Israel's attraction for foreign investors has dropped sharply over the last three months because of the escalation of violence in the region, Ma'ariv reports.

The paper said that heads of international corporations, such as Siemens (NYSE:SI) President and CEO Heinrich Von Pierer, and Volkswagen Chairman Ferdinand Piech told Foreign Minister Shimon Peres and Minister of Industry and Trade Dalia Itzik at the World Economic Forum meeting in New York.

The same message came from heads of American corporations, who said that they are forced to stop investments in Israeli firms.