quarter, and totaled $5.82 billion in 2007 as a whole.
Total direct foreign investment was $1.47 billion in the second quarter of 2008 and $2.19 billion in the first quarter, and $9.67 billion in 2007 as a whole. The Bank of Israel did not disclose list foreign investment not made through the banks for the third quarter.
Foreign direct investment via the banks totaled $996 million in September alone. The two largest investments were $200 million in a chemicals company and $175 million in an electronics company.
Foreign investment in the Tel Aviv Stock Exchange (TASE) went the other way, with heavy sales reflecting the global financial crisis. Net foreign investment on the TASE fell by $511 million in September; a net $595 million worth of stocks were sold, offset by a net $84 million investment in bonds. Foreign investors sold more than $300 million in chemical companies' shares and $240 million in bank stocks in September.
Direct investment abroad via the banks by Israelis totaled $545 million in September and $1.15 billion in the third quarter. The September figure includes a $175 million in a foreign electronics company - the same company in which foreign investors made an investment in the same amount.
Israelis' overseas portfolio investments fell by a net $424 million in September: net investment in foreign stocks totaled $806 million, which was more than offset by a net $1.23 billion sales of bonds. Israeli households sold $450 million in foreign stocks in September, mostly through withdrawals from mutual funds.
Published by Globes [online], Israel business news - www.globes-online.com - on November 9, 2008
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