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In both its history and its culture, Palestine is a rich country. It is located at the intersection of Africa, Europe, and the Near East. The unusual mix of languages, cultures, and religions in Palestine. The State of Palestine has an HDI of 0.708 for 2019, which puts the Palestinian country into the highest human development category.
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The upsurge in Palestine is with consistent yearly GDP growth rates, a strong investment environment, and enormous growth potential in several areas. Investors have benefited from a high, consistent render for investments between 6.09 and 6.92 percent in 2007 and 2012 since 2005, the average annual growth rate of GDP was 7.5%. 211 foreign private shareholders with a total capital of US$1.8 billion were discovered in the Company Register.
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1. Business Friendly Environment of Palestine Draws More Attention
Palestine not only has experienced staff at its depot; it also has an effective financial system and the necessary infrastructure in many sectors and most of the country. The economic landscape in West Bank and Gaza is very advantageous in contrast to much of the rest of the region, as the World Bank indicates. In the areas of protection for investors (49th internationally and 4th regionally) Palestine fared extremely well and paid taxes (55th globally and 10th regionally).
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The Investment Promotion Act with the Palestinian Investment Promotion Agency as the investment promotion authority and a large investor support structure is the framework for investor protection. The PIEFZA is responsible for investment and investment oversight of the Industrial Estate and Free Zone Authority.
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2. Palestine's Global Economic Participant Free Trade Agreements
The Greater Arab Free Trade Area (GAFTA) is one of the largest economic successes in the field of Arab Common Labor and contributes to the establishment of the Arab Common Market. As of 1 January 2005, all GAFTA industrial and agricultural products have duty free quotas for Palestinian exports.
Since January 2012, the Palestinian Authority has been offered duty-free, quota-free import arrangements for Palestinian industrial, agricultural, manufactured food, and fishery products into 28 countries of the EU under the interim trade and cooperation agreement with the European Union(IAA) between Palestinian liberation organization(PLO) and the Commission. The ENP provides the Palestinian Authority with additional options to reinforce economic cooperation with the EU.
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3. Availability of Several Loan Schemes
In addition to the Investment Promotion Act incentives, local and foreign investors may benefit from additional loans and grants as set out below.
· FRENCH LOAN: The French grant has been created to ease the funding of small and medium-sized projects and establishment, or modernization and strengthening of existing private Palestinian companies, of small and medium-sized enterprises, and in the domains of industry, tourism, agriculture, and services.
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· ITALIAN LOAN: The Italian Credit Line seeks to provide soft lending to Palestinian SMEs to finance Italian purchasing equipment and services in industrial and food and agricultural sectors and associated services.
· THE EUROPEAN PALESTINIAN CREDIT GUARANTEE FUND (EPCGF): The purpose is to help small and medium-sized enterprises in Palestinian to overcome their financial problems, funded by the European Commission, Germany, and the European Investment Bank.
· GUARANTEE FACILITY (LGF) FOR SMES: This program provides guarantees to banks working in Palestine to the Palestine Investment Fund (PIF) and its partners to encourage them to lend to small and medium-sized companies across Palestine.
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Bottom Line
As described above, Palestine has many characteristics that make it a very appealing investment destination: Palestine's strategic geographical location, the presence of talented and youthful workers along with the International Community's attractive incentive packages, the multiple free trade agreements with the world's major trade partners, industrial states' incentives and strongly supporting the Palestinian trade and investment government policy.
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Numerous entrepreneurs are choosing this destination for their successful businesses and start-ups. The state has wide opportunities for its citizens as well as foreign entrepreneurs to venture their business here. People who are looking to get their business started, may try their luck at this very proliferative business destination.
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