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Foreign Investments in Israel Rebound After Decline Caused by Political Instability, War

Two years of internal political instability alongside almost 15 months of war have taken a heavy toll on the flow of foreign investments into Israel. 

But preliminary data for the first six months of this year show some signs of a recovery in overseas trade deals driven by increased activity in the May to June quarter, the Finance Ministry said in its annual foreign investments report for 2023.  

The value of foreign investment deals in Israel in the first half of the year stood at $11.8 billion, marking a decline of 28 percent versus the same period in 2023, but an increase of 15% compared to 2022. 

However, 2023 also included a one-off $15 billion investment by US chip giant Intel for the expansion of a major factory project in Kiryat Gat, in the south of Israel. Not including the Intel investment, total deals in the first half of 2023 amounted to about $7.2 billion.  

“Current data for 2024 shows a growing trend in foreign investment transactions in Israel, and we expect the improvement in the security and political environment to support the trend in the future,” said Finance Ministry chief economist Shmuel Abramzon. (TOI/ VFI News)

“Therefore do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ For after all these things the Gentiles seek. For your Heavenly Father knows that you need all these things. But seek first the Kingdom of God and His righteousness, and all these things shall be added to you.” - Matthew 6:31-33