Foreign direct investment in Israel fell to $3.9 billion in 2009, 64% less than in 2008, according to the UN Conference on Trade and Development (UNCTAD) World Investment Report 2010. Global foreign direct investment fell 37% to $1.11 trillion in 2009.
UNCTAD said, "Global foreign direct investment (FDI) witnessed a modest, but uneven recovery in the first half of 2010. This sparks some cautious optimism for FDI prospects in the short run and for a full recovery further on." It expects global inflows to exceed $1.2 trillion in 2010, rise to $1.3-1.5 trillion in 2011, and $1.6-2 trillion in 2012.
Recovery is apparently based on more on M&A activity than new investment.
Analysis of the World Investment Report 2010 by Dr. Ronny Manos and Jacob Yaron of the College of Management found that, in general, foreign direct investment in Israel will recover over the next three years, and that emerging markets and transitional markets will lead the recovery.
Published by Globes [online], Israel business news - www.globes-online.com - on July 25, 2010
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