Transcript Downloadable Powerpoint on Trade and Investment in the oPt

The General Delegation of Palestine to Australia
New Zealand and the Pacific
Investment and Trade Opportunities in
the Occupied Palestinian Territory
Contents
• An Overview of the Palestinian Economy
• Investment and Trade
• Sectoral Priorities and Focus
• Business Organisations and Networks
• How to Conduct Business in Palestine
2
• New Initiatives
Trade Environment in the
The Occupied Palestinian
Territory is a singular political
entity, made up of 3 areas:
East Jerusalem, the West
Bank and the Gaza Strip.
The West Bank is around
5,800 sq. km – including
East Jerusalem, and the
Gaza Strip is around 360 sq.
km.
The total population of the
West Bank and Gaza Strip
or WBGS, is about 4.01
million persons.
3
Perceptions and Reality
• The common perception is that
it is impossible to do business
in, or with Palestine
• The common perception is that
the Israeli occupation overrides
all Palestinian economic activity
and progress
• The common perception is that
all Palestinian people exist on
humanitarian aid
• These common perceptions
often stop investors from
investigating and recognising
the real and growing
commercial opportunities
within Palestine
• There are real and multiple economic
opportunities in Palestine
• Opportunities exist for export, import
and investment
• The Israel occupation places genuine
restrictions on the Palestinian economy
• The Palestinian economy is growing and
the growing Palestinian population
provides a predictable growth pathway
• Economic independence is a central
priority of the Palestinian Authority
• The Palestinian Authority has created a
stable environment for economic growth
by creating a clear legislative framework,
good governance, and conformity to
international standards
A Growing Economy
The Palestinian economy grew by 9.3% in 2010 compared to 6.8%
in 2009
The growth of the Palestinian economy is due to:
• Significant amounts of donor assistance
•
Donor assistance directed specifically at establishing and
growing Palestinian economic independence
•
Improvement on restrictions on the movement of goods and
people within the West Bank including greater predictability of
movement for commercial goods
•
Lifting of certain import controls in the Gaza Strip
•
A relatively low growth base which offers more opportunities for
expansion, investment and growth
•
Population growth
5
Reform and Development
The Palestinian Authority Reform and Development Plan
has focused on:
•
•
•
•
•
Stable fiscal performance and reduction of deficit
Good governance
Public infrastructure such as education, hospitals,
municipal services, justice system, water networks,
electricity, waste treatment, tourism infrastructure
Structural Reform, particularly in the areas of improved
financial accountability and sound public management
An environment of public and private stability
6
Results
• Declining unemployment overall –
26.6% in 2009 to 24.5% in 2010
• Real GDP growth – 5,147million in
2009 to 5,560 million in 2010
• Growing economic stability and
confidence
• Increased international recognition
that the Israeli occupation is
profoundly detrimental to the
Palestinian economy
• Increased recognition that a stable
independent economy is vital to a
stable, independent, sovereign,
democratic Palestinian state
• Growing international advocacy for
the lifting of restrictions to enable
an independent Palestinian
economy
Palestinian Minister for the National
Economy the Hon Hussan Abu Libdeh
and the Vietnamese Minister for
Industry and Trade the Hon Vu Huy
Hoang sign a bilateral trade agreement,
22 September 2010
7
Challenges Remaining
1. Palestine remains under Israeli occupation and the ability of
the Palestinian Authority to alter certain external constraints,
is limited
2. Direct trade with international and regional partners remains
problematic as all goods must pass through 2 layers of
restrictions
Examples
•
•
•
•
Livestock imports must satisfy both Israeli and Palestinian import
and quarantine controls and restrictions
Due to the difficulty of direct Palestinian trade, Palestinian
products and particularly agricultural products are often
purchased by Israeli companies and sold as Israeli products.
This results in lower actual and documented returns to the
Palestinian economy
The sale of Jordan Valley dates to Israeli companies is one
example of this practice
8
Challenges Remaining cont.
3. Two-layered import and export restrictions are under
discussion between Palestine and Israel
4. Israel has a vested interest in constraining the Palestinian
economy
5. The international community and international bodies are
focused on freeing the Palestinian economy and ensuring
its independence and stability
•
The World Bank Private Sector Working Group which includes
members from Palestine and Israel is working to increase the
reliability of movement of goods and people, protect investors
and businesses, and reduce the legal and regulatory obstacles
facing private investors
9
Opportunities
Increased aid has increased financial stability and
opportunities
•
•
•
Aid is providing direct humanitarian funding to low or no-income
groups
Aid is targeting development skills such as income generation
education, microfinancing and community projects. An example
is community education for income generation and the provision
of micro-loans to start-up competitive gas supply businesses in
small villages. Projects are intended to create income, break
monopolies and introduce competition, thus stimulating the
Palestinian economy at a micro-level
Increased financial stability and business expansion for the
private sector, is creating demand for educated and experienced
middle managers
10
Challenges and Opportunities
• The transition to an independent
economy is providing real
opportunities for trade, investment
and growth
• The Palestinian Authority is seeking
investment in core economic areas
and projects and is supporting trade
expansion
• Palestinian businesses want to
expand their exports and the export
of niche products is a market that is
highly relevant and open to
Australian importers
11
Challenges and Opportunities
•
Business expansion within Palestine is creating demand for
high quality tertiary level middle management business
education
•
The economies of the West Bank and Gaza are still
recovering from the multiple effects of the 2nd Intifada,
international boycott, Israel’s attack on Gaza, the loss of
movement in and out of the OPT, and between the West
Bank and Gaza
•
Recovery means constraints are present, while also
creating opportunities for growth.
Importing into Palestine
3 core groups of products imported into Palestine
• Energy products - oil, gas and electricity
• Foodstuffs and livestock
• Manufactured goods e.g. Footwear, household items,
machinery, cars etc
• These products constitute approximately 73.6% of imports
in 2008, the most recent consolidated figures available
• Israel is the primary Palestinian trading partner, providing
80.6% of the total of Palestinian imports in 2008 and
receiving 89.4% of the total exports
• The Palestinian Authority is supporting diversification and
reducing dependence on Israel
13
Current Australian Trade into Palestine
•
Manufactured foodstuffs
•
Livestock
•
Manufactured goods
•
Education
•
Pharmaceuticals
•
Tourists and tourism
services
14
Current Palestinian Trade into Australia
Niche products
• Specialty crafts: Holy Land carvings,
religious memorabilia, ceramic tiles
• Fair Trade Products e.g. Olives and
Olive Oil
• Organic Products e.g. Olive Oil,
seasonings, teas, grain products, niche
dairy products
• Stone and Marble
15
• Specialty textiles and embroideries
Sectoral Priorities and Focuses
• In reforming and developing the Palestinian economy, the Palestinian
Authority is designating priority sectors and areas of focus within
priority sectors
• Priority sectors are infrastructure areas deemed to be most critical to
on-going economic, social, educational and development and
transition
• Priority sectors are also areas of particular influence
• Priority sectors are receiving funding priority from the Palestinian
Authority and investment support
• Sectoral priorities and focus areas provide opportunities for Australian
engagement
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Sectoral Priorities and Focuses
Public Sector Governance and Accountability
• Independent and effective judiciary, public safety, media
freedom
Social Priorities
• Poverty alleviation, health care, disability services, youth and
sports, education reform e.g. teaching profession reform,
school building
Infrastructure Priorities
• Energy e.g. solar energy, environment e.g. sustainable waste
disposal, low-cost housing, transportation, wastewater
management
Economic Focuses
• Agriculture, telecommunications and IT, tourism e.g. hotels,
antiquities
17
Small-Medium Enterprises – SME’s
Investment opportunities through SME’s
• SME’s deliver services quickly to areas of immediate need and
engage the goals of medium term reforms
• SME engagement is supported by the World Bank and
Palestinian Authority
• Projects that can be undertaken by SME’s are supported and
provide significant, immediate and medium term commercial
opportunities over minimum 3 year periods
• SME’s provide opportunities for investment in Palestinian
companies and companies operating in Palestine
18
• Construction - High density housing projects e.g. Rawabi
(Ramallah), low cost, high-quality housing
•
• Agriculture – Greening Palestine land rehabilitation and tree
planting of 1.25m trees
13/04/2015
SME Projects
• Tourism and Antiquities – protection of cultural heritage sites
• Education - 134 new schools and expanded 312 schools in
the past 3 years = 1,449 new classrooms and 1,438 expanded
classrooms and facilities
• Health – rehabilitation of 50 health care centres and 3 new
hospitals
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Business Organizations
and Networks
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Trade Bodies - Overall
Ministry of National Economy
• Macro-economic management including guarantees, bilateral
agreements, regulations and registrations
Palestinian Investment Promotion Agency
• One-stop-shop for investors, to assist in understanding and
conforming to regulations, gaining licences and ensuring
taxation incentives are accessed
PalTrade
• Promotion and support for Palestinian exports, provision of
export support
Palestine Standards Institution
• Ensures Palestinian conformity with International Standards
Agreements
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Private or Public/Private Trade
• Palestinian Federation of Industries
• Federation of Palestinian Chambers
of Commerce, Industry and Agriculture
• Palestinian Businessmen’s
Association
Sectoral Organisations - a few
• The Palestinian Information
Technology Association
• Palestinian Fair Trade Association
• Regional Chambers of Commerce
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Conducting Business in Palestine
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Steps 1, 2 & 3
First Step
• Palestinian Investment Promotion Agency - guidance on
company registration, regulations, taxation, licences,
locations, financial requirements, customs
Second Step
• Registration at the Ministry of National Economy
Third Step
• Support from specific sectoral and municipal bodies
e.g. Customs and Tolls within the Ministry of Finance,
Palestinian Capital Market Authority, Regional
Chambers of Commerce
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Legal Framework
1998 Investment Promotion Law
•Supports the development of industrial zones
•Gives tax incentives for investors, including income and
customs tax exemptions.
•Income tax for individuals and companies is capped at
16%
•Trade Agreements
•Preferential treatment e.g. Reduced duties for Palestinian
exports in the European Union, USA, Canada and Turkey
•Reciprocal ‘Most Favored Nation’ agreement with Russia
•Bilateral Trade agreements with Jordan and Egypt allowing
•customs exemptions and reduced duties
•Cooperation agreements with Morocco, Tunisia, Vietnam
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Australian Initiatives
Australian Leadership Award Fellowships - accessed through
AusAid for professional middle career development in a broad
range of areas including trade and commercial expertise
• A key aspect of the ALA Fellowships is the development of
relationships between Australian and Palestinian organisations
AACCI Forum - Promotion of trade and investment in Palestine
Palestine Trade Expos - held regularly in Palestine
• The most recent was the Palestinian Food Producers Expo in
Hebron, opened by Prime Minister Salam Fayyad. Fair Trade
and organic products are a large and unexploited market area
for Australia
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General Delegation support for bilateral Trade Delegations
The General Delegation of Palestine to Australia,
New Zealand and the Pacific
Email
[email protected]
Telephone: 61+(0)2+62869193
Fax: 61+(0)2+62869405
Mailing Address
PO Box 4646 Kingston ACT AUSTRALIA 2604
Street Address
2/44 Dalman Crescent
O'Malley ACT 2606
AUSTRALIA
Consular Services including Registry
Go to http://www.palestine-australia.com and click on Consular Tab