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U.S. Department of State
West Bank and Gaza Commercial Guide
Office of the Coordinator for Business Affairs
COMMERCIAL GUIDE
FOR WEST BANK AND GAZA
FY 1996
Prepared by the
American Embassy, Tel Aviv and
American Consulate General, Jerusalem
July 1995
Note to the Reader:
This Country Commercial Guide (CCG) presents a comprehensive look at
Israel's commercial environment through economic, political and market
analyses.
The CCG's were established by recommendation of the Trade Promotion
Coordinating Committee (TPCC), a multi-agency task force, to consolidate
various reporting documents prepared for the U.S. business community.
Country Commercial Guides are prepared annually at U.S. Embassies
through the combined efforts of several U.S. government agencies.
TABLE OF CONTENTS
I. EXECUTIVE SUMMARY
II. ECONOMIC TRENDS AND OUTLOOK
Major Trends and Outlook
Principal Growth Sectors
Government Role in the Economy
Balance of Payments Situation
Infrastructure Situation
III. POLITICAL ENVIRONMENT
Nature of Political Relationship with the United States
Major Political Issues Affecting Business Climate
Brief Synopsis of Political System, Schedule for Elections,
and Orientation of Major Political Parties
IV. MARKETING U.S. PRODUCTS AND SERVICES
Distribution and Sales Channels
Use of Agents and Distributors; Finding a Partner
Franchising
Direct Marketing
Joint Ventures/Licensing
Steps to Establishing an Office
Selling Factors/Techniques
Advertising and Trade Promotion
Pricing Product
Sales Service/Customer Support
Selling to the Government
Protecting Your Product from IPR Infringement
Need for a Local Attorney
V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
Best Prospects for Non-Agricultural Goods and Services
Best Prospects for Agricultural Goods and Services
Significant Investment Opportunities
VI. TRADE REGULATIONS AND STANDARDS
Trade Barriers, including Tarrifs, Non-Tariff Barriers,
and Import Taxes
Customs Valuation
Import Licenses
Export Controls
Import/Export Documentation
Temporary Entry
Labeling, Marking Requirements
Prohibited Imports
Standards
Free Trade Zones/Warehouses
Special Import Provisions
Membership in Free Trade Arrangements
VII. INVESTMENT CLIMATE
Openness to Foreign Investment
Conversion and Transfer Policies
Expropriation and Compensation
Dispute Settlement
Political Violence
Performance Requirements/Incentives
Right to Private Ownership and Establishment
Protection of Property Rights
Regulatory System: Laws and Procedures
Bilateral Investment Agreements
OPIC and Other Investment Insurance Programs
Labor
Foreign Trade Zones/Free Ports
Capital Outflow Policy
Major Foreign Investors
VIII. TRADE AND PROJECT FINANCING
Brief Description of Banking System
Foreign Exchange Controls Affecting Trading
General Financing Availability
How to Finance Exports/Methods of Payment
Types of Available Export Financing and Insurance
Project Financing Available
List of Banks with Correspondent Banking Arrangements
IX. BUSINESS TRAVEL
Business Customs
Travel Advisories and Visas
Holidays
Business Infrastructure
X. APPENDICES
Appendix A. Country Data
Appendix B. Domestic Economy
Appendix C. Trade
Appendix D. Investment Statistics
Appendix E. U.S., West Bank and Gaza Contacts
Appendix F. Market Research
Appendix G. Trade Event Schedule
I. EXECUTIVE SUMMARY
Political reconciliation between Israel and the Palestinians beginning
with the signing of the Declaration of Principles in September, 1993 has
paved the way for expanded business opportunities for U.S. companies in
the West Bank and Gaza. With the signing of the Gaza-Jericho Agreement
in May, 1994, and ongoing negotiations to reach an interim agreement
between Israel and the Palestinian Authority (PA), the PA is gradually
assuming more control over many economic functions. The PA is making
slow but steady progress in developing transparent legal, regulatory and
commercial codes.
The best manufacturing export opportunities for U.S. companies exist in
the sale of power, telecommunications, construction and refurbished
factory and transportation equipment to support infrastructure and
commercial development over the next five years. The international donor
community has pledged $2.4 billion over the five year period between
1994 and 1999. A number of large infrastructure projects are still in
the planning stages and may offer opportunities for U.S. firms. The
Palestinian Authority plans major projects for power generation,
telecommunications, water and sewage systems, a port and airport in
Gaza. Although tenders currently exist only for the Gaza airport, other
major tenders will be announced in 1995-96.
The population of the West Bank and Gaza is approximately 2.3 million.
Despite relatively low reported annual incomes, there is a growing
middle/upper-middle class in the West Bank and Gaza, due in large part
to the recent influx of diaspora Palestinian investors and technocrats
who staff PA ministries. This class seeks high quality consumer goods.
American-made food and consumer items are popular, as is electronic
equipment such as personal computers. Opportunities for U.S. companies
also exist in developing franchising, distributorship and sales
relationships with West Bank and Gaza companies. Potential exists for
fast food, hardware, and office supply franchising. Palestinians are
westernized and well-educated and seek American goods, know-how and
services. As Palestinian incomes grow, fast food franchising may offer
new opportunities for U.S. companies.
The Palestinian Authority, Israel and the donor community are discussing
the establishment of two or more industrial parks, possibly focused on
export processing, one in Gaza and one in the northern West Bank.
Although these are in the planning stages, they may offer investment
incentives for U.S. companies interested in greater accessibility to
regional, Gulf and European markets, and related exports of U.S.
products.
Given joint Palestinian/Israeli jurisdiction over some areas of the West
Bank, and related differing investment, trade and customs regulations,
U.S. companies who wish to trade with or invest in the West Bank and
Gaza should contact the U.S. Commercial Service in Tel Aviv and
Jerusalem to discuss specific arrangements. American businesses seeking
to establish investment and joint venture arrangements should work with
a local partner and the U.S. Commercial Service throughout the approval
process.
Country Commercial Guides are available on the National Trade Data Bank
on CD-Rom or through the Internet. Please contact Stat-USA at 1-800-
STAT-USA for more information. To locate Country Commercial Guides
through the Internet, please use the following world-wide web address:
www.stat-usa.gov. CCGs can also be ordered in hard copy or on diskette
from the National Technical Information Service (NTIS) at 1-800-553-
NTIS.
II. ECONOMIC TRENDS AND OUTLOOK
Please Note: This is a guide on export and investment opportunities in
the West Bank and Gaza. U.S. businesses should know that the Israelis
and Palestinians share jurisdictional and regulatory control over some
aspects of the West Bank and Gaza economies, such as trade. Through an
Interim Status currently being negotiated, the Palestinians will assume
greater control over many economic and trade functions. U.S.
businessmen should contact personnel at the U.S. Embassy in Tel Aviv or
Consulate General in Jerusalem listed in Appendix E for current
information regarding economic and trade regulations and procedures.
Major Trends and Outlook
The Palestinians and Israel signed an economic accord as part of the
Gaza-Jericho Agreement in May, 1994. As part of this and follow-on
agreements, the Palestinian Authority (PA) assumed responsibility for
most key spheres in the Gaza and Jericho economies, including trade and
investment. The picture in the West Bank outside Jericho is more
complex: the PA has assumed authority over key spheres such as taxation,
health and education. There is no Palestinian currency, which means
that inflation in the West Bank and Gaza is tied to that in Israel.
Negotiations with Israel are ongoing regarding complete transfer of
authority for the rest of the West Bank. It is too soon to evaluate the
influence of the Palestinian Authority over economic conditions in the
West Bank and Gaza as the economy remains heavily tied to Israel and
bound by Israeli customs and other regulations.
The West Bank and Gaza market, with a total population of 2.3 million,
is approximately 5 percent the size of the Israeli economy. Annual
population growth is 4.1% in the West Bank, 5.1% in Gaza. Although
relatively small, the West Bank/Gaza economy offers potential for U.S.
exports, investment and regional production. The Israeli and West
Bank/Gaza economies remain linked, in part due to the fact that Israel
purchases almost 85% of West Bank/Gaza exports, and the PA uses the
Israeli shekel as legal tender and does not have its own currency (the
Jordanian Dinar is also legal tender in the West Bank but the shekel is
more widely used. However, the gradual assumption oby the Palestinians
of greater control over their economy may involve a gradual de-linking
of the Israeli and West Bank/Gaza economies, particularly in terms of
trade sources. This and the links between local Palestinians and
diaspora Palestinians in the region and the U.S. may offer important
export opportunities for U.S. suppliers.
Official statistics suggest that GNP growth has slowed in recent years,
from 8.5 percent in the West Bank and 6.3 percent in Gaza in the 1970's
to 3.5 percent in the West Bank and 1.6 percent in Gaza in the 1980's
and lower in 1995. This is at least in part due to dislocations of the
intifada after 1987, and the loss of Gulf remittances (formerly one-
third of West Bank/Gaza GNP) following the Gulf War when Palestinians
left the Gulf states. Unemployment in Gaza is estimated by some at 50
percent, and in the West Bank, about 30 percent. (These figures may not
reflect actual unreported part-time employment.)
Annual per capita income in the West Bank dropped from $2200 in 1990 to
$1200 in 1995; in Gaza, per capita income dropped from $1400 in 1990 to
$600 in 1995. (These figures do not reflect unreported income and the
"grey" market, which many believe is substantial in the West Bank and
Gaza and has grown in recent years.) The substantial decline in
reported household income between the late 1980's and early 1990's was
caused by three main factors: the Palestinian uprising (Intifada)
beginning in 1987 which forced business closings due to politically-
mandated strikes; the expulsion of Palestinian workers who transferred
money to the West Bank/Gaza from the Gulf states after the Gulf War; and
Israeli closure of its checkpoint crossings in the West Bank and Gaza in
response to terrorism, temporarily beginning in 1993 and more
permanently beginning in late 1994.
Despite official statistics showing a recent economic slowdown in the
West Bank and Gaza, there has been a substantial increase in imports of
consumer goods, particularly small electronic appliances, clothing and
shoes. This may be due to a growing "grey" market with unreported
production and income, and to increasing ties between Palestinians
living in the West Bank and Gaza and those living in the U.S. Moreover,
since the beginning of reconciliation between Israel and the
Palestinians in September, 1993, diaspora Palestinians have begun to
transfer funds to the area for investment and residential/commercial
construction.
Investment in housing has remained strong since the 1980's, with 20
percent of GDP going into this sector, compared to 7 percent in similar
societies. There has been a boom in housing construction in Gaza and
Ramallah in the West Bank since the signing of the Declaration of
Principles in September, 1993. Most housing construction is privately
financed and benefits the middle and upper classes, as well as many
diaspora Palestinians. Availability of affordable housing remains a
serious problem for the lower-middle and lower classes, particularly in
Gaza. Land prices, especially in urban areas, have skyrocketed since
September, 1993, in large part in the West Bank at least, because only 5
percent of the land is open for development. In Gaza --rougly twice the
size of the District of Columbia-- land prices remain high because of
the scarcity of land. Due to the virtual integration of the Palestinian
labor market into the Israeli economy until the latest Israeli closure
in 1994-1995, labor costs in the West Bank and Gaza, while low compared
to Israel, are relatively high for the region.
Principal Growth Sectors
The continued expansion of peace between Israel and the Palestinians,
and the gradual assumption by the Palestinians of greater control over
their economy should lead to continued international donor efforts to
support the needs of the new Palestinian Authority. Infrastructure
development, both publicly and privately financed, will be a major
growth sector in the West Bank and Gaza over the next five years.
Although planning is still underway, major projects are scheduled for
building a port and airport in Gaza, and for electric power generation
and expansion of telecommunications infrastructure, equipment and
services. The first phase of the Gaza port will cost $60 million, with
the Dutch Government providing $24 million in support. Public and
private investment is needed for upgrading and expanding sanitation,
waste disposal and water services, as well as for upgrading West Bank
and Gaza roads. Private and public contractors seek suppliers of
competetively-priced equipment, machinery and raw materials for major
infrastructure projects.
Private housing construction should also show strong growth; there will
be continuing high demand for low and lower-middle income families.
While local builders and engineers can meet much of this demand at
comparatively low prices, innovation in low-cost, multi-family housing
construction is needed from outside sources. There is a growing trend,
particularly in Gaza, in building large commercial and residential
towers rather than one or two story buildings. Companies who can
produce low-cost construction inputs in high volume should consider
marketing and distribution options in the West Bank and Gaza.
Recent investment in productive assets is extremely low, 1-4 percent of
GDP. In 1990, manufacturing made up only 7.4 percent of per capita GDP,
compared to 13 percent in Jordan. Manufacturing employment accounts for
15.5 percent of total employment in the West Bank/Gaza. Capacity
utilization averages 56 percent. West Bank/Gaza companies are small by
world standards, and 90 percent of all firms employ fewer than eight
people. The manufacturing sector should show strong growth as
Palestinians assume greater control over their political and economic
lives. Widening regional cooperation should open export markets for
Palestinian goods.
Expansion is expected in light industry and low-tech electrical
assembly, such as car dashboard and electronic goods assembly, and in
the manufacture and export of processed foods, pharmaceuticals, textiles
and shoes, hardware, wood and cane furniture, plastics and housewares.
Construction inputs such as cement and steel products, also will be in
heavy demand. The relatively high education level of the workforce in
comparison to that in Jordan and Egypt should give the West Bank and
Gaza a competitive advantage in industries requiring technical
expertise.
The agricultural sector employs over 34 percent of the West Bank and
Gaza workforce, and accounts for 30 percent of West Bank and 25 percent
percent of Gaza GDP. The sector has excellent growth potential,
particularly to provide inputs for the local food processing industry.
Local entrepreneurial talent, climate, and a sound technological base
are strategic advantages in the sector. However, the ultimate growth
potential of the sector depends in part upon the willingness of Israel
and neighboring countries to lower agricultural trade barriers or to at
least allow the transit of Palestinian agricultural goods to Europe and
the Gulf.
Non-government services account for 40 percent of West Bank/Gaza GDP.
Tourism in Israel is expected to grow 250 percent to 5 million visitors
annually by the year 2,000. Tourism in the West Bank and Gaza is also
expected to grow. Tourism expansion in the West Bank and Gaza depends
heavily on security issues and, in the West Bank whether the PA can
obtain land and building permits from the Israelis. Franchising and
distributorships are becoming increasingly popular, with the best
prospects in hardware, computers, electronics and office equipment, fast
food, amusement and "theme" parks, and small business services such as
copying and printing.
While a number of Arab banks have already set up offices in the West
Bank and Gaza, the financial services market remains relatively
undeveloped. Correspondence and other international banking
relationships are developing. Some observers believe that areas under
PA control for banking services will show strong growth in offshore
banking facilities, due to the fact that the PA allows holding foreign
currency accounts such accounts.
Government Role in the Economy
The Palestinian Authority has pledged to promote the private sector, and
to allow private management of major infrastructure systems, such as
power and telecommunications. The private sector accounts for over 90
percent of West Bank/Gaza GDP. Unlike other developing regions, the West
Bank and Gaza do not have a history of government ownership of large
sectors of the economy.
Currently, the PA, including Chairman Arafat and various ministers,
plays a major role in the approval process for private commercial
projects. Responsibility for major projects is often shared by several
ministries, and U.S. businesses must be sure to talk to all relevant
ministries when competing for contracts. A new investment law for Gaza
and Jericho requires that all new investments must be approved by an
investment board to be eligible for incentives such as tax holidays.
(See Section VII below regarding Investment Law specifics.)
Balance of Payments Situation
The West Bank and Gaza have a large trade imbalance, approximately 28
percent of GNP. Merchandise exports from the West Bank and Gaza
declined from a peak of $403 million in 1981 to $208 million in 1991.
The trade deficit was estimated at $249 million or higher in 1992.
Since 1973, approximately 85 to 90 percent of all West Bank and Gaza
imports, particularly agricultural commodities, have come from Israel; 9
percent come from Jordan and 1 percent from other countries. During the
same period, approximately 70 percent of West Bank and Gaza exports went
to Israel, 28 percent to Jordan, and 2 percent to other countries. The
West Bank and Gaza economies are highly export-oriented: exports to
Israel were 80 percent of Gaza's GNP in 1992.
Infrastructure Situation
Infrastructure--particularly water and power systems, and sanitation,
road and telephone networks--needs substantial upgrading and expansion.
Annual use of West Bank and Gaza water resources remains at 1973 levels,
and must be expanded to sustain private sector development. Electricity
consumption is low compared to per capita income: KWH per capita is 680
in the West Bank and Gaza, compared to 1054 in Jordan and 815 in Egypt.
The ratio of telephone subscribers to population is 1:46 in the West
Bank/Gaza, compared to 1:15 in Jordan and 1:36 in Egypt. Lack of
adequate physical infrastructure for electric power and an insufficient
power supply cause work stoppages in most West Bank and Gaza firms.
III.POLITICAL ENVIRONMENT
Nature of Political Relationship with the United States
The United States maintains good working relations with the Palestinian
Authority. The issue of Arab-Israeli peace has been a major focus in
U.S.-Palestinian Authority relations. On September 13, 1993, PLO
Chairman Arafat and Israeli Prime Minister Rabin signed the Declaration
of Principles (DOP), which outlined a five-year timetable for peace
between Israel and the Palestinians. On May 4, 1994, Arafat and Rabin
signed an agreement implementing the first stage of the DOP--self-rule
for Gaza and Jericho.
The U.S. government has pledged to do everyting it can to ensure
successful implementation of the DOP. The U.S. committed to an 8 year,
$500 million assistance program as part of the international donor
effort. In addition, the U.S. has extended GSP to the West Bank and
Gaza and is considering a Free Trade Agreement with the PA.
Israel and the Palestinians are negotiating an Interim Agreement as
called for in the Declaration of Principles. Included in the agreement
are arrangements for redeployment of Israeli forces in the West Bank,
transfer of all civil authorities to the Palestinian Authority, and
elections for a Palestinian Council to represent Gaza and the West Bank.
The U.S. government remains engaged in a facilitating role as these
negotiations proceed. The U.S. government also take the lead in
ensuring international donor support for the agreement.
Major Political Issues Affecting the Business Climate
Three major political issues affect the business climate in the West
Bank and Gaza. These are: 1) the rate of progress in reaching and
implementing Israeli-Palestinian agreements; 2) Israeli security
measures to prevent acts of terrorism; and 3) the potential for clashes
between Palestinian demonstrators and Israeli security forces. These
issues have a major effect on the willingness of businesses to invest in
the West Bank and Gaza. Of particular concern are the free flow of
goods and workers both within the West Bank and Gaza and between these
areas and Israel.
Personal status laws (marriage, divorce, inheritance) are derived from
religious law. Other sectors are governed by a combination of Ottoman,
British Mandate, Egyptian, pre-1967 Jordanian, and new Palestinian law,
and Israeli military orders.
Brief Synopsis of Political System, Schedule for Elections,
and Orientation of major Political Parties
Established by the Gaza/Jericho Agreement, the Palestinian Authority is
an assembly of ministers appointed by Yasser Arafat, who serves as head
or chairman of the Authority. Under the terms of the Interim Agreement
being negotiated, a Palestinian Council with legislative powers will be
elected to serve as an interim self-governing authority. A council
president will be elected separately to serve as the executive head of
this authority.
Municipal councils, both in the West Bank and Gaza, were last elected in
1976. New elections may be held during the interim period. Civil
institution-building remains at a nascent stage, but democratic ideals
have strong support among Palestinians. The Palestinian Authority is
drafting a law governing the formation of parties and political
participation. Palestinian political parties are being formed in
anticipation of elections for the Palestinian Council.
A range of political perspectives are emerging in Palestinian society,
including secular moderates, leftists and Islamicists. Political support
for moderate parties including Chairman Arafat appears to be gaining.
However, fundamentalist and rejectionist parties such as the Palestinian
Islamic Jihad and Hammas, continue to oppose the peace process.
IV. MARKETING U.S. PRODUCTS AND SERVICES
Distribution and Sales Channels
The West Bank/Gaza population is heavily concentrated in or near urban
centers: Gaza City and Khan Yunis in Gaza, and four major towns in the
West Bank: Nablus and Ramallah in the north and Bethlehem and Hebron in
the south. Since the area has no indigenous ports or airport, goods
must either transit Israeli, Jordanian or Egyptian ports. Recently, the
Palestinian Authority, Israel and Egypt concluded an agreement to allow
limited quantities of goods through the Rafah crossing point on the
Gaza-Egypt border. The Palestinian Authority also has concluded an
agreement with Jordan for transit of goods across the Allenby Bridge.
Delays for products entering or exiting the West Bank and Gaza are
common, due in large part to Israeli security checks. Most products
entering or exiting Gaza transit Erez or Nahal Oz checkpoints, where
delays are common due to the volume of goods and the rigor of the
security checks. Both Israelis and Palestinians recognize the need to
move goods faster and in greater quantities, while addressing Israeli
security concerns. A variety of options are under consideration.
Most goods are sold in small retail outlets in West Bank and Gaza towns.
Local consumers are price conscious, although quality of American brands
is more important than price for the more westernized upper-middle
class. Moreover, even with shipping costs, American-made consumer
products may be cheaper than relatively high-priced comparable Israeli
items which are currently sold in Palestinian stores. Wholesale
channels and generic sales are not well-developed. These channels
should expand over the next five years due to their success in
neighboring Israel and to their ability to offer quality at discounted
prices.
U.S. companies are strongly advised to work with local clearing agents
to expedite goods through the customs clearing process. Currently, only
Israeli firms are licensed as customs clearing agents. This is likely
to change as Palestinians assume more complete control over customs
procedures.
Use of Agents and Distributors; Finding a Partner
Given the complexity of current local economic and trade circumstances,
U.S. exporters who wish to market their goods in the West Bank and Gaza
should use agents and distributors to obtain maximum sales exposure to
the local market. Although Israeli companies have in the past had the
rights for agencies and distributorships in the West Bank and Gaza, this
practice is changing with the gradual transfer of authority to the
Palestinian Authority. Due to cultural, language and other differences
between Israelis and Palestinians, U.S. businesses may want to consider
separating distributorships for the West Bank/Gaza and Israel, for
maximum effectiveness and coverage. The United States Government
supports the expansion of the Palestinian economy through distribution
and agency agreements between Palestinians and U.S. companies through
arrangements most practicable to the business parties concerned.
Currently, small distributorships in the West Bank and Gaza exist for
some American food products, cigarettes, household products, and
computers. Local distributors usually import goods on their own
account, carry limited stocks sufficient to satisfy immediate needs, and
maintain their own sales organization.
In concluding a representation agreement, U.S. companies should include
the following elements:
--contract duration;
--exclusivity (if applicable);
--compensatory amount as a function of contract duration, in case
of termination of exclusivity;
--promotional input by agent and volume of sales; and
--dispute settlement mechanism, if possible.
The U.S. Commercial Service (USCS) and the U.S. Foreign Agricultural
Service (FAS) at the U.S. Embassy in Tel Aviv and the U.S. Consulate
General in Jerusalem provide agent/distributor search services for Gaza
and the West Bank, respectively, to assist U.S. companies to establish
themselves in the local market. For information on these services,
interested firms should contact the USG personnel listed at the end of
this report.
Franchising
Although there are no current franchise arrangements between U.S. and
local Palestinian firms, potential exists for franchises in fast food
restaurants, automotive supplies and service, hardware, and office
supplies, among others. As with distributorships, the U.S. Government
supports the expansion of the Palestinian economy in the West Bank and
Gaza through franchise arrangements between Palestinian and U.S.
companies through arrangements most practicable to the business parties
concerned.
The key to successful franchising in the West Bank and Gaza will be cost
competitiveness in relation to comparable items, brand recognition,
strong management and marketing, and initial and ongoing training
programs. Due to the relatively small local population, the best
franchising potential exists in sectors where specific dietary, language
or usage patterns differ from those in neighboring countries. For
example, food and computer items and office supplies may be best
marketed in the West Bank and Gaza with Arabic markings, rather than
Hebrew markings required inside Israel.
U.S. companies interested in developing local franchising arrangements
should contact the U.S. Commercial Service at the U.S. Embassy in Tel
Aviv for Gaza, and the U.S. Consulate General in Jerusalem for the West
Bank. (Also see Section V "Leading Sectors" section in this report.)
Direct Marketing
There is no direct marketing in the West Bank and Gaza.
Joint Ventures/Licensing
A number of joint venture arrangements are being discussed by U.S. and
Palestinian businessmen. Local businessmen are eager to develop joint
venture arrangements, and larger local companies, particularly those
with exporting experience, will be reliable partners for U.S. companies.
The new Palestinian Authority Investment Law applies to both foreign and
local businesses who wish to invest in areas under PA control.
Currently, this includes Gaza/Jericho, but the rest of the West Bank may
be included under a new Interim Agreement.
Steps to Establishing an Office
The differences in jurisdictional authority between the PA for Gaza and
Jericho, and Israel for some functions in the rest of the West Bank,
U.S. businesses should work with local partners, and with the U.S.
Embassy in Tel Aviv and U.S. Consulate General in Jerusalem. In
general, new commercial enterprises require municipal registration, as
well as approval by the Palestinian Authority for Gaza/Jericho and the
Israeli Civil Administration for the rest of the West Bank. All new
commercial enterprises in Gaza and Jericho must register with the
Palestinian Authority Ministry of Justice, the Ministry of Economy and
Trade, and the Customs Authority, and open income tax and value-added
tax (VAT) accounts.
Selling Factors/Techniques
U.S. businesses should note the influence of a comparatively large
Palestinian community in the U.S. which has transferred to the West Bank
and Gaza American consumer preferences and buying habits. These
cultural and consumption links are important factors in local
Palestinian knowledge of U.S.-made products. Although price is critical
for successful sales in the West Bank and Gaza, American quality,
particularly for computers and electronic equipment and consumer items,
is increasingly sought by local purchasers.
Advertising and Trade Promotion
U.S. products face stiff competition from European, Israeli and locally-
made goods. Competitively priced U.S. brand names are popular with
Palestinian consumers, particularly the middle and upper-middle classes.
Most advertising is done through local Arabic newspapers, although an
expansion of advertising through newly established Palestinian
television and radio services is possible. A few companies have begun
billboard advertising, which should expand over the next few years.
Advertising in the West Bank and Gaza is comparatively cheap by world
standards: a prime-time Palestinian Broadcasting radio announcement
costs about $35 per minute.
The U.S. Government, through the programs of the U.S. Commercial Service
and Foreign Agricultural Service, organizes several trade events and
catalog shows each year.
Major Newspapers and Business Journals:
Al Quds (Arabic daily)
An Nahar (Arabic daily)
The Jerusalem Times (English weekly)
Pricing Product
Price is a major factor affecting purchasing decisions by Palestinian
companies and consumers. U.S. companies may want to gain market share
by introducing products into the Palestinian market at locally
competitive prices.
Sales Service/Customer Support
After-sales-service and customer support are important in the
Palestinian market, and therefore are strong selling points for U.S.
goods. However, competitive pricing will remain most critical to
building a customer base.
Selling to the Government
The Palestinian Authority is beginning to develop a formal tendering and
bid process for government contracts. Current tender amounts are
relatively low by U.S. standards, but should be larger as bigger
projects are announced. The U.S. Government is assisting the
Palestinian Energy Authority (PEA) and the Palestine Economic Council
for Development and Reconstruction (PECDAR) to develop transparent
contracting processes. U.S. companies concerned about transparent
bidding procedures for PA contracts should contact one of the Commercial
Service officers listed at the back of this section at the U.S. Embassy
in Tel Aviv or the U.S. Consulate General in Jerusalem.
Protecting Your Product from IPR Infringement
The Palestinian Authority currently has no intellectual property
protection legislation.
Need for a Local Attorney
U.S. businesses planning to establish a business or joint venture in the
West Bank or Gaza should seek local legal and accounting services.
V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENTS
Please note that existing data on leading sectors is spotty and
inconclusive. Therefore, data tables are not included in this section.
Best Prospects for Non-Agricultural Goods and Services
1 - Power Generation Equipment (ELP)
The Palestinian Authority is issuing a tender for a $110 to $200 million
160 MW power project in Gaza. U.S. companies have an excellent chance
of being selected to provide equipment and services. Current peak demand
of 100 MW for the Gaza strip is expected to increase to 160 MW over the
next five years, depending on levels of industrialization. The power
station will be a land-based dual fuel system combining gas and steam
turbine thermal power. Electricity generation will be 50 Hz, with
distribution voltage at 22 KV. A step-up sub-station will be used to
increase the generation voltage to the transmission voltage of 132 KV.
2 - Airport Ground/Support Equipment (APG)
The Palestinian Authority recently signed an agreement with the
Palestinian-Egyptian Arab Contractors' Company (PEACC) to construct an
airport in Gaza. PEACC has received a $17 million loan from Egyptian
Al-Ahli Bank and a grant of $4.5 million for airport equipment. The
airport will consist of a 2.4 km. runway and 2.4 km taxiway suitable for
Boeing 737's and smaller aircraft, and a terminal area covering
approximately 2 square kilometers. For more details, contact the PA
airport officials listed at the end of this report.
3 - Telecommunications Equipment (TEL)
The Palestinian Authority has authorized a tripartite private consortium
to manage telecommunications. The consortium consists of the Aggad
Group of Saudi Arabia, the Palestine Development and Industry Company
(PADICO), and the Arab Bank. The consortium is developing a tender and
bid process for a $600 million project consisting of upgrading existing
equipment, upgrading and expanding existing infrastructure and providing
new telecommunications equipment, instruments and service. Interested
American companies should contact key officials in the Palestinian
Ministries of Planning and Telecommunications, listed at the end of this
report. U.S. companies should also talk with the individuals at the PA
Planning Ministry listed at the back of this report.
4 - General Industrial Equipment/Supply (GIE)
Good opportunities exist for sales of new and refurbished equipment for
key West Bank/Gaza industries. Equipment is needed to upgrade the
following industries with strong growth potential: food and beverage
processing (39 percent of local manufacturing revenues) textiles and
shoes (14 percent of manufacturing revenues), stone quarrying and
cutting and pharmaceuticals. (45 percent of Israel's textile production
is sourced in the West Bank and Gaza.) For cost considerations, many
local manufacturers prefer high quality refurbished plant equipment.
5 - Construction Equipment (CON)
Construction accounted for 18 percent of West Bank/Gaza GDP in 1990.
The expansion of peace and concurrent international donor effort will
spur extensive infrastructure and building development in the West Bank
and Gaza. Aside from the power and telecommunications sectors mentioned
above, construction will be concentrated in roads, sanitation, and
water. Commercial and residential building is already underway. The
World Bank and PECDAR will develop long-range infrastructure development
plans in 1995-96. Interested U.S. firms should contact key individuals
at these agencies listed at the end of this report.
6 - Agricultural Machinery and Equipment (AGM)
Agriculture contributes 30% to West Bank GDP and 25% to Gaza GDP.
Modern methods are gradually being introduced, bringing increased demand
for modern agricultural equipment. In particular, American expertise in
building and operating feed mills will be useful in the West Bank and
Gaza, where local production accounts for only 10% of consumption.
7 - Automotive Parts and Service Equipment (APS)
Extensive construction and a likely increase in Palestinian auto sales
over the next five years will spur a need for a wide range of automotive
parts and equipment. Of particular interest to the local market are
refurbished engines and other refurbished parts which are of good
quality and competitively priced.
8 - Franchising (FRA)
Good opportunities exist for hardware and automotive parts franchising,
particularly with competitive pricing. The fast food business is booming
in Israel, and Palestinians enjoy eating American hamburgers, pizza and
other popular food items. American food franchisers may want to
consider lower cost fast foods as a first step in entering the
Palestinian market. Opportunities exist for pizza, ice cream, and
competetively priced hamburger and chicken meals.
9 - Computers and Office Equipment (CPT, CSF)
Palestinian Authority and municipal offices, as well as expanding
private companies, need a full range of office equipment, including
computers, software, copiers, faxes and supplies. American expertise in
the computer and software field is recognized by the local market,
particularly by banks and other internationally-oriented enterprises.
Arabic software and keyboards should be included in proposed sales.
10 - Processed Foods (FPP)
Although many food products in the West Bank and Gaza are imported from
Israel, these are relatively expensive. Palestinian consumers know
American brands and are willing to pay for good quality and
internationally-recognized names. Good opportunities exist in snack
foods, cereals, condiments and sauces and other foods which do not
require refrigeration during transit.
11 - General Consumer Goods (GCG)
American consumer brands have an excellent reputation in the West Bank
and Gaza. Competetively priced products, including household cleaning
items, dental care goods, toiletries and hair care products, sold
through a Palestinian distributor, should do well in the local market,
as comparable Israeli items are expensive.
12 - Management Consulting Services (MCS)
West Bank and Gaza public and private institutions seek a variety of
consulting services for product development, quality control, marketing,
setting up corporate administrative systems, financial analysis and use
of information systems technology. Several local firms and the U.S.
Agency for International Development Small Business Support Program
provide these services, but demand is growing rapidly, particularly for
municipal and Palestinian Authority offices. International donor
financing of technical training should increase as Israel transfers more
authority to the Palestinians. U.S. consulting firms, already respected
locally for their technical expertise, must offer competitive pricing to
obtain public and private contracts.
Best Prospects for Agricultural Products
1 - Feed Grains (PS/D Code: 0459900)
The West Bank and Gaza produce locally only 10 percent of total annual
feed grain consumption. There is ample room for U.S. exports of by
products of the grain milling industries to be used as feed for local
poultry and livestock. With development of local feed and flour mills
there will be excellent opportunities for raw material imports from the
U.S. Under the terms of the Israeli-Palestinian Economic Protocol,
signed in April 1994, Palestinians may import grain from any source
after consultation with Israel's agricultural authorities. Palestinian
grain and meal purchasers seek low cost sources.
2 - Rice (PS/D Code: 0422110)
The West Bank and Gaza import 20-30,000 mt of rice annually.
Competitive pricing by U.S. sources could make this an attractive
market.
3 - Dried Legumes (PS/D Code: 0542XXX)
The West Bank and Gaza import approximately 40 percent of total Israeli
imports of peas, beans and other legumes. West Bank/Gaza 1994 imports
were approximately: white beans: $1.4 million; lentils: $920,000; dried
peas:$368,000; chick peas: $312,000.
4 - Processed Oils (PS/D Code: 4240000)
Although the West Bank and Gaza produce large quantities of olive oil,
other oils are not locally produced. Palestinian consumption of imported
processed oils is higher than consumption of olive oil. There are
moderate prospects for import of soy, corn, sunflower and rapeseed oils.
Major Investment Opportunities
The Government of the United States acknowledges the contribution that
outward foreign direct investment makes to the U.S. economy. U.S.
foreign direct investment is increasingly viewed as a complement or even
a necessary component of trade. For example, roughly 60 percent of U.S.
exports are sold by American firms that have operations abroad.
Recognizing the benefits that U.S. outward investment brings to the U.S.
economy, the Government of the United States undertakes initiatives,
such as Overseas Private Investment Corporation (OPIC) programs,
investment treaty negotiations, and business facilitation programs, that
support U.S. programs.
1 - Food and Beverage Processing and Packaging
According to a recent survey, local and foreign businesses believe this
sector, with almost 40 percent of total West Bank Gaza revenues, shows
excellent growth prospects. While agricultural products are plentiful in
the West Bank and Gaza, local companies manufacture mostly refined
products, such as sweets, cookies and snack foods. Gulf and European
markets provide a natural merchandising opportunity for U.S.-Palestinian
joint venture food products. Opportunities for U.S. companies exist in a
full range of fruit and vegetable canning and processing, and frozen
food preparation. Other opportunities include joint ventures to
manufacture snack foods, cookies, and sauces.
2 - Pharmaceutical Production
Four of the largest and most successful West Bank companies produce
pharmaceuticals. These companies are well-run, with substantial
available capital for expansion. Some multinationals are already
working with local pharmaceutical companies under distributorship
arrangements, which will probably be expanded into joint manufacturing
agreements. Some West Bank pharmaceutical companies are now moving into
light cosmetic production, and some are penetrating overseas markets in
the Gulf, Eastern Europe and the former Soviet Union. Good joint
venture opportunities exist in this field, where local firms can benefit
from U.S. quality-control techniques and new technologies, while
offering relatively low wage structures.
3 - Building Materials
The building and construction materials industry, including stone and
non-metallic minerals quarrying, employs 18 percent of all West
Bank/Gaza workers, and was rated in a recent survey of local and
international businessmen as having strong growth potential. A recent
international survey rated stone-cutting as having high international
competitiveness and growth potential. Housing and commercial
construction should continue to expand with private and public capital
inflows to support extended Palestinian self-rule. A U.S. cement form
manufacturing firm which opened in Gaza in late 1994 is expanding to
meet growing demand.
4 - Light Assembly/ Technology
The relatively well-educated local Palestinian population should, with
the appropriate specialty training, contribute to a solid labor force
for a wide variety of light assembly or electronics work. Many
Palestinians have excellent computer/software training, and small
computer programming houses already exist in Ramallah and Bethlehem.
Opportunities also exist in assembly of car parts (e.g. dashboards),
light machinery and electronic products.
5 - Hotel Construction and Upgrading
Tourism, particularly with diaspora Palestinians, should increase over
the next five years. Before 1967, Ramallah was an important regional
summer resort, and there is potential in this city for tourism
development. Current estimates of tourism demand range from 500,000 to
1 million tourists annually, including religious pilgrims, enough to
maintain a viable industry. Tourist expenditures in the West Bank and
Jerusalem averaged $90-100 million in 1989. Existing Palestinian hotels
are small and need upgrading. New hotels and motels are needed for
business and pleasure travelers. Some West Bank cities, such as Hebron
and Ramallah, have no international-standard hotel accommodations.
Nablus has one new three-star hotel with 24 rooms. While smaller hotels
are probably suitable for these cities, West Bank areas near Jerusalem
could support larger hotels to accommodate tourists.
6 - Plastics, Glass and China Housewares
The city of Hebron in the West Bank is famous for glass production, and
several small companies in this and other West Bank towns produce
plastic and china products. Local pharmaceutical companies also need
plastic bottles for their products; currently these bottles are imported
from Europe or Israel. Comparable regionally-made products are either
expensive or of low quality. Opportunities exist for the manufacture and
sale of household and industrial glass, china and plastic products for
sale in the region and in the Gulf.
7 - Furniture Manufacturing
West Bank and Gaza furniture producers make high quality products,
particularly wood and cane products. Production output is low (7% of
manufacturing revenues), but the local tradition of pride in
craftsmanship offers good potential for development and regional sales.
8 - Jewelry, Handicrafts, Ethnic Imports
The West Bank and Gaza are famous for olive wood, tiles and ceramics,
mother of pearl and needlework products. With upgrading in design and
quality, these products can be successfully marketed internationally.
Small joint ventures with U.S. partners which focus on quality and
developing ethnic designs, and appeal to western tastes, offer good
investment opportunities.
CHAPTER VI: TRADE REGULATIONS AND STANDARDS
Import/export procedures for the West Bank/Gaza remain tied in large
part to Israeli regulations. The Palestinian Authority retains major
control over imports into Gaza/Jericho, and this authority should extend
to the rest of the West Bank after an interim agreement is signed.
Israel retains quantitative control over some imports in key industries,
such as dairy products, even for Gaza and Jericho. U.S. companies should
work with Palestinian agents and/or the U.S. Embassy in Tel Aviv and
U.S. Consulate General in Jerusalem to determine specific import/export
requirements for their goods.
Trade Barriers, Including Tariffs, Non-Tariff Barriers,Import Taxes
In accordance with the Palestinian-Israeli economic agreement, U.S. as
well as European and EFTA products are treated in the same way that
Israel treats these products. Therefore, the PA does not impose tariffs
on U.S. products. Like Israel, the PA does impose purchase taxes on
many durable goods at Israeli rates.
According to the 1994 Paris Economic Protocol, the Palestinian Authority
does not impose tariffs on goods of Israeli origin. The Palestinian
Authority imposes tariffs on goods imported from other countries
according to individual agreements.
The PA imposes a value-added tax (VAT) of 17% on all goods, whether
imported or locally made, sold in the West Bank and Gaza.
Customs Valuation
The PA does not impose customs tax on goods imported from the U.S.
Import Licenses
Import Licenses for Gaza/Jericho, when required, are issued by the
Palestinian Authority. The importer must be a registered trader with
the PA, and must present a pro-forma invoice and certificate of origin.
In accordance with the Paris Economic Protocol, the PA must notify the
Israeli Ministry of Industry about each import request. While the PA may
import some items freely, other items are subject to quantitative
restrictions according to the Paris Agreement.
Imports to the rest of the West Bank, currently under Israeli
regulations, may be subject to PA regulations after the signing of the
Interim Agreement.
Israel currently imposes licensing requirements and quantitative
restrictions on a wide range of foods and agricultural products. For
example, total annual cheese imports into the West Bank/Gaza are limited
to 100 metric tons. All health-related imports, such as food and
pharmaceuticals, require Palestinian Ministry of Health approval
according to standards which are the same as those in Israel.
Export Controls
The Palestinian Authority has no export controls. However, Israeli
security checks can hinder transfer of Palestinian goods at crossing
points and ports.
Import/Export Documentation
For some specific items (approximately 15 percent of total imports),
goods entering Gaza/Jericho, must be accompanied by a pro-forma invoice,
packing list, a certificate of origin and an import license request.
This will probably extend to the rest of the West Bank with the signing
of an interim agreement. The remaining 85 percent of imported items may
be imported directly with a permit from the relevant PA ministry. U.S.
exporters should check with relevant personnel at the U.S. Embassy in
Tel Aviv or the U.S. Consulate General in Jerusalem regarding specific
items.
For exports, the PA requires an invoice and a certificate of origin
document signed by the local Chamber of Commerce and the Ministry of
Economy and Trade. Permission to export is virtually automatic. No
further documentation is required to transit the Allenby Bridge crossing
to Jordan and Rafah crossing into Egypt. However, goods transiting
Israeli ports require Israeli port documentation.
Temporary Entry
The PA has not yet established specific provisions for temporary entry
of goods, and is currently using Israeli regulations.
Labeling, Marking Requirements
Goods entering the West Bank/Gaza may be bound by marking and labeling
requirements in order to prevent leakage back into Israel. Some goods
such as cigarettes and laundry powders now have Arabic or Arabic/English
stamps labeled "Only for sale in the West Bank and Gaza." U.S.
businesses should check with a Palestinian importer for exact
specifications.
Prohibited Imports
Although the Palestinian Authority has no published prohibitions on
imports, U.S. companies should check with local Palestinian distributors
to see if restrictions (e.g. on food products, firearms) apply in
certain cases.
Standards (e.g. ISO 9,000 Usage)
The Palestinian Authority has pledged to apply international standards
requirements to all imports. Currently, the PA uses Israeli standards
codes for the import of all products which could affect health, e.g.
foods, especially meat, and pharmaceuticals. Most standards testing is
conducted in Israeli labs, although the Palestinian Ministry of Health
is beginning testing procedures. Concrete and construction materials
are being tested at Bir Zeit University.
Free Trade Zones/Warehouses
The Palestinian Authority, Israel and the international donor community
are considering establishing industrial zones in the West Bank and Gaza
to stimulate local economic activity and employment. The concept
remains in the planning stages, although it is likely that two "pilot"
zones will be established initially, one in the West Bank and one in
Gaza. The zones will probably be export-oriented, although it has not
been decided whether or not they will be strictly export-processing
zones.
Current plans envisage individual zones containing 200,000-600,000
square meters industrial and commercial construction, and employing
5,000 to 10,000 workers when fully developed. Palestinian, Israeli and
international firms will be invited to establish plants for industrial,
service and commercial enterprises. The management of the zones will
probably offer investment incentive and tax relief packages. The
estimated cost of offsite infrastructure required for each zone will be
about $20-25 million.
Special Import Provisions
The PA has no special import provisions.
Membership in Free-Trade Arrangements
In April 1995, the United States extended Generalized System of Tariff
Privileges (GSP) to the West Bank and Gaza. Over 4,500 locally-made
goods may enter the U.S. duty-free under the GSP system. Some products,
such as textiles and shoes are not eligible for GSP benefits. The U.S.
is considering extending free trade status to the West Bank and Gaza.
The European Union has a preferential trade agreement with the West Bank
and Gaza similar to that of the GSP program. The Palestinian Authority
has more restrictive trade agreements with Jordan and Egypt.
Under the terms of the Economic Protocol signed in Paris in April, 1994,
there are no restrictions on trade between the West Bank/Gaza and Israel
except for quotas on six Palestinian agricultural exports into Israel
(poultry, eggs, tomatoes, cucumbers, melons and potatoes). However, West
Bank and Gaza exports entering Israel face significant barriers,
principally as a result of Israeli security measures.
CHAPTER VII: INVESTMENT CLIMATE
Openness to Foreign Investment
Currently, all new foreign investments in Gaza and Jericho must be
registered with the Palestinian Authority and be approved by the
relevant ministry or ministries. Investments in the rest of the West
Bank must be approved by local Israeli government offices. Palestinian
Authority responsibility for approving investments in the entire West
Bank may increase following signature of an Interim Agreement with
Israel. PA corporate income tax is 38.5 percent of net profit. PA
personal tax rates are comparatively high: 40 percent for incomes
between $28,000 and $49,000 and 48 percent for incomes over $49,000.
The Palestinian Authority recently approved an Investment Promotion law,
which provides exemption from taxes and other incentives for PA-approved
domestic and foreign investments. Under the law, all investors who want
to take advantage of these incentives must apply to the Palestinian
Council for the Promotion of Investment for project approval. If the
Council does not provide a written answer within 30 days, approval is
automatic. Interested firms must present to the Council a completed
investment application and feasibility study.
Prior PA approval at the Ministerial level is required for certain types
of investments, including: aviation products and airport construction;
waste recycling, including solid waste; production of petroleum and its
derivatives; broadcasting and television; and all wired and wireless
communication.
The Investment Council, which will consist of representatives of
different PA ministries and agencies, has not been formed yet, so the
approval system has not been tested. Interested U.S. investors should
talk with the U.S. Embassy and Consulate General personnel in Tel Aviv
and Jerusalem, respectively, or with relevant PA ministry officials
regarding investment approval requirements.
Conversion and Transfer Policies
The PA Investment Law guarantees the repatriation of foreign capital.
There is no new PA legislation governing foreign currency accounts and
currency transfer policies. The Interim Agreement under negotiation
between Israel and the Palestinians may deal with currency transaction
issues, and U.S. investors should seek up-to-date information with
relevant U.S. Embassy and Consulate General personnel in Tel Aviv and
Jerusalem.
Expropriation and Compensation
The PA Investment Law prohibits expropriation and nationalization of
approved foreign investments.
Dispute Settlement
The PA Investment Law provides for dispute resolution between the
investor and official agencies in Palestinian courts, unless the
Investment Council permit states otherwise. However, the PA has not set
up courts to adjudicate such disputes. Civilian courts in Gaza operate
under a modernized version of British Mandate law. Civilian courts in
the West Bank operate under Jordanian law, amended by PA law for Jericho
and by Israeli military orders for the rest of the West Bank. The
civilian court system in the West Bank has had no enforcement system,
although this may change with implementation of an interim agreement
between Israel and the Palestinians. The Gaza civil court system has a
heavy backlog of cases.
Alternative dispute resolution mechanisms in the West Bank and Gaza
range from conventional arbitration and mediation to village, tribal and
religious tribunals and traditional methods of conciliation. Alternative
dispute resolution usually is less costly and quicker than the court
system, although judgments other than those reached through formal
arbitration are enforceable only on the basis of honor and social/family
pressure;there is no civil law enforcement system in the West Bank. Law
enforcement in Gaza/Jericho is in nascent stages, although observers say
the security situation in Gaza has improved significantly with the
growing professionalization of the Gaza police.
Political Violence
Terrorist activity in the past has usually been directed at Israeli, not
international or Palestinian targets. However, terrorist attacks
against Israel normally result in sealing off the West Bank and Gaza
from Israel, which makes the transfer of goods and workers extremely
difficult. The perceived potential for civil strife, particularly in
Gaza, has caused concern by potential international investors, but with
the growing authority of the PA, a new outbreak of civilian violence
seems increasingly unlikely.
Performance Requirements/Incentives
The Investment Law states that territories under the jurisdiction of the
Palestinian Authority will be designated as Zones A, B, and C, according
to level of economic development and planning priorities. This is
similar to the zonal system in Israel. The PA has not yet designated
these development zones.
The following incentives apply to investments which have been approved
by the Investment Council:
--Paid-in capital of at least $100,000 and less than $150,000, with
minimum of 10 Palestinian employees, with project life of at least 5
years: three year tax holiday.
--Paid-in capital of at least $150,000 and less than $500,000, with a
minimum of 15 Palestinian employees and a project life of at least 6
years: four year tax holiday.
--Paid-in capital over $500,000, with a minimum of 25 Palestinian
employees and project life of at least 10 years: six year tax holiday.
Right to Private Ownership and Establishment
The right to private ownership in Gaza is guaranteed by British Mandate
law, as amended by the Palestinian Authority. The right to private
ownership is guaranteed by Jordanian law in the West Bank, as amended by
PA regulations in Jericho, and by military order in the rest of the West
Bank. Foreigners must obtain permission from the Palestinian Authority
before purchasing property in Gaza and Jericho, and from the Israeli
Civil Administration before purchasing property in the rest of the West
Bank. The West Bank legal situation may change with adoption of an
Interim Agreement.
Protection of Property Rights
Property rights in Gaza are protected by British Mandate law, and in
Jericho by Jordanian law, both as amended by the Palestinian Authority.
Property rights in the rest of the West Bank are protected by Jordanian
law as amended by Israeli military orders. In certain situations, up to
40 percent of private property in the West Bank and Gaza may be taken
for public purposes without compensation.
Regulatory System - Laws and Procedures
The PA has not yet promulgated regulations pertaining to commercial
investments. These regulations are expected to supplement the current
investment law.
Bilateral Investment Agreements
The PA does not yet have bilateral investment agreements.
OPIC and Other Investment Insurance Programs
The Overseas Private Investment Corporation (OPIC) provides a variety of
services to qualified U.S. investors in emerging economies and
developing nations. During the early stages of investment planning,
U.S. investors may contact OPIC for insurance against political
violence, inconvertibility of currency, and expropriation, in the form
of an insurance registration letter. OPIC insurance is not available
after the investment has been irrevocably committed. Typical rates for
most projects are:
Annual base rate of $100 coverage
Inconvertibility $0.30
Expropriation $0.60
War, revolution, insurrection $0.60
Civil strife rider $0.15
MIGA, the Multilateral Investment Guarantee Agency of the World Bank, is
a private sector agency which provides risk insurance and investment
guarantees similar to that of OPIC. MIGA is actively considering
extending coverage to the West Bank and Gaza.
Labor
The West Bank and Gaza have a high proportion of relatively young and
skilled labor, and the labor force currently numbers around 400,000.
Many Palestinians have trained outside the area and are familiar with
foreign business practices. The percentage of illiterate workers dropped
from 21 percent in 1987 to 16 percent in 1991. The largest proportion of
Palestinian labor, 36 percent, is employed in agriculture.
Approximately 13 percent of the workforce is employed in each of the
following sectors: manufacturing, construction, social services, trade.
Seven percent of the labor force is female. Before the beginning of the
Intifada in 1987, approximately 125,000 Palestinians (40 percent of the
Palestinians employed at that time) worked inside Israel. Now about
33,000 Palestinians work inside Israel. Unemployment is reportedly
high: recent figures show 50 percent unemployment in Gaza and 30 percent
unemployment in the West Bank. These figures are probably misleading,
as at least some Palestinian businesses under-report employees and
production in order to avoid income taxes.
Wages in the West Bank and Gaza average about $310 per month. While
this is approximately three times average monthly wages in Jordan, it is
about one-fourth of Israeli average monthly wages. While there are
labor unions in the West Bank and Gaza, they are splintered into over
150 smaller units, and exercise marginal power. In general, local trade
unions have existed more as political organizations rather than as
unions in the western sense.
Foreign Trade Zones/Free Ports
There are no foreign trade zones in the West Bank and Gaza. Proposed
Industrial Parks outlined in Chapter VI above will probably be export-
oriented, but no firm decisions have been made.
Capital Outflow Policy
Although repatriation of investment capital is allowed under the PA
Investment Law, there are no PA laws concerning exchange controls. The
Palestinian Monetary Authority is currently working on exchange control
legislation.
Major Foreign Investors
Limited foreign investment flows began in 1994-5, with the majority of
funds coming from regional Palestinian investors. The largest foreign
company in the West Bank and Gaza is PADICO, the Palestine Development
and Investment Company, which has pledged at least $200 million in
investment. Key PADICO investors include diaspora Palestinians from
Jordan, Great Britain and the Gulf. PADICO plans investments in
telecommunications, tourism, real estate, housing and industrial parks.
CHAPTER VIII: TRADE AND PROJECT FINANCING
Brief Description of Banking System
With seven Arab banks and over 25 branches now operating in the West
Bank and Gaza, the local banking sector has undergone rapid growth since
the signing of the Gaza-Jericho Agreement in May, 1994. Many banks have
returned to former positions operating during the pre-1967 period. A
number of additional banks are scheduled to begin operations soon.
Three Israeli banks also maintain branches in the West Bank.
Cairo-Amman Bank is the largest bank operating in the West Bank/Gaza,
with 17 branches and over 700 employees. It handles accounts for most
PA ministries, including the Ministry of Finance, PECDAR and the
Ministry of Planning. It offers extensive overdraft privileges to the
PA.
The Palestinian-owned Arab Bank is the largest in the Arab world, and
has six existing branches in the West Bank and Gaza. The bank offers a
wide array of international banking privileges, and is highly regarded
among the local and international business communities.
West Bank and Gaza banks routinely deal in the Israeli Shekel and
Jordanian Dinar. Banks in Gaza and Jericho under PA control may hold
dollar accounts, and are beginning to develop some offshore banking
services. Israeli shekels are preferred for operations, and Jordanian
dinars are preferred for savings. For Israeli shekel accounts, local
banks must maintain correspondence relationships with Israeli banks.
Local banks currently have a relatively conservative approach, primarily
due to the fact that the lack of a banking legal or commercial
regulatory structure makes it nearly impossible to recoup non-paying
loans.
Local banks generally offer savings and checking accounts, and some
personal and commercial lending. Jordanian dinars generally cost about
11.5 to 12 percent--9 percent in interest and a 3.5 percent "service
charge." Israeli shekel loans cost about 21-24 percent annually. These
rates are reflected in savings interest as well. Most commercial and
private lending is done on a short-term basis of one to three years and
one to four years, respectively, with shorter terms the norm. Firms
often must put up the full amount of the loan or more as collateral.
Foreign Exchange Controls
The Palestinian Monetary Authority has not set up foreign exchange
regulations for Gaza and Jericho. Banks in the rest of the West Bank
operate under Israeli and Jordanian banking regulations, although this
may change with the signing of an Interim Agreement between Israel and
the Palestinians. West Bank banks must use the Bank of Israel (shekels)
and Central Bank of Jordan (dinars) to handle all foreign exchange
transactions.
General Financing Availability
As noted above, credit from local banks is scarce due to the lack of a
legal code to enforce loan collection and generally conservative local
banking practices. Most local businesses use their own capital to
finance operations, or work with one of the European credit agencies
described below, or international joint venture partners.
How to Finance Exports/Method of Payment
Most local importers use Letters of Credit. U.S. firms should use
contractual arrangements to ensure fulfillment of payment obligations,
particular when beginning a business relationship.
The U.S. Export-Import Bank (EXIM) offers insurance, loan and guarantee
programs to facilitate export financing of U.S. goods and services.
Because EXIM does not yet have an agreement with the Palestinian
Authority, export financing through this agency must be done with an
obligor or guarantor from outside the West Bank and Gaza in a country
which does have an EXIM agreement (e.g. Jordan).
Export credit insurance programs can be obtained from EXIM's Insurance
Division. Two short-term (maximum 180 days) policies are designed for
small new-to-export businesses. Each provide 95 percent of the
commercial risk and 100 percent of the political risk involved in
extending credit to U.S. exporters' overseas customers. The pre-export
working capital program is administered in cooperation with the Small
Business Administration.
EXIM also provides direct loans to foreign buyers of U.S. products and
intermediary loans to fund commercial lenders who extend loans to
foreign buyers of U.S. capital goods and related services. Since EXIM
does not yet have a formal agreement with the Palestinian Authority,
export finance arrangements require that either the obligor or guarantor
come from a third country which has an agreement with EXIM. For example,
Palestinian importers of U.S. goods may use a guarantor from Jordan.
Guarantees by EXIM provide repayment protection for private sector loans
to creditworthy buyers of U.S. capital equipment and services. The
guarantees cover 100 percent of principal and interest.
The Small Business Administration (SBA) offers loan guarantees enabling
the small U.S. exporter to obtain financing through a commercial bank.
Export working capital loans are short-term (12 months) and are designed
to support single transactions. SBA's regular business loan program is
also available to export trading and export management companies. The
international trade loan program provides long-term financing to help
small businesses compete more effectively and to expand or develop
export markets.
The Foreign Agricultural Service (FAS) of the U.S. Department of
Agriculture (USDA) administers the market promotion program, which helps
U.S. producers and other organizations finance promotional activities
for U.S. products, through funds from USDA's Commodity Credit
Corporation (CCC). These funds can also be used for market research,
consumer promotions and technical assistance.
Project Financing
Project finance is available to U.S. investors from the following U.S.
government agencies: OPIC, EXIM, and the Trade and Development
Administration (TDA). The World Bank's International Finance
Corporation (IFC) and the European Community's local development banks
and credit agencies also provide project finance, although loans from
the latter generally go to local Palestinian companies or to firms with
a connection to European companies.
OPIC operates two major financing programs: direct loans and loan
guarantees. American investors planning to share significantly in the
equity and management of a venture in Gaza and the West Bank may use
OPIC's medium- to long- term financing (5-12 years). OPIC's financing
commitment to a new project may not exceed 50 percent of the total
project cost. OPIC loans usually range from $100,000 to $4 million.
Interest rates vary according to the project's financial and political
risk.
OPIC's loan guarantee program is available to all U.S. businesses
regardless of size. OPIC issues commercial and political risk
guarantees under which funding can be obtained from a variety of U.S.
financial institutions. Typically, OPIC loan guarantees range from $1 to
$25 million, but they may reach $50 million. Interest rates are
comparable to those of other U.S.G.-guaranteed issues of similar
maturity.
EXIM Bank provides project finance in the form of direct loans,
guarantees or a combination of both through its new Project Finance
Division, in which outside consultants are contracted to evaluate
projects. These services are available to major U.S. suppliers and to
project sponsors without access to bank or government guarantees. The
equity investor must be creditworthy and must be exposed to meaningful
financial risk. The direct loan and/or guarantee can cover up to 85% of
the contract amount. The Bank is committed to completing its evaluation
and issuing a preliminary indication of willingness to finance a project
within 45 days from the day all the required documentation is submitted
with the application for financing.
The Trade and Development Administration (TDA) promotes economic
development in developing countries by funding feasibility studies,
consultancies, training programs and other project planning services.
In 1994-5 TDA financed feasibility studies for a food processing
facility, an olive oil production facility in the West Bank and a
refinery in Gaza. TDA also organized and financed orientation visits to
the U.S. for power and telecommunications officials from Gaza and the
West Bank.
The International Finance Corporation (IFC) is the private sector arm of
the World Bank, which was established to encourage private sector
activities in developing countries. IFC provides loans, equity
investments, guarantees and stand-by financing.
Following the signing of the Declaration of Principles (DOP) in
September, 1993, the United States pledged $500 million for assistance
for assistance to the Palestinians over a five year period. Of this,
$375 million will be administered though Agency for International
Development (AID) programs, and the remaining $125 million through
investment guarantees provided by the Overseas Private Investment
Corporation (OPIC), as described above.
USAID's programs focus on basic infrastructure, such as housing and
water and wastewater systems, short-term job creation through small-
scale community infrastructure development, private sector development
and support for activities in democracy and governance. Examples
include the 40 million Gaza wastewater and stormwater project, the $25
million small-scale community infrastructure project, and the $1 million
Small Business Support project. The USAID program is implemented
through international organizations such as the United Nations
Development Program (UNDP) and the United Nations Relief Works Agency
for Palestine (UNRWA), U.S. contractors and U.S. private voluntary
organizations. In addition, USAID provides support for the start-up
costs of the Palestinian Authority through the World Bank's Holst Fund.
List of Banks with Correspondent U.S. Banking Arrangements
The Cairo-Amman Bank has a correspondence relationship with Citibank and
the Arab Bank has arrangements with a large number of U.S. banks. The
newly established Palestine National Bank is currently negotiating
correspondence arrangements with several U.S. banks.
CHAPTER IX: BUSINESS TRAVEL
Business Customs
Business in the West Bank and Gaza is personal and family-oriented,
built on trust and long-term relationships. However, this trend is
slowly changing and a recent business survey indicated that 60 percent
of larger local businesses are non-family-owned. West Bank and Gaza
businessmen are pragmatic and generally apolitical, and the owners of
larger enterprises have internationally-based contacts and experience.
Although business orientation has in the past tended to be toward Europe
and the Gulf, local entrepreneurs seek American partners because of
their technical expertise and know-how.
U.S. businessmen who travel to the area should concentrate on building
strong personal relationships with potential partners. It is customary
to discuss plans over cups of strong Arabic coffee or tea, and often to
be invited to the family home or out for a restaurant meal.
Most major Palestinian businessmen speak good English, although for
negotiating contractual terms, it is advisable to use a good translator,
who might be a local attorney assisting with the deal. Palestinians
dress more formally than Israelis, usually in western business suits.
Business cards are always exchanged. Appointments can be made on short
notice.
The normal workweek varies depending on the business, although most
firms are closed on Fridays (Muslim holiday), even if the owner is
Christian. Christian-owned firms are also generally closed on Sundays.
Travel Advisory and Visas
Israel occupied the lands known as the "Occupied Territories" (the West
Bank, Gaza Strip, Golan Heights, and East Jerusalem) as a result of the
1967 war. Pursuant to the September 13, 1993, Israel-PLO Declaration of
Principles on interim self-government arrangements (DOP); the May 4,
1994, Cairo Agreement on the Gaza Strip and Jericho Area; and the August
29, 1994, agreement on preparatory transfer of powers and
responsibilities, certain powers and responsibilities for the Gaza
Strip, Jericho Area and the West Bank have been transferred to the
Palestinian Authority. The DOP provides that Israel will retain
responsibility during a five-year transitional period for external
security and for internal security and public order of settlements and
Israelis. During this transitional period, definitive information on
entry and customs requirements, arrests, and other matters may not be
available, or may change without prior notice. Should questions arise
in the West Bank, including the Jericho area, U.S. citizens may
telephone the U.S. Consulate General in Jerusalem for assistance
(telephone: 972-2-253288). For questions concerning the Gaza Strip,
U.S. citizens may telephone the U.S. Embassy in Tel Aviv (telephone:
972-3-519-7575) or the U.S. Citizen Services Section directly (972-3-
519-7524 or 519-7453 or 519-7454).
Entry Requirements: Passports, an onward or return ticket, and proof of
sufficient funds are required for entry to Israel and the occupied
territories. A three-month visa may be issued for no charge upon
arrival, and may be renewed. (Visitors who plan to travel to Arab
countries with no diplomatic relations with Israel may request to have
their Israeli entry visas stamped on a separate form at the port of
entry). Anyone who has been refused entry or experienced difficulties
with his/her visa status during a previous visit, or who has overstayed
a visa, can obtain information from the Israeli Embassy or nearest
consulate regarding the advisability of attempting to return to Israel.
Permission must be obtained from Israel for anyone attempting to claim
the status of a returning resident in Gaza or the Jericho Area. At
present, U.S. citizens may enter and exit Gaza and the Jericho area on a
U.S. passport, without obtaining visas from either Israel or the
Palestinian Authority. Private vehicles frequently encounter long
delays entering or leaving Gaza. Only cars with special permits are
allowed to cross the checkpoints.
International crossing points are now in operation between Israel and
Jordan at Arava (Wadi Al-Arabah) crossing in the South, and the Jordan
River crossing (Sheikh Hussein Bridge) in the North. Prior visas are
not necessary for American citizens using these two crossing points.
According to a recent agreement between the Jordanian and Israeli
governments border crossings in both directions in private vehicles will
be allowed as of mid-August 1995. Crossing procedures for the Allenby
Bridge, linking Jordan and the occupied West Bank, remain unchanged.
Prior visas and bridge crossing permits are required to cross the
Allenby Bridge.
Procedures for all crossings into Jordan are subject to frequent
changes. Travelers wishing the most up-to-date border crossing
information should contact the U.S. Embassy in Tel Aviv or the U.S.
Consulate General in Jerusalem. For further entry information,
travelers may contact the Embassy of Israel, 3514 International Drive,
N.W., Washington, D.C. 20009, telephone (202) 364-5500, or the nearest
Israeli Consulate General in Los Angeles, San Francisco, Miami, Atlanta,
Chicago, New Orleans, Boston, New York, Philadelphia, Houston.
1995-6 Holidays
The following Muslim holidays are observed in Gaza and the West Bank.
The Jerusalem Consulate General is closed on these holidays.
Early February Eid Al Fitr (Moslem Feast ending fasting month
of Ramadan - U.S. Embassy remains open)
Early May Eid Al Adha (Moslem Feast of the Sacrifice-
U.S. Embassy remains open)
Following is a list of official Jewish and American holidays observed by
the American Embassy, Tel Aviv. The Jerusalem Consulate General is
closed on the American holidays.
1995
September 25 *Rosh Hashana (New Year - first day)
September 26 *Rosh Hashana (New Year - second day)
October 4 *Yom Kippur (Day of Atonement)
October 9 *Succot (Feast of Tabernacles)
October 16 *Simhat Tora (Rejoicing of the Law)
November 10 Veterans Day
November 23 Thanksgiving Day
December 25 Christmas Day
1996
January 1 New Year's Day
January 15 Martin Luther King's Birthday
February 19 President's Day
April 4 *Passover (first day)
April 10 *Passover (last day)
April 24 *Israeli Independence Day
May 24 *Shavuot (Pentecost)
May 27 Memorial Day
July 4 Independence Day
September 2 Labor Day
September 14 *Rosh Hashana (New Year - first day)
September 15 *Rosh Hashana (New Year - second day)
September 23 *Yom Kippur (Day of Atonement)
September 28 *Succot (Feast of Tabernacles)
October 5 *Simhat Torah (Rejoicing of the Law)
October 14 Columbus Day
November 11 Veterans Day
November 28 Thanksgiving Day
December 25 Christmas Day
* Jewish and Israeli Holidays: All businesses in Israel are closed
Jewish holidays commence at sunset, the day before.
Many Israeli businesses are closed for the duration of Passover (7 days)
and Succot (8 days).
Business Infrastructure
Language
All Palestinians speak Arabic. Most heads of larger companies and many
other Palestinians speak good English.
Transportation
Public bus service is sporadic. U.S. business visitors should use one
of the several taxi services in East Jerusalem for travel in East
Jerusalem and the West Bank. For longer-term stays, business visitors
may want to rent a car. It is advisable to rent a car in East Jerusalem
(rather than from an Israeli agency) for travel in the West Bank, due to
the possibility of politically-based damage to Israeli cars.
Travel to and from Gaza is time-consuming; business visitors should
allow a full day for travel and meetings there. Most visitors hire a
taxi in Tel Aviv or Jerusalem to travel to the Erez crossing point into
Gaza, and then have a local Gaza contact send a car for pickup on the
Gaza side. Israeli security authorities do not permit most Israeli and
West Bank vehicles to enter Gaza.
Communications
Telephone and fax connections within the West Bank are adequate.
Communication with Gaza is more difficult due to inadequate
telecommunications facilities. Many Palestinian Authority ministries
and businesses use cellular telephones. Short-term cellular phone
rental is also available for business visitors; cellular phone coverage
in Gaza is spotty.
Hotels and Restaurants
There is a good selection of hotels and restaurants in East and West
Jerusalem, and a wide variety in Tel Aviv. Hotels in the West Bank and
Gaza are generally not up to international business standards.
Restaurants in Ramallah and Jericho serve traditional Palestinian food;
new restaurants have recently opened in Gaza, Nablus and Bethlehem.
Since the establishment of the Palestinian Authority in Gaza, a number
of new and pleasant restaurants have sprung up along the Gaza shore.
Although visitors should take care to ensure that local restaurants have
good refrigeration in the summer, most restaurants which U.S.
businessmen will visit observe acceptable health standards.
Medical Facilities
Modern medical facilities exist in Jerusalem and throughout Israel.
Travelers can find information in English about emergency medical
facilities and after-hours pharmacies in "The Jerusalem Post" newspaper.
Most doctors and hospitals expect immediate cash payment for services.
U.S. medical insurance is not always valid outside the U.S. and
supplemental medical insurance with specific overseas coverage can be
useful. Travelers can obtain additional health information from the
"International Travelers Hotline" of the Center for Disease Control,
tel: (404) 332-4559.
APPENDIX A: COUNTRY DATA
--Population: 2,300,000
--Population Growth Rate: 4.1% (West Bank); 5.1% Gaza
--Religions: Islam, Christianity
--Government: Gaza/Jericho: Self-Governing Authority
--Languages: Arabic; English spoken at
senior business/government level
--Work Week: Saturday - Thursday afternoon
APPENDIX B: DOMESTIC ECONOMY
Please note that macroeconomic data for the West Bank and Gaza is
sketchy, so not all categories of interest to U.S. businesses are
included in this report. Figures are in USD millions except where noted.
Item 1993
GDP 2,593
GDP Growth Rate 3.5% West Bank; 1.6% Gaza
GDP Per Capita 1,192.00
Inflation 11.2%
Unemployment 17% West Bank; 28% Gaza
Foreign Exchange Reserves N/A
Average Exchange Rate 2.83 Israeli shekels
(for USD 1.00)
Debt Service Ratio N/A
U.S. Economic Assistance 1994: $100 million
APPENDIX C: TRADE DATA
Note: The following estimated figures are based on information provided
by the Government of Israel and the PA.
(in USD millions except where noted)
Item 1993 1994 1995
Total Exports 270 353 318
Total Imports 1,094 1,526 1,675
Trade Balance 824 1,038 1,157
U.S. Exports N/A N/A N/A
U.S. Imports N/A N/A N/A
APPENDIX D: INVESTMENT STATISTICS
Not available.
APPENDIX E
WEST BANK, GAZA & U.S. CONTACTS
Palestinian Authority Agencies
* Please note that in most cases it is better to contact Palestinian
Authority offices by fax or telephone rather than by letter.
Ministry of Economy, Trade & Industry
P.O.Box 1629
Dahyett El-Bareed, West Bank
Contact: Mr. Ahmad Qurei (Abu Ala'a)
Minister
Tel: 972-2-9980040 /2/3
Fax: 972-2-9980041
Ministry of Trade
P.O.Box 1629
Dahyyet El-Bareed, West Bank
Contact: Mr. Samir Huleileh
Deputy Undersecretary
Tel: 972-2-9980040 /2/3
Fax: 972-2-9980041
Ministry of Industry
P.O.Box 1629
Dahyyet El-Bareed, West Ban
Contact: Mr. Adnan Samara
Undersecretary
Contact: Dr. Jawad El-Naji
Assistant Undersecretary
Tel: 972-2-9959032
Palestinian Economic Council for Development & Reconstruction (PECDAR)
P.O.Box 1629
Dahyyet El-Bareed, West Bank
Contact: Mr. Samir Abdallah
Tel: 972-2-9980040 /2/3
Fax: 972-2-9980041
Ministry of Finance
P.O.Box 4007
Gaza
Contact: Mr. Mohammed Zuhdi Nashasshibi
Minister
Tel: 972-7-829243/4 972-7-863994
Fax: 972-7-820696 972-7-82436
Ministry of Tourism & Archeology
P.O.Box 534
Bethlehem, West Bank
Contact: Mr. Elias Freij
Minister
Contact: Mr. Bajes Ismail
Director General
Tel: 972-2-741581
Fax: 972-2-743753
Ministry of Transportation
P.O.Box 246
Ramallah, West Bank
Contact: Mr. Abdul Aziz Haj Ahmad
Minister
Contact: Mr. Mohammad Al Qawasmeh
Director General
Tel: 972-2-9955560
Fax: 972-2-9951901
Ministry of Planning & International Cooperation
P.O.Box 4017
Gaza
Contact: Mr. Nabil Sha'th
Minister
Contact: Mr. Majdi Al Khaldi
Director general
Tel: 972-7-829260 / 829033 / 868971
Fax: 972-7-824090
Ministry of Housing
P.O.Box 4034
Gaza
Contact: Mr. Zakaria Al Agha
Minister
Contact: Dr. Mohammad Salim Zeyarah
Director General
Tel: 972-7-822233 /4
Fax: 972-7-822235
Ministry of Agriculture
Abu Khadrah Building
Gaza
Contact: Mr. Mohammad Zuhdi Nashashibi
Minister
Contact: Dr. Azzam Tbaileh
Director General
Tel: 972-7-829123 /4/5/6
972-7-863924 /3/6
Fax: 972-7-863926
Ministry of Post & Telecommunications
Jericho, West Bank
Contact: Dr. Abdul Hafeef Al-Ashhab
Minister
Tel: 972-2-9923211 972-2-9922514 972-2-9922633
Fax: 972-2-9922233 972-2-9922499
Palestine Civil Aviation Department
P.O.Box 4043
Gaza
Contact: Mr. Fayez Zaidan
Director General
Tel: 972-2-822800
Fax: 972-2-821309
Jerusalem Electric Corporation
P.O.Box 19118
Sallah Eddin St.
East Jerusalem
Contact: Mr. Mohammad Ali El-Husseini
General Director
Tel: 972-2-282335 972-2-281024
Fax: 972-2-282441
Trade Associations and Chambers of Commerce
Federation of Palestinian Chambers of Commerce, Industry & Agriculture
P.O.Box 54107
Jerusalem
Contact: Mr. Ali Qadourah
President
Contact: Mr. Abdel Ruhman Abu Leil
Secretary General
Tel: 972-2-280727
Fax: 972-2-280644
Bethlehem Chamber of Commerce & Industry
P.O.Box 59
Bethlehem, West Bank
Contact: Mr. Elias Freij
President
Tel: 972-2-742742
Fax: 972-2-741327
Hebron Chamber of Commerce.
P.O.Box 272
Hebron, West Bank
Contact: Mr. Hashim El Natsheh
President
Contact: Mr. Maher El Haimouni
Secretary General
Tel: 972-2-9928218 / 9927491
Fax: 972-2-9927490
Jericho Chamber of Commerce, Industry & Agriculture
Jericho, West Bank
Contact: Mr. Mansour Salaymeh
President
Contact: Mr. Tawfic Nweiser
Secretary General
Tel: 972-2-9923313
Fax: 972-2-9922394
Nablus Chamber of Commerce & Industry
P.O.Box 35
Nablus, West Bank
Contact: Mr. Ma'az Nabulsi
President
Contact: Mr. Taj Eddin Bittar
Secretary General
Tel: 972-9-380335 / 972-9-379615
Fax: 972-9-377605
Ramallah Chamber of Commerce
P.O.Box 256
Ramallah, West Bank
Contact: Mr. Assad Faris Hassouneh
President
Contact: Mr. Salah El-Odeh
Secretary General
Tel & Fax: 972-2-9955052 / 972-2-9956043
Palestinian Chamber of Commerce
P.O.Box 33
Gaza
Contact: Mr. Mohammad Al Qudweh
President
Contact: Mr. Nu'man Youssif Deeb
Deputy
Tel & Fax: 972-7-864588 / 972-7-821172
The European-Palestinian Chamber of Commerce
Nablus Road, Jerusalem
Contact: Mr. Hanna Siniora
Tel: 972-2-894883 972-2-273293
Fax: 972-2-894975
Higher Council for The Arab Tourist Industry
P.O.Box 19850
Jerusalem
Contact: Mr. Hani Abu-Dayyeh
Tel: 972-2-281040
Fax: 972-2-818178
Palestinian Energy Authority
P.O.Box 3591
El-Bireh, West Bank
Contact: Mr. Abdul Rahman Hamad
Director
Tel: 972-2-9986190 972-2-9986192
Fax: 972-2-9986191
Market Research/Business Consulting Firms
DAI - Small Business Support Project
P.O.Box 54807
Jerusalem
Contact: Mr. Tim Smith
Director
Tel: 972-2-274676
Fax: 972-2-276285
El Rowad - Skills Development Center
P.O.Box 51052
Jerusalem
Contact: Mr. Iyad Nuseibeh
Office Manager
Tel & Fax: 972-2-834285
DATA - Studies & Consultation
P.O.Box 486
Bethlehem, West Bank
Contact: Mr. Samir Hazboun
Director
Tel: 972-2-743343
Fax: 972-2-743369
Team Palestine
P.O.Box 18452
Shu'fat, Jerusalem
Contact: Mr. Mohamad Halaiqa
Director
Tel: 972-2-858920 /22
Fax: 972-2-858915
Bir Zeit University
Continuing Education Department
P.O.Box 14
Ramallah, West Bank
Contact: Mrs. Haifa' Baramki
Director
Tel & Fax: 972-2-956229
Development Research Center
P.O. Box 23
Gaza
Contact: Ala'a Eddin Shawa
Tel: 972-7-869887/ 824275
Fax: 972-7-821820
Bir Zeit University
National Foundation for Investment & Development
P.O.Box 25221
Shu'fat, Jerusalem
Contact: Mr. Hazem Shunnar
Executive Director
Tel & Fax: 972-2-829210
Bethlehem University
Business Development Center
P.O.Box 9
Bethlehem, West Bank
Contact: Mr. Hanna Sahar
Manager
Tel & Fax: 972-2-745559
Commercial Banks
Arab Bank
P.O.Box 1476
Tannous Building
Ramallah, West Bank
Contact: Mr. Shukri Bishara
Regional Director
Tel: 972-2-9954816 /17/18/19
Fax: 972-2-9954815
Bank of Jordan
P.O.Box 1829
Ramallah, West Bank
Contact: Mr. Yahya Kadamani
Regional Director
Tel: 972-2-9952694 /5/6/7/8
972-2-9958686
Fax: 972-2-9958684
Cairo Amman Bank
P.O.Box 1870
Ramallah, West Bank
Contact: Mr. Yousuf Bazian
Regional Director
Tel: 972-2-9955435 /6
972-2-9985790 /91/92
Fax: 972-2-9955437
Commercial Bank of Palestine
P.O.Box 1799
Ramallah, West Bank
Contact: Mr. Khaled Al Gabeesh
Director
Tel: 972-2-9954141
Fax: 972-2-9953888
972-2-9954145
Bank of Palestine
P.O.Box 50
Omar El-Mukhtar Street
Gaza
Contact: Mr. Salem El-Shawa
Tel: 972-7-823272/3/4/5/6/7
Fax: 972-7-865667
International Organizations
UNSCO - United Nations Office of the Special Coordinator in the Occupied
Territories
(Office Headquarters in Gaza)
Mailing Address:
P.O. Box 490
Government House
East Jerusalem 91004
Contact: Mr. Terje Larson
Undersecretary General
Tel: 972-2-829962/3 972-7-860074
Fax: 972-2-829716
UNDP - United Nations Development Programme
Sheikh Jarah - East Jerusalem
Contact: Mr. Edward Wattez
Special Representative of the Administrator
Tel: 972-2-810812 972-2-810822
Fax: 972-2-810768
UNRWA - United Nations Relief & Works Agency for Palestine
Sheikh Jarah - East Jerusalem
Contact: Amb. April Glaspie
Coordinator of UNRWA Operations in West Bank & Gaza
Tel: 972-2-890401
Fax: 972-2-322714
Contact: Mr. Klaus Worm
Director
UNRWA - Gaza
Tel: 972-7-822660
Fax: 972-7-822327
IBRD - International Bank for Reconstruction and Development
P.O.Box 54842
Jerusalem
Contact: Mr. Odin Knudsen
General Director
Tel: 972-2-050-209767
Fax: 972-2-823249
U.S. Embassy and Consulate Personnel
Commercial Section, U.S. Embassy
Contact: Mr. Barry Friedman, Commercial Counselor
Mr. Wajdi Odeh, Commercial Assistant
Office Address:
U.S. Commercial Service
Migdalor Building
1 Ben Yehuda St.
Tel Aviv, Israel 63801
Mailing Address:
U.S. Embassy Tel Aviv
PSC 98, Box 100
APO, AE 09830
Tel: 972-3-510-7212
Fax: 972-3-510-7215
Commercial Section, U.S. Consulate General
Contact: Mrs. Carol Abington
U.S. Consulate
18 Agron Road
Jerusalem 94190
Mailing Address:
U.S. Consulate Jerusalem
PSC 98, Box 100
APO AE 09830
Tel: 972-2-253288
Fax: 972-2-259270 / 972-2-249462
Economic Section, U.S. Embassy
Contact: Mr. Tain Tompkins
Economic Counselor
71 Hayarkon St.
Tel Aviv 63432
Mailing Address:
U.S. Embassy Tel Aviv
PSC 98, Box 100
APO AE 09830
Tel: 972-3-5174338
Fax: 972-3-663449
Economic Section, U.S. Consulate Jerusalem
Contact: Mr. Paul Sutphin
Economic/Commercial Officer
U.S. Consulate
18 Agron Road
Jerusalem 94190
Mailing Address:
U.S. Consulate Jerusalem
PSC 98, Box 100
APO AE 09830
Tel: 972-2-253288
Fax: 972-2-259270
U.S. Agency for International Development (AID)
Contact: Mr. Chris Crowley
Mission Director
U.S. Embassy
71 Hayarkon St.
Tel Aviv 63903
Mailing Address:
U.S. Embassy Tel Aviv
APO AE 09830
Tel: 972-3-525-5414
Fax: 972-3-525-5549
Agricultural Section, U.S. Embassy
Contact: Tully Friedgut
Agricultural Specialist
71 Hayarkon St.
Tel Aviv 63432
Mailing Address:
Office of Agricultural Affairs
Unit 7228
APO, AE 09830
Tel: 972-3-517-4338
Fax: 972-3-510-2565
Agricultural Section, U.S. Embassy (Athens)
Contact: Mr. Paul Hoffman
Agricultural Counselor (Regional responsibility for
Israel, Greece & Cyprus).
American Embassy
91 Vasilissis
10160 Athens, Greece
Tel: (30) 1-721-2951, 6431289 (Direct Line)
Fax: (30) 1-721-5264
Washington-Based USG Personnel
U.S. Department of Commerce
Contact: Mr. Paul J. Thanos
Israel Desk Officer
U.S. Department of Commerce
Room 2029B
14th & Constitution Avenues, NW
Washington DC 20230
Tel: 202-482-1860
Fax: 202-482-0878
U.S. Department of State
Contact: Ms. Ann Bodine
Israel Desk Officer
U.S. Department of State
2201 C Street, NW
Washington, DC 20520
Tel: 202-647-3672
Fax: 202-736-4461
U.S. Agency for International Development (AID)
Contact: Ms. Diane Alleva
Business Advisor
Room 100, SA-2
Washington DC, 20523-02290
Tel: 202-663-2662
Fax: 202-663-267
Contact: Ms. Dot Young
Country Officer
New State Room #3214
Washington D.C. 20523
Tel: 202-647-2701
202-736-4921
U.S. Department of Agriculture
Contact: Mr. Philip Letarte
Area Officer Southern Europe
Foreign Agricultural Affairs
Foreign Agricultural Service
U.S. Department of Agriculture
Room 5951S
Washington, DC 20250-1000
Tel: 202-720-7725
Fax: 202-690-1149
Contact: Mr. Joseph Lopez
Asia, Africa and Eastern Europe Division
International Trade Policy Division
Foreign Agricultural Service
U.S. Department of Agriculture
Room 5503S
Washington, DC 20250-1000
Tel: 202-720-1483
Fax: 202-690-1093
Contact: Ms. Suzanne Hale
Agricultural Director
Export Services Division, Foreign Agricultural Service (FAS)
U.S. Department of Agriculture
Room 4939S
Washington, DC 20250-1000
Tel: 202-720-6419
Fax: 202-690-4374
U.S. Trade & Development Agency
Contact: Mr. John Richter
Regional Director
Department of Commerce, SA-16
Room 309
Washington, DC 20523
Tel: 703-875-4357
Fax: 703-875-4009
Export-Import Bank of the United States (EXIM)
Contact: Mr. George Donegan
811 Vermont Ave., NW
Washington, DC 20571
Tel: 202-566-4690
Overseas Private Investment Corporation (OPIC)
Contact: Mr. Walter Jones or Mr. Abed Tarbush
1100 New York Ave., NW
Washington, DC 20527
Tel: 202-336-8799
Fax: 202-408-9859
U.S.-Based Multiplier Organizations
Builders for Peace
Contact: R. Joseph DeSutter
Executive Director
1511 K St., NW, Suite 640
Washington, DC 20005
Tel: 202-628-0038
Fax: 202-628-0048
Eastern U.S. Agricultural and Food Export Council, Inc.
Contact: Mr. Roland L. Gaskill
Executive Director
214 Senate Ave. Suite 600
Camp Hill, PA 17011
Tel: 717-731-6017
Fax: 717-731-6019
Mid-America International Agri-Trade Council
Contact: Mr. Drayton C. Mayers
Executive Director
400 West Erie St. Suite 100
Chicago, IL 60610
Southern United States Trade Association
Contact: Mr. Scott Hanson
Executive Director
World Trade Center, Suite 1540
2 Canal Street
New Orleans, LA 70130-1408
Western U.S. Agricultural Trade Association
Contact: Dr. James Youde
Executive Director
13101 N.E. Highway 99, Suite 200
Vancouver, WA 98686-2786
Tel: 206-574-2627
Fax: 206-574-7083
APPENDIX F: MARKET RESEARCH
Not available.
APPENDIX G: TRADE EVENT SCHEDULE
Products for Development U.S.A. - March-May, 1996
Product Categories
Electrical Power Equipment
Oil and Gas Field Equipment
Safety and Security Equipment
Agricultural Equipment and Chemicals
Computers and Peripherals
Food Processing and Packaging
Telecommunication Equipment
Water Resources Equipment and Supplies
Machine Tools and Metal Working Equipment
Medical Equipment
Automotive Parts and Accessories
Pollution Control Equipment
Plastic Production and Machinery
Textile Machinery and Equipment
Transportation and Communications Equipment
Construction Equipment and Supplies
Avionics and Ground Support
Education Equipment
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