Foreign Investment in Israel Hits Record $26.2 Billion

Direct foreign investment in Israel reached a record $26.2 billion in 2025, rising 78% from the previous year despite continued war and geopolitical uncertainty.

The previous annual record was $22.9 billion in 2021, during the height of Israel’s technology boom. Investment in 2025 surpassed that figure by 14%, according to a new report from the Finance Ministry’s Chief Economist Department based on OECD data.

Israel ranked eighth among OECD countries in total direct foreign investment and third when investment was measured as a share of GDP. The increase also contrasted with the broader trend across developed economies, where foreign investment fell by 6% during 2025.

The momentum continued into 2026. Foreign direct investment reached $14.1 billion during the first quarter alone, more than half of the total recorded during all of 2025 and the highest quarterly figure ever recorded in Israel.

However, the record figures were heavily concentrated in a relatively small number of large transactions, particularly in Israel’s technology sector.

The Finance Ministry’s separate database of announced investment deals recorded $36.6 billion in transactions during 2025, up 65% from the previous year, even as the overall number of deals declined. That database uses a different methodology from the OECD figures and should not be compared directly with the $26.2 billion total.

One of the largest deals was Google’s acquisition of Israeli cybersecurity company Wiz, which significantly boosted the annual total. The concentration means the headline figure does not necessarily reflect equal growth across every part of the Israeli economy.

Bank of Israel data also showed a broader increase in foreign investment during 2025. Non-residents invested a net $39 billion in Israel across all investment categories, including approximately $26 billion in direct investment.

The strong figures come after foreign direct investment fell to $14.8 billion in 2024, as the war and economic uncertainty weighed on investment activity. The sharp rebound in 2025 brought investment above its prewar peak.