Friday, June 26, 2015

War in Gaza and BDS led to 46% drop in investments in Israel

Foreign direct investment (FDI) in Israel dropped by nearly 50% in 2014 compared to 2013 according to a report by the The United Nations Conference on Trade and Development (UNCTAD), which tracks changes in global foreign direct investment worldwide. The report contains one very glum statistic; in 2014 $6.4 billion were invested in Israel, whereas in 2013 $11.8 billion were invested - a decline of about 46%.
 The 2014 figure appears to be the lowest in more than a decade. Foreign direct investment into Israel averaged around $9 billion per year from 2005 to 2012.

"We believe that what led to the drop in investment in Israel are Operation Protective Edge and the boycotts Israel is facing," Dr.
Roni Manos of the College of Management and one of the authors of the report's summary told Ynet.
 In line with global trends, FDI fell in other regional countries, but nowhere near as sharply as in Israel. FDI fell 1.7 percent in Turkey, 6.8 percent in Iraq, 4 percent in the United Arab Emirates and 9.6 percent in Saudi Arabia. But it actually rose by 6.6 percent in Lebanon.
Iran, which has been under brutal international sanctions, saw inward investment decline by about a third to just over $2 billion.
Moreover, Israeli FDI investments abroad also decreased from $4.67 billion in 2013 to $3.97 billion, a decrease of 15%. These figures are significantly lower than the corresponding figures from 2007 to 2005, before the outbreak of the financial crisis in 2008.

 

No comments: