This boom in growth, liquidity and employment served to fuel heightened levels of Foreign Direct Investment flows to the region through interests in real estate and other forms of investment. These “boom” conditions also led to strong performances in the flow of remittances, which has been a vital component of virtually all regional economies' balance of payments.
In Israel the issue assumed even greater import with the implementation of the recommendations of the Bachar Committee, and at this time it has come to the fore again in light of the implications of the global financial crisis.