Direct foreign investment in Israel decline sharply

The Bank of Israel stated on Wednesday that foreign investment in Israel fell by more than half during the first six months of the current year in comparison to the last six months of 1997.

Foreign investments in Israel reached US $1 billion in early 1998 compared to US $2.1 billion in the second half of 1997.

The decline included, in particular, direct investment in assets. The volume of international participation in Israeli companies fell by 72%, from US $1.027 billion to US $285 million.

The only positive point in this regard is the increase of foreign investors' purchases in the Tel Aviv Bourse by 150%. It reached US $575 million instead of US $230 million during the last season of 1997. It is worthy to note that in recent years foreign investments in Israel has recorded notable increase.