Study of the Economic Opportunities in Hebron Governorate and the

Transcription

Palestinian National Authority
Hebron Governorate
Study of the Economic Opportunities in
Hebron Governorate and the South
August 2011
-1-
This study is prepared by the National Expert Optimum for
Consultations and Training
Eng. Randa Hilal and Eng. Jalal Salaymeh
On behalf of GIZ / Promotion of TVET & Labour Market
Program
in cooperation with the LET council in Hebron
and the Local Partner “Hebron University”Continuing Education
-2-
Foreword by the Governor of Hebron
Economic Development is a priority for the advancement of Palestinian society to combat poverty and
unemployment through employing the human and physical resources as an effective tool in achieving the
objectives of the governorate towards better services for citizens, and of course this can be achieved through
the preparation of plans and programs to reach the desired goals.
The development process provides the necessary man power and capacity development approaches so to
promote the basic services to the citizens, and this comes through supporting the economic process, and
providing employment program to reduce unemployment in the community of Hebron. The social
development in the Palestinian community is closely linked to the social, economic, political reality. Ignoring
the Palestinian reality that needs the support will lead to incomplete development,
Relatively, Hebron Governorate is the largest among the other Palestinians governorates; it forms 13.5% of
the volume of the Palestinian population in the West Bank and Gaza Strip and one-third of the populations in
West Bank. since its occupation in 1967, Hebron has been a target for the settlements and the tough Israeli
procedures, where the infrastructure of the district is destroyed and the life became so difficult, and therefore
Hebron has specificity distinct from other Palestinian cities because of the divisions imposed by occupation on
its cities, tearing its ties and burrowed inside the Israeli settlements, Israeli military orders stopped of life.
The development plan in the district which depends on the governorate`s vision to maintain social, physical
and economic security includes programs to reduce the deterioration in the Palestinian society by the Israeli
procedures. The social, health, technical and infrastructure as well as upgrading the educational and
agricultural sectors in the province were focused on through the provision of necessary training, and
employment of workers in an effort to eliminate poverty and reduce unemployment.
I hereby extend my sincere thanks to the partners, international and local institutions for what has been
accomplished in a spirit of teamwork.
Kamel Hmeid
The Governor - LET Council Chairman
Hebron Governorate
a
Foreword by the team leader of GIZ program “Promotion of TVET and Labour Market” program
Recognizing that small and medium-sized enterprises provide the potential for youth and other traditionally
disadvantaged groups to gain access under better conditions to productive, sustainable and quality
employment opportunities, the Palestinian Authorities give the highest priority to the development of smallscale industries and self-employment schemes and relevant entrepreneurship environment, which will support
socio and economic developments. Therefore self-employment approach and starting up own businesses are
considered as one of the best ways to improve the economic situation and create an effective future not only
at personal level, but also in contributing in the progress and economic growth at the community level.
The Community-Based Training for Self-Employment and Enterprises Creation “CBTSEC” approach provides
the necessary methodology to develop the capacity of key stakeholders at national and local level and it also
initiates working arrangements with other support organizations. It consists of a set of procedures for
systematically identifying self-employment and small enterprise development opportunities at the local level,
designing and delivering appropriate training programs and providing the necessary post-training support
services, including linkages to financial support, technical assistance and market information, to launch and
sustain self-employment and small business generating activities. The CBTSEC program is strengthened
through its linkage with specific pre-identified economic opportunities at local and community levels.
Accordingly, potential opportunities for creating income generating activities have to be checked for their
economic, financial and environmental viability before business skills training can be organized and delivered.
This study aiming at providing ideas on economic opportunities at the local level in the governorate of Hebron
based on deep analysis, to make self-employment and business creation as concrete as possible. In this regard,
we would like to encourage young people and those who are ambitious to seize the opportunity and
responsibility of self-employment besides testing challenges and individual utility.
To this end, we would like to thank and appreciate the efforts of the Local Employment and TVET (LET)
councils and HE Governor of Hebron Mr. Kamel Hmeid personally, for the great support in the
implementation of Community-Based Training for Self-Employment and Enterprises Creation (CBTSEC). In
this regard we would like also to extend our deep thanks and appreciation to Dr. Sameer Abu Zneid, the
former chairman of the LET Council for his solid support to initiate and establish the LET council in Hebron.
Though GIZ shall support the clients of the program as much as possible, all partners and stakeholders on
local and national levels are requested to support the efforts to achieve overall economic growth and promote
the conditions of the economic framework and accordingly decrease rates of unemployment, eliminate
poverty and promote of Palestinian society in order to winning the future.
Volker Ihde
GIZ – Promotion of TVET & Labour Market
Team Leader
b
RESEARCH TEAM
This study has been conducted by Optimum for Consultations and Training National Expert1 [email protected]
 Research main team
 Engineer Randa Hilal: Research team leader and main researcher in Ramallah – Al-Bireh District. She
also writes Ramallah – Al-Bireh District Report and general parts of reports for other districts.
 Engineer Jalal Salaymeh: Main researcher for Hebron District, and writer of parts of Hebron District
Report.
 Issa Ghrayeb: Main researcher for Bethlehem District, and writer of parts of Bethlehem District Report.
 Engineer Yousef Shalyan: Main researcher for Nablus District, and writer of parts of Nablus District
Report.
Members of the research team discussed the general economic situation and opportunities available in the Palestinian
districts, and developed work strategies for all districts each according to their specialization in their respective district.
OPTIMUM supporting team responsible for the collection of data and statistics include the following:
Omar Qassis
Tahrir Ateeq
Yara Freitekh
Shadan Nassar
 Local partner: Based on its experience and statistical data it has collected, the local partner assisted in the
analysis and development of general trends consistent with the reality of each district. The local partner was
instrumental in providing the support necessary for reaching tangible conclusions and organizing for workshops
and meetings. The local partner in Hebron District consisted of the Hebron University in the district represented
by Mr. Ayman Zaloum and Mr. Izz Dein Jabary.
 Councils of Employment and Training in the Districts: Within the vision and priorities of the councils, members of
the Councils of Employment and Training have gratefully provided guidance and feedback required for the study.
Time frame of study: March – July 2010
Note: This study was made possible with the generous support of GIZ in cooperation with the four districts. However, the
study does not necessarily express GIZ’s viewpoint or that of the districts. It is an independent study that represents facts
in absolute objectivity.
1
Since its inception, OPTIMUM’s professional research team, led by its main researcher, has conducted several studies. The main researcher has
experience in research, training needs analysis, teaching and the labor market. She has presented several papers and carried out published and
unpublished studies on these topics. Besides, OPTIMUM’s research team have experience in leadership, small projects, labor market analysis, vocational
training and teaching, and have made valuable contributions in the areas of specialization.
c
Acknowledgement and Appreciation . . .
The research team would like to thank all who have contributed to making this study a reality,
especially the GIZ, represented by Mr. Volker Ihde, the team leader of “Promotion of TVET and
Labour Market program” and the international expert Joe Wagner. The research team also owes
gratitude to the following: Hebron Governor; the LET (local Employment and TVET) Councils who
represent diverse sectors of the relevant Palestinian civil society, in particular Coordinator of the
Hebron-based LET Council Mr. Taysir Isayed for his constant support and guidance and the local
partner Hebron University / Continuing Education Department represented Mr. Izz Dein Jabary and
Mr. Ayman Zaloum.
We would like to thank as well all the institutions, companies, ministries, specialists, and
representatives of the different sectors who have been a prolific source of information, and who
have shared with us the concerns of their sectors and dreams for development, and recommended
opportunities appropriate for the various sectors.
d
Table of contents
 Summary
1
 Chapter One: General Introduction
4
1.1 Introduction and Objectives
1.2 Methodology
1.3 Determinants of the study and the difficulties it encountered
 Chapter Two: Overall economic reality and the strategy of looking for opportunities
2.1 Palestinian economic reality, economic features, and Palestinian manpower
2.2 Challenges and strategies for creating economic opportunities
 Chapter Three: General overview of Hebron District
4
4
7
8
8
15
18
3.1 General overview of Hebron District
18
3.2 General overview of the demographic reality and characteristics of labor force in Hebron
18
3.3 Economic reality and characteristics of economic sectors in the district
20
3.4 Comparison between the economic and demographic reality in Hebron with other economic sectors
under study
22
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
 Chapter Four: Analysis of the different economic sectors and resulting opportunities
24
Agriculture and husbandry
Construction
Industry
Environment
Trade /Commerce
Services
IT and telecommunications
Craftsman
24
31
37
44
49
53
60
66
 Chapter Five: Summary of economic opportunities in Hebron District
72
 References
A1
 Annexes
Annex I: List of names of interviewed people on the national and local level
Annex II: Detailed economic statistics
Annex III: Production and consumption gap in the agricultural sector in the district
A5
A10
A16
e
List of tables and figures
List of tables:
Table 1.1: Total number of people consulted on the local and national level
Table 3.1: relative distribution for the population according to the professional qualification in the district, in
2005
Table 3.2: General framework of manpower in Hebron District compared to the West Bank
Table 3.3: Growth of establishments in Hebron during 1997-2007
Table: 3:4: Number of registration of establishments at Hebron Chamber of Commerce and Industry
Table: 3.5: Summary of the achievement of economic indicators relating to sectors
Table 4.1.1: Monthly needs of basic food supplies of the Hebron governorate in 2007, in Tons
Table 4.1.2: Analysis of agricultural and husbandry sectors (strengths, sector opportunities, weaknesses,
challenges) and resulting economic opportunities in the district
Table 4.2.1: Analysis of construction sector (strengths, sector opportunities, weaknesses, challenges) and
resulting economic opportunities
Table 4.3.1: Percentage Distribution of Industries in Hebron
Table 4.3.2: Analysis of the industrial sector (strengths, sector opportunities, weaknesses, challenges) and
Table 4.4.1: Quantity of daily waste production and average family and per capita production of domestic
waste in the Palestinian territories according to area 2009
Table 4.4.2: Analysis of the environment sector (strengths, sector opportunities, weaknesses, challenges) and
Table 4.5.1: Analysis of commercial sector (strengths, sector opportunities, weaknesses, challenges) and
Table 4.6.1: Economic indicators of services sector 1997-2007
Table 4.6.2: Number of establishments and laborers working in services sector in the district
Table 4.6.3: Analysis of services sector (strengths, sector opportunities, weaknesses, challenges) and resulting
economic opportunities
Table 4.7.1: IT and telecommunication indicators in the Palestinian society
Table 4.7.2: IT and telecommunication indicators in the district
f
Table 4.7.3: IT and telecommunication sector analysis (strengths, sector opportunities, weaknesses,
challenges) and resulting opportunities
Table: 4.8.1: Craftsman sector analysis (strengths, sector opportunities, weaknesses, challenges) and resulting
opportunities
Table 5: Summary of economic opportunities, their aptness to targets group, and required training for Hebron
District
List of figures
Figure 1.1: Sequence of analysis conducted within the study
Figure 2.1: Number of economic establishments operating in the West Bank and Gaza Strip by size of labor
2007
Figure 2.2: Distribution of sectors and economic activities according to ratio of establishments and laborers
and the contribution of each to the GDP 2007
Figure 2.3: Change incurred on economic sectors and activities in the Palestinian territories during 1997-2007
Figure 2.4: Rate of unemployment of individuals 15 years and above participating in the labor force in the
Palestinian territories by age and sex 2009
Figure 2.5: Rate of unemployment of individuals 15 years and above participating in the labor force in the
Palestinian territories by years of education and sex 2009
Figure 2.6: Proportional distribution of laborers from the Palestinian territories by economic activity and sex
2009
Figure 2.7: Proportional distribution of individuals 15 years and above in the West Bank by academic
qualification and economic activity 2005
Figure 2.8: Proportional distribution of individuals 15 years and above in the West Bank by academic
qualification 2005
Figure 4.1.1: Ratio of participation of the labor force in agricultural sector by gender
Figure 4.2.1: Number or licensed housing units fourth quarter 2007-2009
Figure 4.2.2: Number or licensed housing units 2000-2007
Figure 4.5.1: Production growth and gross VAT in internal commerce sector
Figure 4.6.1: Production growth and gross VAT in services sector
g
Summary:
This study is part of the initial steps taken by the Community Based Training for Self-Employment and Small
Enterprises Creation (CBTSEC) in the districts of Hebron, Bethlehem, Ramallah and Nablus. It is funded by the GIZ
and implemented by the Councils of Employment and Training in the four districts, in cooperation with local
partners. The study aims to identify economic opportunities that are consistent with the reality of each district and
fulfill the needs of the target group for the purpose of encouraging self-employment and carrying out small
projects in different communities in each of the districts.
Thus the study offers an analysis of economic opportunities. It identifies the detailed trends in economic
opportunities, and links target groups with appropriate areas of training. The study shall be complemented with an
elaborate feasibility study prior to launching any of the proposed projects.
The methodological framework used in identifying the economic opportunities for the Community Based Training
for Self-Employment and Enterprises Creation (CBTSEC) is based on a globally-developed methodology that
depends on local participation and calls for the involvement of local stakeholders and the local market. In addition,
the methodology analyzes the reality of the district, its human and natural resources and capabilities, and looks for
economic production and the provision of services to the local and foreign markets. Accordingly, the participatory
rapid assessment approach has been adopted in order to obtain and compare information from different sources
before reaching an objective opinion. Interviews, brainstorming sessions, focal meetings, and presentations have
been conducted for the purpose of acquiring feedback. The information was also compared to figures and local
statistics to verify the accuracy of the conclusions on the basis of the different stages of analysis relating to
participation.
Forty four experts and representatives of eight different sectors have been consulted from each district and 22 on
senior level. Analysis has taken place in several stages and levels using the results of interviews. The local partner,
Hebron University in Hebron District, LET Council in the District, and representatives from different sectors
participated in the analysis and in obtaining feedback.
Analysis of the reality of Hebron District revealed that the district has become a center for the transformed
industry and manufacturing, the number of population growth compared with the year 1997 increased by a 50.8%
in 2009, bringing the population of the district about 552 thousand, distributed on 92 clusters. This remarkable
growth has exceeded the population growth rate in the West Bank during the same period. It was found that the
number of population in Hebron district represented a quarter of the population of the West Bank, and the
number of facilities is the highest in the West Bank. The district maintains a significant economic situation, as it is a
center for many different educational institutions. Hebron also maintain many natural resources, and is famous
with agricultural land is vast (261 km 2), also known for the production of fruit, especially grapes and planted figs
and almonds (plum and apricot). There are also a lot of archaeological sites and features besides some of the
traditional industry crafts and pottery, hand-formed glass
Analysis of human resources in the Palestinian territories and Hebron District indicated that most of the population
has not acquired any vocational training. Moreover, the analysis revealed that people residing in the district differ
according to the population cluster they live in, their academic qualification and gender. Hence economic
opportunities should take into account the social structure and distribution of people. Concerning the labor force,
it was found that the ratio of participation is as low as that of the West Bank. Unemployment in the district was
the highest among the west bank and reached 25.9%.
1
Finding economic opportunities constituted a big challenge in light of the prevailing economic and political
circumstances in the Palestinian territories which have greatly impacted Palestinian economy and caused
temporary economic retraction. As a result of the economic and political conditions, there has been a sharp
increase in the rate of unemployment and poverty which led to a decline in the purchasing power of the
population. The challenge was even intensified by the fact that Palestinian economy is dependent on its Israeli
counterpart and faces internal and eternal challenges that impede economic development and threaten economic
sustainability. All these factors presented a serious challenge vis-à-vis finding proper economic opportunities that
are compatible with the Palestinian reality and population diversity.
The following strategies were adopted in looking for feasible economic opportunities:
1. Substitution strategy: Looking for feasible alternatives for non-local products which are marketed locally
by substituting them with local products that depend on local resources.
2. Complementation strategy: Looking for complementary services required for supporting and for the
development of existing economic establishments.
3. Looking for developing sectors and emerging opportunities strategy.
Accordingly, an initial analysis of the economic reality in Hebron District has been conducted and indicators
identifying initial economic sectors specified. The indicators included number of establishments, ratio of laborers
in the sector, establishments’ development and their contribution to GDP, their relative importance in comparison
with the rest of the West Bank, and their connection to determinants of development, i.e. their consistency with
national and development priorities, district’s reality, and population diversity. Based on the initial analysis of
figures and statistics, the following main and branch sectors have been identified for the purpose of finding
feasible economic opportunities in Hebron District: Agriculture sector, construction, industry including stones and
marbles production commerce, environment and craftsman.
In addition, a detailed analysis of the main and branch economic sectors in the district has been conducted based
on the adopted strategies. The reality of the economic reality in the Palestinian territories has been analyzed
followed by a similar analysis of the economic situation in the district. Later the gap existing in the economic sector
and resulting opportunities have been analyzed on the basis of interviews, in-depth research, and analysis of data
and statistics. Moreover, SWOT analysis has been completed and relating activities have been identified. Finally,
investment economic opportunities resulting from this analysis have been deduced.
Dozens of feasible economic opportunities have been found as a result of analyzing the gaps in the eight main and
branch economic sectors. Priority was given to four economic sectors: agriculture and service (including tourism),
industry (including stones and marbles and solid waste) and IT, following the priorities identified by the LET
Councils in Hebron District and in accordance with the results of the analysis and priorities of the target groups.
Resulting opportunities focus on the following areas:
1. Agriculture: Opportunities include agricultural activities and supporting activities for agriculture and
husbandry.
2. Services: Opportunities include public service opportunities, catering services, support services for
economic establishments, and services relating to residential areas, buildings and institutions.
3. Industry and related industry on food and beverages processing, textile, clothing and footwear industry
and leather tanning, furniture, wood, metal and stone and marble industry in addition to industries
related to environment and solid waste collection, recycling and processing of raw materials and other
4. IT and telecommunication: Opportunities include provision of services, development programs, and
support opportunities for the sector.
The level of the opportunity, characteristics of target groups and training needs for each opportunity have then
been analyzed based on the in-depth study. The report includes pre-analytical sequence and is divided into five
parts that include four main chapters. Part One includes the introduction, methodology and reality of Palestinian
2
economy; Part Two presents an analysis of the economic reality in the district; Part Three gives a detailed analysis
of available economic opportunities; Part Four is about the consistency of opportunities with the characteristics of
target groups and required training.
3
Part One: Introduction, Methodology, and the General
Palestinian Reality
1. Chapter One: General Introduction
1.1. Introduction and Objectives
This study aims to search for the feasible economic opportunities to encourage self-employment and the
establishment of small projects in various communities at the governorate level; productive and sustainable
opportunities that provide self-employment and constitute a source of income for target groups. These
opportunities also contribute to the development of the local economy.
It also aims to find the characteristics of the target groups and the appropriate training areas to enable these
groups to establish income-generating projects within the economic opportunities that had been identified.
This study is part of the initial steps of the Community-Based Training for Self-Employment and Enterprises
Creation (CBTSEC) project in the Hebron and Bethlehem, Ramallah and Nablus governorates with support from
GIZ, and which is being implemented under the leadership of employment and training councils at those
governorates in collaboration with local partners.
The results of this study and the range of economic opportunities it presents for the establishment of small
enterprises at the local level represent an introduction to the design and implementation of appropriate training
programs and the provision of support services after the necessary training, such as financial support, technical
assistance, and market information, aiming at supporting and ensuring the sustainability of opportunities for
income-generating activities, self-employment, and small enterprises, which target groups seek to establish with
the guidance of this study.
Consequently, the study is an analytical study of the economic opportunities that determines the trends of
Palestinian detailed economic opportunities and links with target groups and appropriate training areas. This
will be concluded with conducting a detailed feasibility study before starting any of the proposed projects.
1.
1.2. Methodology
1 Introduction and Objectives
The methodological framework employed in determining the economic opportunities of the Community-based
Training for Self-employment and Enterprises Creation (CBTSEC) is based on an internationally developed
2
methodology that adopts a local participatory methodology , which involves the stakeholders in the local
community and the local market players within the various processes of production, export and distribution. It also
relies on analysis of the reality of the governorate and it’s internal and human resources and capabilities, and
identification of distinctive, complementary and substitution economic opportunities, which provide production
and opportunities that, serve the local market first, then the national and external economies.
Also, the approach used to obtain information is the participatory rapid appraisal approach, which combines the
use of different tools, obtaining information from various sources, and comparing them to reach an objective
opinion (varied interviews, focus group meetings, brainstorming and analytical meetings, and presentation of
results to get feedback). They are also compared to local and national figures and statistics to verify the accuracy
of the results based on the various stages of participatory analysis.
2
GIZ , CBTSEC Methodology, Module II: ‘Identification Of Economic Opportunities & Training Needs’, 2010
4
Through the study, the following was accomplished:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Review the literature and conduct an in-depth study of rates, statistics and economic studies at the
national level3
Brainstorming meetings among team members
Initial meetings with employment committees at the governorates
Identify economic trends at the national level
An in-depth study of the rates, statistics and economic studies at the local level
Discussions among members of the national and local teams
Meetings with representatives of different sectors and business owners in key and sub-sectors (potential
customers for the opportunities) - producers, distributors and dealers as well as economic experts,
specialists and representatives of civil institutions. Representatives of workers in different sectors were
also consulted, which was a major factor in the success of the study. Also, the meetings included field and
productive exhibitions visits.
Holding focus group discussions with the various important sectors in the governorate (an average of two
groups per each governorate)
Review and analysis of the results between team members and the exchange of the expertise of
geographical areas.
Discussion with the local partner and GIZ throughout all phases of the study.
Holding a workshop with the representatives of various sectors and stakeholders to present the results
and obtain feedback
Holding confirmatory meetings with some sectors in the light of feedback
Present the results to the employment and training councils at the governorates (the council is comprised
of representatives of the governorate, the Ministry of Labor, and various civil society institutions)
Consequently, the following have been consulted through interviews, intensive focus groups and concluding
workshops4:
1.
2.
3.
Representatives of the various sectors at the national and local levels
Representatives of the relevant ministries (the Ministries of Agriculture, the Economy, and Labor)
Representatives of various economic sectors (chambers of commerce, unions of industries, specialized unions,
the information technology union (Beta), the traditional crafts union, electricians and mechanics unions, and
representatives of the industrial areas)
4. Expert economists and specialists in different sectors
5. Sponsoring institutions for the different sectors (PALTRADE, the ARC, the Ma’an institution - the
environmental project, ARIJ, the Women's Union, the Federation of Associations, ‘fair trade’ projects, and the
farmers union)
6. Representatives of various financial sectors: including banks, insurance companies and small and micro
lending institutions
7. Business owners in various economic sectors at the national level: the telecommunications (itisalat) company,
the Palestinian company for commercial services, IT, construction, and export companies, and food production
factories.
8. Business owners in the areas of production, distribution and trade in the various economic sectors at the local
level (medium, small and micro businesses, formal and informal, and cooperatives) in the following sectors:
agriculture and food industries, other manufacturing industries, traditional crafts, mining, quarrying,
construction, commerce, restaurants, hotels, information technology, communications, education, health,
services and other branches
9. Representatives of the governorate, municipalities, various local and joint councils.
10. Universities, educational institutions, and training centers
11. Research and studies centers (including: MAS, and the Palestinian Central Bureau of Statistics)
3
4
Please refer to the reference list at the end of the study
Please refer to Appendix I to obtain details of the names
5
Table 1.1: The total number of people who were consulted at the local and national levels
96
Total
consulted
at the
local and
central
levels
-7
96
96
2
-4
49
71
Interviews
of business
owners at
exhibitions
Repetitions
Results
presentation
Workshop
Total
consulte
d at the
local
level
Confirmatory
meetings after the
workshop
Interviews
Focus
Group
Number of
persons
consulted in
the
governorate
Area
Local Partner
Ramallah
The Ramallah
and Al-Bireh
Chamber of
Commerce and
Industry
25
19
43
Bethlehem
Center for
Development of
small
enterprises
16
15
20
Hebron
Hebron
University
16
8
24
44
3
-7
44
66
Nablus
The Hisham
Hijjawi College
of Technology
17
17
9
42
3
-4
42
64
6
10
Total
231 persons
22 people were consulted at the central level, involved in the Ramallah meetings (various locations benefited from
these meetings)
Focus was on the local role in research and analysis within the general framework. The analysis was conducted
according to the following sequence:
Figure 1.1: The sequence of the conducted analysis within the study
1. Analysis of the actualities of the Palestinian economy, and identification of its features and characteristics
2. Development of strategies for creation of economic opportunities
3. Analysis of the governorate actualities, and identify their characteristics, resources, and changes they encountered and their challenges
4. Analysis of the actualities of the local economy in the governorate and identification of its features and characteristics
5. Identification of economic opportunities in the governorate
6. assessment of the level of economic opportunities
7. Identification of the features of target groups of opportunities
8. Identification of required training
The report reflects the previous sequence, since the report is divided into four parts that cover five main
chapters. Part 1: Introduction, methodology and the actuality of the Palestinian economy; part 2: Analysis of the
6
actuality of the governorate and its economy; part 3: Detailed analysis of the economic opportunities; while Part 4
reflects the appropriateness of opportunity to the characteristics of the target groups and required training.
1.3. Determinates and Difficulties
The study has encountered many determinants and obstacles that affected it, including:
 Lack in data, some of which was outdated and sometimes contradictory: Despite many studies and
statistics issued by the Palestinian Central Bureau of Statistics, which were employed as a reference due
to the diversity and abundance of such studies, some need to be updated while others are not
detailed. The study also encountered a lack in information and studies relating to different governorates
and regions. For example, the 2004 results of the family consumption survey and the higher education
and vocational graduates’ circumstances survey were adopted since they are the most current
comprehensive studies on this specific topic.

Limitedness of available time and resources to conduct the study: Qualitative analysis was employed in
the interpretation, the search for opportunities and the attempt to link with quantitative analysis in
analyzing data. Neither time nor resources were sufficient to carry out a comprehensive survey of the
different sectors in the labor market. However, the subsequent detailed economic feasibility study for the
opportunities, based on the results of the study, will present the required detailed and digital dimension.
7
2. Chapter Two: The Overall Economic Reality and the Strategies
of Searching for Opportunities
2.1. The Palestinian Economic Actuality and the characteristics of the economy and
Palestinian labour force
2.1.1. The Palestinian Economic Actuality
The Palestinian economy faces many challenges that hinder its development and retard its growth. Several
international parties, including the World Bank, have asserted that the political situation in the Palestinian
territories has led to reducing the economic essentials, in addition to increasing challenges with increasing costs
and time in transporting people and goods, which in turn led to reducing its competitive advantage, and
constituting a significant burden. This caused a recession of the economy in the West Bank and its total collapse in
the Gaza Strip. The drop in the actual GDP is estimated at 13% (or a cumulative percentage of 34% of the actual
per capita GDP) since the beginning of the second Intifada in 2000 and the increase in Israeli restrictions on
movement and mobility. Therefore, the level of income for the Palestinian economy is far less than its capabilities,
and despite the easing of Israeli restrictions in 2009, and even if such continued in 2011, the per capita income of
the GNP would still remain lower than that for the year 2000 by 27%, and the unemployment rate would remain
elevated and reaching 23% in 20115 . The World Bank considered the elimination of the policy of closure on the
West Bank and lifting the siege on Gaza two prerequisite to achieve recovery and reconstruction.
The resulting economic recession has led to a reduced rate of participation of the Palestinian labor force - which is
already low - from 47.3% in 2000 to 44.8% in 2009 - according to the expanded definition - due to prevailing
challenges, and a rise in the unemployment rate from 11.8% in the beginning of 2000 to 24.5% at the end of
20096, while unemployment among young people increased to 38.9% at the end of 2009.
The International Monetary Fund has asserted that the resulting situation led to the erosion of the per capita
income reaching slightly over U.S. $1000 per capita in 20087 . The Bureau of Statistics has also indicated that the
per-capita share of the GDP reached U.S. $1,340.4 in 20088.
This led to a rise in the poverty rates, reaching 57% in 20069 and in 2007. 34% of Palestinians in the occupied
Palestinian territories experienced food insecurity in 2006, the impact of which increased to 38% of Palestinians in
10.
2008 Despite a slight improvement in 2009, it still affects 25% of Palestinians in the West Bank, while an
additional 40% is marginalized and barely insured, yet it is possible for it to decline with any reversion in the
11.
prevailing circumstances
2.1.2.
The Features of Palestinian Economic Establishments and Sectors
Palestinian economy is characterized by mainly being a family economy, where medium, small, and micro
economic establishments constitute the majority of establishments operating in the Palestinian territories, and are
predominantly of a familial nature. These establishments are characterized by facility of establishment, simple
management and employment of traditional and unsophisticated technology and production techniques, making it
capable of creating job opportunities.
5
World Bank, Palestinian Economic Prospects: Gaza Recovery and West Bank Revival, Economic Monitoring Report to the Ad Hoc Liaison
Committee, June 8, 2009.
6
The Palestinian Central Bureau of Statistics, 2010. Labor Force Survey: Annual Report:2009. Ramallah - Palestine.
7
The IMF. 2009. STAFF REPORT FOR THE MEETING OF THE AD HOC LIAISON COMMITTEE, Madrid, April 13, 2010
8
The Palestinian Central Bureau of Statistics, 2010. National calculations of current and fixed prices (2007, 2008). Ramallah, Palestine.
9
The Palestinian Central Bureau of Statistics, Poverty in the oPt in 2006, August 2007.
10
WFP/UNRWA/FAO, Joint Rapid Food Security Survey in the oPt, May 2008
11
WFP/UNRWA/FAO, Socio-Economic and Food Security Survey Report in the West Bank, August 2009
8
The figure below shows that medium, small, and micro establishments constitute 99% of the 109,686 economic
establishments operating in the Palestinian territories12, 90% of which employ less than 5 individuals, while 6.8%
employ 5-9 individuals, and 2% employ 10-19 individuals. The private sector establishments constitute 91% of the
total number of establishments and 92% of them are family or individual establishments.
Figure 2.1: Number of establishments operating in the West Bank and Gaza Strip by employment size in 2007
7,449 , 6.8%
2,227 , 2.0%
788 , 0.7%
157 , 0.1%
99 , 0.1%
labor segment 1-4
labor segment 5-9
labor segment 10-19
labor segment 20-49
98,966 , 90.2%
labor segment 50-99
labor segment over 100
Source: the Palestinian Central Bureau of Statistics 2008, Population, Housing and Enterprises Census, 2007: Economic
Enterprises, final results, Ramallah, Palestine
Of a total of 82,871 economic enterprises operating in the West Bank, 17,661 are in the Hebron governorate,
14,582 in the Nablus governorate, and 11,804 in the Ramallah and Al-Bireh governorate. As to the Jerusalem
governorate, there are 4384 establishments, while 6305 economic establishments operate in the Bethlehem
governorate.
Most medium, small, and micro enterprises in the West Bank and Gaza Strip operate in the production sector by
producing consumer products, such as foods and beverages, footwear, leather, clothing, metals and furniture,
since most of the aforementioned products are sold in the local markets, except for clothing, footwear and leather,
which are sold to Israel and consequently to overseas markets, or are resold in the domestic Israeli
market. Internal and external trade is also active with various countries, where trade with Israel has the lion’s
share. Statistics have revealed an imbalance in the Palestinian trade balance in favor of imports, which amounted
to U.S. $2.9 billion in 2008, 80% of which with the Israelis.
The economic enterprises operating in the Palestinian territories are distributed among the following economic
sectors and activities according to the classification adopted by the Central Bureau of Statistics: Agriculture,
hunting, forestry, mining, quarrying, manufacturing, electricity, gas and water supplying, construction, wholesale
and retail trade, repair of vehicles, financial brokering, and services. The latter include: hotels, restaurants,
transport, storage, communications, real estate, renting and other project activities, education, health, social
work, and social services activities. The figure below shows the distribution of enterprises in these sectors and
activities.
12
Including economic enterprises in West Bank and Gaza in private and public sector according to Palestinian Statistics Bureau
9
Figure 2.2: Distribution of economic sectors and activities according to the percentage of enterprises and
employees, and the contribution of each to the GDP in 2007
Sources: 1. The Palestinian Central Bureau of Statistics 2008, The Population, Housing and Enterprises Census, 2007: Economic
2. The Palestinian Central Bureau of Statistics, 2010. National calculations at current and constant prices (2008.2007)
Statistics reveal that the services sector in its various activities is the sector with the most contributions to the
GDP, followed by trade, then manufacturing industries, then financial brokering, agriculture, then
construction. The figure indicates the concentration of enterprises and workers in the trade sector, followed by the
services sector, in its various activities, then industrial manufacturing, agriculture, financial brokering, and
construction out of 109,686 enterprises and 296,965 workers in those sectors. It is worth mentioning that much of
the informal employment is concentrated in agriculture, and land tenure indicates agricultural activity in addition
to the number of enterprises therein. It became evident that the total agricultural holdings recorded in 2004
amounted to about 101 thousand holdings, 69.5% of which are plants, 7.3% animal, and 23.2% mixed holdings.
Statistics indicate that despite multiple obstacles faced by the various economic sectors, they managed to achieve
limited growth. The figure below indicates growth in these sectors between 1997 and 2007. It was found that the
total number of employees had increased by 55% and that the number of enterprises increased by 43% during
those years. The figure indicates the remarkable growth in the services sector, which had the number of
employees increase six fold and the number of enterprises increased 3.5 times. Growth was marked in community
service activities, then transport, storage, transportation, hotels, restaurants, and education. Growth in the
services sector was followed by growth in the trade sector, then financial brokering, agriculture, and
construction. As to the industrial manufacturing sector, it had witnessed negligible growth, while the mining sector
suffered decline. Interestingly, the number of enterprises in the electricity sector decreased while the number of
its employees increased.
10
Figure 2.3: Change in sectors and economic activities in the Palestinian territories in 1997-2007
Total
Other community, social &…
Health & social work
Education
Real estate, renting & business…
Financial intermediation
1997-2007 change in no. of
persons engaged
Transport, storage &…
Hotels & restaurants
1997-2007 change in # of est.
Wholesale, retail trade & repairs
Construction
Electricity and water supply
Manufacturing
Mining & quarrying
Agriculture - farming of cattle…
-50%
0%
50% 100% 150% 200% 250%
Source: the Palestinian Central Bureau of Statistics 2008, the Population, Housing and Enterprises Census, 2007: Economic
Dilemmas faced by medium, small, and micro projects: many studies, including a MAS series of studies in 2009,
have revealed that medium, small, and micro enterprises, which constitute the majority of economic enterprises
operating in the West Bank and the Gaza Strip, suffer from many constraints, prompting some of them to exit the
market. Most had not received needed support and guidance for the development of their operations, and if they
did, most of them expressed their dissatisfaction with that service. These studies have revealed that despite the
Palestinian Authority support of the investment environment through several measures since its inception, the
general Palestinian context cast its shadows over the industrial enterprises operating in many sectors, which led to
weakening their competitiveness and the closure of many (3657 enterprise closures were recorded, most of which
were in the West Bank, in 2007). In addition to what was mentioned, those establishments have experienced the
absence of the legal environment that regulates the operation of medium, small, and micro enterprises, the
absence of a statistical system to track their work, low percentages of funding, and weak marketing capabilities,
which weaken their competitiveness, in addition to the requirements of outstanding challenge and the smallness
of the domestic market, and the low experience and skill of workers13. [5] (Atyani 2009)
The financing environment for the establishment of medium, small, and micro projects: The small and
microfinance sector evolved with the global interest in the small and micro-finance sector, and gained importance
due to the absence of a bank financing system and institutions in the Palestinian Territories between 1967 and
1993 as a result of the Israeli authorities closing all banks operating in the West Bank and Gaza Strip shortly after
the Palestinian Territories falling under Israeli occupation in 1967, until their reopening after the Oslo agreement in
1993. During that period, the small and microfinance sector was formed and developed to be represented by 13
organizations, all of which falling under the framework of the Palestinian Network for Small and Micro FinanceSHARAKEH, and until 2007had disbursed about 224,000 loans worth U.S. $226 million to about 147,000
people. They have 63 offices spread out in various parts of the Palestinian territories, with a cash portfolio worth
13
Nasr Atyani and Sarah Al-Haj Ali, 2009. Problems faced by medium, small, and micro enterprises in Palestine, Ramallah, The Palestine
Economic Policy Research Institute (MAS)
11
14
about $30 million . Two recent studies have shown that the sector is able to access medium, small and micro
projects, various sectors, the marginalized, and women1516.
In addition to the above, 19 banks are active with 200 branches in the Palestinian territories. Through many
meetings, it was evident that the value of saved funds is elevated in comparison to what is invested in subsidizing
the economy as loans and facilitations17. One of the most important problems in obtaining necessary funding to
start economic projects, as Mr. Khaled Awartani, of the Islamic Arab Bank is not submitting economic feasibility
studies of the project, which hinders opportunities to support the project. As for entrepreneurs, guarantees
required by banks and complications represent the most important obstacles to access to financial and funding
services. A study by MAS has revealed a decline in funding development projects from 31% to 20.6% and an
elevation in consumer financing. The total demand on small loans is estimated at $80 million, half of which the
banks provide and $30 million is provided by the MFIs18, which confirms the importance of supporting
entrepreneurs in accessing available sources of funding.
2.1.3.
The Characteristics of the Palestinian Labor Force19
Palestinian society is characterized by being a young community, given that people below 15 constituted about
41.9% in mid-200920. Also, the contribution in the labor force is considered low while unemployment rates are
elevated especially among young people reaching 38.9%, and limited employment rates rise to 7.2%.
Labor force by gender: The labor force is characterized by a low official participation of women, as their
participation reaches 15.5% compared with 67% of males. This percentage is considered one of the lowest rates in
the world. Statistics reveal that reasons to stay outside of the labor force for women are: housework 66%,
schooling 28%, old age/illness and other 5.8%. The percentage of full employment is 71.3%; unemployment is
26.4%; while limited employment is 2.3% of female participants in the labor market. Studies show that
unemployment rates vary depending on the studies in different years, women’s ages, and gender, as shown in
figures (5.1 and 5.2) below. The importance of paying attention to this variance in the appropriateness of
opportunities lies in the future:
Figure 2.4: Unemployment rate of people over 15 who are
participants in the labor force in the Palestinian territories by age
group and gender (ILO standards), 2009
14
Figure 2.5: Unemployment rate of persons aged over 15 who
are participants in the labor force in the Palestinian
territories by number of years of study and gender (ILO
standards) 2009
http://palmfi.ps/-img/files-front-end/1219046956.pdf
The Palestinian Women's Center for Research and Documentation - UNESCO - Optimum - Assessment of the economic and social impact of
microfinance loans on Palestinian women, Ramallah 2009.
16
Oxfam - SHARAKEH - Partners in Creative Solutions, an impact analysis study of microfinance on the lives of borrowers, Ramallah, 2009.
17
AlJafary, Makhoul, Lafi and Atyani 2003 Palestinian Services Sector and its role in the economic development (MAS) Ramallah
18
Nasr Atyani and Sarah Al-Haj Ali, 2009. Problems faced by medium, small, and micro enterprises in Palestine, Ramallah, The Palestine
Economic Policy Research Institute (MAS).
19
The Palestinian Central Bureau of Statistics, 2010. Labor Force Survey: Annual Report:2009. Ramallah - Palestine.
20
The Palestinian Central Bureau of Statistics, 2010. The Conditions of the Palestinian Residents in the Palestinian Territories, 2009. Ramallah Palestine.
15
12
Source: reference 1: Randa Hilal; The Impact of Education and Vocational Training Offered to Girls and Women in Palestine on
Employment/Entering the Labor Market, 20 April 2009.Both were updated to include the statistics of 2009 through 2. The
Central Bureau of Statistics, 2010. The Labor Force Survey: Annual Report: 2009, Ramallah, Palestine
Additionally, the above figure shows increased unemployment rates among males in the age group 44-54, a part of
which could have been made up of workers who were employed in Israel and had lost that capability as a result of
closures. It is worth mentioning that over 120 thousand workers in Israel in the nineties lost their jobs as a result of
the closures policy.) Statistics have shown that the number of workers in Israel and the settlements dropped by
43.5% in 2000-2009
Studies have also shown that women contribute to the informal sector, and particularly in the agricultural sector,
whereas the percentage of female workers in the informal sector to the total employed is 5.4% (for male workers
it is 10%), and the percentage of female workers in the informal sector to the self-employed and employers is 70%
(for men it is 46%). In a study by the Central Bureau of Statistics on women's participation in the labor market, it
was evident that the expulsion of women from the labor market is present, specifically in the private
sector21. Another study linked the impressions of Palestinians and their attitudes towards the employment that
22
deem it secondary, and associates economic need with women’s participation in employment .
The figure also reveals the
distribution of labor force by gender
on the different sectors. It was
evident
that
the
highest
participation of women was in the
service then the agricultural sector.
Employment of women was
centered in these two sectors. The
figure also shows an increase in
employment of males in the service
sector versus other sectors.
Figure 2.6: The percentage distribution of workers from the Palestinian territories by
economic activity and gender in 2009
70
60
50
40
30
20
10
0
61.8
34.7
21.7
20.5
14.3
12.8
9.9
8.9
7.4
0.1
6.6
1.3
males
females
Source: The PCBS Palestinian Central Bureau of Statistics, 2010. Labour Force Survey: Annual
Report: 2009. Ramallah - Palestine.
23
The labor force by level of education/qualification : When linking workers in the various sectors with an
educational/professional qualification, it is evident that workers with a bachelor's degree or higher are centered in
the education and health sectors, and particularly women, and that those with vocational habilitation or training
are distributed in the services, industry and construction sectors, while those with preparatory education are
centered in agriculture and trade. This gives an important impression when coupling economic opportunities with
21
The Palestinian Women's Center for Research and Documentation - UNESCO - PCBS - The Challenges to Women's Participation in the Labor
Market and the Required Interventions; Ramallah 2009.
22
The Palestinian Women's Center for Research and Documentation - UNESCO - ALPHA - A Study of the impressions the Palestinians and their
attitudes towards women's work,; Ramallah 2009.
23
The Palestinian Central Bureau of Statistics, 2006. Survey of conditions of graduates of higher education and vocational training - Key
findings: 2006, Ramallah, Palestine
This part is based on the study, which took place in December 2005, as it is the most current survey of educational and vocational graduates
13
the target groups. From a previous study, it was evident that professionals are centered in the private sector with a
percentage of 55.5% (70% for women), compared with 33.2% for academicians. Also, those who have an
educational or vocational training double their potential for self-employment or starting up their own project, and,
24
among women, this rises 7-fold and also raises the participation of women in the labor force to 42% .
Figure 2.7: The percentage distribution of individuals 15 and over in the West Bank by educational qualification
and economic activity in 2005
services & other sectors
120
100
80
60
40
20
0
health
education
Transport, storage &
communications
trade, hotels & restaurants
construction
As to the distribution of employees by educational/vocational qualification, as shown in Figure 8, the majority of
workers have preparatory habilitation or less, while those who obtained vocational, university or technical
habilitation are few. These percentages are similar in the study areas.
Figure 2.8: The percentage distribution of individuals 15 and over in the Wet Bank by educational
habilitation in 2005
84,772, 6.3%
10,113, 0.8%
60,960, 4.5%
201,008, 14.9%
‫ﻻ ﺷﻲء‬
Nothing
‫ اﺑﺗداﺋﻲ – اﻋدادي‬Elementary - primary
255,566, 19.0%
(‫ﺗﺷﻣل ﺛﺎﻧوﯾﺔ ﻣﮭﻧﯾﺔ‬Vocational
) ‫ﺗﻌﻠﯾم ﻣﮭﻧﻲ‬education
– ‫ﺷﮭﺎدة ﺗدرﯾب‬
‫ﺛﺎﻧوﯾﺔ ﻋﺎﻣﺔ – اﻛﺎدﯾﻣﻲ‬
Secondary school
703,870, 52.2%
31,617, 2.3%
‫دﺑﻠوم ﻣﺗوﺳط‬
Diploma
‫ﺑﻛﺎﻟورﯾوس‬
Bachelor
‫ دﺑﻠوم ﻋﺎﻟﻲ ﻓﺄﻋﻠﻰ‬Higher Diploma
24
Randa Hilal; the Impact of Education and Vocational Training Offered to Girls and Women in Palestine on Employment/Entering the Labor
Market; a work paper submitted to the second conference on vocational and technical education and training, 2009.
14
2.2. The Challenges and Strategies for Creating Economic Opportunities:
2.1.1. The challenge of creating economic opportunities:
The general economic reality and the characteristics of the Palestinian economy and the labor force placed many
challenges before creating viable economic opportunities, including:
1. Low purchasing power of the population: the increase in poverty and unemployment has negatively
affected the purchasing power of the population, and led to a decline in the rate of consumption of
various products. Food security studies by the World Food Organization had reported that many of those
whose financial conditions had been affected and with a decline in their purchasing power to reduce
expenditures in all aspects and reduce the quantity of consumed foods or change their quality.
2. Limitedness of available opportunities for employment or self-employment: as a result of the occurring
recession, employment opportunities are limited opportunities. The same applies to investment and
starting up economic projects.
3. The Growth in the sectors is less than its capabilities: Despite the occurring growth in some sectors,
which is an important indicator of the development of those sectors in the multiple years, including
various recession and recovery years, this growth is less than its actual capabilities and could possibly
increase in the event reasons that led to the recession change.
4. The actuality of dependency to the Israeli economy, the imbalance it dictates in the balance of trade,
and specific agreements for imports and exports: This causes foreign trade to become an obstacle and
raises the costs for imported materials, including production inputs. (This affects the trade, industry and
agriculture sectors)
5. Increase in the costs of internal trade: the challenges posed by the Israeli actions, including the
imposition of restrictions on movement in the Palestinian territories, reduces opportunities for internal
trade.
Consequently, these criteria must be taken into consideration, even if a slight improvement on the indicators of
the economic conditions occurs, since its causes remain.
In addition to the challenges pertaining to the economic situation, the challenges linked to the features of the
Palestinian economy and the labor force, which affect the opportunities, it emphasizes the importance of having
the following parameters when searching for economic opportunities:
1. To be viable and feasible for the general conditions
2. To be compatible with national priorities
3. To be compatible with the development priorities of the governorates
4. To be compatible with the natural and human resources of the governorate
5. To provide varied opportunities to all and be compatible with the demographics: This includes:
a. Involve women in available opportunities depending on the actuality of low participation of
women in the labor market.
b. Taking into account the educational and habilitation actualities of the workforce in the
Palestinian territories.
c. Provide opportunities in various locations (rural, city, refugee camp)
2.1.2. Search strategies for economic opportunities
The Palestinian actuality and the previous challenges stress that any search for feasible economic opportunities
must be characterized by creativity, to be constructed upon in-depth analysis of the opportunities within the
different sectors, attempt to link actuality and capabilities, transform barriers to opportunities, and must view the
various aspects of capabilities of the economy and development through planning for different economic
scenarios, including an emergency situation and the possibility of building the state. Accordingly, the following
strategies have been discerned to search for feasible economic opportunities, and related questions concerning
those strategies were posed as follows:
1- Replacement strategy of existing products that have markets requires searching for a feasible
replacement of nonlocal products with feasible local products that use local sources (mainly agriculture
and industry) and attempts to replace available products that have marketing capabilities and are
marketed now as a local alternative in limited capabilities or local capabilities and resources, thus raises
several questions: What are the deficiencies in production in the Palestinian markets, which are being
15
2-
3-
replaced by products from other markets? What imported locally consumed materials or products which
could be replaced by local products and resources? How? In analysis, this requires searching for gaps in
production and trade and knowing consumption and production patterns and import and export gaps
and their compatibility with natural and human resources in different areas and the possibility of
increasing local production to replace imported products.
Complementary Strategy for current businesses: requires searching for necessary complementary
services for current companies, economic projects and institutions, assisting them in addressing the
challenges they encounter, or meet their needs for growth and development and increase their
competitiveness. Consequently several questions are raised: What are the challenges and
obstacles faced by companies, economic projects and current institutions? What are the prospects for
development in the pertinent sector? What are the modern technologies that should be added to the
traditional service or products? What are the complementary services necessary to overcome the
obstacles or to develop? It requires an analysis of weaknesses and strengths of the various sectors and
finding the ensuing economic opportunities.
(New niches): requires searching for developing sectors or nascent opportunities in some areas, the
introduction of new techniques, or the presence of new outlets. Thus several questions are raised:
Which sectors are developing or which opportunities are nascent as a result of changing habits? Or the
introduction of modern techniques, increasing export capabilities, or changes occurring in the economic
or general environment associated with them? De And of those strategies was to focus on key sectors
and sub the following for further research on:
As a result of those strategies, focus was placed on the following key sectors and subsectors for further research
on the governorate level:
1. Information Technology and Communications: This is a growing economic sector in tandem with the
growth in international and regional markets, and is characterized by the availability of Palestinian human
resources, and the rise in use of digital technology, PCs, and the Internet. Many studies have revealed the
need for opportunities in various sub-areas, including providing services linked to global markets
(including software, financial services, or data entry), that are suitable for different educational
levels. Also, this area offers opportunities to e-commerce and web page development, which can support
various economic activities. (Complementary strategy)
2. The agriculture sector: (in both the plant and animal sub-sectors) in areas that can provide alternative
local products to imported products based on the capabilities and resources of different regions
(replacement strategy). Or emerging modern opportunities as a result of changes in habits, and some of
the proposed areas here fall within these strategies: honey production, cattle breeding, cultivation of
potatoes, mushrooms and strawberries, or planting suitable crops for the climate in the area, and
providing various services to the agricultural sector that are needed in the area. Add to that canning of
traditional foods and surplus production, food processing of available products in different areas. This
sector provides employment opportunities for women in rural areas. This sector is also compatible with
emergency situations and state-building scenarios. The Palestinian government’s strategy pays special
attention to this sector as part of the reform, national development, and state-building plan.
3. The environment sector: Global concern is growing over the environment and the need for attention to
this sector while not much was accomplished in this regard in the Palestinian territories. The various
Palestinian areas encounter a shortage in areas C, which fall under the control of the governorate, and
which can be used as landfills. Some initiatives that can be revived exist (such as recycling of wastes and
oils, reuse of glass, cans and plastic for industries, and re-use of the leftovers of stone in the handicrafts
industry). It is considered a developing sector since it contains many opportunities.
4. The services Sector: The sector has grown over the past ten years, and there is a growing need for it:
since it is linked to population and business growth, and an increase in the number of institutions, such as
NGOs and donors. It is also a sector which is linked to the emergence of growing commercial markets in
some cities (as a result of internal migration or closures of other areas) of due to changes in habits in
general. Add to that the shortage in some services which are not being provided.
5. Support services provided to micro, small and medium-sized enterprises: There is a need to provide
support to small and medium enterprises in various fields, such as management, financing, marketing and
design. The small and medium-sized enterprises conference, and the conducted studies, highlighted this
fact. A MAS series of studies of these projects have confirmed, together with conducted surveys, the
16
6.
7.
urgent need for the owners of those establishments of marketing services as a result of the smallness of
the domestic market and the complexities of outside marketing in terms of procedures and the need for
technical development.
The complimentary sector for manufacturing and services industries: includes maintenance of
machinery, modern technical work, and technological support for the auto mechanics, printing and
turning sector, especially in the city of Nablus. Also supporting technology industries in Ramallah and
Hebron.
The Development of traditional products: Such as handicrafts and soap and sweets production, taking
into account different areas, thanks to new opportunities for export abroad. For example, in Bethlehem,
several international agreements were reached concerning export capabilities, and the possibility for
domestic consumption of soap produced in the city of Nablus exists, given that all of these products are
related to the tourism sector and to both domestic and foreign tourism.
Consequently, the study employed these strategies and initial sector analysis in the analysis of feasible economic
opportunity in different governorates and in compatibility with the study methodology based on the Communitybased Training for Self-employment and Enterprises Creation (CBTSEC), which emphasizes the analysis of the
governorate reality, internal and human resources, capabilities, and searching for significant, complementary and
replacement economic opportunities that provide production and opportunities to serve the local market first,
then the national and external markets. It also involves field and office research, engaging stakeholders in the local
community and the parties to the domestic market within the various processes of production, export and
distribution, then the study of the reality and resources of the governorate, analysis of opportunities, strengths of
the various economic sectors, weaknesses and challenges, and a feasibility study of production and trade for
different sectors, and from analysis of the results feasible economic opportunities are derived.
17
Part two: Analysis of the district’s status quo, and the
economic situation there
3. Chapter 3: General Overview of the District of Hebron
3.1 General Overview of Hebron District
3.1.1 Geography and size and Natural Resources:
Hebron is located in the southern part of the West Bank, and is located at latitude 31o. Its size, however, is about
9972 kilo meters, which is 20% of the overall size of the West Bank.
Hebron city is on a hill, surrounded by valleys, and is 9340 meters above sea level. Moreover, Hebron is 33 kilo
meters to the south of Jerusalem and 25 kilo meters from Bethlehem city. Also, Hebron has many springs,
especially in the areas surrounding the city, the most important of which is Alfuwar spring, which is connected to
pipes in order to provide the city with drinking water, in addition to the wells and tanks where people collect rain
water
There are two types of climate in Hebron: the Mediterranean Sea climate, which is almost the climate of most of
the areas in Hebron; this climate is warm, rainy in the winter, and dry, hot in summer. The second type: is the
desert climate which dominates the east slopes of the Hebron Mountains, and in the Dead Sea coast, which is
warm in winter, high and dry in summer25.
The district has many natural resources, which are similar to the rest of the districts in West Bank to some extent,
and those resources are fertile land. Hebron is famous for growing grapes, apricots and plums and the traditional
crafts too such as pottery and hand-made glass industry. Hebron owes features natural stone and there are some
archeological sites
3.2 Overview of the population and the manpower characteristics in Hebron
3.2.1 Human Resources: the geographic characteristics
The final results of the 2007 census shows that the total number of population is about 538,260 people, 274,480 of
which are males and 263,780 are females; while the total number of population in 2009 reached 580,955, 296,287
of which are males, and 284,668 are females. However, the year 2009 witnessed a huge growth, which reached an
increase of 50.8% compared to 1997(the number of population in that period was 390,272) in 92 populated areas.
These populated areas are controlled by 17 Municipal Councils, 22 Town Councils, and 40 Project Committees, in
addition to two popular Committees for camp services(Ala’rob camp and Alfuwar camp)26.
The population in the district is about 14.8% out of the population of the Palestinian territories and 23,80% of the
population of the West Bank( the highest rates of population in the Palestinian districts in the 2007 and 2009
census). The rate of the Palestinian refugees who live in Hebron, however. has reached 17.9% in the whole district
27
in the end of 2007. The rate of refugees in the West bank reached 27.4% of the total number .
The final results also indicate that Palestinian community residing in Hebron is a young one. To explain, the
number of those who are 0- 14 years old is about 240,732 people, making about 44.7% of the total number,
compared to the census in 1997, as the number of those between 0-14 reached about 194,579 people, making
25
Palestinian Center Bureau of Statistics Annual Book of Hebron (1) Ramallah - Palestine
Palestinian Center Bureau of Statistics 2009. The final results of the census – populations – facilities buildings – Ramallah –Palestine
27
26
18
about 49.9% of the total number, in 1997. As for the education rates (15 years and older) in 2008, about 3.4%
finished high school, while 7% finished university (A B.A or higher), as for those didn’t finish any levels of education
reached 17.4%.
Statistics indicate that there’s a discrepancy between males and females in the education field. keeping in mind,
that the rate of males who finished University (A B.A or higher) reached 7.8%; even though this number decreases
among females to 6.2% only, As for those who did not finish any education levels, the males’ rate reached 13.9%
compared to females’, which reached 21.2%. The results also indicate that the rate of illiteracy among people (15
and older) reached 7.6 %, 4.2% of which are males and 1.2% are females28.
The table shows the number of those who received degrees from both sexes in the district, the West Bank, and
Jerusalem:
Table 3.1: relative distribution for the population according to the professional qualification in the district, in
200529
The degree
Hebron district
The West Bank & Jerusalem
Nothing
46,659
201,008
Elementary- preparatory
149,275
703,870
Training Certificate- Vocational
8,583
31,617
High school- Academy
43,055
255,566
Diploma
12,799
60,960
B.A
15,861
84,772
Post graduate Diploma
1,311
10,113
total
277,543
1,347,907
3.2.2 The characteristics of the labor force:
The results, according to the 2007 labor survey in Hebron (15 years and older) shows that the rate of participation
in the workforce reached 46% of the total manpower in 2008, 18.6% of which are women, and 71.4% of which are
men, the rate of workers in Hebron reached has 74.1% of the overall labor force, 11.0% of which are limited
laborers30. Results also indicate the rate of unemployment has reached 25.9%, 18.4 of which are women, and
27.7% are men.
28
Palestinian Central Bureau of Statistics, 2006. Conditions Survey graduates of higher education and vocational training - the key findings:
2006, Ramallah, Palestine
30
Central Bureau of Statistics, 2009, the Palestinian Labor Force Survey: Annual Report: 2008 Ramallah - Palestine
29
19
Table 3 2: The general framework of labor force in the Hebron district compared to that of the West Bank,
according to the 2008 annual labor force survey
The Hebron District
The West Bank
Female%
( of total)
18.6%
Male%
(of total)
71.4%
Full time labor (of the labor force)
80.2%
Limited labor (of the labor force)
Unemployed (from the labor force)
Within the labor force
Total%
Total%
46%
43. %
59 %
63.1%
74.2%
1.4%
13.3%
11%
6.8%
18.4%
27.7%
25.9%
19%
Source: Palestinian Statistics Bureau, Annual report 2009
The results indicate that the highest rate of workers in Hebron was among those who finished 10-12 years of
education (the rate reached 30.6%); they also indicate that 23% of the workers in the Hebron district work in the
Service sector and other sectors, followed by the Agriculture and Fishing sector, at a rate of 21.7%.
3.3 The Economic Status Quo in the District, and the Palestinian Economic Characteristics31
The Hebron district is one of the most economically active districts, with its exports reaching 10.75 million dollars,
out of the 39.3 million dollars of the overall Palestinian exports, as stated by a statement by the Palestinian
Federation of commerce chambers on 03/12/2008.
The results indicate that the number of the operating establishments in the Hebron district reached up to 17,661
operating establishments in the domestic, private, and public sectors, which are 21.3% of the overall number of
establishments in the rest of the West Bank. As for the private and domestic sectors in this district, they reached
up to 16,447 establishments, which is about 93% of the overall number of establishments in this district. In
addition, the number of the workers of these establishments is about 44,058 people, 37,539 of which are males,
and 6,519 are females.
The following table shows the numbers of the operating establishments in the mentioned sectors, and, also,
includes the numbers of workers in each sector, according to the 1997 and the 2007 census of the Hebron district.
Table 3.3: growth of establishments 1997-2007
Year
Sector
1997
establishments
2007
workers
establishments
workers
Agriculture and fishing
1308
6414
551
1161
Quarries and mining
198
861
176
1030
Manufacturing
2534
13406
2667
12012
51
26380
73
798 (employees at
institutions only)
Building and construction
31
Main source of statistics in this part of the report: 1. Palestinian Center Bureau of Statistics 2008. The final results of the census – populations
– facilities buildings – 2007: economic enterprises final results Ramallah –Palestine 2. Hebron Chamber website
20
General Trading
5844
11254
9415
17627
Restaurants and Hotels
244
1149
468
1036
Transportation, Storing, and
Communication
53
3670
114
832
Education
202
6361
331
2534
Health
423
1696
769
2553
7857
1249
3034
Other Services
These statistics show that the operating establishments are concentrated in the General Trading sector, followed
by the operating establishments in the Manufacturing sector, then comes the operating establishments in the
Service sector, 89% of which hire less than five workers.
As for the numbers of workers, the statistics show that about 23% of the workers are employed in the Service
sector, followed by the 21.7% in the Agriculture sector, and, finally, the 18.8% in the Manufacturing sector.
Moving on to the active sectors in the district, the commerce chamber’s statistics indicated the following sectors:
1- The Industry sector: and it includes the leather and shoes industry, Clothing and Textiles, the traditional
industries, Food Industries, Plastic industries, Metal industries, the Furniture and Office supplies industry,
and the Paper, Cardboard, and the Stone and Marble industries
2- The Building and Constructions sector
3- The Transportation sector
4- The Service sector
5- The Trade sector
The following table explains the numbers of the registered establishments in the commerce chamber of Hebron:
until 12/31/2009:
Table 3.4: numbers of registered, commercial establishments in the commerce and Industry chamber of Hebron
Sector
Establishments(Active)
Establishment(Inactive)
Total
Commercial
2274
1723
3997
Crafts
748
206
954
Service
346
283
629
Industrial
636
818
1454
Construction
189
112
301
Agricultural
0
2
2
Total
4193
3144
7337
Source: Palestinian Statistics Report 2008
21

These statistics don’t include the commerce chambers of northern Hebron, and southern Hebron
Also the Agriculture, and related services, sector has been included because the previous study statistics relate
only to the city. Moreover, the solid waste recycling sector has been studied and considered one of the most
important fields of Manufacturing. The Industries and traditional crafts sector was made separate, and studied as
an independent sector. Thus, the sectors that were studied are as the following:
12345678-
The Agriculture sector.
The Service sector.
The Traditional Crafts sector.
The Travel and Tourism sector.
The Manufacturing and Solid Waste sector.
The Information Technology sector.
The Building and Construction sector.
The Trade sector.
3.4 Comparing the economic and demographic situation in Hebron to the economic sectors
being studied
This part attempts to create a link between Hebron demographic and economic situation analysis and the limits of
and strategies to find economic opportunities (part 2.2 of the report), and tried to conclude the sectors and
activities that require more research and studies to find efficient economic opportunities for investment.
The following is an analysis of these sections, and range identification for a group of indicators: The size of the
sector (number of establishments, number of workers), the growth of the sector, the contribution of the sector in
the overall local production, and the importance of the sector in creating development:
ِ ◌Agriculture: the numbers of workers are not officially registered. This sector is considered suitable to the national
developmental needs, to the natural resources available in the district (Land and Livestock), and to the human
resources (the different community sectors). Also, some activities do not require any technical or professional
qualifications, which also lead to investing the Agriculture graduates in the vocational schools and colleges, in
addition to a modest contribution to the GDP.
Service: includes a large number of establishments, in addition to a large number of workers in this section (look at
the establishments table). Also, a great deal of growth can be noticed in this sector, although there is no statistical
data that shows its contribution to the GDP. The importance of this sector is due to large numbers of residents, as
Palestine is considered a Service-oriented country.
Industries: the Hebron district is considered to be the top industrial district, locally. Statistics, also, indicate that
the size of this sector is the largest in the Hebron district (in terms of establishments’ and workers’ numbers, and it
has one of the highest rates in terms of its contribution to the GDP), and it appears it’s still growing. It’s also
considered on of the most important sectors, through which many engineering graduates, technicians, and
industrial school graduates can be invested. In addition to that, the variety of industries in this sector is another
positive indicator.
General Trading: this sector is considered to be the largest (in terms of numbers of establishments and workers),
as statistics indicate, in addition to its obvious growth. As for its contribution to the GDP, it’s big, and it’s important
due to the need for merchandise produced abroad.
22
Traditional Crafts: this sector’s rate in this district is the highest considering its size in the West Bank, in terms of
numbers of establishments and workers. Also, its contribution to the GDP in the district is very high compared to
the West Bank, and its significance is due to the fact that it can be invested to improve the Tourism sector, in
addition to improving exports.
Building and Construction: the commerce chamber of Hebron’s data refers to this sector as Construction, which is
a relatively big sector, in terms of numbers of establishments (the number provided by the commerce chamber
don’t match with those of the Bureau of statistics). Also, the numbers of workers are too big compared to the
other sectors. Nevertheless, they’re not registered officially. This is a developing sector whose significance is due
to the fact that it serves the other sectors; meaning that all other sectors need buildings. In addition to this, the
population growth in this district reaffirms the significance of this sector, in addition to the fact that it provides
opportunities to people with limited talents.
Information Technology: a developing sector nationally and worldwide, which serves great numbers of graduates,
in addition to serving the other sectors.
Table 3.5: summary of achievements of economic indicators linked to sectors
Indicator
Number of
establishments
Number of
workers
Growth in
sector
32
Contribution
to the GDP
Significance
of sector
Other



Sector
(1997-2007)
Agriculture
Services,
including
restaurants and hotels,
tourism
and
travel,
transportation
distribution



Industry, including sold
wastes, and stone






General Trading



















Traditional Crafts
Building
Construction
and
Information Technology


Moreover, the major points of strength and weakness will be studied, in addition to the challenges indicated by
the results of the meetings and interviews in every mentioned sector, according to which the economic
opportunities in each sector have been determined.
32
the cursor has been placed at the most remarkable and achievable sectors
23
Part Three: Detailed Analysis of Economic Opportunities
4. Chapter Four: Analysis of Different Economic Sectors and the
Opportunities Arising from Them
This section analyzes in detail the major and secondary economic sectors in the governorate, which have been
extrapolated from the previous analysis of the governorate, its situation, resources and the analysis of its local
economy and its features mentioned in the previous chapter. The sectors that were identified in the governorate
of Hebron and that will be discussed in detail are: trade, industry, construction, agriculture, services and traditional
crafts.
The detailed analysis of each major or secondary sector will also illustrate the reality of the sector in the
Palestinian territories then in the governorate. It will then analyze the existing gap in the sector, as well as the gaps
and opportunities arising on the basis of interviews, in-depth research and analysis of statistics and information,
such that the end of each review will present a SWOT analysis of strengths, weaknesses, opportunities and threats
for the sector and related activities, then devise economic investment opportunities resulting from this analysis.
The analysis is based on the strategies that were previously adopted (replacement, supplementation and distinct
opportunities). The economic investment opportunities resulting from the investment will be presented with a
focus on small and medium-size projects that arise and that are commensurate with the objectives of the study
and the target group.
The detailed analysis of the different sectors is based on the analysis of numbers, percentages and statistics,
building on many references33, notably the Palestinian Central Bureau of Statistics and information resulting from
many of its published and unpublished statistics, and the results of the population, establishments and residences
census of 200734. The analysis will also be based upon other sector studies with different relevance from multiple
sources35. Sectors will be presented in the following order: agriculture, construction, industry, environment, trade,
services and traditional crafts.
4.1
Agriculture and Animal Husbandry Sector
4.1.1
General Overview of the Agriculture and Animal Husbandry Sector in the
Palestinian Territories
The importance of the agricultural sector in the governorates in general and in Hebron in particular stems from its
being a major sector that absorbs large numbers of formal or informal workers, as well as being the sector that
absorbs the unemployed in times of economic crisis. The percentage of workers in the agricultural sector rises in
years of crisis, according to statistics by the Palestinian Central Bureau of Statistics as shown in Figures 2.3 and 4.1
below. Mr. Osama Abu Ali, Director of the Oil Export Project in the Palestine Trade Center (Pal-Trade) ascertained
33
See the references list at the end of the report
It is worth noting that the results of the Palestinian census of 2007 and later that are specific to Palestinian land or the West Bank, do not
include parts of East Jerusalem, or “the part annexed by Israel after its occupation of Palestinian lands in 1967” as defined by the census, and it
is referred to as the remaining West Bank. Thus it was important to mention and take this into account when referring to West Bank statistics
or Palestinian lands
35 This was based on the MAS series of sector studies and those related to micro, small and medium sized enterprises, and their definition of
such enterprises based on workers was considered permissible
34
24
the existence of professionalism and inherited skills in this area, with the use of modern technology in agriculture,
and the significant development of this sector as well as the economic independence that the sector creates for
farmers, according to Mr. George Qarzam, Director of the Research and Studies Department at the MAAN
Development Center. In addition, this sector is of great importance in food manufacturing in particular and
manufacturing in general, according to Mr. Ayman Sbeih, Director General of the Palestinian Federation of
Industries. Mr. Anwar Jayyousi, General Manager of the FATEN institute for agricultural lending and head of the
lending institutions network (“Sharaka”) indicated that there are many economic opportunities for small and micro
projects, at diverse levels and for women in this sector.
The importance of the sector is bolstered by the availability of agricultural areas of Palestinian land and the
distribution of land among the population, where the agricultural land area is 1.854 million acres, constituting 31%
of the total area of the West Bank and Gaza Strip, 91% of which is in the West Bank, giving importance to this
sector. Statistics also show that the proportion of land tenure is high as 25% of the population owns land, most of
them living in rural areas. This contributes to the support of economic opportunities there. The value of
agricultural production was 1.4 million U.S. dollars in the agricultural year 2007/2008 (61% plant and 39% livestock
production) and the value added of agriculture has doubled in the ten years from 1997-2007, according to the
Central Bureau of Statistics36. This sector contributed to the Palestinian GDP by 5.5% in 200737 and this can be
increased to 10% if there is increased access to water sources, according to a study by the World Bank (2009). The
sector witnessed growth during the ten years 1997-2007 of 15% in facilities and 59% in workers, as shown in Figure
2.3 of the report, based on the 2007 Census38.
This sector is also considered a
key employer for women,
where statistics showed that
this sector is the main
employer of women after the
services sector, especially in
years of crisis, as shown in the
figure.
This sector is a key employer in
rural areas, as well as a
supplier for food processing by
women and for the food
security of families.
Figure 4.1.1: Percentage participation in agricultural sector by workers
according to gender
40
35
30
25
20
15
10
5
0
The sector is thus a source of
food and income and a haven
in crises, and an important
element for the employment
of women.
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
% of women participation in labour force
% females working in agriculture and forestry sector out of total female
working in other activties
% males working in agriculture and forestry sector out of the total males
in different activities
Source: Palestinian Central Bureau of Statistics web page, May 2010
36
Various statistics from the web page:http://www.pcbs.gov.ps/Portals/_pcbs/Agriculture.htm
Palestinian Central Bureau of Statistics, 2010. National Accounts at Current and Fixed Prices (2007, 2008)
38 Palestinian Central Bureau of Statistics, 2008. General Census of Population, Residences and Establishments 2007: Economic Establishments,
Final Results, Ramallah
37
25
The decline taking place in this sector in recent years has led to a lack of ability to provide local food and increasing
dependence on imported food that is connected to world prices, which led in many cases to increased household
spending on food and an increase in poverty, according to the World Food Program and other international
39
organizations . This sector is suffering more than others from lack of water in many locations and the water crisis
afflicting the Palestinian territories. However, the use of modern methods of agriculture such as greenhouses, drip
irrigation, hanging agriculture and others contributes to an increased ability to exploit agricultural land in the best
way and within the Palestinian water reality.
The grazing area amounts to 2.02 million acres and the space available for grazing does not exceed 621 thousand
acres. Thus, access to pastures is considered one of the fundamental obstacles facing the animal rearing sector, in
addition to rising prices for inputs and production requirements (with feed comprising most of these at 74%) and
decreased livestock production over the past years, which gives importance to discussing the significant
opportunities in this area.
The study found that there are many institutions which have developed a variety of means of agriculture and
animal husbandry using modern methods, which take into account the environment and which it is possible to
benefit from. They provide services to the agriculture sector in addition to services to the Ministry of Agriculture in
the area; the services ensure training, guidance, veterinary health, agricultural development and others, yet
statistics showed that there is a significant shortfall in the area where it was found that 60% of the farmers of
orchard trees did not get any kind of guidance, that the number of veterinary doctors is low and that livestock
production inputs are up to 58%.
Thus, the obstacles of this sector are summarized by control over water and land and the rising prices of inputs and
production requirements, in addition to the low level of services provided to farmers, poor necessary
infrastructure, weak research, guidance and networking, and weak incentives to encourage investment as
demonstrated by the strategic plan of the Ministry of Agriculture.40 Therefore, these obstacles were used in the
analysis as economic opportunities in specific areas or as a parameter for other opportunities.
The priority given to this sector by the Palestinian government through the “Palestinian Plan for Reform and
Development 2008 – 2010”, in addition to the “End of the Occupation and The Establishment of the State
“document adopted by the government in August 2009 and the adoption of the sector as one of the important
ones for the establishment of the state has given greater importance to the sector. Also, the adoption of the 2010
law of boycotting the products of the settlements reduced the chances of competition and increased the need for
agricultural products. The decision to boycott work in Israeli settlements will also contribute to finding viable
economic opportunities in the sector.
However, the many challenges faced by the sector have made the majority of specialists in the field emphasize the
importance of the government’s support - and the Ministry of Agriculture in particular - of the sector, which suffers
problematic confiscation of land and water shortages, and the competition of a state-supported economy. With
the importance of the sector, the importance of government support is apparent in terms of adoption of
agricultural insurance, provision of agricultural services and giving necessary support to competing economies,
which are ambitious targets within the strategy of the ministry.
A meeting with agricultural specialists has shown that there are many opportunities within the reality of the
governorate, and it is possible for them to succeed despite the obstacles, for example: bee farms, greenhouses,
the use of modern technology such as hanging strawberries, animal production, feed production, veterinary
39
40
WFP/ UNRWA/FAO, Socio-Economic and Food Security Survey Report in the West Bank, August 2009
Ministry of Agriculture, 2009, Summary of Strategic Plan 2010 – 2012, Ramallah, Palestine
26
services and projects related to olive oil and fruit trees. They also indicated the possibility of establishing a variety
of projects for fish farming.
They mentioned many of the methods used to provide water for agriculture and reduce the cost of production
inputs including the establishment of cooperative societies. It also became apparent that this sector suffers from
the problem of marketing, and through the meetings, some models were shown of organizations working on fair
marketing initiatives such as Bethlehem University - Continuing Education: fair trade project, and “Sharaka”: fair
marketing project for farmers, supervised by the Union of Charitable Societies of Palestine. The study also found
the existence of institutions that provide guidance, courses and other support to the agricultural sector: the
Ministry of Agriculture, represented through its different directorates in all governorates, including Ramallah and
Al Bireh, and the Association of Arab Farmers, based in Ramallah with multiple branches, are two of the supporting
institutions of the agricultural sector in the field of guidance and veterinary services, and the Association of Arab
Farmers provides training services in the agricultural domain (beekeeping, cultivation of medicinal herbs and
training in how to create greenhouses)and other agricultural services which constitute a substantial support for
farmers and entrepreneurs. This was confirmed by Osama Abu Ali, head of the agricultural sector in the Palestine
Trade Center. The Reef Association and the Jerusalem Company also provide marketing services and export of
products abroad (specifically almonds, thyme and pickled eggplant) according to Mr. Saad Dagher, Director of the
Society of Arab Engineers. The Agricultural Relief and Work Association and the Union of Farmers provide free
training courses in marketing, project management and communication skills, in addition to training in the
specialized agricultural areas as needed through their branches in the governorates of the West Bank, and they
both target agricultural societies in Palestinian rural areas, giving an opportunity for the owners of these economic
opportunities to develop themselves and their projects in a scientific and sound way. There are also institutions
and women's associations that provide training for women in food processing. ASALA lending association, through
its “Irada” program, gives training courses in project management, marketing, communication skills and other
training that is provided based on the needs of the target group of women.
Despite the many challenges faced by this sector, it remains the sector that provides food security for the citizen,
represents a source of income for many families and a haven in crises situations for the unemployed, in addition to
providing opportunities for women's employment, employment in rural areas and opportunities for persons with
multiple levels of qualification and expertise in various areas according to the need in the governorate. It has been
shown that there are many resources that can be used for the development of the proposed economic
opportunities and many institutions with which one can cooperate.
4.1.2 Situation of the Agriculture and Animal Husbandry Sector in the Hebron
Governorate4142
2
Hebron is the largest governorate of the country in terms of area, with an area of about 997 km of which 261
km2are agricultural land, in addition to 9 km2of forests. Agriculture is considered one of the most important
practices by the population in the governorate of Hebron and represents an important economic resource. Among
the most important agricultural crops in Hebron are grains, vegetables, fruit trees such as olives, almonds, grapes
and other fruits, and Hebron has a large wealth of livestock, accounting for 30.2% of this total wealth in the West
Bank, with the most important types of animals being goats and sheep.
41
According to the classification employed by the Palestinian Central Bureau of Statistics, the Agriculture Sector is comprised of the following
sub-sectors: agriculture and hunting; the rearing of livestock, sheep, horses, donkeys, mules and milk-producing cattle; the rearing of other
tame animals and the production of animal products not classified elsewhere
42
Source for this part of the report: Palestinian Central Bureau of Statistics, 2009, the Annual Hebron Governorate Book (1), Ramallah, Palestine,
and various agricultural statistics from the electronic page: http://www.pcbs.gov.ps/Portals/_pcbs/Agriculture/11998e4e-ef47-48d5-891860252c27f962.htm
27
Statistics indicate that the number of establishments in the agricultural sector of the governorate has decreased
from 1308 in 1997 to 551 in 2007 but the percentage of workers in this sector is still one of the highest, where
21.7% of the governorate’s workforce works in it. In order to study this sector, it has been divided into several
areas according to the opinion of specialists as follows:
Animal production: includes farms that raise cattle and sheep for meat and dairy and poultry for the production of
meat and eggs. There are also farms for beekeeping and farming other animals such as rabbits, etc. Most of the
livestock of the West Bank is based in the Hebron governorate as there are about 225,464 sheep, 92,944 goats and
about 10,795 cattle in addition to more than 7.3 million chickens. There are also 6,847 beekeeping farms. The
value of livestock production in U.S. dollars in the governorate was $38.6 million of milk during the agricultural
year 2006/2007, $62.1 million of meat, $5.8 million of eggs, $0.7 million of honey and $1.6 million from other
products in the same year.
Plant production: includes farms producing vegetables, fruits and grapes in addition to nurseries that produce
seeds, seedlings and ornamental plants. It also includes food processing from agricultural products which will be
discussed within the industry sector. The total plant production in the agricultural year 2006-2007 was U.S. $172.5
million while the value added was U.S. $23.5 million.
Hebron is one of the largest fruit-producing governorates especially of grapes, with an estimated annual
production of about 40 thousand tons, in addition to the production of orchard trees, where the area planted with
orchard trees is approximately 183,849 acres with a production capacity of 57.483 tons, the area cultivated with
field crops is 141,053 acres producing 13,476 tons and the area planted with vegetables is 13,498 acres and
produced 21,798 tons in the same year.
Activities linked to the agricultural sector: these include the service of agricultural land and crops, such as
clipping, spraying, plowing, installation and equipping of greenhouses and irrigation systems, mixing and
preparation of feed, producing fertilizers, and service and maintenance work of animal production farms.
4.1.3 Production Gap, Agricultural Products Exchange Gap and Opportunities in the
Governorate (analysis of above and results of interviews and focus groups)43
Figures in table 4.1.1 show that the governorate’s
consumption of red meat is about 500 tons per
month (6 thousand tons annually) with the numbers
of cattle and sheep being barely sufficient for local
consumption. Thus, it is necessary to have new
farms that may be suitable for local consumption,
for the purposes of export and for the provision of
requirements for other governorates, particularly
since Hebron has the qualifications required for the
establishment of farms in terms of land availability
and experience of workers in the sector.
This study has shown, through the meetings held
with a number of specialists and workers in the
agricultural sector, the importance of this sector and
a number of economic opportunities that can be
Table 4.1.1: Monthly needs of basic food supplies of the
Hebron governorate in 2007, in Tons
Food supplies
Monthly needs in tons
Flour
5,678
Sugar
1,396
Rice
899
Legumes
284
Vegetable oils
544
Milk
11,771
Eggs
355
43
Source: Unpublished statistics, Palestinian Central Bureau of Statistics: The value of imports of the Hebron governorate observed according to
the major groups of classification of the Standard International Trade, for 2004 and 2007, and agricultural statistics from the web page
28
invested in the governorate.
Poultry meat
1,183
Red meat
497
Source: Chamber of Commerce and Industry - Hebron, unpublished study
However, these farms face several problems, for a number of farm owners such as Mr. Shehadeh Rajabi pointed
out the need of these farms for people specialized in farm management and care (with a specialty in the work of
vaccination and neonatal care). He also pointed out the urgent need for technicians to carry out maintenance of
milking machines and milk storage vessels, as well as the lack of marketing methods.
The feeding of these animals is a problem because of the limited pasture in some areas (most areas are classified
as C in addition to the Wall) as well as high feed prices, as the governorate’s feed imports in 2004 amounted to
about$28.46 million44. Thus, there is an opportunity for the manufacture of animal feed locally using agricultural
and animal waste. In Palestine, there are large quantities of agricultural waste which can be exploited to produce
cheap feed of quality not less than the alternatives, rather, with a higher nutritional value and raising the quantity
of milk by 50% and the productivity of meat to 30%, as the manager of the Mobsir company indicated during his
presentation of the results of a feasibility study of establishing alternative feed centers, at a workshop on the use
of alternative feed from agricultural residues held in Hebron on 12/07/2009.
Statistics also showed a low number of veterinarians compared with livestock in the governorate for while
livestock wealth is 30% of that found in the West Bank, there are only 14.5% (23) veterinarians in the governorate
(please see Table 2.2.1.4 in Annex II). They also show the lack of support and guidance services in the governorate
(as shown in Table 2.2.1.5 in Annex II).
As for honey, statistics have shown that Hebron imported $37,000 of honey in 2007 and that there is weakness in
honey production in the rest of the Palestinian territories and Israel. Thus, beekeeping and honey production
projects have high opportunities in the governorate.
As mentioned previously, the governorate’s production of fruit and fruit trees is at 57,483 tons in addition to
approximately 40,000 tons of grapes, only about 30% of which is consumed and the rest can be exported or
manufactured, particularly as dried fruit and processing of jam from plums and apricots, as well as the
manufacture of molasses and grape jelly are among the traditional industries in Hebron, and there is a high
demand for these products in the remaining governorates of the West Bank and some neighboring Arab countries,
specifically because the brand is linked to being manufactured in Hebron. (These products are described, for
example, as Hebron molasses or jellies...) Mr. Muhammad Arif Ragaby, of the Association of Agricultural Marketing
and Processing, pointed to the need to develop this industry through machinery, as well as canning and packaging
of products which will lead to increased production and reduce losses resulting from damage to fruit where it is
still manufactured and packaged using traditional methods. Thus, there are opportunities for the development of
the jam, juice and dried fruit industries as well as the establishment of cooling warehouses for these products.
Mr. Samer Nammoura, Executive Director of the aforementioned association, mentioned the need to follow up
and take care of these trees in terms of pruning, plowing, etc., which is urgently needed and may be an
opportunity in this sector. This opportunity increases due to the presence of a significant number of fruit trees in
the governorate: about 57,483 fruit trees which need that service; it is also increasingly important due to a number
of home gardens in need of such a service – over 40,000 homes in the governorate.
As for vegetables, their local production in the governorate is high and $165,620 worth was exported in the year
2008 but the need in the West Bank exceeds this. The high consumption of vegetables in the governorate leads to
44
Palestinian Central Bureau of Statistics: The value of imports of the Hebron governorate observed according to the major groups of
classification of the Standard International Trade, 2004
29
the needs not being filled, thus it was emphasized by many participants that the cultivation of vegetables,
especially in greenhouses, is a high economic opportunity as well as opportunities available to practitioners of
technical professions relating to the design and installation of these houses.
The following table summarizes the above conclusions resulting from the analysis of the agriculture and animal
husbandry sector. It demonstrates the strengths, opportunities, weaknesses and challenges for the agricultural
sector, and, from this analysis, derives the feasible economic opportunities for each of the various agricultural
activities which can be set up in the governorate.
Table 4.1.2: Analysis of Agriculture and Animal Husbandry Sector (Strengths, Weaknesses, Opportunities and
Challenges) and the Resulting Economic Opportunities in the Governorate of Hebron
Activity
Strengths and opportunities
Animal production and related
activities








Presence of large areas
which can be used to
establish farms (cow,
sheep and bee farms).
Huge quantities
consumed by the
population of the
governorate of these
products (meat, dairy,
eggs, honey)
Customs and traditions in
the governorate that
require increased demand
for these products
(especially meat) in social
events
There are a number of
factories in the
governorate which
manufacture dairy
products and consume
large quantities of the
product
The need for specialists in
the care of livestock due
to the presence of large
numbers of them
High consumption of feed
due to the presence of
large numbers of cattle
and sheep
Due to the use of milking
machines and containers
for keeping milk, there is a
need for specialists in the
maintenance of these
machines
High prices of animal
products (meat, milk,
Weaknesses and challenges




30
Israeli restrictions on the
import of live animals.
import of machinery and
modern equipment
necessary.
High feed prices (a
weakness for the
establishment of animal
farms but a strength for
the establishment of feed
mills)
Lack of specialists in the
care of animals (strength
creating an opportunity for
specialists in the care of
animals, and weakness at
the same time)
Resulting economic
opportunities from analysis





Bee farms
A small feed mill
Veterinary clinics for
vaccination and care of
animals
Maintenance facility for
milking machines and
containers to save milk
Farms for breeding
animals



Plant production and related
activities






dairy)
Scarcity of bee farms in
the governorate in
relation to its honey
consumption
Higher prices for imported
feed and Israeli
restrictions on imports in
general
High prices of these
products
Presence of large areas of
land that can be exploited
to establish vegetable
farms.
Huge quantities
consumed by the
population of the
governorate of these
products
Because of the scarcity of
water in the governorate
one must resort to other
methods of agricultural
production: greenhouses
The need for specialists in
the installation of
greenhouses and modern
irrigation systems
import of fertilizers and
thus the need to provide
locally made fertilizers
Availability of animal and
plant waste which can be
used in the production of
fertilizers



movement of products,
especially those competing
with Israeli ones
Water scarcity
Self-reliance of garden and
home garden owners
sometimes in the care of
their gardens




Greenhouses to grow
vegetables
Center for agricultural
services in the area of
pruning, spraying, plowing
and installation
Center specialized in the
installation and equipping
of greenhouses and
irrigation systems
Small fertilizer plant
4.2 Construction Sector
4.2 Construction Sector
4.2.1 General Overview of the Construction Sector in the Palestinian Territories
The construction sector is clearly one of the contributing economic sectors to national income and employment as
well as attracting investment. It is also important due to its role in the provision of buildings for housing, economic
activities, public utilities and infrastructure services needed by all economic activities. In addition, the construction
sector is directly linked to many other economic activities, including related industries in construction, such as:
stone saws, factories of ready mix concrete, brick, aluminum, paint, tiles and other factories, as well as
establishments of blacksmithing, carpentry, aluminum and others. The sector is also linked to real estate and
services activities within the service sector.
31
The contribution of the construction sector was considered an important element in the composition of GDP in the
Palestinian economy over the previous years and until 2000, with an average contribution of about 10% by this
sector to GDP for each of the West Bank and Gaza Strip during the period between 1972 to 1990 (MAS 2006). This
average became 14% of GDP of the Palestinian territories in 1993 with the onset of the National Authority, when
the construction sector experienced clear growth in the period from 1996 to 1999 due to the return of a large
number of Palestinians from abroad, in addition to the possibility of a political solution on the horizon after the
Oslo agreement and the subsequent establishment of the Palestinian Authority in the West Bank and Gaza Strip.
However, the first three years following the outbreak of the Aqsa Intifada in the fourth quarter of 2000 had an
economic stagnation in various sectors including the construction sector, whose contribution to GDP dropped to
2% in 2002. The sector saw a boom after the year 2002 and that contribution increased to 4.8% in 200445,
46
subsequently reaching 6.6% of GDP in 2007 .
The change in the number and area of housing units and licensed areas over the years reflects this development
which is closely associated to political conditions. The attached figure shows the sharp decline in demand for
construction work during the years 2002 – 2003 then the rise in demand again and its fluctuation but without
reaching the previous level of 1997, at which time the total licensed areas (new and existing) were about 2.16 km2,
while they reached 1.068 km2 in 2007 of which about 80% were new. It also fluctuated between 2007 – 2009. The
figure below shows a rise in the fourth quarter of 2009 by 51.2% compared with the same quarter of the year 2008
while there is a rise of 50.5% compared to the fourth quarter of 200747, when the area of permits reached 372.30
m 2.
Figure 4.2.1: Number of licensed housing units 2000 –
2007
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Figure 4.2.2: Number of licensed housing units in fourth
quarter 2007 – 2009
3,000
2,500
2,000
1,500
1,000
500
0
2007‫ اﻟرﺑﻊ اﻟراﺑﻊ‬2008‫ اﻟرﺑﻊ اﻟراﺑﻊ‬2009‫اﻟرﺑﻊ اﻟراﺑﻊ‬
# of licensed housing units
# of existing licensed housing units
# of licensed housing units
# of existing licensed housing units
Source: Palestinian Central Bureau of Statistics, 2010. Economic statistics.
The number of economic establishments operating in the construction sector was 627 in 2007, employing 4557
people according to the General Census of Establishments, and this number declined in 2008 to 526
establishments employing 4353 people. These establishments are distributed among the following economic
45
Palestinian Central Bureau of Statistics, Economic Surveys Series, 2004
47
Palestinian Central Bureau of Statistics, 2010. Economic statistics
46
32
activities according to the following percentages for both years: site preparation (2%), building of complete
establishments or parts of them (61%), installation in buildings (22%), finishing buildings (15%). The percentage
of establishments which employs four workers or less was about 58%, while the percentage of those
establishments that employ 5 – 19 workers was 36%. It was noted that all enterprises operating in site preparation
and finishing of buildings employ 1 – 19 workers and that most of them employ less than 5 workers.
The need still exists for housing but is limited by the financial situation of the population, and investment
opportunities are connected to the political situation and therefore to rates of possible risk for investors. A
meeting with specialists showed that the sector faces several difficulties as a result of political and economic
instability, the siege of Gaza and the rising price of residential units, which was ascertained by Mr. Walid AlAhmad, director of the Jerusalem Real Estate Investment Company. He added that the legal environment, legal
instructions and the tax system after 1994 deprived the sector of its competitive value, as well as the lack of
infrastructure, the rising value of land, the absence of title deeds and the rising cost of registering land which leads
to higher prices of housing units and thus reduces the chances of growth of the sector. Mr. Amin Abdul Karim,
head of the department of studies in the Palestinian Commercial Services & Contracting Company, showed the
need to reduce costs by reducing the prices of raw materials, if there is investment to develop the construction
industry based on local raw materials.
The presence of high deposits in banks, amounting to around 7 billion as mentioned by workers in the sector (and
the statistics show a gap in credit facilities for deposits - see 4.8.1), creates an opportunity for further investment
in the sector in the areas of housing and commercial and public buildings. Experts in the field stated that there is a
need for mortgage services, which could, if available, revive the sector, in addition to the need for specialized
financial and management services.
The population growth and the limited number of houses stress the need for interest in this sector and its
development. The engineer Walid Al-Ahmad said: “It is internationally recognized that the per capita share of
housing is 12 square meters, while in Palestine the per capita share is 8 square meters in cities and 6 square
meters in refugee camps”. The ease of obtaining consumer loans from banks and microfinance institutions
contributed to the revival of this sector in recent years. In addition, the availability of building permits for about
350 thousand m2 in one annual quarter necessarily implies the existence of professions and services linked to this
sector and the availability of local raw materials necessary for various construction activities.
4.2.2 Situation of the Construction Sector in the Hebron Governorate48
There is clearly a large urban development in the governorate, for in addition to the increased demand for housing
there is great demand for buildings for institutions. Statistics show an increase of staff in this area, and there are
other work and activities directly related to this sector. The activities in this area can be classified as follows:
1) Contracting and construction: studies show the urgent need for this work.
2) Finishing work (masonry building, plastering, painting, etc.) which can be considered economic opportunities.
3) The work of construction services:
a) Establishment and electrical wiring which needs specialists and is an opportunity.
b) Establishment and plumbing.
c) Establishment and installation of air conditioners.
d) Installation of elevators
e) Installation of alarms and fire extinguishers.
48
Statistical source for this part of the report: Palestinian Central Bureau of Statistics, 2008, General Census of Population, Residences and
Establishments 2007: Economic Establishments, Final Results, Ramallah; Palestinian Central Bureau of Statistics, 2010. Economic Statistics of
2008 and Palestinian Central Bureau of Statistics, 2010, Survey of the Palestinian Workforce: Annual Report 2009
33
f)
Home maintenance work as the need arises for specialized workers to perform emergency
maintenance of buildings and houses.
4) Painting and decoration: This is considered as an economic opportunity because of the urgent need for it
5) Installation and maintenance of wood and aluminum.
The results indicate that the number of completed buildings counted in the Hebron governorate during the period
of Census 2007 was 73,825 buildings and in 1997 were 54,257 buildings. The number of inhabited housing units in
the governorate of Hebron was 87,645 dwellings, and when compared with the 1997 census, the number was
56,293 dwellings which shows growth over the two censuses in the number of buildings and inhabited buildings.
The percentage of apartments in the year 1997, by type of dwelling, was 38.7% of the total housing (house,
apartment, villa ...) while this ratio became 45.8% in 2007, that is, the tendency to live in apartments increased,
49
indicating the need to construct new buildings.
As previously noted, the number of residents of the governorate grew in 2009 compared with 1997 at a large
percentage of 50.8%, which increased and increases demand for residential buildings that in turn are expected to
continue to escalate assuming the repetition of past population growth.
The number of licenses issued by local authorities and the local council in 2008 in Hebron was 840 building
permits, where the area licensed for construction was 395.5 thousand square meters of which 219.7 thousand
square meters are new and 175.8 thousand square meters are existing areas. The number of licenses issued in
2007 in the governorate amounted to 762, with 317.0 thousand square meters licensed for construction, of which
229.4 thousand square meters were new and 87.6 thousand square meters are existing areas. It is noted that the
number of licenses in 2008 is greater than in 2007. In addition, there are many buildings built in the governorate
without a license.
4.2.3 Gaps and Opportunities for the Sector in the Governorate (analysis of above
and results of interviews and focus groups)
The population growth noted earlier (50.8% between 1997 and 2009) refers to the need for different residential
units, their requirements and related services. A need also emerged for many residents to renovate existing
buildings and re-design inner spaces during the past few years, as indicated in the meetings.
Also, the number of building licenses issued indicates the presence of many building projects under construction
with all their related activities and services. Hebron has the largest number of enterprises and organizations
operating in the West Bank (21% of establishments operating in the West Bank) which in turn need infrastructure,
sites, and related services and maintenance for them and their expected expansion areas.
In addition to this are the projects for the restoration of buildings in the Old City of Hebron whose implementation
is overseen by the Hebron Rehabilitation Committee, where the Spanish Academy (a specialized vocational training
center) was opened to graduate workers and professionals for the implementation of restoration projects.
As for establishments engaged in the construction sector in 2008, their number stood at 73 facilities employing
798 workers, with more than half of these establishments employing less than 5 workers. This underlines the need
for more economic projects in the area of buildings and associated services (whether for new construction or for
maintenance and repair of existing buildings) and thus provides economic opportunities in the field of construction
and related services.
49
Palestinian Central Bureau of Statistics, 2009, Annual Book of Hebron Governorate (1). Ramallah, Palestine.
34
This study also showed, in the statistics as well as interviews and focus groups, increased opportunities in this
sector for it revealed many of obstacles and problems facing it including the need for more investment in this area,
and that these units lack quality services, which provides economic opportunities appropriate to cover these gaps
with more investment especially in activities related to the sector.
The analysis showed lack of expertise and trained staff in a variety of areas, where many workers were available
(professionals, engineers and accountants) but they lacked the specialized skills and competencies. It also showed
the need for project managers, accountants and lawyers specializing in real estate, as well as specialists in the field
of installation and maintenance of Building Management Systems (BMS) including theft alarms, fire extinguishers,
elevators, moving stairs, as well as installation of natural gas systems, air conditioning, cooling and heating
systems.50This was confirmed by a study by the Center for Integration with Industry in Palestine Polytechnic
University which demonstrated the aforementioned need and which the university relied on to implement a
project to train and qualify specialists in the areas mentioned. Thus, there are many economic opportunities in the
construction sector for these works and related activities to the sector within the specializations mentioned.
It was apparent from the analysis of obstacles for the sector that many workers suffer from professional instability
and lack of insurance against accidents. This sector is characterized by high numbers of those who work it on an
informal basis, as was clear from the many workshops held in the governorate.
In addition, there are problems and obstacles resulting from the political and economic realities, such as the need
to obtain permits from the Israeli side depending on the nature of the project, the project site and other
considerations, and the prevention of importing certain types of raw materials in addition to their high prices,
which in turn leads to the high price of the property and to the reluctance of buyers and their moving to a property
with lowered specifications based on price.
An opportunity was apparent to reduce costs based on manufacturing the sector’s needs using raw materials
available locally, according to Mr. Amin Abdul-Karim of the Palestinian Commercial Services and Contracting
Company (and the owner of a family contracting company). He stated the possibility of lower-cost manufacturing
using raw materials available locally such as the establishment of a gypsum factory due to the urgent need for this
production in the Palestinian market, and the possibility of providing the raw material which is limestone, in
addition to establishing a factory for the production of lime through the provision of appropriate equipment and at
a reasonable cost through burning of limestone which is available in our country. In such a way, these two factories
provide gypsum and lime – two important products for the construction industry. The market also needs gypsum
panels which are made from the gypsum produced. Paint factories need lime and it is therefore possible to
establish more of them in case the lime becomes available. This was confirmed by Ms. Abir Al-Ashqar from the
Palestinian Commercial Services and Contracting Company, and that Palestine’s stone is limestone and it is easy to
turn into lime and gypsum.
The following table summarizes the previous findings from the analysis of the construction sector, as it
demonstrates the strengths, opportunities, weaknesses and challenges for the sector and derives, from this
analysis, the feasible economic opportunities that can be established in the governorate.
50
Meeting of Steering Committee of mentioned project.
35
Table 4.2.1: Analysis of the Construction Sector (Strengths, Opportunities, Weaknesses and Challenges) and the
Resulting Economic Opportunities in the Governorate of Hebron
Activity
Strengths and
opportunities
Construction and
buildings






Weaknesses and
challenges
The need and
increased demand
for housing.
Tendency to invest in
this sector and
consider it as one of
the most secure
sectors.
Availability of
numbers of
professional and
specialized
engineering cadres
(design and
supervision).
Trend to use building
technology (alarm
systems, fire
extinguishers).
There are a large
number of
construction projects
in the province.
General tendency of
citizens to decorate
houses and
institutions (for new
buildings and
renovation as well).










36
Instability in the
political or
economic
situation.
High prices for
raw materials and
the complexities
of their import.
Lack of Palestinian
regulatory law.
Lack of
infrastructure.
High value of land,
lack of title deeds
and high costs of
land registration,
leading to higher
prices of
residential units.
Lack of laws that
protect workers in
the sector and
reduce workrelated injuries.
Lack of private
offices and
workshops to
carry out internal
renovation and
related activities.
False expansion of
housing (in a
horizontal and not
vertical manner).
Weak experience
of local engineers
in the field of
large-scale
projects.
Lack of
accountants
specialized in this
sector.
Resulting economic
opportunities




Engineering offices
specialized in the
field of real estate
and contracting.
Painting and
decoration
workshops.
Workshops
specialized in
services for
buildings
(establishment and
installation of
electrical systems,
plumbing,
elevators, fire
extinguishers and
alarms).
Establishment of
factories for
producing lime and
gypsum from local
raw materials.
4.3
Industry Sector
4.3.1 General Overview of the Industry Sector in the Palestinian Territories
The industry sector is considered one of the important productive sectors, playing a distinctive role in economic
development and having the ability to create the required growth in all economic, political and social areas. The
development of the industry sector has become a major goal for developing countries in order to achieve desired
economic development. Developing the industry sector means achieving a high rate of economic growth, creating
many job opportunities and increased economic diversification necessary to achieve general economic and social
growth. Figure 2.2 of the report showed the uniqueness of the sector when compared to others in terms of its
contribution to GDP, the number of establishments and number of employees within it. The Palestinian industry
sector consists of three main activities: mining and quarrying, manufacturing, and supply of electricity, gas and
water. Manufacturing is considered the largest branch of the industrial sector, accounting for more than 95.8% of
its facilities, and will be the subject of the research.
The Palestinian industrial sector developed significantly and increased its share in GDP after the creation of the
Palestinian Authority in 1994 from 13.3% in 1994 to 16.5% in 1998, and the value added in the sector increased
from $349 million in 1994 to $680 million in 1998 (Makhoul and Atyani 2004), while this percentage decreased to
14.6% in 2003, according to the Palestinian Central Bureau of Statistics, and the industrial sector still suffers from
dependence on Israeli industry which has affected its development and growth. In addition, the Palestinian
industrial sector declined considerably as a result of the procedures and practices of Israel since 2000 due to
closures and the Israeli military siege on Palestinian areas in the West Bank and Gaza Strip. Productive ability
dropped in all Palestinian industries and in all governorates of the West Bank and Gaza Strip, and the industrial
sector sustained much damage because of the siege and its impact on the movement of people and goods, the
increase in time and the associated costs. Many reports showed this, including the report of the Ministry of
Industry on industry losses in 2002, which illustrated the decreased rate of production in all branches of Palestinian
industries, with the decline in production rates ranging between 90% in the manufacture of marble and stone and
65% in the pharmaceutical and chemical industries, while the decline in the rate of production in the food industry
was 60% (The Palestinian Information Center 2001).
Despite this, the value of production rose after 2005 but its contribution to Palestinian GDP was 15.3% in 2007,
falling behind trade and services, and 14.9% and 14.6% in 2008 and 2009. The total added- value in this sector was
$730 million in 200951.
The manufacturing sector is considered an important employer for it employs 62,832 people, representing 21.2%
of workers in economic establishments operating in the Palestinian Territory in 2007. The sector’s enterprises form
14% of the establishments operating in the Palestinian Territory in 2007, totaling 15,340 facilities distributed
among many industries, including the mineral industry (24%), furniture (17%), food (17%), textiles and clothing
(15%), non-metallic minerals (12%), chemical industries, rubber and plastics (3%). The percentage of
establishments employing four workers or less is about 73%, while the percentage of those that employ 5-19
workers is 20%52. Thus, the sector is concentrated in small, micro and medium enterprises through their
contribution to value added. Regarding value added, food industries have made the largest contribution to it at
51
Statistical source for this paragraph: Palestinian Central Bureau of Statistics, 2010. National Accounts at Current and Fixed Prices (2007, 2008)
and economic statistics from the web page of the Palestinian Central Bureau of Statistics, 2010
52
Palestinian Central Bureau of Statistics, 2008, General Census of Population, Residences and Establishments 2007: Economic Establishments,
37
24.3% of the total value added of the Palestinian industry as a whole, followed by the non-metallic minerals
industry at 22% (MAS, 2009).
In addition, Mr. Mamoun Nazzal, Public Relations Officer in the Palestinian Federation of Industries, mentioned
that the most important economic opportunities that could be invested in within the industrial sector are
traditional industries, which need organizationin order to export and market; pharmaceutical industries, a very
strong sector with 6 medicine production facilities all with certificates of good conduct; the stone and marble
sector, where the production of Palestinian stone is 4% of global production but this sector is suffering from its low
marketing capacity; in addition to the metallurgical industry which suffers from a lack of laboratories to study the
proportion of raw metals. He also added the need to provide design centers for different industries, and pointed to
the importance of passing a law to boycott goods from settlements in the promotion of investment and
development of local industries in the field. He emphasized the need to provide marketing support services for
industries and to search for industries based on local raw materials whenever possible.
He pointed out that industries in Palestine suffer from difficulties, the most important of which are: the reliance of
many of them on Israeli and foreign raw materials such as the chemical and garment industry, which leads to rising
production costs, reduces the quality of the product, and makes these industries vulnerable to changes and the
political situation, resulting in the decline of these industries. Thus there is the opportunity for establishing
industries based on local raw materials, which can reduce reliance and increase the sector's ability to capitalize on
local resources. To this end, crafts, stone and marble gain their importance and it is possible to develop investment
in these two sub-sectors. In addition, Mr. Raed Al-Turk, the representative of the Union of Chemical Industries,
showed opportunities in the manufacture of cosmetics and some construction industries based on local raw
materials. In the same context, food processing is gaining increasing importance, as stated by Mr. Fouad Aqra,
representative of the Federation of Food Industries.
The industrial sector also suffers from lack of protection of the national product, where it is subject to competition
from Israeli and foreign goods, and in this context, Engineer Ayman Sbeih, the representative of the Palestinian
Federation of Industries, stressed the need to stop supporting imported goods and for the government to protect
national products. As well, local factories must be established, the industrial sector must be developed and
governorates must direct consumers to buy national products, where the proportion of Palestinian household
consumption of national products is less than 20%. He added that the Federation of Industries conducted a study
which showed that if this percentage rose to 35%, it would provide more than one hundred thousand jobs and
increase income tax returns by U.S. $1 billion, stressing that the government and governorates must provide
industrial zones with an infrastructure ready for factories and companies at reasonable prices to encourage and
promote the industrial sector.
The majority of establishments of the industrial sector were found to be micro, small and medium enterprises, and
these industrial facilities face many problems in the areas of administration, finance, marketing and packaging.
There is also no brand for some of these industries although some could benefit from such a brand in promotion
(such as Nabulsi soap, because it is made from olive oil). These facilities also face problems related to their
workforce and low worker productivity, especially in small and micro enterprises, as well as the absence of
specialized expertise in some areas, and problems of quality resulting from individual weakness. In the same
context, Engineer Ayman Sbeih stressed the need to link higher education and vocational education to industry.
Here lies the need for projects in support of these industries, to provide marketing, administrative and financial
services or specialized technical services to existing establishments.
Thus, the decline in the performance of the Palestinian industrial sector is not only associated with the policy of
the Israeli occupation but is also linked to many of the problems and self-constraints that have prevented its
development and growth, in addition to the modest Palestinian support that it receives and the lack of necessary
38
protection for the product to evolve in a manner similar to that in many countries of the region. This has led to the
decline of specific industries and to the prevention of the development of others.
Mrs. Manal Shkukani, Director of Industrial Development in the Ministry of Economics, stressed that the ministry
attaches importance to this sector and is currently working on the development of policies to support the
industrial sector, as well as stressing the importance of studies to identify the various economic sectors and their
size in order to invest successfully. She mentioned that the small enterprise sector is marginalized and most
industrial enterprises are small enterprises, many of which are not registered. Many of the workers and managers
of these projects are women, who are automatically marginalized and not counted in the workforce because they
are not registered. She stressed the importance of supporting the food industry because of its association with
women and its ability to activate their role.
The above shows that industries based on local products such as the food and craft industries could provide
economic opportunities, according to the situation of the governorate, and that manufacturing of cosmetics which
is based on local raw materials is considered one of the important opportunities in the same way as construction.
Complementary services to industries in general also provide an important economic opportunity, particularly
those that support them through marketing and packaging and those that provide design work for the timber,
mineral and leather industries.
4.3.2
Situation of the Industry Sector in the Hebron Governorate53
Hebron is one of the largest industrial governorates in Palestine, comprising 33% of the Palestinian national
economy, and is famous for shoemaking and leather industries which constitute about 40% of the total industries
in the governorate, the stone industry which constitutes 15%, the textile industry at 22% and metallurgical
industries at 14%. This is in regard to industry and economic activities as shown by the Chamber of Commerce
statistics54. Hebron is also famous for traditional industries such as making pottery, glass, ceramics, the Palestinian
dress and cloak, embroidered hand-made carpets and other crafts, and which will have a special section as a result
of their importance.
The above table indicates that the number of establishments operating in the area of manufacturing has increased
from 2534 in 1997, with 13,406 workers, to 2684 establishments in 2007 employing 16,079 workers—an increase
of 6%. The industrial establishments in the governorate represent about 21% of those operating in the West Bank.
Among these, 77% of the leather industry and 32% of the stone and marble industry in the Palestinian Territories
are concentrated in the governorate of Hebron, as well as its excellence in the field of metallurgical industry such
as metal furniture making, electric welding wire, building wire and stone sharpeners in addition to the food
industry and traditional industries including glass, pottery and ceramics. The marble and stone industry, known as
the white petrol of Hebron, accounts for 15% of the total industries in the governorate, and the shoe industry for
about 40%. The following table shows the percentages for these industries:
53
Statistical source for this part of the report: Web page of the Hebron Chamber of Commerce and Industry: :www.palchambers.org/arabic/.../hebron5.html and the Palestinian Central Bureau of Statistics, 2008, General Census of Population, Residences and
Establishments 2007: Economic Establishments, Final Results, Ramallah
54
www.pal-chambers.org/arabic/.../hebron5.html
39
Table 4.3.1: Percentage Distribution of Industries in Hebron
Industry
Percentage
Industry
Percentage
Leather
40%
Textiles
22%
Construction, stone and marble
15%
Metals
14%
Plastics
4%
Food
3%
Chemicals
1%
Miscellaneous
1%
Source:
Web
page of
the
chambers.org/arabic/.../hebron5.html
Hebron
Chamber
of
Commerce
and
Industry:
www.pal-
The advantage of Hebron is the availability of one of the most important components of any industry: raw
materials, where it is endowed with raw materials for food industries (agricultural products and milk) as well as
leather (livestock in the governorate) in addition to raw materials for the construction industries (stone, marble
and remnants of cut stone).
Exports of the Hebron governorate in 2007 were about 6.147 million dollars and exports of goods classified as
industrial were approximately 9.82 million, that is, 2.56%.
Establishments operating in the industrial sector in the governorate of Hebron tend to be of small size compared
to those in the Palestinian territories, for establishments that employ 4 workers or less account for about 3.74%
(74% in the Palestinian territories) and those that employ 5-9 workers account for 9.16% (20% in the Palestinian
territories).
4.3.3 The Gap in the Governorate and Resulting Economic Opportunities55
The importance of the industrial sector lies in fulfilling the consumption needs of citizens in the governorate and
others, as well as taking advantage of export opportunities that are available through the sympathy of the
international community with the Palestinian industries.
In agriculture, there is a surplus in the production of some types of fruits such as grapes, apricots, plums and the
existence of opportunities for processing them that are related to Hebron as products, for example: molasses,
syrup and others. There is also a gap in the consumption of dairy products and a great demand for these products,
as it was found that the governorate imported about $11,592,700 of dairy products in 2008 and exported the value
of $1,601 for the same year in different products. Despite the presence of dairy factories in the governorate, the
need still exists. The production of ghee turned out to be excellent in the governorate where the product is
exported at a value of $222,990 without the presence of import56.
Thus there is a great opportunity for the food industry for several reasons, including the decision to boycott the
industries of the settlements, which are mostly food industries, in addition to not needing to import raw materials
that are locally available, particularly agricultural products from fruit and grapes, as well as practical experience of
the citizens and the good reputation enjoyed by these industries even in neighboring countries. The constraints
facing the food industry include the occupation measures related to the prevention of citizens from accessing land
55
Gaps were researched according to the strategy followed by the study in finding opportunities; see part 2.2 of the report
Palestinian Central Bureau of Statistics: The value of imports of the Hebron governorate observed according to the major groups of
classification of the Standard International Trade, for 2008
56
40
for follow-up and care of plants as well as marketing and export constraints, and the quality of the product is not
homogeneous since this industry is considered a traditional one and is not based on particular specifications, in
addition to the problem of wrapping and packaging which can be considered a strength in finding projects
interested in wrapping and packaging products. These self obstacles are considered economic opportunities for
supporting projects.
Regarding the manufacture of stone and marble, Mr. Maher Ahshish, Executive Director of the Federation of Stone
and Marble Industry in Palestine, pointed out that the amount of investment in the industry is about $700 million
at the national level while the amount of sales is $400 million annually. He also noted that the industry is
concentrated in the southern West Bank in the governorates of Hebron and Bethlehem, by up to 70 percent, and is
considered globally competitive due to the high specifications that characterize Palestinian stone. It is also possible
to invest in sites where rocks are extracted, as well as the waste from cutting which can be used in construction
and manufacturing lime. Due to the importance of this sector for the governorate, the need has emerged to
develop it through training and the introduction of modern designs to suit it. Recently, the Stone and Marble
Center was opened in the Polytechnic for training in the manufacture of stone and marble, including cutting,
formation, maintenance and management, in collaboration with specialized Italian institutions as mentioned by
the Director of the Centre Mr. Jawad Qoaiba. The Center will provide skilled manpower to work and develop the
sector.
With regard to the footwear and leather industry, the data indicate that the footwear industry accommodated,
until the end of 1997, 25 thousand workers in the West Bank, 15 thousand of whom are concentrated in the
Hebron governorate. Another 5 thousand workers are employed in sewing the top part of the shoes, and the
production of Hebron alone reached 72 thousand pairs of shoes every 24 hours of work in 1995. However, the
industry took a sharp step back early in the second millennium for several reasons including the downturn in
demand for shoes made locally by the Israeli market, which was absorbing the bulk of production, as well as not
keeping up with changing consumer tastes, lack of mastery of wrapping and packaging procedures and heavy
competition by the trade and imported shoes sector. However, since 2007 there have been several attempts to
revive this industry especially by the Federation of Leather Industries, keeping in mind the technical expertise of
many of the governorate’s residents who were working in this sector and numerous existing machinery57 and
equipment. It is also possible to invest in tanning leather produced locally to prepare it as raw material for the
manufacture of shoes. In addition, there are economic opportunities available through the manufacture of other
leather products that the market may need in modern tastes.
The textile industry was, until not so long ago, one of the most important industries upon which the Palestinian
economy in the governorate of Hebron depended, for there is a large number of textile factories in the
governorate that are currently suspended from work and there are efforts to revive the industry. The making of
caps and the Palestinian kaffiyeh, frequently used in events and celebrations, in included in this industry. There are
also some activities and skills necessary to complete some of these products such as embroidery. Here, it becomes
important to introduce the traditional Palestinian dimension in these industries and the creative side of excellence
in them so that they are able to compete with imported goods through excellence, creativity and appropriateness
for different tastes. It is also important to introduce specific elements of the designs through prints on the textiles
using technology, thus highlighting the need for designs.
It was found from the analysis of the construction sector that there is growth in this sector and an increase in the
number of licenses within it, in addition to population growth and the shift towards the nuclear family as shown by
the statistics. Thus, there is a continuing expectation of the need for urban growth, in addition to the growth of
enterprises and the constant need for renovation at the level of facilities and housing. All this opens the door to
57
Al-Qaisi – Mohammed Rajai’i: Article in Al-Quds newspaper, 12 March 2009: “Reasons for the downturn of national industry”
41
the furniture and wood products industry (doors, kitchens, chairs, upholstering old furniture) associated with
construction, growth and renovation. It also paves the way for installation of imported furniture. The metallurgical
industry related to wood is similar to this, with the presence of sophisticated products such as aluminum kitchens
and glass surfaces, in addition to the need for the manufacture of iron protection rails and handrails. There is such
an opening for many opportunities in these areas as evidenced by the many interviews and meetings and by their
relation to the growth potential of the construction sector. The opportunities to develop both sectors stem from
the need for new designs in line with the tastes of citizens, through support services such as design offices using
technology.
There are also opportunities for complementary industries for various sectors such as the manufacture of feed and
fertilizer which were referred to in the agriculture sector, as well as the concrete and brick industry which is
complementary to the construction and buildings sector.
In addition, there is the design and manufacture of spare parts required for the development, renovation and
maintenance of machinery in various industries. This is what costs the industry large sums of money annually and
is one of its fundamental obstacles in terms of time and cost. Ina meeting with the Federation of Food Industries,
it was shown that in 1995, 95% of machines were imported, but now only about 65% of them are imported and
the remainder are locally manufactured. With the presence of excellent technical expertise, professional
graduates, technicians and engineers, opportunities seem to be available in this area.
The following table summarizes the conclusions resulting from the foregoing analysis of the industry sector, as it
demonstrates the strengths, opportunities, weaknesses and challenges of the sector and derives from this analysis
the feasible economic opportunities that could be established in the governorate. The table shows the important
sub-sectors of industry that were researched.
Table 4.3.2: Analysis of the Industrial Sector (Strengths, Opportunities, Weaknesses and Challenges) and the
Resulting Economic Opportunities in the Governorate
Activity
Food and drink
industry







Huge production quantities
of some agriculture (grapes,
plums and apricots) and the
possibility for their
processing.
A large number of home
gardens and orchards, with a
significant number of fruit
trees.
Availability of large amounts
of fruit (grapes and plums).
Large consumption of these
products.
Experience in making these
products which are part of
culture and tradition (this
experience is present among
most housewives).
Banning of products of the
settlements.
The production process does
Weaknesses and
challenges



42
Poor marketing of
these products.
Poor wrapping and
packaging process.
Lack of hygienic
control especially if
the production process
takes place in homes.
Resulting economic
opportunities




Jam making and fruit
drying projects.
Juice and syrup
making projects.
Projects to wrap,
package and market
these products.
Making dairy products
(yoghurt, cheese and
especially ghee).
Leather tanning
and shoe making



not need high level
machinery and technology,
reducing the required
funding for such projects.
Presence of shoe factories
which need renovation and
maintenance.
High price of imported goods.
Availability of raw leather
products in the local market.





Textile and clothing
industry




Presence of textile factories
which need renovation and
maintenance.
Small number of sewing
workshops.
High number of occasions
and celebrations and the
tendency to use clothes and
hats in marketing campaigns.




Competition by foreign
products (Chinese
industry).
Poor marketing.
Lack of laws to protect
the national product.
Lack of high-level shoe
designers.
Difficulty of importing
chemicals required for
leather tanning.
Competition by foreign
products (Chinese
industry).
Poor marketing.
Lack of laws to protect
the national product.
Lack of high-level
clothing designers.







Timber and
furniture industry




Metallurgical
industries





Availability of local
experiences and
qualifications for this
industry.
High numbers of institutions.
Possibility of using
technology to create new
designs, through the
presence of qualifications
(these qualifications need
direction).
Availability of raw materials
for some industries after
recycling.
Urgent need for metallurgical
industries.
Existence of investment laws.
High prices of imported and
Israeli metallurgical
industries.
High rate of population
growth and the increase in
housing units.


Lack of investment of
technology in design.
General look and finish
of local products.






43
Israeli restrictions that
prevent some
industries (prohibition
of recycling programs).
Lack of availability of
some raw materials.
High price of raw
materials.


Production workshops
for creative leather
products.
Design centers using
technology.
Specialized
maintenance
workshops for textile
and sewing machines.
Clothing design
workshops.
Use of technology and
the computer to
design marketing
products on clothes.
Sewing workshops to
complete some
necessary steps for
production.
Clothing design
workshops.
Specialized furniture
manufacturing
workshops (doors,
kitchens, sofa and
chair upholstery).
Specialized workshops
for assembly,
especially of imported
products.
technology.
Aluminum
manufacturing
workshops (windows,
kitchens, …)
technology
(bathrooms and
doors).

Stone and marble
industry




The need for complementary
industries that serve the
construction industry.
High specifications and
abundance of stone in the
area.
Large areas of land after the
completion of extraction.
Outputs of extracted and cut
stone, which can be used for
the manufacture of stone,
brick and lime.
Good experience of the
people of the region in this
industry.




Maintenance
service for
industrial machines




Availability of a number of
machines in factories, which
require maintenance.
The need to apply
maintenance programs
according to the
manufacturer's instructions.
Availability of a number of
technicians and engineers
(mechanical, electrical, ....).
The design and manufacture
of some spare parts locally.





Outputs of extraction
and cutting which are
environmental
pollutants if they are
not invested in.
Lack of land use after
completion of the
extraction of stones
from it.
Israeli obstacles in
giving licenses,
introduction of
machinery or granting
the possibility of
export.
Not using technology,
especially in the
process of cutting and
formation of stone;
most experience is
traditional.
Lack of application of
maintenance
programs.
Lack of maintenance
management skills by
technicians.
Diversity of existing
machinery and thus
the diversity of
specializations (we
need a limited number
in each).
Difficulty of obtaining
spare parts.
Lack of laws requiring
manufacturers to use
or employ technicians.




Land reclamation for
construction or
agriculture after the
end of quarries.
Workshops for the
manufacture of stone,
brick and lime from
the remnants of
cutting.
Workshops for the
formation of stone to
be used in the work of
decoration and
adornment.
Specialized
engineering offices
and contracting with
factories to perform
regular maintenance
(specific machinery,
where this is a support
service for all
industries).
4.4 Environment Sector
4.4.1 General Overview of the Environment Sector in the Palestinian Territories58
It is noted that environmental issues have received increasing attention all over the world, due to the rising
dangers of pollution in its various forms on the one hand and the intensification of depletion of environmental
resources on the other. The subject of the environment has become one of the key issues in the developed
58
This sector was considered part of the industrial sector but due to its international and local importance, this part was singled out for
discussion.
44
countries in the world, but in the third world, the environmental situation is getting worse and there is no real
treatment or prevention, rather, slogans and media events that serve no purpose. In Palestine, the subject of the
environment is important and essential due to the bad environmental situation suffered by different regions,
which is degrading due to several reasons, the most important of which are: the political situation and the siege
imposed on Palestinian land, the establishment of the separation wall which confiscates, in its path, the most
fertile lands especially those planted with olive, fruits and nut trees, the depletion of water, the smuggling and
transport of solid waste from Israel and burying it in the Palestinian territories and the disabling of establishment
of sanitary landfills. All of this has led to the exposure of the Palestinian environment to serious threats leading to
multiple environmental problems.
Also, the environmental situation in the Gaza Strip is bad, where the bad economic situation and the continuation
of the siege on the Gaza Strip and its impact on citizens has led to negative behavior by individuals towards natural
resources, in addition to stopping all core projects for environmental sources such as sewage treatment stations,
not to mention the continuing aggression against the environment in all its components which has led to the
pollution and degradation of environmental resources.
The results of the environmental survey carried out by the Palestinian Central Bureau of Statistics in 2009 showed
that the total amount of waste produced daily in the Palestinian territories in 2009 amounted to 2,321.2 tons,
while the average household daily production of waste in the Palestinian territories in 2009 was about 3.5 kg and
the average daily production of household waste by each individual was 0.6 kg, varied by region and place of
residence59.
Table 4.4.1: The amount of waste produced daily and the average daily family and per capita production of
household waste in the Palestinian Territory by region, 2009
Region
Total Amount Produced Daily
(in tons)
Average Family
Production Daily (in kg)
Average Per Capita
Production Daily (in kg)
Palestinian Territory
2,321.2
3.5
0.6
West Bank
1,709.8
3.9
0.7
Northern West Bank
817.0
4.5
0.8
Central West Bank
457.6
3.5
0.6
Southern West Bank
435.2
3.4
0.6
Gaza Strip
611.4
2.7
0.4
Source: Palestinian Central Bureau of Statistics, 2009, Household Environmental Survey, 2009, Basic Results. Ramallah,
Palestine.
There were different levels of production of solid waste according to residential location as follows: in refugee
camps, the average daily per capita production was between 0.5 - 0.8 kg per person per day, in rural areas
between 0.4 - 0.6 kg per person per day and in cities about 0.9 - 1.2 kg per person per day. The most important
ways to get rid of waste in the Palestinian territories in 2009 were first to landfill it in the nearest container and
60
second to burn it, where the percentage of households using these methods were 73.0% and 21.3% respectively .
59
60
Palestinian Central Bureau of Statistics, 2009, Household Environmental Survey, 2009, Basic Results. Ramallah, Palestine
Same source as previous
45
An environmental report prepared by George Karzam of the MAAN Development Center showed that the business
enterprises sector produces about 2,528 tons of waste daily, in addition to about 20 tons per day from health care
centers. The amount of daily waste that reached landfills in different parts of the West Bank (161 landfills) does
not exceed 2,506 metric tons, or about 59% of the waste generated by residential and business development;
moreover, there is an non-estimated amount of waste that is collected from the streets and huge unknown
quantities of waste from settlements and Israeli industrial zones in the West Bank. Local studies and estimates
indicate that household waste accounts for about 45-50% of the total solid waste, while the waste of the industrial
and construction sectors is about 20-25% and that of commercial establishments is about 25-30% of the total
waste. Hazardous waste, on the whole, can be present in all waste from the various sectors above, but industrial
and medical waste contains the largest component of hazardous materials. Practically, there is no process of
separation of hazardous wastes, except for some limited treatments of infectious waste as in the cities of Jericho
and Nablus. In general, hazardous waste mixes with municipal solid waste during its collection and disposal. The
study also demonstrated that more than 99% of the West Bank landfills do not treat waste and more than 88% of
them burn it. Palestinian garbage landfills contain large amounts of mercury, lead, chromium and cadmium leaked
into the soil due to electronic waste.61
The countries of the developed world give the utmost importance to the issue of solid waste management and to
recycling it through sound scientific methods due to the positive effects of this on human health and the
environment. In Palestine, the subject was of particular importance given the size of the complexities and
consequences that are required to address this issue, particularly as it affects the daily lives of the Palestinian
people and is related to very high financial amounts spent by local bodies and estimated at about 40-60% of their
financial resources. Hence, many countries of the world consider solid waste projects as investment ones, yielding
high profits to their investors through the recycling of garbage for use in other areas in addition to providing
employment opportunities for thousands of the unemployed. In a survey conducted by the MAAN Centre
recently62, it was found that a large segment of both the non-official and private sectors practice the process of
collecting scrap metal, electronics and large-size waste, as roaming individual collectors, treatment workshops or
factories and commercial and industrial companies. Work in this area generates capital estimated at hundreds of
millions of shekels a year, taking note that the collectors of solid waste are distributed between the large traders
whose monthly revenues exceed one million shekels, middle traders whose returns exceed 100 thousand shekels
and traders whose monthly returns are under 100 thousand shekels. However, most traders belong to the
category of used goods collectors whose monthly returns are less than 10thousandshekels.
The range of goods that collectors of solid waste work to collect from different parts of the West Bank range
between scrap metal, plastic, used furniture, electrical appliances, washing machines, refrigerators, ovens,
complete cars or car frames and so on. Most solid waste collectors target metals of all kinds. Usually, metal
collectors also collect other kinds of waste. An important part of the waste from the West Bank is collected to be
re-classified and/or treated and/or recycled, then marketed in the West Bank or in Israel. A large proportion of
those sampled market their collected goods (raw and/or treated) to both the Israeli and Palestinian markets and
some of them market in the West Bank only. A large proportion of waste collectors burn solid waste to extract
metals. However, a large part sell used goods collected as they are without any treatment, while some others
attempt to treat it and some others practice classification and separation.
61
This report is part of a study by the MAAN Development Center (George Karzam) in order to provide background and analytical information to
assist in developing the national strategy for solid waste management in the West Bank and Gaza Strip, under the supervision of the Steering
Committee of the National Strategy for Solid Waste Management and the technical team, led by the Environmental Quality Authority and with
the support of the GIZ / Solid Waste Management Program. Report was published in: Monthly Electronic Journal of the Environment of the
Center: MAAN Development Center - Prospects for Environment and Development - a monthly electronic magazine, August 2010
62
Source is a report derived from the study in the previous reference, published in MAAN Development Center - Prospects for Environment and
Development - a monthly electronic magazine, September 2010
46
As the detailed figures of studies and surveys in the West Bank indicate, the composition of municipal solid waste
in the Palestinian territories occupied in 1967 is as follows: organic materials at 60-70%, paper and cardboard at 7 10%, plastic at 5 -10%, glass at 3 - 6%, metals at 2 - 3% and other waste at 3 - 7% (UNFP, 2003). Here, we note the
high organic content of solid waste.
Models applied and resulting economic opportunities:
One of the first leading Palestinian experiments in the manufacture of compost is that of the garbage landfill of the
Council of Solid Waste Management for the governorates of Khan Younis and Deir Al-Balah in the Gaza Strip. The
landfill, which was established in 1995 with the support of the German Agency for Technical Cooperation GIZ and
has an area of about 70 acres, serves one third of the population of Gaza, that is, about half a million people living
2
in an area of 170 km , which represents 45% of the area of the Gaza Strip. It is the first sanitary landfill in the
Palestinian territories occupied in 1967, and in it, the extract resulting from the solid waste is re-sprayed on the
surface of the waste to increase the rate of evaporation and activate bacteria, thus speeding up the process of
biodegradation. The landfill includes a plant to sift old decaying waste, taking advantage of soft material as a soil
enhancer or to cover parts of the landfill. Since 2006, the screening plant that is used to screen and sort the old
waste to produce a soil enhancer has not been operated due to the Israeli obstacles and ongoing sabotage acts
(“Prospects for Environment and Development”, 2008).
Also among pilot projects which have made remarkable achievements in the area of separation and recycling of
waste is the Serafi station for waste separation and migration in Nablus. In this station, which was established in
late 2007 on a land area of 6 acres, various domestic, industrial, agricultural, commercial and medical waste is
collected and recycled in order to sort it in the garbage landfill by special mechanisms, then store the waste
resulting from the screening process to make it ready for sale. The goal is to find the best way that is not at all
harmful to the environment, as well as creating employment opportunities and good financial returns for the
municipal and rural councils that are the beneficiaries of the project (“Prospects for Environment and
Development”, 2009). The villages, towns and refugee camps located within the municipal boundaries of Nablus,
which have a total population of about 200 thousand people, benefit from the project.
The aim of the classification is the separation of recyclable materials for use as raw materials in industry (such as
paper, plastic, metal and glass) or as an organic fertilizer (from food and plant remains). To facilitate this process,
metal containers were provided for each region, so that the citizen, at his home, can classify the waste and place it
in the appropriate containers such as glass, plastic and cardboard. However, the citizens were not interested in this
matter.
The proportion of waste from vegetables, fruits and food is 85%, the proportion of waste paper and cardboard is
4%, plastic materials is 2%, remnants of cloth is 2%, glass waste is 4%, medical waste is 1% and metal scraps is 2%
(“Prospects for Environment and Development”, 2009).
The separation process in the Serafi station is based on the separation of solid waste into organic waste (fruit,
vegetables and farm waste) and solid waste (metals, glass, plastic and cardboard). The screening process of solid
and organic wastes takes place by using a special machine operated by workers at the site of the station. Plastic
waste materials are used in the process of recycling plastic, while paper waste materials (cardboard) are used in
the process of recycling paper. Metal waste is used in the various metallurgical industries and glass waste is used in
the process of recycling glass (“Prospects for Environment and Development”, 2009). The separated raw materials
are sold to Palestinian and Israeli contractors and the remaining waste is compressed to send to the Zahrat El
Finjan landfill in Jenin. The Nablus Municipality saves about one million shekels per month with this process, due to
a reduction of about 60% of the original volume of waste, which means savings in the cost of transport and entry
to the Zahrat El Finjan landfill as 60% of the fees are saved. Recently, the necessary infrastructure has been
prepared for the manufacture of compost. With increasing amounts of organic waste converted to compost, the
47
Serafi station may stop transporting waste to the Zahrat El Finjan landfill. Also, the prevailing trend in the West
Bank in recent years not to install central waste managements is one of the most important administrative
accomplishments to deal with the problems of solid waste. This trend has been reflected in the construction of
joint boards to manage solid waste in all governorates of the West Bank. These councils have achieved notable
successes in the governorates of Jericho, Jenin and Nablus, in particular with regard to logistical management of
the process of solid waste collection and disposal or recycling of some of it. There are also other examples such as
the use of old rubber tires as fuel for pottery kilns in the governorate of Hebron and the re-use of parts of vehicles
in Nablus (Karzam et al, 2007).
Thus, the environment sector constitutes a wealth to be reckoned with, that provides employment and a source
of income, with estimates showing that workers in this sector generate millions of shekels a year (MAAN 2010)63.
However, the income of this sector is not included in GDP despite its significant income generation .Mr. George
Karzam, director of the research and studies department at the MAAN Development Center, said that hundreds of
millions a year are not included in GDP and there are no specific figures for solid waste, thus, there is no benefit
from the income of such wastes at the national level. Also, Mr. Nadim Khoury, owner of the Taybeh beer factory
and Mr. Fuad Al-Aqra, director general of the Association of Food Industries both said that solid waste
management and recycling is very important in order to provide raw materials for many industries, which is a
general need for the governorates and leads to higher prices of raw materials.
Thus, as a result of the aforementioned, the disposal of solid waste within the environment sector is an emerging
sector that offers investment opportunities as well as having become a national demand within the global
environmental policy. We have seen the existence of successful experiences in the field with many investments as
well as the presence of many workers in it within the informal sector. The resulting economic opportunities lie in
each of the following: collecting, sorting and re-sale in order to re-use and recycle waste.
4.4.2 Overview of the Environment Sector in the Governorate of Hebron and the
Resulting Economic Opportunities
Based to the above-mentioned importance of this sector and the importance of the exploitation of its wasted
resources, the solid waste emerging from households and economic institutions of the governorate and the limited
availability of enterprises and individuals working in the sector pave the way for many economic opportunities.
Engineer Yasser Dweik, manager of the common services project of the Hebron and Bethlehem governorates,
indicated that the amount of solid waste in Hebron is estimated at about 450-500 tons per day of which 50% is
organic materials, 10% is plastic, 10% is paper and cardboard, 5% is rubber, leather and fabrics and 3.5% is metals.
These in turn provide the raw materials for many industries after they are recycled and treated (the total area of
the landfill dedicated to the joint council project for the governorates of Hebron and Bethlehem is 250 acres, 50
acres of which will be allocated to recycling and treatment units). He mentioned the importance of supportive
economic opportunities such as collecting and sorting the solid waste generated.
The localities are distributed in the Hebron Governorate by supervising authority of waste collection in 2008: in 41
localities, local authorities collect waste, 5 localities are supervised by UNRWA, and 3 have no specified authority
supervising the collection of their waste while 43 localities lack this service. This lack of service in these localities
provides many economic opportunities in different locations.64
The large numbers of vehicles emphasize the need for re-use of tires and some parts as well as the possibility of
smelting metal for use in industries (there is the blacksmithing factory in Hebron which plans to invest in the field
of smelting metals).
63
MAAN Development Center - Prospects for Environment and Development - a monthly electronic magazine, September 2010
Palestinian Central Bureau of Statistics, 2009, Annual Book of Hebron Governorate (1). Ramallah, Palestine
64
48
In addition, the outputs of stone extraction, cutting and processing operations have a large impact on the
environment, thus, it is possible to reclaim quarry land for agriculture and to manufacture stone and brick from the
remnants of the cutting process.
The re-use of environmental waste provides opportunities for the use of landfills for longer periods in spite of
population growth and urban and economic development. This represents an absolute necessity for the
governorate as well as containing important economic opportunities.
The following table summarizes the conclusions resulting from the foregoing analysis of the environmental sector:
solid waste, as it demonstrates the strengths, opportunities, weaknesses and challenges for the sector, and derives
from this analysis the feasible economic opportunities that could be established in the governorate.
Table 4.4.2: Environment Sector Analysis - Solid Waste (Strengths, Opportunities, Weaknesses and Challenges)
and Resulting Economic Opportunities in the Hebron Governorate
Activity
Weaknesses and challenges Resulting economic
opportunities
Solid waste




Presence of environmental
waste which can be used in
some industries.
Lack of raw materials for some
industries which can be
supplied from recycling.
Recycling protects the
environment and leads to the
reclamation of land after the
demise of landfills.
There is a huge investment in
waste management (the Joint
Council for the governorates of
Hebron and Bethlehem).


Israeli restrictions on
selection of landfill
locations and
preparation.
Impact on sorting
process of the extent of
knowledge and
experience of the
workers.




Waste collection in some
localities, sorting and re-use
of environmental waste, and
selling it as an input to
production (plastic, glass).
Specialized recycling centers
(in the field of organic
fertilizers, rubber, paper,
metal, glass).
Land Reclamation.
Manufacturing industrial
brick and stone.
4.5 Trade Sector
4.5.1 General Overview of the Trade Sector in the Palestinian Territories
This is one of the important sectors that contribute significantly to the employment of the labor force, selfemployment and GDP. This sector contains the greatest number of facilities and is therefore the highest employer
compared with other Palestinian economic sectors. The number of facilities totaled 59,253, accounting for 54% of
the establishments operating in the rest of the West Bank and Gaza, and employing about 111,829 people,
representing 38% of the workforce65. Its contribution to GDP reached 9.7% and 10.3% in 2007 and 2008
respectively66.
The domestic trade sector includes many activities, the most important of which are wholesale trade, retail trade
and repair of vehicles and personal goods. Wholesale and retail trade include trade in food, clothing, fuel,
household items, metals, vehicles, etc., in addition to the trade of intermediary materials for various products.
65
66
49
Most firms in this sector work in the retail trade and in the repair of personal products. The majority of the sector’s
enterprises are considered small where 96% of them employ less than 5 people.
Figure 4.5.1: Production growth and average value added in the
internal trade sector
1600000
1400000
1200000
1000000
800000
600000
400000
200000
0
total value added
The sector experienced a growth in
establishments and workers of 70% and 50%,
respectively, in 1997 – 2007. Women’s
contribution in the sector grew during these
years by 133%, with women representing 9%
of the workforce of the sector.
The sector also experienced a growth of more
than double in production and value added in
the decade 1998 – 2008 as shown by the
figure.
The internal trade sector suffers from the
problems of small and medium enterprises
more clearly, forcing many of them out of the
market over the last years (MAS 2009).
production
Source: Web page of the Central Bureau of Statistics, May 2010
The reality of foreign trade indicated that the value of merchandise imports amounted to U.S. $3,466.2 dollars in
2008 and exports amounted to U.S. $558.4 million for the same year, with a balance of trade against imports in the
value of U.S. $2,907.7 million. Statistics indicate that over 80% of imports come from Israel. It also refers to a rise
in the value of exports from the year 2007 by 8.9% and a rise in the value of exports to Arab countries. As for
service imports and exports with Israel, imports were shown of U.S. $95.1 million and exports worth U.S. $126.6
million, with a rise in the value of service exports for the year 2007 in the field of communications, transport,
construction and other business services such as brokerage and commission.67
The foreign trade sector is facing many obstacles, including lack of control over the crossings, obstacles to
movement of goods in the Palestinian territories, poor knowledge of traders of import and export procedures and
poor support services provided in the area (as will be mentioned in the service sector).
Trade and economic agreements with other countries play an important role in strengthening or weakening of
industries and foreign trade in general, due to the impact of such conventions in terms of obligations towards
other international actors. This can be an opportunity to access the markets of these countries and obtain the
needs of production and technology, or a threat to invade the products of these countries for local markets and a
competition with the local industry which reflects negatively on the levels of income, employment and production
in the country. (This was stated by Dr Adel Samara, doctor of economics.) These agreements can also be an
opportunity for cooperation through which to take advantage of the progress and experiences of those countries
to build strong and sound institutions in the national economy. This emphasizes the important role of government
in the development of this sector and the productive economic sectors, through entering appropriate contract
agreements starting from careful knowledge of the economic reality, its strengths and priorities. Traders also
mentioned in many interviews the importance of developing the governmental role in control and issuance of
67
Palestinian Central Bureau of Statistics, 2009, Observed Foreign Trade Statistics – Products and Services, 2008: Main Results, Ramallah,
Palestine
50
licenses, as well as developing the role of specifications and standards in the issuance of certificates of quality and
standards required.
4.5.2 Situation of the Trade Sector in the Governorate of Hebron
The tables show the dramatic rise in the number and percentage of establishments operating in the trade sector as
well as workers in this area, for, in 1997, the total number of establishments in this sector was 5,844, employing
11,254 workers, while the total number reached 9,416 establishments employing 19,359 workers in 2007,
according to the census. 5.82% of the establishments operating in this sector are engaged in the retail trade and
repair of goods while 13% are engaged in the sale and maintenance of vehicles and sale of fuel and other
establishments are engaged in wholesale trade. 95% of these establishments employ less than five workers while
40% of the volume of workers in the governorate work in this sector, with the percentage of women not exceeding
68
8% of workers in this sector.
The trade balance of Hebron had a deficit of U.S. $304.6 million in 2007 and the value of imports increased
significantly in the governorate during 2007 compared to the years 2003 – 2006, reaching a valued of U.S. $452.2
million. The most important imports in the governorate are mineral fuels, lubricants and related materials at U.S.
$164 million, equivalent to 36.3% of total imports, while the value of imports of manufactured goods classified
chiefly by material are U.S. $88.2 million, equivalent to 19.5% of total imports. Oils, animal and plant fats and
greases have a value of imports at U.S. $2.8 million, equivalent to 0.6% of total imports.
Exports were valued at U.S. $147.6 million in 2007, witnessing a rise compared with 2003 – 2006. Manufactured
goods and those manufactured mainly by material are among the most important exports of the governorate of
Hebron, valued at U.S. $82.9 million and equivalent to 56% of total exports, while the value of exports of chemical
materials and related products was U.S. $15.8 million, equivalent to 10.7% of total exports. The value of exports of
oils, animal and plant fats and greases was U.S. $0.342 million, equivalent to about 0.2% of total exports.69
4.5.3 Gaps and Opportunities in the Sector (analysis of above and results of
interviews and focus groups)
Analysis of the former sectors (industry and agriculture) has shown the possibility of export of local products and
thus the need to search for foreign markets and to identify the mechanisms and methods of export, which
provides opportunities to open specialized import and export offices and to provide necessary services.
Also, the analysis of the construction sector and related services showed opportunities to provide the necessary
materials, in addition to the stone and marble industry which is one of the economic underpinnings of the country
as the value of investments in the sector in 2007 was about $700 million, allowing the opportunity of import and
sale of parts and equipment necessary for the sector, as well as research on foreign markets for the export of
stone, whether raw or processed.
The large number of households and population growth in the governorate, in addition to its opening up to the
population of 1948 and their frequent visits, has led to the opportunity for opening a variety of shops to sell food,
clothing, furniture and others.
The revolution in telecommunications has created the opportunity to establish stores specializing in the import
and sale of various telecommunication devices. Also, the number of licensed vehicles in the governorate reached
17,084, which represents 17.7% of the total licensed vehicles in the West Bank in 2008. 1,795 vehicles were
68
Final Results, Ramallah, Palestine
69
51
registered for the first time, at 17.7% of the West Bank, in addition to the development of technological advances
in the field of vehicles, all of which paves the way to create shops for sale of parts as well as sale of fuel.70
The problems faced by the commercial sector are the presence of a large number of street vendors without
licenses, in addition to the substantial rise in the price of the sale and leasing of real estate and shops, which drives
some to use the sidewalks or vehicles.
The following table summarizes the conclusions resulting from the foregoing analysis of the trade sector, as it
demonstrates the strengths, opportunities, weaknesses and challenges for the sector and derives from this
analysis the feasible economic opportunities that could be established in the governorate.
Table 4.5.1: Analysis of the Trade Sector (Strengths, Opportunities, Weaknesses and Challenges) and the
Activity
Trade sector









Large and diverse
number of industries in
the province.
Population growth and
great demand for goods.
Existence of laws
allowing import.
Boycott of goods from
settlements.
Growth of commercial
traffic with the entry of
Arabs from 1948 areas
to Palestinian markets.
Demand for the use of
local and traditional
industries.
Demand for local food
industries (traditional).
Hebron consumes about
8801 tons of food per
month with the
exception of meat, milk
and eggs.
Large numbers of
vehicles especially new
ones.









70
Lack of political or
economic stability.
the import of some
goods.
Clearance procedures
which lead to damage of
certain imported goods.
Lack of price stability.
Weak role of the
Institution for Standards
and Specifications in the
field of quality
standards and reliance
on the Israeli side in this
area.
Existence of large
number of shops
especially those selling
clothes in the
governorate.
Existence of large
number of shops selling
local products.
High prices of real
estate and shops.
Large number of
unlicensed street
vendors.
Resulting economic opportunities






52
Specialty shops for clothes
(children’s clothes, traditional
clothing …).
Food stores.
Specialty stores for locally
produced, traditional foods.
Specialized stores for the sale of
parts for vehicles.
Offices of import and export.
Specialized stores for the sale of
telecommunication equipment,
computers and accessories.
4.6 Services Sector
4.6.1 General Overview of the Services Sector in the Palestinian Territories
The reality of this sector and its role in the process of economic development in terms of its contribution to GDP,
employment, and attracting investment makes it one of the sectors of major importance in the Palestinian
economy. Its contribution to GDP is the highest compared to other sectors as shown in Figure 2.2 of the report,
where the contribution of this sector to GDP was 20.4% and 20.8% in 2007 and 2008, respectively.71Education and
real estate activities were the highest contributors to GDP among the activities of the sector (accounting for 40%
and 36% of GDP respectively). The service sector was characterized by being the highest employer and absorber of
the Palestinian workforce, especially females. It was also marked by its growth during the various political and
economic stages and to varying degrees.
This sector consists of the following sub-sectors: hotel and restaurant activities, real estate activities, research and
development, education, health, recreational, cultural, sports and other activities72. Small establishments
constitute the majority of this sector with the exception of hotels and educational institutions. The total number of
establishments operating in the sector was 24,655, employing 82,581 people in 2007.73
Table 4.6.1: Economic Indicators for the Service Sector 1997 – 2007
Year
This sector grew substantially over
the previous years, where the
number of establishments and
employees working in them increased
compared to their percentage in the
Palestinian Territories. Figure 4.6.1
shows this growth, where the
number of male and female workers
doubled over the last decade and the
number of institutions almost
doubled as well.
1997
2004
2007
Growth
1997 2007
1.84
Economic indicator
Number of establishments
1392
20150
24655
17%
21%
22%
out of total
Number of male
40743
67348
82581
2.03
employees
Number of male
21%
26%
28%
employees out of total
Number of female
14108
22562
30489
2.16
employees
Number of female
45%
57%
55%
employees out of total
Source: Palestinian Central Bureau of Statistics, 2008. General Census of
Population, Residences and Establishments 2007: Economic
Establishments, Final Results, Ramallah
The concentration of women in this sector and the increase in their proportion over the years was noted as shown
in the table above, for more than half of working women (55%) are employed in this sector. Employees are
distributed in all sub-sectors of services while women are concentrated in the education sector, other services and
71
Some studies add the transport sector and the financial brokerage sector to the service sector, but the researchers used the classification
adopted by the Palestinian Central Bureau of Statistics
73
Palestinian Central Bureau of Statistics, 2008. General Census of Population, Residences and Establishments 2007: Economic Establishments,
72
53
74
health. These percentages have risen in the year 2009 where it was found that the services sector employs 61.8%
of women and 34.6% of men.
Figure 4.6.1: Growth in Production and Gross Value added in
Service Sector
1000000
900000
800000
700000
600000
500000
400000
300000
200000
100000
0
1994
1995
1996
1997
1998
1999
2000
2001*
2002*
2003*
2004*
2005*
2006*
2007*
2008
Production and gross value added tripled
between the years 1994 to 2008 for the
service sector, which is the largest growth
compared with other economic sectors as
shown in the Figure.
total vaue added
production
The various sub-sectors show a growth
and a continuous need for growth due to
that of population, establishments and
residential neighborhoods.
Source: Web page of Central Bureau of Statistics, May 2010
The education sector has grown over the previous years from 1,487 educational institutions to 2,384, and the
number of employees doubled in them to reach about twenty thousand75. The number of students in schools
increased at an average of 42%, and reached about one million in 2008/2009. The number of students in colleges
and universities more than tripled during the same years: from about 56 thousand to about 180 thousand for
1997-2007. There is an ongoing need to further secure the necessary services to the sector and to its students and
staff76.
The growth of the construction sector, population growth and demographic changes of internal movement and
changing place of residence from rural areas to the cities contributed to the development and increase in real
estate and rental activities as well as others, an increase which will continue in the coming years. Such activities
also include research and development activities which have grown over the past years, and other commercial
activities. These others include accounting and legal work, which many representatives of the insurance and
telecommunications sectors pointed to a lack of specialists in, and the need for specialized legal and accounting
practices. Other commercial activities also include many different areas, including cleaning of buildings, in which
there were only 4 facilities working in the West Bank despite the urban development, the increase in the size of
buildings and the rise in vertical buildings which need cleaning and general maintenance services. This needs
increases in public buildings and offices held by public sector institutions.
There has been a change in family structure over the past ten years 1997-2007 towards the nuclear family, which
rose from 74% to 82% in the West Bank, as well as an increase in the proportion of small and medium households
74
Palestinian Central Bureau of Statistics, 2010, Survey of Palestinian Workforce: Annual Report 2009
76
Web page of Palestinian Central Bureau of Statistics: www.pcbs.gov.ps/Portals/_pcbs/educatio.htm
75
54
77
at the expense of the large. Thus, there was a change towards a lower number of residents in a single housing
unit, which led to the increased need for different services such as house cleaning, gardening, home maintenance
and other related activities. In spite of the work of many people on an informal basis in these areas, many
meetings confirmed the existence of such a need in the various governorates to different degrees.
A change in the behavioral habits of families was observed in some areas, for example, going to restaurants more
frequently than before or going to gyms whether by men or women due to increased health awareness and
diseases of our age. These changes were confirmed by the views at sites and the meetings that took place.
Many obstacles are faced by enterprises (limited and incorporated); some are related to the general political and
economic context in terms of transport problems, checkpoints and lack of control over the crossings, to the
absence of an appropriate legal environment, low levels of necessary funding and the small size of the domestic
market. However, many other obstacles are associated with self weakness and can be overcome by the provision
of services to these sectors in specific areas. The most important of these obstacles is poor marketing expertise of
78
the producers. The MAS study showed that the majority of enterprises (limited and incorporated) do not use any
marketing tools, in addition to not adopting any clear marketing plans with specific goals, and only 40% of
entrepreneurs who believe in the importance of marketing use marketing tools and promote their projects. So,
despite the awareness of a certain class of enterprise owners of the importance of marketing, less than half use
marketing tools to promote their products and services. There is a large weakness in service coverage of
supporting institutions in the field and they do not include many enterprises, which opens up opportunities and
market space to institutions specialized in marketing for micro and small enterprises.
The importance increases of services in support of export that require efficient distribution channels to work on
displaying products to the consumer directly. Export acquires major importance due to the small size of the
domestic market and to the available possibility of export included in agreements. This is helped by external
support for the Palestinian product generated by the increasing wave of international sympathy with the
Palestinian people, as mentioned by Mr. Adnan Al-Jaber from Sinokrot Group. However, export requires
knowledge of procedures and laws and how they could be used for the benefit of the product. Mr. Ahmed
Sawalmeh, director of Petra Company for shipment and clearance, stated that import exists at a high rate but
export barely exists with the exception of olive oil, and the most important problems in this sector lie in the lack of
knowledge of traders, importers and exporting producers of the import mechanism and the paperwork required
before import or export, which leads to a disruption of shipments and increased costs. This gap provides an
opportunity for support service offices in the field of import and export.
4.6.2 Situation of the Services Sector in the Governorate of Hebron79
Hebron is the largest governorate of the country, composed of three regions and having most of the public and
government institutions (ministries ...) represented by more than one branch in the governorate (three offices of
77
Where the average number of family members dropped from 6.4 to 5.8 over these years in the Palestinian Territories, and the number of
small and medium families in the West Bank increased from 33% and 26% in 1997 to 37% and 29% respectively in 2007. Large families
decreased in the 2007 census to reach 34% from 41% in the 1997 census. Source: Palestinian Central Bureau of Statistics, 2009. Draft
publication and analysis of census data, social, family, marital, educational and economic characteristics of the family in the Palestinian
territories, 1997 – 2007, Ramallah
78
Anton Sabella, 2009, Marketing the Products of Small and Medium Enterprises, first edition, Ramallah, Palestine Economic Policy Research
Institute (MAS)
79Statistical source for this part of report: Palestinian Central Bureau of Statistics, 2008. General Census of Population, Residences and
Establishments 2007: Economic Establishments, Final Results, Ramallah; Palestinian Central Bureau of Statistics, Economic Statistics, 2008 and
2010; Palestinian Central Bureau of Statistics, 2010, Palestinian Workforce Survey: Annual Report 2009
55
the Ministry of Education, three of the Ministry of Interior, etc.) It also has some form of decentralization in
processing and implementing many official transactions with the opening of offices and branches for a number of
ministries and institutions (some of which serve the Hebron and Bethlehem governorates such as the Office of
Higher Education).
This sector is comprised of the following sub-sectors: hotels and restaurants; transport, distribution and
telecommunications; financial brokerage; real estate and rental activities and other project activities80. We will also
add the activities of social and personal services. The 2007 Census statistics indicate that the number of
establishments in this sector is 1,256 employing about 8,622 workers. The following table shows the number of
81
such establishments in this sector and their distribution among the sub-sectors.
Table 4.6.2: Number of enterprises and workers in the services sector in the governorate
Sub-sector
Field
Hotels and restaurants
Transport,
distribution and
communications
Financial Brokerage
Real estate and
Rental Activities
and Other Project
Activities
Social and Personal
Work Activities
Number of workers
468
1428
Ground transport
47
Supportive activities and travel agent
activities
43
Post, wired and wireless communications
28
Financial brokerage
56
Insurance
18
Supportive activities for financial
brokerage
10
Real estate activities
19
Lease of equipment without worker and
lease of personal products
42
Computers and related activities
76
Research and development
7
Other commercial activities
422
Activities of member institutions
215
Entertainment, cultural and sports
activities
234
Other service activities
715
80
118
5028
84
573
586
1593
1164
2357
Final Results, Ramallah, Palestine
81
Palestinian Central Bureau of Statistics, 2009, the Annual Hebron Governorate Book (1), Ramallah, Palestine
56
Source: Palestinian Central Bureau of Statistics, 2008: General Census of Population, Residences and Establishments 2007:
Economic Establishments, Final Results
The IT and telecommunications sector was separated from the service sector due to its importance and will be discussed in the
next part of the report
4.6.3 Gaps and Opportunities (analysis of the above and results of interviews and
focus groups)
The Hebron governorate has more than one university (Hebron University, Palestine Polytechnic University and
three centers of the Al-Quds Open University) in addition to the Palestine Technical College (Al Aroub), thus it has
more than fifteen thousand university students (about 6,000 students at the Hebron University and 5,000 at the
Polytechnic). There are also representatives of many foreign institutions which mean increasing numbers of people
needing the service sector in its different activities.
The governorate receives large numbers of visitors daily from the 1948 population of Palestine as well as
international activists (there are no official statistics on numbers) who need restaurant and cafeteria services. A
change has also been seen in some population habits and the tendency of many families to go to restaurants on
certain occasions and generally.
As for social occasions, about 4,921 marriage contracts (wedding ceremonies) were recorded in the governorate in
2008 as well as many public and private social events that need a special type of services such as hospitality and
catering.82Also, the demographic change towards the nuclear family at the expense of the extended, as the census
showed, reflected the importance of these services.
The community of Hebron is conservative and there are many social events which assume the presence of women
alone, which calls for providing services appropriate to the nature of society, such as hospitality, music and others.
There is also a demand for natural therapy centers and sports centers for women and lack of sufficient natural
therapy services for women in the governorate.
Regarding insurance services, the number of establishments in the governorate account for 21% of those in the
West Bank (17,661 establishments) that need insurance for personnel and equipment, and the number of vehicles
licensed in the governorate in 2008 amounted to 17,084 vehicles in addition to building projects and other
contracts; therefore, the presence of twenty insurance agents in the governorate is not enough to meet its needs.
This leads to the need for a number of insurance agents to reach the largest number of beneficiaries of those
services and meet their needs as stated in the interview with Mr. Muhammad Nasri Abu Sneineh (Director General
of the Spanish Insurance Association, representative of The Palestinian Insurance Company). In addition, sales of
services and products need sales representatives to reach institutions and houses, which is lacking in the
governorate as part of the marketing methods of products or services.
A need has also emerged for new types of service: building maintenance services (maintenance of plumbing,
electricity and elevators...) as well as cleaning services in public buildings and residences, which are all associated
with the population and housing growth and the shift of families in the direction of the nuclear at the expense of
the extended. Due to the increasing numbers of buildings (the number of buildings is 73,825) which are used for
both joint housing (apartments in buildings) or used by public, local and international institutions (about 94
associations as well as local and international public institutions and the lack of offices specialized in the field of
cleaning and maintenance, where there are 4 registered companies in the West Bank as mentioned previously in
the field of cleaning, and no recorded maintenance companies), this provides an opportunity to set up companies
in this area.
82
Palestinian Central Bureau of Statistics, 2009, the Annual Hebron Governorate Book (1), Ramallah, Palestine
57
The need was found for specialized services to businessmen in Hebron in the form of arrangements to attend
exhibitions and access different places of the world to exchange experiences, undertake and conduct business.
There is also increased demand for Hajj and Umrah services by the population and the reservations and services
that this requires.
The presence of some archaeological sites in the governorate such as the Cave of the Patriarchs and the flock of
tourists to it, and the lack of a single tourist guide to explain the importance, history and sanctity of these places
opens up opportunities for tourist guide offices to provide these services.
The following table summarizes the conclusions resulting from the foregoing analysis of the service sector, as it
demonstrates the strengths, weaknesses, opportunities and challenges for the sector and derives, from this
analysis, the feasible economic opportunities for each of the different activities which can be set up in the
governorate.
Table 4.6.3: Analysis of the Service Sector (Strengths, Opportunities, Weaknesses and Challenges) and the
Activity
General services




Restaurants
hotels
and 


Insurance


Largest governorate of the
country and largest population.
The governorate has more than
one university (Hebron University,
Palestine Polytechnic University
and three centers of the Al-Quds
Open University) in addition to
the Palestine Technical College (Al
Aroub).
More than ten thousand
university students in the
governorate.
Large population of the
governorate and the need for
these services.
University students from outside
the governorate.
Customs and traditions in the
governorate which require
specialized cooks for occasions as
well as some food and drink
serving associated with these
occasions.
High population of the
governorate and the high number
of their occasions.
Twenty insurance agents present
in the governorate, representing
seven insurance companies. This
number is insufficient for the
population and their need for this
service.
The governorate needs 6-8
insurance agents (according to a








58
Resulting economic
opportunities
Many transactions for citizens 
are required to be completed
in Ramallah and are thus
done there.
Many students perform this

task themselves.
Self-reliance of a proportion
of students in completing and
printing their research.
Student service
centers
(photocopying and
printing)
Photocopying and
general services
center.
Lack of different suppliers for
different types of food.
Tendency of families towards
the nuclear structure.
No time available for the
proprietor of the occasion to
offer services to guests.

Appropriate services
company (food and
drink catering in
private functions,
cooking, serving
coffee).
People’s lack of awareness of
the necessity of insurance.
People’s lack of knowledge of
the different types of
insurance.


Insurance offices.
Insurance agents to
sell the service.


Specialized services 
for women


domestic
services 
(home nursing)


Private services for
buildings and
residents




Travel and tourism


study by one insurance agent in
it).
Varied insurance services (vehicle,
factories, fire, health, business
and others) and thus, a high need
for insurance offices.
Rising number of vehicles and
factories in the governorate.
Society’s tendency towards

conservatism.
Rising number of social occasions 
which need women’s services.
Increase in demand for health
service and natural therapy.
The elderly and sick need special
care and the availability of nurses
and health workers.
Children work in places far from
elderly parents.
Lack of old people’s homes due to
customs and traditions which
prevent sending the elderly to
such homes. Thus, there is a need
for offices to provide such a
service.
Rising numbers of buildings and
shared facilities (residential
buildings and institutions).
Rising population and thus a rise
in buildings, where residences are
87645 and buildings are 73825.
Vertical expansion of buildings
due to the limited spaces
permissible for building; thus, a
rise in residential buildings and
the need for maintenance work.
Rising number of offices and
institutions in the governorate.
Growth of business sector in the
Hebron governorate and the need
of businessmen to travel.
Large numbers of pilgrims to holy
lands every year.










Presence of many archeological

59
Few women providers of
required services.
Insufficient natural therapy
services for women.

Difficulty of providing nurses 
and health workers in homes.
Customs and traditions which
prevent working in such a
profession especially for
females.
Limited demand for this kind
of services to a certain sector
of society.
Residents of these buildings
do not have the time and are
not specialized.
Presence of 4 registered
offices in the West Bank.


Insufficiency of specialized

comprehensive services that
include hotel bookings as well
as booking other services
such as exhibitions.
Insufficiency of booking
services for Hajj and Umrah
with the increase in demand.
Undertaking trips, travel and
tourism individually.
Availability of some services
through the internet.
Lack of single tourist guide in 
Service office to
provide services to
women during
occasions, with
women providing
these services of food
and drink serving,
photography and
music (DJ) in parties
and private functions.
Offices that provide
nurses and health
workers to care for
the sick and the
elderly.
Maintenance service
companies (building
maintenance:
electricity, sewage,
elevators, etc.)
Cleaning companies
(cleaning of buildings,
houses and offices).
Offices providing
specialized services
for businessmen and
Hajj and Umrah
services.
Offices providing

and tourist sites in the
governorate.
Rising number of tourists and
visitors to the governorate.
the Hebron governorate.
Lack of attention to tourist
sites.

tourist guides.
4.7 IT and Telecommunications Sector
4.7.1
General Overview of the IT and Telecommunications Sector in the Palestinian
Territories
The importance of the sector stems from its being a growing one locally, regionally and globally, the sector of the
future in the use of technology and dealing with it. The sector is linked to the presence of young Palestinian
manpower, qualified to perform the tasks required and to develop those which exist. In addition, the growth of the
volume of investment in the sector demonstrates its importance. It is also characterized by its ability to deliver,
bypassing the barriers and obstacles that affect the accomplishments of other economic sectors. In turn, it is
expected to have a role in the development of economic institutions and business in the event of its continued
development. This importance has necessitated its separation from the service sector and its independent
presentation in this part of the report.
table 4.7.1: IT and Telecommunications Indicators in
Palestinian Society
The rates of access and use by Palestinian society of
information technology have doubled in the past five
years, as per Ms. Ola Awad (Acting President of the
Palestinian Central Bureau of Statistics – PCBS)83,
when reviewing the situation of the information
society in the Palestinian territories according to a
study conducted by the PCBS and summarized in
Table 4.7.1, which shows the results of growth in the
sector between 2004 and 2009.
Is clear from the indicators listed in the table that
most households have a mobile phone and satellite
receiver, that half of households have a phone line
and a computer and more than a quarter of
households have a connection through the Internet.
Indicator
2004
2009
Growth
Percentage of families in Palestinian Territories which
have
Computer
26.4%
49.2%
86%
Internet connection 9.2%
28.5%
210%
Satellite
74.4%
92.0%
24%
Phone line
40.8%
47.5%
16%
Mobile phone
72.8%
92.4%
27%
Use of computer and internet
Use of computer
35.7%
57.1%
60%
among individuals
(10 years and more)
Percentage of
1/20
9.1%
82%
families in which
one member has a
web site
Individuals that
1/20
21.3%
326%
have e-mail
The above shows a significant evolution for the acquisition and use of computers and considerable development of
the acquisition of communication through the Internet and in using the Internet. These rates are expected to
83
Ola Awad, Acting President of the Palestinian Central Bureau of Statistics, reviews the situation of the information society in the Palestinian
territories on the eve of the World Information Society Day on 17/5/2010
Source: Palestinian Central Bureau of Statistics, 2009: A Report on Access of Families and Individuals to IT and Telecommunications, Ramallah,
Palestine
60
double soon. The aforementioned was confirmed by Jawwal Company’s announcement of the existence of 2
million subscribers (which means that families with a mobile phone have more than one line or SIM card).
The representatives of the Palestinian Telecommunication Group (PalTel), Mr. Atef Attili and Mr. Mahmoud Al
Jallad, showed, during the focus group, a growth in the use of digital (data) technology at the expense of audio
(voice). An increase was observed in subscribing to the Internet and the use of broadband Internet service (ADSL)
and they showed that telecommunications services cover more than 65% of localities in the Palestinian territories.
The sector consists of 972 companies operating in the areas of telecommunications (42%) and information
technology (58%) in the rest of the West Bank and Gaza, according to the 2007 Census. The majority of companies
operating in the field of information technology/computers (88%) work in the area of maintenance and repair of
office, accounting and computer machines while 10% of them work in the area of providing software consultancy
and the remaining 2% are distributed among data processing, providing consulting services in the computer field
and other activities. 50% of those companies operate in the rest of the West Bank with a similar distribution of the
companies and their work. Companies that employ less than 5 workers form a majority of those operating in the
computer industry (94%) in the rest of the West Bank and Gaza while telecommunications companies that employ
less than 5 workers form 72% in the rest of the West Bank and Gaza and 37% in the rest of the West Bank, which
means the existence of medium and large companies in the telecommunications field in the rest of the West
Bank84. Among the most important companies operating in the field of telecommunications is the Palestinian
Telecommunication Group (Pal-Tel), which offers wired and wireless telecommunications services and includes the
telecommunications company and Jawwal as well as offering Internet services through the company Hadara. The
Wataniya Mobile Company has recently joined this sector.
In 1999, the Palestinian Information Technology Association of Companies (PITA) was formed to represent the
institutions of this sector and work to represent their interests, with a membership of 94 companies of different
subsectors, including companies that operate in the sale or maintenance of computers and others that work in
software development, sale and maintenance of office equipment, telecommunications, Internet provision and
provision of consulting and training services in the field.85
The sector has grown rapidly since 1994, raising its contribution to GDP from 2.87% in 1999 to 5.32% in 2007 and
4.98% in 2008 and reaching U.S. $231.2 million86. The estimated market size of the Palestinian information
technology and telecommunications sector was about U.S. $300 million87 in 2005, and the same report showed the
size of the domestic market to be U.S. $120 million in 2000, dropping in 2003 to U.S. $87 million and rising again in
2007 to U.S. $250 million. The contribution of the telecommunications sector in foreign commercial trade rose,
88
with its imports reaching U.S. $44 million and foreign exports about U.S. $26 million . PITA showed, through the
statistics from its members, a size of export of programs and services of more than U.S. $15 million, which
demonstrates the opportunities available in this area and the possibility of their growth.
The volume of investments in the Palestinian information technology and telecommunications sector was $520
million, of which $400 million was the investment by the national telecommunications company and $120 million
was the investment by the remaining companies. The sector was able to attract some foreign investment, for
example, Cisco, which announced an investment worth $10 million in universities and educational institutions. In
84
Source: Palestinian Central Bureau of Statistics, 2008. General Census of Population, Residences and Establishments 2007: Economic
Establishments, Final Results, Ramallah.
Numbers were extracted from the sub-sectors of services (regarding computer activities) and transport and communications (regarding
telecommunications)
85
www.pita.ps
86
PITA, May 2009. The Palestinian ICT Sector, A three-Year Outlook ,Based on Economic Indicators
87
The Palestinian ICT Cluster Report, Palestinian Enterprise Development Project-A USAID Project, 2006
88
Palestinian Central Bureau of Statistics, 2009, Observed Foreign Trade Statistics – Products and Services, 2008: Basic Results, Ramallah,
Palestine
61
doing so, it is eligible for a large growth of its investments in the event that the information technology and
telecommunications sector takes its place and status. The financial returns for the companies of the sector
89
amounted to U.S. $120 million, not including returns from the Palestinian Telecommunication Group.
A study of the workforce operating in the sector showed that it employs more than 5000 people, 86% of them
males and 14% females90, and that there are more than 1000 university graduates a year (1161 university
graduates were recorded in 2005/2006 and graduates were estimated at 1500 in 2010), and there are more than
1700 graduates a year in various professional, technical and university levels. The study showed the need for
employment in the field, but the number of graduates exceeds the demand, thus there is a surplus of graduates
that could form the nucleus of young people considering the establishment of their own projects in the field. It was
found that the majority of workers in the field (over 80%) have at least a university degree and that 11% -12.3%
are diploma holders. Statistics indicate that the average worker productivity in the sector is the second highest
productivity among the different sectors.
The sector suffers from many obstacles including poor legal or legislative structures to create a favorable
environment for the growth of information technology and telecommunications, and failure to provide the
necessary support in a manner similar to Jordan and other countries in the region to promote this growth, in
addition to the absence of a separate classification for tracking its development. This requires the development of
appropriate government policies, where PITA has placed in its plan a demand from the government to act and to
push for completion of policies, legislation and legal frameworks affecting the growth of this sector and investment
in it. These include the Telecommunications Regulatory Commission, the laws of consumer protection, antitrust
laws and regulation of investment funds, which encourage local, regional and international investors to come to
Palestine and invest in its economic sectors, with the guarantee of provision of a favorable environment and
conditions and the protection of their investments.91
4.7.2
Situation of the IT and Telecommunications Sector in the Hebron Governorate
Hebron is one of the major governorates which host a large portion of establishments operating in the field of
information technology and telecommunications. There are 28 establishments working in the field of
telecommunications and 76 working in the field of information technology.
The evolution of the use of information technology was also apparent in residences, establishments and
educational institutions, doubling over the past years and expected to increase in the coming years. As the table
below shows, the proportion of technology penetration in the population is similar to the national one.
From the meetings, the difference was
apparent between various locations and
so was its increase in the city and towns
over
rural
areas.
In addition, there is the possibility of
access to the computer and the Internet
through the services provided by
universities to students and staff (where
100% of the staff of the Polytechnic
University and Hebron University benefits
from this service, and more than 80% of
Table 4.7.2: Percentage Use of Information Technology by Families
and Individuals in the Governorate
Indicator
Percentage of users in
Hebron Governorate
Percentage
of
Population
89
Percentage in
Palestinian Territories
Percentage
of Users in
Palestinian
Territories
PITA, A Report on the Assessment of the Priority Areas in the Palestinian Information and Communications Technology (ICT) Strategy,
Workshop held on the 27th and 28th of August, 2008
90
PITA, 2008. Assessment of the Palestinian ICT Workforce
91
Palestinian IT Association of Companies. September 2007. Position Paper. Ramallah, Palestine
62
the students
specialties).
according
to
their
Families that have
Computer
45.8%
22.3%
51.1%
Internet
18.3%
16.4%
27.2%
connection
Land
37.1%
18.5%
51.4%
phone
Source: Palestinian Central Bureau of Statistics, 2009. Draft
publication and analysis of census data, Level of Spread of
Information Technology in Palestinian Society 1997 – 2007, Ramallah,
Palestine
4.7.3 Gaps and Opportunities in the Sector
The analysis of all the former sectors showed a need by them for the support of the information technology and
telecommunications sector, for in the industry sector there is a need for information technology both in design or
in the use and programming of machines, and in the design and engineering in construction sector, while in
services there is an urgent need to communicate through the Internet as well as manage operations, in addition to
communication in all sectors.
The sector is distinguished by the government attention and interest of donors in it, in addition to it being
organized through PITA which seeks to support and develop its enterprises through the presence of many support
tools including PICTI (Palestine Information and Communications Technology Incubator) and the preparation of
many studies on the sector and prospects for its development. PITA has specified, within its strategy, the
opportunities resulting from its analysis of the sector: the possibility of the development and export of software
and technology to the markets of neighboring countries, Europe and the United States, the possibility of
establishing centers and creating programs to provide services to other parties through subcontracting for the
development of software and other business support.
Engineer Alaa Alaeddin, Chairman of the Board of Directors of the Palestinian Information Technology Association
PITA, mentioned during a meeting that the plans include attracting foreign investments in the area through the
establishment of the technology park, which could attract foreign investments, and which includes various types of
business in a site ready with the appropriate infrastructure. This will enable many international companies to work
in the local market. He added that the policies of the Ministry of Communications and Information Technology,
reflected in the freeing of the telecommunications market, will have a positive role in the entry of new firms
operating in the area of broadband Internet service (ADSL) and voice over IP (VOIP).
Mr. Laith Kassis, Executive Director of the Palestinian Information Technology Association PITA, mentioned that
there are many local companies which hire externally and develop software or web pages through dealing via the
Internet, but subcontracting to provide services (such as filling out forms, invoices, etc.) still requires effort to
attract foreign markets and competitive global markets. He emphasized the numerous and varied local
employment opportunities and the need to encourage creativity.
It should be noted that global markets provide opportunities less expensive than the local market in the area of
subcontracting, such as the markets of India and Asia, and the fast technological development requires a fast
response by the local market. At specific periods, many markets were pushed out that did not develop
appropriately. The intense competition in the area and the presence of many large companies requires any
emerging economic opportunity to have a market and to have creativity and excellence in its implementation.
63
Mr. Marwan Tarazi (Director of the Department for Continuing Education at Birzeit University and a specialist in
the field) stressed that the opportunity lies in the development of content for local markets and regional Arab
ones more than in providing services to the severe competition with foreign markets.
92
The survey results of the business sector of information technology and telecommunications showed a gap in the
use of the computer and internet by economic establishments, and that the establishments intend to develop their
use of information technology and telecommunications. The study showed that 21.3% of all institutions in the
Palestinian territories have used the computer in 2007 while the percentage of institutions using the Internet is
12.7%. The survey results showed that 47.7% of all institutions reported that they will develop information
technology and telecommunications methods and services, with the percentage rising to 84.2% among institutions
that employ ten or more employees.
The previous analysis of the service and trade sectors found the need to support small and medium enterprises in
the development of their work, the most important aspect of which is the marketing side. In addition, the small
size of the Palestinian market was seen and the need to export to foreign markets, with an increased need to
diversify promotion and distribution channels. There is also a need for the purchase of production inputs less
expensive than those from foreign markets; hence the need for support through promotion, marketing and access
to foreign markets requires diversification of means and the use of e-commerce. The previous study showed that
the percentage of organizations that conducted commercial transactions electronically either through the Internet
or networks was 2.3% of the total institutions in 2007. This is a modest percentage which shows the magnitude of
the gap and calls for support. This is the opportunity to work in the field of e-commerce, as well as to develop
web pages for different enterprises and develop different designs for industrial establishments using computer
software and applications.
In addition to the foregoing, the high use of the Internet by the population in the governorate can be an
opportunity for enterprises and institutions to market their products locally and internationally over the Internet
through e-commerce. E-commerce has become one of the most important and largest trade markets worldwide:
whether in transactions that take place between companies or between companies and buyers, or others. The
percentage of online sales multiplied globally since 2000 and the following percentages reflect the growth of the
electronic market worldwide from 2000 to 2009: Africa: 1359.1%, Asia: 516.1%, Europe: 282.9%, the Middle East:
1360.2%, Latin America: 873.1%, Australia: 173.4%).93
The high number of institutions and economic establishments in different sectors in the governorate of Hebron
and their need to develop their business and services has demonstrated the requirement to develop different
programs in Arabic, such as accounting software and others, as well as the need by different economic sectors for
programming. On the other hand, there are many sectors that require the development of a variety of programs
and specialized programs for companies or sectors, and this is what current companies are doing, but the search
for gaps or excellence in the area is possible.
The growth of the construction sector increases the demand for services associated with it, for there is a need in
many engineering and business offices for expertise and competencies in the field of technology. This was
confirmed by Mr. Jamal Juma, director of the Atlas Engineering and Trade Company, and he stressed the need of
the engineering sector for engineers to draw maps in a modern technological way –GIS. They can be hired in the
event that they are available.
IT companies need support and networking with foreign markets; 50% of these companies have a software
development unit and 80% of their employees have a university or postgraduate degree in the field of information
92
(Palestinian Central Bureau of Statistics, 2008. Survey of Business Sector of Information Technology and Telecommunications, 2007: Main
Results, Ramallah, Palestine), 2007
93
http://blog.internetbusinessesforsale.co.uk/e-business/e-business-growth-statistics-2009
64
technology. The biggest problem facing these companies, according to the PITA study, is their weak capacity to
open up new international markets, thus forming an opportunity in the field of marketing the software and
services of these companies regionally and globally. This was also confirmed because a third of the companies that
were researched had an insufficient number of staff and more than half of them need staff in the field of
marketing and sales.94
In addition to the above, the joining of the Wataniya Mobile Company in 2009 in the Palestinian market will create
a kind of competition with the Palestinian Telecommunication Group which will need more effective marketing
services, and the government plans towards e-government in the future could create many opportunities over the
medium and long term.
The following table summarizes the above-mentioned conclusions in the information technology and
telecommunications sector as it demonstrates the strengths, weaknesses, opportunities and challenges for the
sector, resulting from the analysis of statistics and interviews, and derives from this analysis the feasible economic
opportunities that could be set up in the governorate.
Table 4.7.3: Analysis of Information Technology and Telecommunications Sector (Strengths, Opportunities,
Weaknesses and Challenges) and the Resulting Economic Opportunities in the Governorate of Hebron
Activity
Information
technology and

telecommunications







94
Presence of experts and specialists
in the field
Presence of continuous trained
manpower in the field: more than
1500 annual graduates in it
An organized sector with a union
that works to make affect at the
policy-making level and provides
support to its members
Presence of an incubator to support
emerging projects or products of
existing companies
This sector is less affected than
others by the political situation and
closures
High income of workers in the
computer field compared to income
of those in other fields
Global technological development
and its reflection on all sectors; the
need for different sectors to
develop
Rise in average technology use
among the population, doubling of
penetration over five years and
expected growth at a higher rate





PITA, 2008. Assessment of the Palestinian ICT Workforce
65
Intense competition
from companies with
accumulated experience
in the field
Intense competition
from workers in the
field with experience,
who can set up their
own companies if there
is a unique economic
opportunity
Global competition with
countries of Asia and
with India for
subcontracting
Poor legal and
legislative infrastructure
required to facilitate the
work of the sector
Poor external marketing
of companies working in
the field despite the
existence of trained
manpower in software
development and
services
Resulting economic
opportunities








Companies to market
information technology
regionally and
internationally, and attract
work and contracts
Internal and external
marketing companies for all
enterprises using ecommerce and e-marketing
Content development (web
sites for companies and
institutions)
Specialized software
development for various
sectors
Internet providers in case
the market becomes free
technology to develop
designs related to the
construction industry
Offices providing GIS
services
Training centers in
information technology that
are complementary to the









over the coming years

Opportunities to export services,
software and excellent experiences
of those working in the field to Arab 
and international countries
Presence of basic internet
infrastructure
Government attention to the sector
and attempts to free the
telecommunications market and
increase the number of internet
service providers. A future attempt
to establish the e-government
Numerous opportunities for
subcontracting regionally and
internationally
Broad Arab market that needs
software development and services
Rising number of institutions and
the need for use of technology
Need of other economic sectors for
the information technology sector
(e.g. fuel, banks, trade and services)
Need by different economic
enterprises (limited and
incorporated) to develop and export
their products
Plans to attract foreign investors,
e.g.: e-garden, hi-tech park
Poor use of information
technology by economic
establishments
The education system in
Palestinian universities
and colleges focuses on
technical skills and not
on life skills, leadership,
research and deduction
education system
4.8 Traditional Crafts Sector
4.8.1 General Overview of the Traditional Crafts Sector in the Palestinian
Territories95
Traditional crafts are one of the important industries in Palestine due to their cultural, economic, social and even
political dimensions. This industry reflects the culture and heritage of the Palestinian people in their different
classes and orientations, for it is an ancient industry that goes back hundreds and at times thousands of years. Part
of it is associated with the Palestinian’s presence on the land of Palestine where these crafts are inherited from
one generation to another. On the other hand, craft industries form a source of income for thousands of
Palestinian families, essential to some or supportive to others, which is important in light of the economic
conditions facing the Palestinian people.
Most traditional industries, whose numbers range between 17 to 18, are considered fortunate in comparison to
many others that have begun to suffer in the era of free trade, the GATT agreement and the reduction or
95
Sources for this part of the report:
http://www.turathcenter.com/arabic/vendors/vendors.html
http://www.alwatanvoice.com/arabic/news/2010/02/17/146624.html
http://www.insanonline.net/news_details.php?id=2896
http://arabic.pnn.ps/index.php?option=com_content&task=view&id=52631
http://www.hebron-city.ps/atemplate.php?id=14
Palestine Economic Policy Research Institute (MAS), Unregulated Trade Industry Sector in the Palestinian Territories: Reality and Horizons, 2006
66
elimination of taxes on imported goods, which put a lot of these industries into serious difficulty. Meanwhile, most
traditional Palestinian industries are characterized by excellence and specialty globally, making most of them
viable for export such as ceramics, pottery, glass, olive wood, mother of pearl, mosaic, etc., and to compete
globally in the most difficult circumstances in terms of quality and price. The United States, most European
countries and Australia are potential markets for the traditional industries of Palestine, in addition to some Arab
countries, especially Jordan and the Persian Gulf countries. Even many countries in Africa are in fact potential
markets for these industries.
There is no doubt that some of these industries have continued unchanged since ancient times and others have
introduced some aspects of evolution, though slight, in the equipment and tools used. They worked with all their
capacity and abilities for the advancement of these industries over the years using simple machines, equipment
and possibilities. The following statistics show the evolution of crafts in Palestine:
• 3% of handicrafts workshops that are still in operation in the region were founded in 1925 and are in the crafts of
ceramics, fur, carpets and embroidery.
• Approximately 9% of these workshops were founded in 1925-1950. In addition to the industries mentioned
above, they include workshops to make pottery and furniture made from bamboo.
• 23% of the workshops were founded in 1951 - 1967 during the period of Jordanian rule in the West Bank.
• The period between 1968-1977 saw the establishment of 31% of industrial craft workshops, due to increased
demand from tourists for these products, particularly olive wood and mother of pearl.
• 34% of the workshops began work in 1977 - 1986 and most were olive wood workshops. In 1993 - 2000 there
was prosperity and recovery in the Palestinian handicraft industry where the recovery of tourism and preparations
for the year 2000 contributed significantly to this prosperity.
The Union of Traditional Industries, which was formed in mid-1997 of workers in some 17 different traditional
industries, is currently working to establish a center for the development of Palestinian craft industries, which
would be considered one of the most important tourist landmarks of Palestine. Nearly eighty operators have
joined this union so far, and among its goals is to defend the interests of its members, protect their rights,
creations and designs, work to preserve the traditional Palestinian quality and character of these industries,
participate in local and international exhibitions and work to raise the export ratio in collaboration with the
ministries concerned, by opening foreign markets for export and promotion of Palestinian goods in the countries
interested in importing traditional Palestinian crafts.
Traditional handicrafts suffer from stumbling blocks and difficulties outlined in many studies and associated with
the political situation, closures, siege and fall of tourism in some years, which put them through a number of crises
that threaten their existence, continuity and future. The biggest problems of the sector are summarized as follows:

The existing political situation in the region has had a negative impact on the tourism industry and on
handicrafts and their products.

Funding problems: in most of the factories, production depends on simple devices but their cost and
maintenance is very high. The main reason behind the low technical level of these industries is the lack of
funding sources (technical development loans, for example) for the purchase of modern equipment.

Global competition began to appear recently from Asian markets, especially in the Arab markets and during
the pilgrimage season in Saudi Arabia and in Europe. This competition has become a major problem for
producers of mother of pearl because producers in those countries are willing to sell their products at low
prices due to the automatic manufacturing process, low salaries and cheap raw materials in their country.
67

Israeli competitive products especially cheap copper ones.

Abandonment of labor and skilled craftsmen for these crafts as a result of the reduction in their work and the
closure of factories since it is not easy to replace these skilled craftsmen; these crafts require workers with a
high level of skill and long experience.

Ineffective marketing strategies: despite the establishment of a cooperative local market, cooperation and
coordination between producers is still weak and does not include large factories. There is no protection for
the rights of producers and artists; their products do not carry the signature of the manufacturer or the artist.

Lack of existence of a coordinating body to develop this sector and market its products.

Exaggeration in the price of the product to cover the commission of brokers, tour guides, tourist offices and
the percentage of the Middle Eastern crafts shops.

The tradition of craftsmen, their fear and resistance to any change, which characterizes most workers:
craftsmen, artisans and workshop owners in this field.
There are hundreds of workshops in various crafts, some of which are registered and others that work informally.
Most of them are family workshops. They are concentrated in (but not limited to) specific governorates and sites
such as the formation of olive wood and mother of pearl in the governorate of Bethlehem, porcelain, glass,
pottery, rugs and robes in the governorate of Hebron, baskets, bamboo and straw in the Jordan Valley, weaving
and carpets in Gaza and soap, straw and bamboo in the governorate of Nablus. Palestinian embroidery is spread in
all governorates.
4.8.2 Situation of the Traditional Crafts Sector in the Governorate of Hebron
Hebron is famous, like other governorates, for traditional crafts which are one of the important sectors that
contribute significantly to the employment of the workforce, self-employment and GDP. Of Hebron, it is worth
mentioning that the craft sector is linked to and depends heavily on the tourism sector. Thus, any study of the
situation of the crafts sector and the prospects for its development should not be conducted in isolation from the
situation of tourism in the governorate, and the significant changes that it underwent during the last period.
The making of pottery, ceramics, glass and rugs are some of the most important traditional crafts that the
governorate is famous for:
- Pottery and porcelain: Hebron is currently the top Palestinian city in the production of pottery and porcelain, and
pottery dates back in Palestine to more than 4000 B.C., where Palestinian farmers were using pottery to store their
crops and as vessels for food. Many in the different governorates kept this craft, including Hebron, and the
mountainous soil of the West Bank lands is one of the finest soils in the manufacture of pottery because it gives it
beautiful colors, resilience and strength. The soil of the plains in the Gaza Strips is also characterized by its soft
texture, and artisans in the profession of pottery work to mix the two types of soil and produce clay mud that
combines all the required specifications for the manufacture of the finest types of pottery. Pottery making is one
of the primitive and oldest industries among the traditional industries in Palestine, which did not develop, and
work in it continues to assume a traditional, family and domestic nature. As for the ceramics industry, the first
factory was established in Hebron in 1962 and the industry flourished over the past decades in terms of being
associated with this city; the number of factories increased to more than thirty before the start of the Aqsa
Intifada, then dropped to less than half at the beginning of the intifada and recovered a little at the present time.
There are currently about 200 workers in the industry at an average of 10 workers in each establishment, and the
value of annual production for the industry is $3 million, of which 30% is marketed locally, 40% is exported to Israel
and 30 % is exported abroad especially to the European Union and the United States, as well as some Arab
countries. Raw materials of clay or white mud, glass powder and paints are imported from Europe and there have
been attempts by local manufacturers to produce raw material locally, but production costs were higher than the
cost of import because of the lack of all the required natural materials in the soil of Palestine.
68
- Traditional manual glass making: There are four factories with about 30 workers in the glass making industry,
trained by working in the factories of their fathers as this industry is dominated by the family style like others.
Perhaps the most important requirements of work in the glass profession is to withstand the hardship of work in
front of incinerators, and a creative and artistic spirit which enables the work to acquire the skills of glass
formation. The making of glass relies on local raw materials which are often remnants of glass, so the industry is
environmentally friendly. Despite this, the incinerator ovens that still use diesel oils and environmentally harmful
fuel are one of the most important problems that must be addressed for the development of this industry using
scientific methods that keep pace with environmental requirements. Studies have estimated annual production at
$0.5 million to $1.5 million. The distribution of markets for glass products is in the form of 50% marketed to Israel,
40% to Europe particularly in exhibitions and 10% to Arab countries, mainly Jordan. There are four manual glass
factories in the governorate of Hebron and one in Nablus, with about thirty workers in the industry. There is no
doubt that the current political situation has greatly affected the industry through the blockade or through the
barriers between the cities of Palestine itself, in addition to constraints on the movement of export to the outside
and the lack of tourism, which threatens this craft with extinction. More than half of the annual production is
exported.
- Hand embroidery and rugs: Embroidery on clothing and fabrics is one of the popular crafts handed down through
generations of women, for they are an essential part of Palestinian heritage. The craft of embroidery depends
heavily on female labor, particularly in rural areas and in some Palestinian cities. Form sand methods of
embroidery differ on dresses and fabrics from one region to another, where each region is characterized by its own
way of embroidery. The importance of this craft stems from its being an essential component of the Palestinian
traditional dress. These dresses have characterized Palestinians from other peoples of the world and the region,
and contributed in the past and at present to highlighting the Palestinian identity on the regional and international
levels through participation in various exhibitions around the world as a historical and cultural heritage unique to
the Palestinian individual. This traditional, inherited industry faces competition; Israeli fashion houses use cheap
labor from Palestinian women to create embroidered clothing for these houses, who then display it at
international exhibitions. The production of embroidery also relies heavily on manual labor done by women in
their homes or through associations and women's centers involved in this area, where more than 4000 Palestinian
women work in the production of embroidery and they are dispensed in different areas in the Palestinian
territories. In addition to the work of women in their homes or through associations, there are a number of
Palestinian merchants who market embroidery that is acquired through the employment of women in their homes
to produce a certain amount of embroidery, or through the purchase of ready-made pieces from women directly
(Association of Qalandya refugee camp, 2000). Hebron, like other governorates, is characterized by this craft and
has its own character of embroidery but there are no accurate statistics about the craft as it relates to informal
work. Many women in different villages of Hebron also work on the production of rugs of hair and wool extracted
from livestock and which it is possible to invest in and develop.
4.8.3 Gaps and Opportunities in the Sector96
Given the reality of traditional crafts in the governorate of Hebron which is part of their reality in the Palestinian
territories, this sector faces many challenges and problems on more than one level. In terms of production, these
industries face a range of difficulties relating to access to additional imported raw materials which are used in the
production process, and that machinery and equipment used in production are still rudimentary and do not
achieve productive efficiency, in addition to the problems of scarcity of skilled, trained manpower, whether due to
a shift of some skilled workers from these industries to other occupations more stable and profitable and less risky,
or because of the limited number of institutions and training centers that provide skilled workers. On the other
96
Source for this part: Palestine Economic Policy Research Institute (MAS), Unregulated Trade Industry Sector in the Palestinian Territories:
Reality and Horizons, 2006 and Al-Tamami, Nader Jalal – Traditional Industries in Palestine: Study presented by the General Association of
Traditional Industries in Palestine to Donor Institutes, in addition to meetings and discussions
69
hand, crafts suffer from many problems related to aspects of marketing: these industries rely, in most part, on the
demand of foreign tourists for their products as well as external demand of international countries. Both sources
have been influenced in recent years by political and security situations and the accompanying Israeli procedures
and obstacles, where these measures resulted in a large decline in demand for craft products. In addition, there is
limited benefit to those working in craftsmanship from some means of promotion such as local or international
exhibitions as appropriate. Business owners also suffer from difficulties in access to local and global markets, and
most workers in craft industries lack strategic marketing plans, where they do not show the necessary interest in
operations of packaging and final finishing.
Here, there are economic opportunities available in the area of support for these crafts, in the sense of developing
designs and marketing support through economic projects providing these services. Creativity, modernity and the
use of technology can add significantly to develop the production of these crafts and their marketing. This was
confirmed by Mr. Nader Jalal Tamimi in a meeting with him. An increase in the number of domestic tourists and
those in solidarity with Hebron was apparent during the last period, which creates the need to go to these target
groups in order to change designs and forms and meet their resulting requirements.
The following table summarizes the above conclusions resulting from the analysis of the traditional crafts sector, as
it demonstrates the strengths, weaknesses, opportunities and challenges for the sector, and derives from this
analysis the feasible economic opportunities that could be set up in the governorate.
Table 4.8.1: Analysis of the Traditional Crafts Sector (Strengths, Opportunities, Weaknesses and Challenges) and
the Resulting Economic Opportunities in the Governorate of Hebron
Activity
Strengths and
opportunities
Traditional crafts







Connection of
Palestinian culture to
the monotheistic
religions, making it a
worldwide culture.
Demand for traditional
Palestinian crafts in
international markets.
Diversity of these
crafts.
Their direct, close
connection to the
tourism sector.
Presence of a large
number of factories
which need skilled
craftsmen for drawing
on glass, ceramics and
pottery.
Scarcity of craftsmen
for drawing on glass,
ceramics and pottery
and thus the need for
such workshops.
Increased demand for
traditional products
both by the local
Weaknesses and
challenges







70
Import restrictions for
some raw materials
required for these
industries.
Israeli competition
which considers some
of these crafts as
Israeli culture.
Marketing and export.
Need for these
products to fit
different tastes of
tourists, which make
mechanization
difficult, thus they
remain mostly hand
products that need
high skills.
Low quality of hand
products.
Factories draw on
glass, ceramics and
pottery in-house.
Presence of many
embroidery
workshops inside
homes and individual
Resulting economic
opportunities




Professional workshop
(to draw on glass,
ceramics and pottery,
which could be done
individually or
collectively for large
factories).
Embroidery hand
project such as rugs.
Projects offering
various creative
designs for different
crafts.
Companies specialized
in marketing and
exporting these
products.


population and by
tourists.
Increased
international demand
for these products.
Lack of specialized
companies to market
and export these
products.

work in the sector.
Export restrictions.
At the end of the third part, the economic opportunities of the eight sectors were collected and four key sectors
were selected as priorities matching the target groups, according to the priorities of the governorates and meet
the objectives of the project, namely: agriculture, industry and include the environment, services and information
technology. In the next part will be adapted to economic opportunities resulting from in-depth analysis of sectors
with different target groups and develop appropriate community-based training
71
Part Four: Matching Economical Opportunities with Characteristics of Targeted
Categories and Required Training
Chapter Five: Summary of Opportunities in Hebron97
First: Agricultural Sector
Activity
Animal production
and related
activities
Economic
Opportunities
Veterinary clinics for
vaccination and care of
animals
Justifications
The existence of a large
number of animal farms
which need experts in
animal care
Scarcity of experts in
animal care.
A work shop for the
maintenance of milking
machines and milk
containers
The lack of machine
maintenance in the
province
that need that service
The level of Opportunity
High due to the presence of animal
farms in the province, where the
number of sheep rises up to
250 000 sheep and 7000 head of
cattle and there are 72 veterinary
clinics that do not suffice
There is a need due to the lack of a
workshop for machine maintenance
specialist in this area and the
presence of large numbers of animal
farms; however, the number is
medium for these workshops to
provide services for a number of
farms.
97
Characteristics of the Target
People
Degree in veterinary
medicine.
98
Required Training
Experience in the field of
caring and vaccinating
animals.
Certificate in the technical/
professional field. Experience
in the maintenance of
milking machines and milk
containers or a degree in
Mechanical or Agricultural
Engineering- Animal
Production with an
experience.
Advanced short courses in
the maintenance of
milking machines and milk
containers
All the opportunities that are listed have feasibility, but the required number varies: Color key: Red: high opportunities / High - (7-10) opportunities, Green: Medium opportunities - (4-6)
opportunity, Yellow: limited - (1-3) opportunities
98
Everyone needs to do an economic feasibility, and courses on (how to start your own project), and (management skills)
72
Small animal feed
factory ( It can use new
technology to reduce
the cost)
which consume large
quantities of feed.
High prices of imported
feed.
High because of the existence of large
livestock in the province and also as a
result of high consumption of meat in
the province and the high prices of
imported feed
Experience in the
manufacture of animal feed
and the management of
factories
Training on marketing
skills
Advanced short courses in
the area of specialization
(manufacturing animal
feed)
However, the number is medium for
these factories to provide services for
a number of farms.
imports in general.
Animal production
and related
activities
Plant production
and related
activities
Bees farms
Greenhouses for
vegetable farms
The Ministry of
Agriculture and some of
the institutions have
developed modern
techniques by using
organic materials
Mass consumption of
honey in the province
Despite the existence of
beehives in the province,
it imports honey worth
$16,380 annually from
abroad.
There is agricultural
produce of vegetables in
the province and exports
worth $165,620 for the
year 2008
High: Due to the high consumption in
the province and the number of
beehives does not suffice
beekeeping
Moderate: the high consumption in
the West Bank and the existence of
expertise
Experience in the cultivation
of vegetables and care for
greenhouses
However, the water crisis makes it
moderate
The demand in the West
Bank exceeds that.
The high consumption of
vegetables
The existence of large
tracts of land, which
could otherwise be used
in agriculture
73
Training in bee-keeping
Training in the skills of
sales and marketing
Agricultural guidance
sales and marketing
Plant production
and related
activities
Centre for agricultural
services in the area of
feeding, spraying,
plowing and
installation for home
gardens
Center Specialized in
the installation and
equipping of
greenhouses and the
irrigation systems
The existence of a
number of home gardens
that are in need of such
service, it exceeds
40,000 houses in the
province
The existence of a
significant number of
fruit trees
There are about 57 483
fruit trees in the
province
lack of adequate
experience in farmers in
the design and technical
construction of plastic
houses positioned to
collect rain water during
winter
Moderate: the owners of the gardens
taking the responsibility themselves in
caring for their gardens
Degree in the technical field
Training to increase skills
Experiences in the field
Agricultural guidance in
the risk of agricultural
materials
High: because of the adoption of
farmers to greenhouses in
agriculture, and the presence of 750
acres of greenhouses in the province
Experience in installing
greenhouses
Training in advanced skills
in the installation of
greenhouses
Medium: Because the need is high
however, the technical requirements
are high and need experts in this area
(a study and research conducted by
the Ministry of agriculture indicated
74
Degree in Chemistry and
other relevant disciplines
Also a certificate in
Environment
Scientific degrees in the field
of irrigation systems
There is a lack of
experience in designing
irrigation systems that
reduce water
consumption
A small fertilizer
factory that depends
on natural production
Water scarcity in the
province
Availability of
agricultural residues and
animal wastes
Need of fertilizers
Specialized training in the
field of fertilizers, their
manufacturing and
occupational safety
introduction of fertilizers
to the Palestinian
territories
the possibility of the provision of
fertilizers produced locally and at low
prices from some remnants of plants)
High experience in the field
People
Experience in the use of the
devices used for delivery of
services (fax, photocopying
machine, printer, computer)
Second: Service99 Sector100
Activity
Economic Opportunities
Justifications
The level of Opportunity
General Services
Photocopying center and
general services
The large number of the
residents of the province
and the need for such
services
Medium: Because a large number of the
residents of the governorate complete
their transactions in the city of Ramallah
101
Required Training
Advanced short courses in the
use of the devices used
(computer, fax, printer,
photocopying machine)
Training in personal skills and
communication
General Hospitality
Services
Insurance
Occasions services
company (providing food
and drink on special
occasions, cooking,
serving coffee)
High population of the
province and their many
occasions
Insurance offices
The existence of twenty
insurance agents in the
province for seven
insurance companies and
this number is not enough
and therefore the province
needs 6-8 insurance agents
(according to a study made
by one of the insurance
agents in the province )
The diversity of insurance
The difficulty facing the host
in providing the appropriate
services to the guests for
being busy with his/her
guests.
Moderate (because the rate of weddings
is 20 weddings a week)
Experience in the culinary art,
presentation and preparation of
coffee
Cookery courses
Degree in Accounting or
Management
Course in the area of
insurance laws and
regulations
It can be done in occasions other than
weddings
High: for lack of insurance offices available
in the province as a result of the rising
population, rising numbers of cars,
factories, enterprises and the increase in
insurance services
99
All opportunities in the field of services need courses in communication and dealing with the public
Add marketing and sales office
101
100
75
insurance
Training in communication
skills
marketing and
communications
services, (car insurance,
factories, fire insurance,
health insurance, projects
insurance and others), and
thus the need for insurance
offices is high
The increased number of
cars and factories in the
province
Sales and Marketing
Cleaning and
maintenance services
Sales and marketing
offices
Maintenance services
companies,
(maintenance of
building, electricity,
sanitary extensions,
elevators and others)
Cleaning companies
(cleaning of buildings,
houses, offices)
The need for marketing
services and production
through sales such as the
sale of insurance services
(access to institutions,
companies and people) the
sale of new products
through access to meet the
final consumer: the need to
provide a network of sales
representatives
The rising population and
therefore the increased
number of buildings
Vertical expansion in
buildings because of the
limited space allowed for
building and thus increases
the number of residential
buildings and increases the
need for maintenance.
Limited: There is a demand, however,
limited due to the ability of one
opportunity to serve several enterprises
Degree in the field of Marketing
or Management
marketing and
communications
marketing
High: due to population growth and thus
the increase in the number of houses and
buildings, where the number of houses is
87 645 and the number of buildings
73 825
High: due to population growth and thus
the increase in the number of houses and
buildings, where the number of houses is
87 645 and the number of buildings
73 825
University degree or in the
technical field (building
maintenance, electricity,
sanitary installations, elevators
and others)
Experience in this area
cleaning
Advanced short courses in the
maintenance of elevators, the
extension of electricity, and
maintenance of buildings)
skills and the promotion of
service
Rising population and
therefore increasing the
number of buildings
Services for women
Services Office (to
provide services to
women at occasions and
to be provided by
women such as serving
food, drink,
increased number of offices
and institutions in the
province
The Palestinian society in
the province(is conservative
and therefore there is an
urgent need to provide
females in order to provide
these services)
Medium: This is because the number of
women in the province is 284.668, but
with a reservation on the employment of
women in this area
76
Experience in providing services
and photography
Courses in the area of
communication and dealing
with the public
photography, and music
(DJ) during parties and
special events
Physiotherapy center for
females
Specialized Travelling
and Tourism
Other service activities
(home nursing):
- Travel and Tourism
offices to provide
specialized services
(arrangement of internal
and external trips, hotel
reservations, travel
arrangements for
businessmen and
arrangements with the
commercial and
industrial exhibitions and
the relevant companies)
Offices for the provision
of tourist guides
Service office (the
provision of nurses and
workers to care for the
elderly in homes
Lack of Physiotherapy
centers for females
Certificate of specialization in
physiotherapy
High number of females in
the governorate
Medium: due to lack of special centers for
women and the availability of workers for
both sexes in the physiotherapy centers
available in Hebron and the high number
of females
The customs and traditions
that prevent going to
Physiotherapy therapy
centers, especially when
males and females are
together
- Large numbers of pilgrims
to the Holy Land each year.
medium: Because of the availability of
some services through the Internet
experience without the need for
a specific level of education
skills
Experience in physiotherapy
Public relations skills
Marketing and services skills
- The increased business
sector in the governorate of
Hebron and businessmen’s
need for travelling
number of archaeological
and tourist sites in the
province and thus increasing
the numbers of tourists to
the province
The absence of centers and
homes of the elderly due to
the customs and traditions
that prevent older people
from being sent to the
homes of the elderly and
therefore there is a need for
such offices to provide such
service
It is preferable to have
experience
Use of all the means of
communication and the internet
Medium: due to the presence of many
archaeological and tourist sites, and the
influx of tourists to the province and the
unavailability of a tourist guide in Hebron
Certificate in the field of
(history, languages, tourism and
archeology) with experience
Advanced course in languages
skills
Experience in marketing
Moderate: because of the customs and
traditions that prevent the introduction of
such a profession especially for females
77
Certificate: Nursing
Experience in the care for older
persons
Training in marketing
A course in communication
Third: Industrial Sector
Activity
Opportunities
Justifications
Level of Opportunity
Solid Waste
Waste collection in some
communities, sort and
re-use of environmental
waste and selling them
as inputs to production,
(plastic, glass).
Large quantities of waste
Very high (450 tons per day of waste, the
large space of the province, the Joint
Council Project)
Food and Beverage
production: (Fruits
especially grapes)
specialized recycling
centers (in the field of
organic fertilizers,
rubber, paper, metal,
glass)
Manufacturing jams and
drying fruit projects
Manufacturing Juices
and treacle projects.
The confiscation of lands,
which were used as wastes
landfills, which produce
large quantities of waste in
and near population centers
benefit from landfill lands
for agriculture and for other
purposes
Large quantities of
production as shown in the
analysis of the agricultural
sector.
Projects for filling,
packaging and marketing
of these products.
People
-Sorting and selling skills, and
the ability to move
102
Required Training
Selling and marketing skills
- No need for a specific level of
education
Limited: needs specialization (from within
the plan of the Joint Council to instruct
the private sector to manage and operate
the recycling units)
Specialization in environment
The need is high and the available
quantity is limited (especially with grapes,
where there is a surplus of production 40
000 tons of which 30% is only consumed).
There are opportunities for production in
cheap costs.
Medium because the marketing project
can serve many productive projects
experience without the need for
a specific level of education or a
degree in the technical field, or
both
Quality inspection training
Business Administration and
Marketing graduates
Local and international
marketing and its
requirements
Capital
link with specialized guidance
Advanced marketing skills
Manufacture of dairy
products (milk, cheese,
butter, margarine).
Furniture and wood
work Production
102
Workshops for
manufacturing of
furniture in a specialized
manner (doors, kitchens,
High demand on these
products
Imports: $11,592,700 from
dairy products (2008)
Exports: 1,601 (2008)
There is excellence in the
production of margarine
(export $222,99 and there is
no import)
High urban development.
Growth towards the nuclear
family in the Palestinian
society. Growth in the
High: (surplus milk production. The
production is 40 355 and what is needed
is 31236 tons)
Experience, degree or both in
the technical field
Medium for being related to population
growth and development of construction
but there are workshops available
Vocational certificate with
experience
78
Quality inspection training
link with specialized guidance
upholstered sofa and
chairs ...)..
Specialized workshops
for installation
especially the imported.
Metallurgical industry:
Factories’ maintenance
services
Workshops for
manufacturing of
aluminium (windows,
kitchens ...).
specialized engineering
offices and contracting
with factories for routine
maintenance
Use of technology to
design and manufacture
required spare parts.
Specialized centers for
the design and
manufacture of spare
parts.
number of housing: the
number of occupied housing
units in 2007 in the
governorate is87 645
dwellings and an increase in
building permits as the area
licensed for construction has
reached 395.5 thousand
square meters (840 license
in 2008)
High urban development (as
the previous)
Large number of factories
(2667) and machinery.
High numbers of engineering
graduates (mechanical,
electricity) and their
direction far from
occupations.
-large numbers of graduates.
-A meeting with the Union
of the food industry: in
1995, 95% of the machines
were imported while now
only 65% is imported and
the rest is locally
manufactured
-The need for spare parts.
Medium because the import is prosperous
and it is related to population growth,
medium for being related to openness to
the imported.
Vocational certificate in
Carpentry with experience and
the ability to read the catalogue
Medium (There is a need), however, there
are workshops in the field
Experience or certificate in the
technical field
High: and needs specialization. (About
25% of the industrial facilities in the West
Bank are in Hebron).
Certificate in Mechanical
Engineering / Electrical
Engineering / Micro tech or
Technical Engineering with
experience in the field
Advanced course
Medium (linked to the number of
graduates with the specialty in
production and machinery)
Technical certificate in
production and machinery, or
an industrial school
Specialized manufacturing
skills
Project managing and
contracting skills
Degree in the field of
manufacturing machinery and
spare parts from an Industrial
School / vocational training
center
Fourth: Information Technology Sector
Activity
Opportunities
Justifications
Level of Opportunities
Information
technology to support
the industry
technology for: - Doors,
Kitchens, Wooden
Furniture....
- Protections and metal
doors
The need to develop
designs for the multiplicity
of tastes
Medium: the need exists, but one project
could cover many workshops
It is possible that one
103
There is an opportunity to
increase demand and
population growth is
associated with wood
79
People
Experience with a technical
certificate or college degree
(Architectural Engineering or
Decoration) with the
knowledge of the use of
AutoCAD, and computerized
decoration programs). Or
certificate in Information
103
Required Training
Training in design and
creativity
Development of
contents
The development of
specialized computer
software
The development of
computer software
office can serve both
sectors (wood and metal
productions), or to
specialize
The development of
web pages, the
development of internal
and media materials
The development of
specialized application
software for different
sectors (in Arabic:
Accounting Software,
etc.)
the development of
computer software in
Arabic for different
topics: educational,
administrative,
accounting for
marketing in the Arab
world
industries
The high numbers of
graduates
Increased use of
information technology in
the Palestinian community
The existence of many
economic establishments
that need this service
Demand from business
owners to use the
applications of technology
in practical life)
The high numbers of
graduates (specializing in
information technology and
other disciplines).
The high numbers of
graduates (specializing in
information technology and
other disciplines). Arabic
language and the possibility
of marketing for the Arab
World
Technology with professional
experience
High: The existence of a need for
communication and marketing from
facilities, and development, and the
increased number of computer users
over the past 5 years
Degree in information
technology and the probability
of using specialists when
needed with experience in the
field
Moderate: There is a demand, but the
same project covers many facilities
More than one (Certificate in
Information Technology +
specialized certificate)
limited: based on advanced skills and
high ability to identify the need and
marketing (and there is an Arab
competition)
Certificate in Information
Technology and an experience
and high capacity to develop
programs
Training in studying the need
and marketing
People
Experience without a specific
level of education
Required Training
Experience without a specific
level of education
The skills of sales and
marketing
Fifth: Trade Sector:
Activity
Opportunities
Justifications
Trade Sector
Shops for specialized
clothing (children
clothes, heritage
clothes,...)
Population growth and thus
an increased need for
clothing
Medium.: Because of the availability of a
large number of shops that sell clothes in
the province
The entrance of the Arabs
of 48 to the Palestinian
territories
Boycotting goods from the
settlements and therefore
Limited..(Hebron consumes about 8801
tons of food per month with the
Shops for food
104
80
104
Marketing and sales skills
the opportunity exists for
the consumption of
imported food
exception of meat, milk and eggs)
Training on the skills of sales
and marketing
The rise in population that
increases the consumption
of food
Specialized stores for
food products
manufactured locally
The presence of large
quantities of locally
produced food.
Medium: Because a large number of
shops are specialized in selling local
products
Experience in the field of sales
without a specific level of
education
skills and dealing with the
public
The skills of sales and
marketing
Training on the skills of sales
and marketing
Buying the local products
because of the law of
boycotting goods from the
settlements
skills and dealing with the
public
The rise in population that
increases the consumption
of food
Sixth: Traditional Crafts
Activity
Opportunities
Justifications
Traditional Crafts
Craft workshop (painting
on glass, pottery and
porcelain) and can be
done individually or
collectively for the
benefit of large factories
number of factories which
need craftsmen specialized in
painting on glass, porcelain,
and pottery.
Moderate: Factories paint on glass,
ceramics and pottery inside the
factories, it is possible to benefit from
the internal tourism or the possibility of
finding opportunities for foreign
marketing
Embroidery and hand
textiles project
Increased demand for
traditional products, whether
by locals or tourists
Increasing global demand for
these products
Medium: Because there are a lot of
workshops on embroidery in houses
and working individually in this field
Limited: There is demand but it is
limited
Companies specialized in
marketing and exporting
of such artifacts
lack of specialized companies
for marketing and exporting of
these products
105
81
People
Experience, capabilities and
talents in painting on glass
105
Required Training
Training in marketing skills
Talent and experience without a
level of education
Sales and marketing skills
Degree in Management /
Marketing with a knowledge in
the skills of electronic selling
and the use of the means of
communication
Sales and marketing skills
Seventh: Construction and Buildings:
Activity
Construction and
buildings
Opportunities
Justifications
Engineering offices
specialized in the field of
real estate and
contracting.
There are a large number of
construction projects
Medium: Limited number (many of the
projects are awarded to companies
from outside the province because of
their scarcity)
paint and decorations
workshops
the general attitude of citizens
to the execution of decor in
homes and institutions (for
new buildings and for
renovation as well)
urban development and the
general attitude of the public
to building technology
specialized workshops in
the work of building
services (establishment
and installation of
electrical systems,
sanitation, elevators, fire
extinguishers and alarm
systems)
106
106
People
Certificate in Engineering with
an experience in the field of
enterprises
Required Training
high (there are graduates in this
specialization, but they need
rehabilitation)
Degree in Decor (technical /
university) or a certificate in the
field of vocational / technical
advanced courses in innovation
in the field of decoration
high (many projects and the availability
of graduates at all levels of work)
Experience with both
Certificate in the technical /
vocational field
82
project management, and
contracting skills
advanced courses in the area
of specialization (sanitation,
elevators and fire
extinguishers)
List of Sources and References
List of Arabic Sources and References:
1.
Ahmed Jallad. 2009, Empowering Small and Medium Establishments in Applying the Standards of International
Production, First Edition, Ramallah, The Palestine Economic Policy Research Institute (MAS)
2.
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3.
Qaisi - Mohammad Rajai: an article in Al-Quds Newspaper March 12, 2009 "Reasons Behind the Decline of National
Industry"
4.
Anton Sabella, 2009, Marketing the Products of Small and Medium Establishments, First Edition, Ramallah, The
Palestine Economic Policy Research Institute (MAS)
5.
Oxfam – Partnership- Partners in Creative Solutions, Analysis Study of the Impact of Microfinance on the Lives of
Male and Female Borrowers, Ramallah 2009.
6.
Basim Makhoul, and Awad Abdul Karim. 2006. Construction Services in the Unorganized Sector in the Palestinian
Territories: Reality and Prospects. First Edition, Ramallah, The Palestinian Economic Policy Research Institute (MAS)
7.
Basim, Makhoul, and Fadi Kattan. 2006. The Unorganized Crafts Sector in the Palestinian Territories: Reality and
Prospects, First Edition, Ramallah, The Palestinian Economic Policy Research Institute (MAS)
8.
The National Economic Dialogue Program, November 2008, The Third Conference Papers, supported by (SIDA)
9.
Al-Ja’far, Makhol, Lafi and ‘Atyani, 2003, The Palestinian Services Sector and its Role in the Economic Development
Process, The Palestinian Economic Policy Research Institute (MAS) Ramallah
10. The Palestinian Central Bureau of Statistics 2009, Statistics on Land Utilization in the Palestinian Territories 2008.
Ramallah, Palestine
11. The Palestinian Central Bureau of Statistics 2005, Geographical Statistics in the Palestinian Territories 2005. Ramallah,
Palestine.
12. The Palestinian Central Bureau of Statistics, 2009, the Tracked External Trade Statistics – Goods and Services. 2008:
Key Results, Ramallah, Palestine.
13. The Palestinian Central Bureau of Statistics 2009. The Conditions of Palestinian Population Residing in the Palestinian
Territories. 2009. Ramallah, Palestine.
14. The Palestinian Central Bureau of Statistics 2009. Statistics of Water in the Palestinian Territories: Annual Report
2008. Ramallah, Palestine.
15. The Palestinian Central Bureau of Statistics 2009. The General Census of Population, Housing and Establishments2007: The Population Report. Ramallah, Palestine.
16. The Palestinian Central Bureau of Statistics 2008, The General Census of Population, Housing and Establishments
2007: Economic Establishments, Final Results, Ramallah, Palestine
17. The Palestinian Central Bureau of Statistics, 2009, Report on Households and Individual’s Access to the Information
Technology and Communications. Ramallah, Palestine
18. The Palestinian Central Bureau of Statistics, 2007 Poverty in the Palestinian Territories 2006: Key Results Report.
Ramallah, Palestine.
19. The Palestinian Central Bureau of Statistics, 2010. National Accounts at Current and Fixed Prices (2007, 2008) (2007,
2008), Ramallah, Palestine
20. The Palestinian Central Bureau of Statistics 2009, The Social, Family, Marital, Educational and Economic
Characteristics of Households in the Palestinian Territories (1997-2007), Ramallah, Palestine
21. The Palestinian Central Bureau of Statistics 2009, The Series of Executive Reports of the Governorates (07): Ramallah
and al-Bireh Governorate. Ramallah, Palestine, 2002
22. The Palestinian Central Bureau of Statistics 2009, The Annual Statistics Book of Ramallah and al-BIreh Governorate:
(1), Ramallah, Palestine
A1
23. The Palestinian Central Bureau of Statistics 2005. Consumption Quantities of Food Commodities by the Domestic
Sector in the Palestinian Territories 2004, Ramallah, Palestine
24. The Palestinian Central Bureau of Statistics, 2008, Tourism Activities Survey 2007: Key Results, Ramallah, Palestine
25. The Palestinian Central Bureau of Statistics, 2009, Household Environmental Survey, 2009, Key Results, Ramallah,
Palestine
26. The Palestinian Central Bureau of Statistics, 2002, The Internal Trade Survey 2000: Key Results, Ramallah, Palestine
27. The Palestinian Central Bureau of Statistics, 2008, the Population Clusters Survey: 2008- Key Results. Ramallah,
Palestine
28. The Palestinian Central Bureau of Statistics, 2006, Survey on the Conditions of High Education and Vocational Training
Graduates– Key Results: 2006, Ramallah, Palestine
29. The Palestinian Central Bureau of Statistics, 2008. Survey of the Business Sector for Information Technology and
Communications, 2007: Key Results, Ramallah, Palestine
30. The Palestinian Central Bureau of Statistics, 2004. Survey of the Unorganized Sector- 2003: Key Results, Ramallah,
Palestine
31. The Palestinian Central Bureau of Statistics, 2010, The Labor Force Survey: Annual report: 2009, Ramallah, Palestine
32. The Palestinian Central Bureau of Statistics, 2010, The Labor Force Survey: A training (January- March, 2010) The First
Quarter 2010, A Press Report on the Labor Force Survey Results, Ramallah, Palestine
33. The Palestinian Central Bureau of Statistics, 2009. Survey of Domestic Tourism 2008, Key Results, Ramallah, Palestine
34. Ramallah, Palestine
35. The Palestinian Central Bureau of Statistics, 2010. Survey of Olive Presses 2009. Key Results, Ramallah, Palestine
36. The Palestinian Central Bureau of Statistics, 1999. Survey of Ownership and Access to Sources. Ramallah, Palestine
37. The Palestinian Central Bureau of Statistics 2009. The Final Results of the Census- A Summary of the Population,
Buildings, Housing and Establishments – (Ramallah and al-Bireh Governorate). Ramallah, Palestine
38. Palestine Trade Center (Pal Trade), 2010. Exporters Directory. Ramallah, Palestine
39. Randa Hilal, The Impact of Vocational Training and Education Provided for Girls and Women in Palestine on their
Employment/ their Involvement in the Labor Market, A Working Paper Presented at the Second Conference on
Educational, Vocational and Technical Training 2009
40. Fathi Srouji, 2009, Irrigated Agriculture as Business Establishments in Palestine, Ramallah. The Palestine Economic
Policy Research Institute (MAS)
41. MA’AN Development Center- Environment and Development Prospects- A monthly Electronic Magazine, August 2010
42. MA’AN Development Center- Environment and Development Prospects- A monthly Electronic Magazine, September
2010
43. The Palestinian Women Center for Research and Documentation- UNESCO- Alpha International for Research and IT
and Opinion Polls- A Study on the Palestinians’ Impressions and Attitudes on Women Employment, Ramallah 2009
44. The Palestinian Women Center for Research and Documentation- UNESCO- WEBTOM Consultancy and Training- An
Assessment of the Economic and Social Impact of micro Credits on the Palestinian Women, Ramallah 2009
45. The Palestinian Center for Research and Documentation- UNESCO- The Palestinian Central Bureau of StatisticsUNESCO- The Palestinian Central Bureau of Statistics- The Challenges for Women Participation in the Labor Market
and the Required Interventions, Ramallah 2009
46. Naser Atyani, and Sarah el-Hajj Ali. 2009. Problems of Micro, Small and Medium Establishments in Palestine,
Ramallah, The Palestine Economic Policy Research Institute (MAS)
47. Ministry of Environmental Affairs, 2009, The Palestinian Environmental Strategy, al-Bireh, Palestine
48. Ministry of Agriculture, 2009, Strategic Plan 2010-2012, Ramallah, Palestine
A2
List of English Sources and References:
1.
GIZ , CBTSEC Methodology, Module II: ’Identification Of Economic Opportunities & Training Needs’, 2010
2.
Economic and social commission for western Asia 2007. Social and economic situation of Palestinian women 20052006. Birzeit University.
3.
International Monetary Fund. Staff Report for the Meeting of the Ad Hoc Liaison Committee. Madrid, April 13, 2010
4.
MEDSAT, Dec 2008.Training and employment in the northern and southern Mediterranean region
5.
OECD, 2010,Review of Labour Market and Social Policies-Israel, OECD
6.
Palestinian IT Association of Companies. September 2007.Position Paper. Ramallah, Palestine
7.
OCHA, 2010.Report 14-20 July.
8.
OCHA, July 2010. Occupied Palestinian Territories Movement Access.
9.
PITA,A Report on the Assessment of the Priority Areas in the Palestinian Information and Communications Technology
(ICT) Strategy, Workshop held on the 27th and 28th of August, 2008
10. PITA, 2008. Assessment of the Palestinian ICT Workforce
11. PITA, May 2009.The Palestinian ICT Sector...A three-Year Outlook...Based on Economic Indicators,
12. PITA, A Report on the Assessment of the Priority Areas in the Palestinian Information and Communications Technology
(ICT) Strategy, Workshop held on the 27th and 28th of August, 2008
13. United Nations Relief and Work Agency, January 2010. Population Census 2007 (refugees) .UNRWA
14. WFP/ UNRWA/FAO, Joint Rapid Food Security Survey in the oPt, May 2008
15. WFP/ UNRWA/FAO, Socio-Economic and Food Security Survey Report in the West Bank, August 2009
16. World Bank, Palestinian Economic Prospects: Gaza Recovery and West Bank Revival, Economic Monitoring Report to
the Ad Hoc Liaison Committee, June 8, 2009
17. World Bank, October 2006. Brief Overview of the Olive and the Olive Oil Sector in the Palestinian Territories.
A3
List of Electronic Sources and References
The Palestinian Central Bureau of Statistics: Various Statistical Data
1.
2.
3.
4.
http://www.pcbs.gov.ps/Portals/_pcbs/Agriculture/11998e4e-ef47-48d5-8918-60252c27f962.htm (accessed April
2010)
http://www.pcbs.gov.ps/Portals/_pcbs/Agriculture/9506fb3e-5d4b-4228-82b4-a926a8dca8c1.htm (accessed April
2010)
http://www.pcbs.gov.ps/Portals/_pcbs/Agriculture/79e28ca5-8dc0-406a-9a06-4278f7890c63.htm (accessed April
2010)
.http://www.pcbs.gov.ps/Portals/_pcbs/Agriculture/20ccece3-511e-4bd3-896c-c6f601da122b.htm (accessed April
2010)
5th,
5th,
5th,
5th,
The Palestinian Central Bureau of Statistics: Un-published Data and Information on Importing and Exporting Statistics
according to producer- The Governorates (1997/2004/2007/2009)
5.
6.
. http://www.pcbs.gov.ps/temp/Rand.rar (May 10, 2010)
http://www.pcbs.gov.ps/temp/Naheel.rar (May 17, 2010)
Hebron Chamber of Commerce
7.
www.pal-chambers.org/arabic/.../hebron5.html
Palestinian Information Technology Association of Companies (PITA) and the Incubator PICTI:
8. PICTI. www.picti.ps. (April 15, 2010)
9. PITA. http://www.pita.ps/newweb/etemplate.php?id=51(Oct 1, 2010)
Ma’an Development Center
10. http://www.maan-ctr.org/magazine.php (Sept 5, 2010)
Global Websites
11. http://blog.internetbusinessesforsale.co.uk/e-business/e-business-growth-statistics-2009
12.
13.
14.
15.
16.
17.
Pages for a variety of handicrafts
http://www.alwatanvoice.com/arabic/news/2010/02/17/146624.html
http://www.insanonline.net/news_details.php?id=2896
http://arabic.pnn.ps/index.php?option=com_content&task=view&id=52631
http://www.hebron-city.ps/atemplate.php?id=14
18. http://www.turathcenter.com/arabic/vendors/vendors.html
A4
Annexes
Annex 1: People who were consulted at the local and national levels through interviews, focus groups and
workshops
Personal Interviews:
Interview
Date
Name
Position
Institution
03.04.2010
Amjad Al-Tawil
Deputy Director
Licensing Section professions and
trades / Hebron Municipality
03.04.2010
Ya’qoub Seder
Has workshop for air
conditioning
Private Workshop
15.04.2010
O’day AlJa’bary
Executive Director
Al-Esteklal Center for Media and
Development
15.04.2010
Eng. A’la AlJa’bary
Agriculture Engineer
Specialist
17.04.2010
Taysir Said
Director
Project Director
Joint Council for Solid Waste
17.04.2010
Eng. Yasser AlDweik
20.04.2010
Shehadeh Al-Rajabi
Has farm cows
Private Sector
20.04.2010
Mohammed A’ref
Alrajaby
President of the Association
Association of grape juice and plum
Eng. Mohammed
Zakary
Eng. Jawwad AlSayed Al-Herbawi
Director
Bethlehem Industrial Zone
Economic Advisor
Hebron Municipality/ Municipality
Consultant
24.04.2010
Eng. Ghada AlTbakhy
Project Manager Training for
Poverty
Polytechnic Palestine University
24.04.2010
Jawwad Al-Haj
Project Manager
Center for marble and stone/
Businessmen
Hebron Governorate, Chamber of
Commerce
21.04.2010
21.04.2010
25.04.2010
22.05.2010
Ashraf Zughair
Director of Continuing
Education Department
22.05.2010
Taghreed AlHerbawy
Housewife
23.05.2010
Sadeq Neroukh
Director of a factory
Progress Company for Metal Industries
23.05.2010
Hesham AlKarky
Director
Hebron Industrial Secondary School
20.06.2010
Nasry Abu Sneneh
Palestine Insurance Company,
the agent
Spanish Organization
20.06.2010
Nader Al-Tamimi
President of the Union
Federation of Handicraft
A5
Focus Groups:
1.
Name
Osama Ali Jarar
Company
Agriculture Directorate of Hebron
2.
Faraj Zughair
Royal Company
3.
Samer Namoura
Marketing Association and the agroprocessing
4.
Ala’ AlDeen Al-Ja’bary
The Agricultural committee for
development of agriculture and
environment
5.
Mohammed Aref AlJa’bary
Marketing Association and the agroprocessing
6.
Taysir Saed
7.
Ez Al-Deen Al-Ja’bary
Hebron University
8.
Ayman Zaloum
Hebron University
Central personal interviews:
No.
Name
Position
1.
Adel Zagha
2.
Adel Samara
Economic Specialist
Freelancer
3.
Laith Qasis
Hanan Khaldi
Executive Director
Public Relations
PITA, PICTI
4.
Osama Abu Ali
Director of the agricultural sector
Pal Trade
Economic Specialist and University
lecturer
Organization
Birzeit University
Director of Extension and Rural
Development
5.
Ibrahim Qteshat
Ameen Abu Al-So’od
Executive Director of the Office of the
rehabilitation of land
6.
Saed Dagher
General Director
7.
Foa’d Al-Akra’
Executive Director
A6
Ministry of Agriculture
Arab Society of Engineers and
the Agricultural Relief
Union of Food Industries
Director of Public Relation
General Union of Palestinian
Industries
8.
Ma’moun Nazal
9.
Adnan Jaber
10.
Marwan Tarzi
Center Director
Birzeit University- Continuous
Education Department
11.
Rema’ Younis
General Director
Fair Trade
12.
Emad Al-Baba
Specialist
Industrial and Agriculture
Engineer
13.
Mohammed Al-Shahbary
Deputy Manager in the Ministry of
Agriculture
Ministry of Agriculture
14.
Manal Shkokani
Director of Industrial Development
Ministry of Economy
Operations Management Officer
Owner and director of the company
and Chairman of the Board of
Directors
International Sinokrot
Company
Intertech
PITA
PICTI
15.
Ala’ Ala’ AlDeen
16.
Loay Abu Ghosh
Company Director
ETCO
17.
Shaher Al-Juneidy
Director
Al-Juneidy Co. for Agriculture
Materials
18.
Goerge Kurzum
19.
Rae’d Turkey
20.
Jamal Awad
21.
Waleed Al-Ahmed
22.
Abeer Al-Ashqar
Researcher at the Environmental
Affairs
Ma’an Center
Executive Director of the Palestinian
Federation of Chemical Industry
Palestinian Industrial Union
Trust for Insurance
There was a meeting with them
during the focus groups - the
exchange of information
Jerusalem Real Estate
Investment
Palestinian Company for
Commercial Services
A7
A Workshop to present the primary results of the economic survey study
In Hebron Governorate
June 12, 2010
List of Attendance:
Name
Institution/Company
1.
Noor Al-Huda Al-Ja’bary
High Class for Decoration/ Private Sector
2.
Ayman Odeh
MoL
3.
Hisham Al-Karaky
Hebron Industrial School
4.
Ahmed Manasra
Chamber of Commerce / Hebron North
5.
Samer Al-Namoura
Marketing Association and the agro-processing
6.
Yehia Al-Rfa’e
Hebron University
7.
Kathem Hasouneh
Al-Keram Co. for Tourism
8.
Hamzeh Al-Qawasmy
Al-Keram Co. for Tourism
9.
Abd Al-Salam Al-Hashlamoun
Private Sector
10.
Mos’ab Al-Hshlamoun
Private Sector
11.
Ayman Zaloum
Hebron University/ Continuous Education
12.
Yasser Dweik
Joint Council for Solid Waste
13.
Taysir Saed
14.
Ayman Qawasmy
Center for the rising generation
15.
Nader Jalal Al-Tamimi
Federation of Handicraft
16.
Amal Al-Jo’beh
Women Center for Counseling
17.
Yassin Ektet
Ministry of Tourism
18.
Ashraf Al-Zughair
Polytechnic Palestine/ Continuous Education
19.
Eshak Nasser Al-Deen
General Union of Electricians
20.
Ali Qdemat
MoL
Faraj Al-Zughair
Royal Company
Talat Abu Rajab
Hebron University/ Agriculture College
A8
Name
Institution/Company
Hussein Abu Khareebeh
Yehia Karjeh
Health Sector
List of members of LET council steering committee in Hebron Governorate
1
2
3
4
5
6
7
8
9
11
12
13
Name
Ali Qdamat
Taysir Isayed
Marwan sultan
Sahar kawasmeh
Samoor Natsheh
Maher Shrawneh
Tawfiq al-nassar
Bader al-Hawamdeh
Sami Samamreh
Shafeeq abuhamad
Ayman sultan
Sameer aljamal
Name of organization
MOL
HCCI
Hebron governorate
Adwar for social change
Tread Union
FATTEN
PCBS
MOA-Hebron directorate
UNRWA
Federation of charitable societies
Palestine Polytechnic University
MoEHE
A9
Annex 2: Economic Statistics107:
Annex 1.2: General Statistics of the Economic Sectors
Table 1.1.2 some concluded indicators at the Palestinian Territories according to the economic activity, 2008
Economic Activity
Number of
Institutions
Industry Activities
14508
Constructions Activities
566
Internal Trade Activities
Number of
Beneficiaries
Workers
Compensation
Production
Intermediate
Consumption
61690
191463.2
1808281.8
1072382.6
735899.2
44848.6
5359
23019.6
186135.2
60203.3
125931.9
3804.6
54677
99680
116312.8
934300.3
244513.1
689787.2
49647.7
Services Activities
21797
64323
204470.3
612710.2
183447.8
429262.3
43519.4
Transportation, Storage
and Communications
Activities
Total
1041
8105
77216.6
454053.4
79090.8
374962.7
54696.5
612482.5
3995480.9
1639637.6
2355843.3
196516.8
92589
239157
Gross
Added
Value
Gross Fixed
Capital
Composition
Table 2.1.2 Number of Working Establishments and Employees in the Private and non-governmental Sectors and Public
Companies according to the Economic Activity 1997-2007
Agriculture,
Fishing
and
Forestry
Mining and Quarrying
Manufacturing
Electricity, Gas and Water
Supplies
Constructions
Wholesale and Retail Trade,
Vehicle Reparation
Hotels and Restaurants
Transportation, Storage and
Communications
Financial Intermediation
Real Estate, Rental and other
Project Activities
Education
Health and Social Work
Social Services Activities
107
1997
No. Of Employees
Females
Total
1,640
9,172
No. Of
Establishment
6,075
Males
7,532
362
14,813
886
2,254
51,296
1,268
8
9,581
4
526
39,600
3,611
61,459
2,612
689
2,007
No. Of Employees
Females
Total
3,249
14,572
No. Of
Establishment
6,976
Males
11,323
2,262
60,877
1,272
299
15,340
477
1,841
54,469
2,977
10
8,363
87
1,851
62,832
3,064
250
4,263
3,861
65,722
627
59,253
4,254
101,871
303
9,958
4,557
111,829
5,400
3,053
336
232
5,736
3,285
4,643
1,215
10,266
7,540
973
997
11,239
8,537
619
2,736
3,082
5,452
1,085
1,327
4,167
6,779
844
4,304
5,331
8,881
1,811
2,331
7,142
11,212
1,487
2,996
3,561
76,962
3,935
6,021
5,827
160,190
6,349
4,592
1,504
31,171
10,284
10,613
7,331
191,361
2,384
4,260
9,064
109,686
8,280
9,645
15,020
241,698
11,811
6,941
8,433
55,267
20,091
16,586
23,453
296,965
The reference for this Annex is: The Palestinian Central Bureau of Statistics: The population Census and various statistics, the
electronic page May 2010
A10
Annex 2.2: Detailed Statistics on the Various Economic Sectors:
1.2.2: Agricultural Sector Statistics
Table 1.1.2.2: Proportional Distribution of tree-gardening possession in the Palestinian Territories according to the legal
entity of ownership and area. 2006
1.2
Area
2
The Palestinian Lands
West Bank
Gaza Strip
Owned
92.7
92.3
98.0
Leased
1.2
1.1
1.7
1.1.1.1
Legal entity of Possession
Owned and Leased Guarantee/share
4.9
0.4
5.3
0.4
0.1
0.0
Total
squatter
0.2
0.2
0.2
Other
0.6
0.7
0.0
100
100
100
Table2.1.2.2: Major changes to the various agricultural data in the Palestinian Territories, 2004-2008
Indicator
Number of Cisterns
Quantity of water pumped (3‫م‬1000)
Quantity of fish caught (tons)
Number of fishermen
Number of boats used for fishing
Number of cows slaughtered
Number of sheep slaughtered
Number of goats slaughtered
Number of meat-producing chicks produced (in thousands)
Number of egg-producing chicks produced (in thousands)
Percentage of males working in agriculture of the total number of males working in the various
activities (%)
Percentage of females working in agriculture of the total number of females working in the various
activities (%)
Average daily rate of the workers in agriculture (US $)
Number of private and non-governmental economic establishments related to the agricultural sector
Number of agricultural cooperative societies
Number of agricultural engineers
Number of nurseries
Number of veterinarians
Number of vaccinated animals
2003
4,248
105,073.
7
2,951.3
2,998
725
24,952
35,447
8,174
27,737.0
113.0
12.0
2004
246*
110,692.
2
1,813.9
2,998
707
23,797
32,634
5,849
40,408.8
469.4
11.0
2005
*242
114,578.
6
2,322.9
3,024
712
19,035
25,149
2,837
27,629.4
345.1
12.0
2006
*257
117,555.
5
2,701.0
3,060
723
20,988
19,300
2,767
53,069.9
35,996.5
10.8
2007
*272
105,395.6
33.7
32.5
34.4
36.0
27.5
8.3
7,259**
195
***784
..
..
..
8.7
7,241
204
1,551
197
..
..
9.0
7,207
180
1,595
227
259
986,369
10.1
8,458
206
*834
193
270
1,335,92
8
8.3
8,357
201*
*934
* 98
*175
*1,191,14
9
2,843,3
3,060
614
9,895*
*25,688
*3,438
25,152.0*
393.6*
10.1
.. :Unavailable.
*Representing West Bank data only
** Representing agricultural establishments working in the private and non-governmental agricultural sector
*** Representing Gaza Strip data only
Table 3.1.2.2: Selected Indicators for the Utilization of Lands in the Palestinian Territories for Selected Years, 2000-2008
Indicator
Area of cultivated land (km²)
Area of forests and woodlands (km²)
Area of permanent cultivated lands
(km²)
Area of temporary cultivated lands
(km²)
Area of irrigated cultivated lands
(km²)
Area of rain -fed cultivated lands
(km²)
Productivity of irrigated cultivated
lands (ton/ km²)
Productivity of rain-fed cultivated
lands (ton/ km²)
Value of agricultural production of
cultivated lands ($1,000 / km²)
The per capita share of permanent
cultivated lands (m²)
2000
1,514.8
90.8
1,192.6
2002
1,516.3
91.7
1,181.3
2004
1,488.1
91.7
1,152.7
2006
1,481.5
91.7
1,136.6
2008
1,513.0
94.3
1,172.2
322.2
335.0
335.5
344.9
340.8
161.6
162.2
158.2
165.1
169.6
1,353.2
1,354.1
1,330.0
1,316.4
1,343.4
4,677.1
4,686.7
4,687.7
4,950.8
6,734.2
278.6
314.8
257.4
256.6
196.5
415.5
334.3
292.2
405.4
790.6
407.9
331.8
316.9
292.3
302.1
Table 4.1.2.2: Veterinarians in the West Bank according to the area of speciality and region, 2008
Area of Speciality
The Palestinian
West
West Bank/
West Bank/
West Bank/
Territories
Bank
North
Middle
South
Total
27
48
175
100
27
A11
Gaza
Strip
48
Area of Speciality
Veterinary Medicine
The Palestinian
Territories
23
West
Bank
45
West Bank/
North
158
West Bank/
Middle
90
West Bank/
South
23
Gaza
Strip
45
Table 5.1.2.2: Number of stations and agricultural and guidance units and number of agricultural consultants in the Palestinian
Territories according to the region, 2008
Region
The Palestinian Territories
West Bank
West Bank North
West Bank Middle
West Bank South
Gaza Strip
Number of agricultural and guidance units
58
50
22
13
15
8
A12
Number of agricultural stations
8
5
3
1
1
3
Number of agricultural Consultants
218
159
92
28
39
59
2.2.2 The Constructions Sector Statistics
3. Table 1.2.2.2 The Main Economic Indicators according to the Economic Activity in the Palestinian Territories 2008Constructions
Economic Activity
Constructions
Site Preparation
Full of Partial
Construction of
Establishments
Installation in
Buildings
Finishing Works of
Buildings
Activity
Indicator
2.1
Number of
Institutions
‫و‬
4510
4520
526
13
321
Number
of
Workers
4353
92
3177
4530
115
4540
77
Workers
Compensations
Production
Intermediate
Consumption
28998.2
429.2
23715.8
164699
1826.6
118506.3
113466
1370.8
87212.2
Gross
Added
Value
51233.6
455.9
31294.1
Gross Fixed
Capital
Composition
1893.3
3.9
1401.9
653
3567.6
40024.8
23214.7
16810.1
364.2
431
1285.5
4341.3
1667.9
2673.5
123.3
(Value in Thousand US $)
Table 2.2.2.2 Licences of Buildings Issued in the West Bank according to Building Utilization and Governorate, 2008- Nablus, Ramallah, Bethlehem and
Hebron
Governorate
West Bank
Nablus
Ramallah
and al-Bireh
Bethlehem
Hebron
Residential
3,413
714
362
Industrial
19
9
0
247
765
5
2
Building Utilization
Commercial Educational
281
80
77
22
53
16
24
36
Total
Health
13
4
1
Other
998
571
130
4,804
1,397
562
2
2
58
22
339
841
3
14
Table 3.2.2.2 Licences of Buildings Issued in the West Bank according to the number and area of licensed housing units and the Governorate, 2008Nablus, Ramallah, Bethlehem and Hebron
Governorate
Number
Number and Area of Licensed Housing Units
New Units
Established Units
Area
Average
Number
Area
Average
Number
(m²)
Area (m²)
(m²)
Area (m²)
368,292
160.2
1,011
105,190
146.1
5,278
68,751
182.4
228
6,744
59.2
862
113,188
320.6
126
15,410
214.0
1,106
Total
Area
(m²)
473,482
75,495
128,598
Average
Area (m²)
156.8
153.8
302.6
West Bank
4,267
Nablus
634
Ramallah and al980
Bireh
Bethlehem
448
40,353
180.1
55
3,513
94.9
503
43,866
168.1
Hebron
981
57,425
118.4
309
60,226
217.4
1,290
117,651
154.4
Note: Data does not include refugee camps and that part of Jerusalem governorate which Israel had forcefully annexed after its occupation to
the West Bank in 1967.
3.2.2: The Industrial Sector Statistics:
Table 3.2.2: The Main Economic Indicators according to the economic activity in the Palestinian Territories 2008- Industry
Economic Activity
Other activities of mining and
quarrying
Manufacture of food products
and beverages
Manufacture of tobacco
products
Manufacture of textiles
Manufacture of clothing
Tanning and dressing of
leather and manufacture of
bags and shoes
Manufacture of wood and its
products and varieties of hay
Manufacture of paper and its
products
Printing and publishing
Manufacture of refined
petroleum products
Manufacture of chemicals and
chemical products
Manufacture of rubber and
Number of
Institutions
Number
of
Workers
Workers Compensations
Production
Intermediate
Consumption
230
1311
6834.8
67831.8
27720.9
40110.9
218.4
2063
9988
35887.3
493473.2
292806.6
200666.6
4897.6
21
190
3788.9
64800.6
2654.4
62146.2
729.7
328
1751
400
1351
11437
2215
3371.2
31142.8
7593.8
26707
106445.1
48715.9
11985.5
33742.9
24872.8
14721.4
72702.3
23843.1
49.6
2971.6
182.5
725
1930
3855.7
28768.5
16291.3
12477.2
221
61
603
4250.1
79060.4
49829.6
29230.8
170.7
277
4
1345
24
5184.7
203.0
37246
4581.7
20118.3
3532.8
17127.7
1048.9
728.5
0.0
196
1753
9063.1
68719.4
32486.4
36233.0
2355.5
177
1652
6509
102960.8
76816.6
26144.2
275
A13
Gross
Added
Value
Fixed
Capital
Composition
Economic Activity
Number of
Institutions
Number
of
Workers
Workers Compensations
Production
Intermediate
Consumption
1724
9577
44770.9
382589.1
233213.1
149375.9
13042
53
3197
279
6071
1267.1
10003.1
8866.1
241762.4
4762.4
101841.4
4103.6
139921
15.8
1326.7
276
812
2547.7
14201.9
7204.8
6997.2
104.9
83
279
602.5
5866
3339.7
2526.4
5.0
16
29
2.2
142.1
49.6
92.5
1.4
92
215
567.5
3334.7
1249.3
2085.4
300
12
49
108.6
839.0
518.3
320.7
50.3
8
13
6.7
88.9
49.8
39.1
0.3
2450
6599
15106.3
138328.9
75597.4
62731.6
3473.6
15
9
372
55
683
1181
116.2
7129.7
5295.4
6723
92520.9
31584
6424.5
48914.6
11796.6
298.5
43606.2
19787.4
41.4
24.7
4481.7
plastics products
Manufacture of other nonmetallic mineral products
Manufacture of basic metals
Manufacture of metal products
except machinery
Manufacture of machinery and
other equipment
Manufacture of other electrical
machinery
Manufacture of radio and
television equipment
Manufacture of medical
devices
Manufacture of vehicles and
trailers
Manufacture of other transport
equipment
Manufacture of furniture and
other equipment
Recycling of waste
Electrical supplies
Collection, purification and
distribution of water
Gross
Added
Value
Fixed
Capital
Composition
4.2.2: Statistics of the Trade Sector:
Table 4.2.2: The main economic indicators according to the economic activity in the Palestinian Territories 2008- Trade
Activity
Indicator
Economic Activity
49
50
51
Number of
Institutions
Number of
Workers
Workers
Compensation
Production
Intermediate
Consumption
57987
112107
144142.6
1343839
291550.9
1052288
28656.5
7409
16373
28514.3
283215.9
47756.1
235459.8
9620.0
2501
8428
33071.2
245998.2
44427.3
201570.9
3633.8
48077
87306
82557.1
814624.6
199367.5
615257.1
15402.7
Wholesale and retail trade and
vehicle reparation
Vehicle sale and maintenance and
fuel sale
Wholesale trade
52
Retail sale and reparation of
personal commodities
Gross
Added
Value
Gross Fixed
Capital
Composition
5.2.2: Statistics of the Services Sector:
Table 5.2.2 the Main Economic Indicators in the Palestinian Territories for the Services Activities
Economic Activity
Number of
Institutions
Number of
Workers
Workers
Compensation
Production
Hotels and restaurants
Real estate activities
Machinery rental without worker and
rental of personal commodities
The electronic calculator and related
activities
Research and development
Other commercial activities
Education
Health and social work
Disposal of sewage and waste
Activities of other membership
institutions
Recreational, cultural and sports
activities
Other services activities
Services Activities
4593
203
358
11620
516
724
30617.5
2355.8
931.7
186623.4
11954.8
6762.5
532
1202
3982.9
50
3006
2035
3927
4
1442
470
8563
15445
13378
14
8039
1927
4973
23050
Intermediate
Consumption
78735.1
2916.4
1574.5
Gross
Added
Value
107888.3
9038.4
5188
Gross Fixed
Capital
Composition
1130.2
751.0
7087.6
15097.9
3101.8
11996
662.4
4601.9
30825.7
87102.8
63805.1
119.4
39340.2
9732.2
105123.8
172617.3
177355.8
222.8
90079.4
1565.7
22818.7
25109.5
41886.9
91.2
25059.4
8166.5
82305.1
147507.8
135468.9
131.6
65019.9
119.8
1549.7
11361
7325.7
0.0
3749.3
5056
10758.9
41430
14708.5
26721.5
11194.4
8400
73427
12305.3
286747.2
78223.5
895223.4
18622.9
236190.6
59600.5
659032.5
890.7
45821.8
6.2.2: Statistics of the Financial Intermediate, Transportation, Storage and Communications Sectors:
Table 1.6.2.2 some rates concluded from the survey according to the economic activity in the Palestinian TerritoriesFinancial Intermediation- 2008
A14
Economic Activity
Average share
of compensation
for wage
earners (in US
dollars)
Average production of
wage earners from the
total production value (in
dollars)
Average share of
wage earners from
the added value in
dollars
Proportion
of added
value to
production
Proportion of
workers
compensation to
the added value
Rate of
annual
depreciation
to production
2.1.1.1
18291.3
67655.1
55031.6
81.3
33.2
6.5
20606.3
66619.6
55214.6
82.9
34.8
7.2
14552.4
77940.4
69765.7
89.6
19.8
2.6
12171.1
70916.4
50696.5
71.5
28.2
3.5
Total valve of
financial
intermediate
Monetary Authority, Commercial
Islamic Banks and Specialized
Lending Institutions
Securities Exchange Market, and
securities exchange companies
Insurance companies
Table 2.6.2.2 Number of institutions and workers and the main economic indicators according to the economic activity in
the Palestinian territories- Transportation, storage and communications 2008
Economic Activity
Number of
Institutions
Workers
Compensations
Production
Intermediate
Consumption
1140
Number
of
Workers
8492
Transportation,
storage and
communications
Land transport
Ancillary activities,
travel agencies
activities
Post and
telecommunications
77751.6
739228.2
440
379
3481
1429
17207.4
5515.1
321
3582
55029.1
A15
86005.5
Gross
Added
Value
653222.7
Fixed
Capital
Composition
39581.7
69400
40011.7
25366.4
9173.4
44033.6
30838.3
3705.5
182.6
629816.4
51465.6
578350.7
35693.6
Annex 3: A model to calculate the gap in agricultural production and agricultural exchange:
Calculating the gap for fruitful trees in Ramallah and al-Bireh Governorate- The method has been used for all areas
Item
Olive(litre)
Almonds
Peach
Plum
Apricot
Dates
(fresh)
Dates
(Dried)
Grapes
Raisins
Nuts
Household
Consumption
* in one
month/kg
4.694
0.062
1.312
0.161
0.375
0.148
0.009
1.87
0.002
0.004
Consumption
on areas (A)
2,976,033.55
39,308.50
Production
in (B)
areas
kg/year
14,430,000
159000
0
831,818.50
102,075.29
237,753.00
93,833.18
324000
18000
1,282,000
Amount of
deficiency
in
production
(A-B)
11,453,966
119,692
-831,818
Importer ***
(C)/ US
dollar
Importer***
(D)/ US
dollars
NA
1,703,190
417910
170,010
9350
-247,900
221,925
-219,753
1,182,461
-7,880
862820
218,660
192190
530
-644,160
1679000
492,137
1,268.02
2,536.03
1,703,190
1470
5,706.07
1,185,594.96
Amount
of
deficiency
in trade
(C-D)
-191,660
6000
3,464
1694850
2,900,000
-1,691,950
References for the previous table regarding the production gap and the commercial exchange deficiency:
Consumption: calculated based on: The Palestinian Central Bureau of Statistics 2005. Consumption Amounts of Food
Commodities by the Domestic Sector in the Palestinian Territories 2004. Ramallah, Palestine
Production: Various agricultural statistics derived from the Palestinian Central Bureau of Statistics on 5/4/2010
http://www.pcbs.gov.ps/Portals/_pcbs/Agriculture/11998e4e-ef47-48d5-8918-60252c27f962.htm
Importing and Exporting in the Governorate 2008, unpublished data of the Palestinian Central Bureau of Statistics,
May 2010
.
A16

Study of the Economic Opportunities in Hebron Governorate and the

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