The investment system in Israel is liberal and most of the activities are open to private national and foreign investors. After a marked slowdown in 2009-2010 as an effect of the global economic crisis and especially the difficulties of the American economy (Israeli start-ups are highly dependent on the U.S. conjecture), FDIs recovered since 2011 and have been going stronger since. In 2013, FDI influx rose by 48% compared to 2012. Israel benefits from a number of assets: a strong R&D activity and a high-skilled and multilingual workforce. However, the country suffers from a particularly unstable geopolitical environment.
|Israel||Middle East & North Africa||United States||Germany|
|Index of Transaction Transparency*||7.0||6.0||7.0||5.0|
|Index of Manager’s Responsibility**||9.0||5.0||9.0||5.0|
|Index of Shareholders’ Power***||4.0||9.0||5.0|
|Index of Investor Protection****||8.3||5.0||8.3||5.0|
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2011||2012||2013|
|FDI Inward Flow (million USD)||10,766||9,481||11,804|
|FDI Stock (million USD)||65,014||74,403||88,179|
|Performance Index*, Ranking on 181 Economies||33||-||-|
|Potential Index**, Ranking on 177 Economies||66||-||-|
|Number of Greenfield Investments***||39||26||31|
|FDI Inwards (in % of GFCF****)||23.6||20.6||21.2|
|FDI Stock (in % of GDP)||26.7||30.9||30.2|
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
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Last Updates: December 2014