Dynamic economy and annual economic growth: the Economic growth in Palestine reached 5.9% in 2012 along with annual growth in GDP while foreign investments scored 2.6% growth in 2012. the economic indicators showed a general growth in various economic indicators.   

 

Incentives Package Contract: that enables PIPA and Its Board of Directors to provide additional incentives for leading projects according to the sectors or the geographical location of the project.   

 

Palestine is a virgin land for variety of investments: Palestine is in the phase of building and expanding its production chain to meet the needs of the growing local markets. All the economic sectors represent a variety of investment opportunities.   

 

Infrastructure and communications network: Availability of competitive services in infrastructure particularly in wire and wireless communication networks in addition to well develop data systems.   

 

Qualified Industrial Zones: the Industrial zones strengthened the success of investment through offering services, advanced infrastructure and rewarding incentives for investments. In addition to the investment registration and licensing services to facilitate registering and launching the projects. There are many industrial zones in Palestine: (Bethlehem Industrial zone, Jericho agro-industrial zone, and Gaza Industrial City) .There are two industrial zones that are still in the construction phase (Jenin Industrial zone, Tarqoumia Industrial zone).   

 

Strategic location: Palestine is located in the heart of the world, linking Asia, Africa, and 

 

Qualified labor force: Palestine has a wealth of well-educated and trained (skilled) labor force that represents 43.6% of its population.   Suitable work environment: the legal environment, the availability of laws and regulations guarantee a healthy investment climate. The Palestinian government has put extensive efforts to provide the proper facilities and support investors through the establishment of the Palestinian Investment Promotion Agency (PIPA) to encourage investors to invest in Palestine by providing advice and support, as well as an after care strategy.   

 

Access to global markets: with more than 11 commercial agreements, Palestine has access to a number of wide spectrum markets, intra-regional trade treatments, simplified procedures and customs which ease accessing international markets, as well as the availability of preferential agreements for Palestinian products in the Arab world, consisting of 350 million consumers.   

 

Access to financing: variety of good financial systems, funding and lending, with easy and flexible financing programs responding to investor needs.

 

Investment Sectors 

 

Renewable Energy – The Government had set the energy sector strategy with strong emphasis of efficient and green power generation, where the vision is to build an integrated Palestinian National Energy System, which will be capable of securing energy from various sources, and will be sufficient to meet local consumption needs as well as comprehensive and sustainable development, targeting local generating of 50% of electricity needs by the year 2020, out of which 10% would be from renewable energy sources (approx. 130 MW).  

 

ICT – the existence of an educated labor pool, in addition to Palestine’s geographic proximity to high technology centers are two factors that have greatly contributed to the sector’s fast growth.  Palestinian universities are capitalizing on the worldwide shortage of IT specialists by providing a strong emphasis on IT training in their curriculums. Sun Microsystems, for example, has donated laboratories to three Palestinian universities in order to train IT students.   

A commitment to international quality standards, such as CMM and ISO, and supportive international trade agreements, are key reasons for why leading names such as IDS, Oracle, 3Com and Timex have chosen to establish offices, R&D operations, or links in Palestine.  

 

Food and Beverage – The food and beverage sector has been one of the fastest growing sectors of the Palestinian economy. The Investment Encouragement Law eased restrictions on new businesses in 1998 and as a result, the sector has become a major attraction for investment.  The Palestinian Territories offer a friendly business environment in which to start, or expand a business in the food and beverage industry.  Manufacturing plants in this sub-sector are modernly equipped.  Most of the plants are semi or fully automated. A large percentage of the existing food & beverage manufacturing plants are ISO-certified.

 

Textiles and Garments – The textile & clothing industry is the second largest industrial employer in Palestine. The industry is composed of hundreds of small enterprises operating out of individual homes. Seventy percent of registered companies are considered sole proprietorships, with the remaining 30% are registered as partnerships.

The highest concentration of garment & textile factories in the West Bank is in Nablus where there are 362 factories. 760 factories are in Gaza, with the balance of 578 factories distributed throughout the West Bank towns & cities.

Tourism – The tourism sector in Palestine is continuously growing, in the presence of all the significant elements that guarantee economic success, and prosperity.  The sector is able to attract foreign and domestic investments and can appeal to investors with its diversity of the cultural, and religious diversity, as well as environmental and natural wealth. 

 

Drugs and Pharmaceuticals – Palestinian pharmaceutical companies have expanded their production capacity and product lines at a rate of 7-10% per annum over the past 25 years. Product lines are focused on meeting the needs of the Palestinian market place There are currently six major Palestinian companies with approximately $45 million in capital investment. 

 

Stone and Marble – Stone and Marble sector represent 4.8% of the Palestinian Gross Domestic Product (GDP). The average annual sales of the sector are approximately $600 million Technology in use is mostly semiautomatic for 85%, with some automatic equipment for 15% of the sector. 95% of the raw material comes from local sources.

The easiest and closest market for the Palestinian Stone and Marble business is Israel, which constitutes about 65% of sales. The West Bank is the second largest consumer that results in around one quarter of total sales.

Agriculture – The agricultural land covers approximately 1,382,492 million dunum that is cultivated with all kinds of vegetables and field crops, in addition to the groves of fruit trees.  The amount of livestock varies from one year to another and from one season to another. The unique location and progression of many human civilizations in the territories led to the richness of biodiversity, where most types of natural vegetation and wildlife are found.

According to the classification of the Ministry of Agriculture, Palestine is comprised of five agro-ecological zones.

Construction and real estate development – The construction sector is one of the important economic sectors in Palestine, due to its economic role of income generating‎, employment, providing buildings for housing and economic activities. There is a rising demand on apartments to 25 thousand housing unit. There are 140 thousand house need to be reconstructed in the Gaza Strip. The government is working on the implementation of infrastructure projects in privatization and partnership with the private sector in projects like (street, bridges, crossing…), this leads to rising demand on building materials and cement.

Although there is growth in construction sector; there is still a gap between supply and demand for products in this sector.

The Palestine Securities sector – The Palestine Securities Sector launched with its first trading session at Palestine exchange (PEX) on 18th Feb., 1997. The securities sector is supervised by the Palestine Capital Market Authority (PCMA) which was established in 2005 as a result of the securities law No. 12 and the Capital Market Authority law No. 13 of 2004, to regulate, oversee, and develop the securities sector along with other non-banking financial sectors.

The securities sector includes shares of companies listed on PEX, the grand majority of which are profitable. They are classified into five economic sectors: banking and financial services, insurance, investment, industry, and services. Shares trade in Jordanian dinars and in US dollars.

Palestine Investment Promotion Agency

+970 (2) 298 87 91 / 5

  info@pipa.gov.ps