The purpose of direct investment is for foreign individuals or companies to purchase ownership of domestic companies. An analysis of direct investment shows the strength of the domestic economy and how open and attractive it is to foreign investors. The Information and Statistics Department at the Bank of Israel manages a database on the economy’s activity vis-à-vis abroad, and calculates the aggregates of nonresidents’ investments in Israel and Israelis’ investments abroad for the purpose of compiling Israel’s International Investment position (IIP). These data are used in economic analyses of Israel's financial activity vis abroad and in compiling Israel’s balance of payments. This paper focuses on measuring direct investment as a part of the Israel’s overall IIP. In it, we present the dimensions, main terms and definition of Israel's IIP; we outline the method  of calculating direct investment in and from the Israeli economy; and we demonstrate the possible uses of the data on direct investment.