# Foreign Direct Investment (FDI)
**Foreign direct investment (FDI)** refers to net investment flows that aim to acquire a permanent management interest, defined as **10 percent or more of the voting shares**, in an enterprise operating in an economy other than that of the investor.
It includes the sum of:
- **Equity capital**
- **Reinvestment of earnings**
- **Other long-term capital**
- **Short-term capital**
As recorded in the **balance of payments**.
This series represents the **net inflows (new investment inflows minus withdrawals)** into the **reporting economy** by **foreign investors** and is expressed as a **percentage of GDP**.
The graph shows net FDI inflows (as a percentage of GDP) in **Israel from 2000 to 2022**, highlighting the fluctuations in foreign investment over the years, with the highest in **2006 at 9%**, while in **2022 it was 5.31%**.