Most foreign investment was in the leading high-tech sectors, especially acquisitions of Israeli companies.
Direct foreign investments in Israel surged 118% to $3.7 billion in 2003, compared with $1.7 billion in 2002, according to a survey by the Bank of Israel Foreign Currency Division. The survey will be published next week as part of the Bank of Israel’s 2003 annual report.
The survey reports that real global demand has recovered, and that the status of Israel’s economy has improved, with a decline in causes of uncertainty that are specific to Israel. These factors greatly increased the flow of direct foreign investments in Israel last year.
The figures show that most foreign investment was in the leading high-tech sectors, especially acquisitions of Israeli high-tech companies, which rose eight-fold to $800 million in 2003, compared with 2002. As a result, undistributed profits in foreign-owned technology grew to $700 million in 2003, compared with $300 million in 2002.
Published by Globes [online] - www.globes.co.il - on March 23, 2004