Israel's International Investment Position, Q4 2025
Summary
The Bank of Israel reported that Israel's outstanding liabilities to abroad increased by approximately $28 billion in Q4 2025, reaching $652 billion. Nonresidents' direct investments in Israel and prices of Israeli securities held by nonresidents also increased during the quarter. The full year 2025 saw net investments in the economy by nonresidents totaling $39 billion.
What changed
The Bank of Israel's report on Israel's International Investment Position for the fourth quarter of 2025 indicates a significant increase in the economy's outstanding liabilities to abroad, rising by approximately $28 billion to $652 billion. This period also saw growth in nonresidents' direct investments in Israel and an increase in the valuation of Israeli securities held by nonresidents. For the full year 2025, net investments in Israel by nonresidents amounted to $39 billion, a notable increase from $25 billion in 2024, primarily driven by direct investments.
This report provides statistical data on Israel's international financial standing. While it does not impose new regulatory obligations, compliance officers should note the trends in foreign investment and liabilities, which may inform risk assessments and strategic financial planning. The data highlights shifts in the economic landscape that could impact future regulatory considerations or market analyses. No immediate actions are required based on this statistical release.
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Press Releases
Israel’s International Investment Position (IIP), fourth quarter of 2025
The economy’s outstanding liabilities to abroad increased by approximately $28 billion (about 4.5 percent) in the fourth quarter, to about $652 billion at the end of the quarter. During the quarter, nonresidents’ direct investments in Israel increased, including in share capital, relative to the previous 4 quarters. At the same time, the prices of Israeli securities held by nonresidents increased. 18/03/2026 Share: To view the full press release as a word file, click here
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- The economy’s outstanding liabilities to abroad increased by approximately $28 billion (about 4.5 percent) in the fourth quarter, to about $652 billion at the end of the quarter. During the quarter, nonresidents’ direct investments in Israel increased, including in share capital, relative to the previous 4 quarters. At the same time, the prices of Israeli securities held by nonresidents increased.
- In the fourth quarter of 2025, the balance of assets held abroad by Israeli residents increased by approximately $29 billion (about 3.2 percent), to about $915 billion at the end of December. The increase in the balance was mainly due to net investments abroad by Israeli residents and an increase in prices of foreign securities held by Israeli residents.
- The surplus of assets over liabilities vis-à-vis abroad increased during the fourth quarter of 2025 by $1 billion (0.3 percent), to about $263 billion at the end of the quarter.
- The surplus of assets over liabilities vis-à-vis abroad in debt instruments alone (negative net external debt) increased by about $9 billion (2.8 percent) during the fourth quarter, to approximately $331 billion at the end of December.
- The ratio of gross external debt to GDP (in dollar terms) declined by 0.2 percentage points in the fourth quarter, to about 26.6 percent at the end of December. ****
Full year summary of 2025:
- In 2025, there was an increase in net investments in the economy by nonresidents. The scope of net investments was $39 billion, compared to $25 billion in 2024.
- The increase in scope of net investments by nonresidents in the economy derived mainly from the increase in direct investments (mainly reinvested earnings).
- The scope of net investments abroad by Israel residents in 2025 was larger than its scope in 2024, totaling $56 billion. ****
This page was last updated on: 23/03/2026
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