Foreign investment up 40% in 2023, thanks to one deal

The Office of the Chief Economist at the Ministry of Finance released its annual report on foreign investment in Israel for 2023. According to the report, while inward investment globally declined by 20%, the picture in Israel was more complex.

In 2023, total foreign investment in Israel reached $32.9 billion, 40% more than in 2022, when the total reached $23.5 billion. However, one deal, Intel’s $15 billion investment in expanding its factory in Kiryat Gat, represents that upside. Excluding Intel, total foreign investment in Israel last year amounted to $18 billion, 24% less than in 2022.

The decline is clear in the number of deals: only 1,563 deals, compared to 2,502 deals in 2022, which represents a decrease of 62%.

In addition to Intel, the most notable deals in 2023 were the acquisition of Imperva by the French giant Thales SA worth $3.6 billion, and the Indian Adani Group’s $1.2 billion investment in the Port of Haifa. In a breakdown by sector, 48% of foreign investment went to the semiconductor industry; 31% for information technology, and 6% for life sciences. The United States continues to lead foreign investment in Israel by a large margin, amounting to $24 billion, or 73% of the total. France comes in second place with $3.7 billion.

What about 2024?

The report also provides preliminary data for the first half of 2024, indicating the degree of recovery. Total foreign investments in the first half of this year amounted to $11.8 billion, an increase of 15% over the corresponding period in 2023. The quarterly figures were $4.4 billion in the first quarter (460 deals), and $7.4 billion in the second quarter (450). deal). .

Chief Economist Dr. Shmuel Abramson said: “The global trend of slowing foreign investment inflows in 2023 has not spared Israel. The scope of deals in Israel stood out positively in 2023 thanks to Intel’s huge investment, but was negatively affected.” In the fourth quarter of the year in the Iron Sword War, available data for the year 2024 indicates a growth in foreign investment transactions in Israel, which is expected to support the improvement in the security and diplomatic environment. This trend continues.”

Published by Globes, Israel Business News – en.globes.co.il – on December 24, 2024.

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