Trade Agreements 

The Palestinian National Authority (PNA) has adopted the principle of free trade as the cornerstone of its economic policy. In its desire to strengthen economic ties with the international community and to promote economic and trade development, the PNA has conducted trade negotiations with a number of countries including many Arab countries and other international economic  groups to consider Palestine as Quota Free country.

  Trade Agreements with the United States of America and Canada .

   Trade Agreement with the European Union 

   Trade Agreement with EFTA Countries 

   Trade Agreement with Egypt 

  Trade Agreement with Saudi Arabia

   Trade Agreement with Jordan

Investment Incentives

The PNA has created a framework of economic laws that aim at attracting domestic and foreign investments to Palestine. These laws are solid and provide long-term protection and ensure profitability for potential investors. 

Two major laws govern investment in the Industrial Estates and Free Zones:

  Industrial Estates and Free Zones Law. (Law No10 of 1998)

The Encouragement of Investment in Palestine Law. (Law No 1 of 1998)
 

All incentives, exemptions and privileges that offered by these laws are applicable to investors regardless of nationality or partnership: 

        Income tax exemption
  Fixed assets customs and duties exemptions
  Free movement of capital and profit
  Free movement of investors
  Export exemption
  Local market sales
  Rules of origin incentives
  Investment guarantees
  Preferential access to regional and international market

 

Guarantees: 

  Protection for all investors and investments and grants specific incentives for projects creating or expanding economic activities in certain sectors.

   Prohibition of discrimination against any investor on the basis of nationality.

   Prohibition of expropriation of investment in the event of expropriation for a public purpose, enterprises will be compensated fair market value.

    Protection of all confidential information unless the investor gives his written consent or a court order from a Palestinian court compels disclosure.

    Preferential treatment permitted on a narrow basis arising from bilateral or multilateral agreements.
 

Risk Insurance Investment Guarantees 

Long-term Political Risk Insurance covers up to $3-5 million for foreign direct investors per project during a 15-year period. Co-insurance is also available to increase investment coverage capacity.

The investment Guarantees fund is administered by the multilateral investment Guarantee Agency (MIGA) and is funded by the World Bank
 

Benefits for Investors:

    Free transfers of foreign currency and freedom for repatriation of income generated from investment in Palestine.

    Investors may invest in any sector of the Palestinian economy under the free admission principle.

 Free movement of investors 

 Issuing a VIP Business card for local investors to travel freely within the region.

 Issuing renewal of one-year Multi entry Visa for foreign investors.  

Rules of origin 

A Palestinian product is given preferential customs treatment according to existed trade agreements. While each agreement defines its own rules of origin, generally, a product will be stamped “ Made in Palestine” for export, if not less than 35%-40% of its out of factory value, has been processed in Palestine. 

Preferential Access to Regional and International markets 

Investors, in Palestine, benefit from its strategic location at the crossroads of Europe, Asia and Africa. There is also the added incentive of preferential duty-free access to the United States, Europe and important regional markets such as Egypt, Saudi Arabia and Jordan.  

Other Incentives

Well-developed Financial Services and Modern Stock Exchange 

Palestine provides investors with uncomplicated and well-developed financial services. These services include the creation of accessible, fluid and transparent trading conditions to enable investors to execute their needs easily and promptly. They are also designed to preserve the financial and operational integrity of the system to secure investors’ confidence in the market and its participants. 

Due to the increasing flow of investment capital from both domestic and foreign sources in the country, the stock market has grown considerably. Over 30 share-holding companies have been approved for listing, spanning a broad range of sectors, including pharmaceuticals, utilities, telecommunications, and financial services. Palestine’s investment market is improving, especially with the increase in trading volume due to the financial facilities and services that Palestine provides.

Quality Of Life 

With the accession of the PNA in 1994, a sense of peace and stability permeated the land. As a result, the quality of life started to advance gradually. Palestinians today are enjoying higher living standards, specifically after the improvement of the economy, infrastructure and the industry in Palestine. 

The stable conditions also resulted in remarkable growth in entertainment-related activities such as sports, art, theater, music, and many other cultural and social activities.  All these offer a good quality of life for potential investors.

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